A niche market or a vertical market is a group of similar kinds of businesses that engage in a trade based on specialized needs of customers or buyers. The people who participate in a vertical market are usually a smaller portion of a larger industry or market. This kind of market is designed specially for a similar customer base.

Participants in vertical markets aim at solving the same kinds of problems within that specific portion. These markets can be competitive because of an overlapping focus on the services and products that are being offered to many customers.

In horizontal markets, the participants attempt to meet the needs through gaining a presence in the vertical market. They have similar products and services and they are less of a fit with each other.

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