Market creation for radically new technologies: A literature review on the role of market niches

The article focuses on the role of niche markets in creating a market for radically new technologies. Managerially, niche strategies are important to build up a market. Scientifically, the information about these strategies is scattered. In a literature review four research questions are addressed: (1) Are different types of niches distinguished? (2) Are specific sequences of niches distinguished? (3) What are the factors that determine the emergence of niches? (4) Are different niche strategies distinguished? We found that articles focusing on technical details or on social aspects alone underestimate the difficulties in building up markets for radically new technologies. Three sequences of market niches are found to build up such markets. Many factors important for the emergence and selection of niches are found but the overview is lacking. We found two generic niche strategies and indicate when these strategies are applicable. The review discovers important gaps in the extant literature.