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Sunrise Industry

Defining Sunrise Industry 

A sunrise industry is a rapidly growing and innovative sector that may outcompete declining industries, termed sunset industries. 

The phrase originated in 1983 to label prosperous, future-oriented manufacturing sectors. Industries with high competition, such as telecommunications, may transition faster from sunrise to sunset stages. 

Understanding Sunrise Industry 

Markets, such as the compact disk industry of the 1990s, grow and evolve until they reach their peak, then decline. With the rise of digital and online media, the compact disk industry became obsolete. 

In highly competitive sectors like telecommunications, market life cycles are generally shorter. Also, initial excitement around a new market doesn't assure its success. 

Sunrise Industry Life Cycle 

A sunrise industry is a burgeoning sector with potential for high growth and a growing customer base. Its products are innovative but may lack practical applications or commercial viability to start. As the industry matures, growth slows, but the customer base grows and product acceptance increases. This is the maturity stage. In the sunset stage, the industry experiences negative growth and minimal innovation, and products become obsolete.