Size of Industrial Market:

The industrial market contains fewer buyers then the consumer market. One way of organising required information for the market analysis is to use the standard industrial classification (SIC) system. It enables a firm to identify small segments of its business market. The system divides all types of businesses into groups. Then the subgroups are developed with the SIC sub-code numbers following the main SIC range of two-digit category. The diversity of a conglomerate is hidden. Four digit detail cannot be made available to an industry in a geographical location where the information would identify a particular firm.

Sometimes the industrial market may be limited in size regarding the total number of buyers. However, it may have a big purchasing power. Few firms in the country can account for the greatest share of the value added which is defined as the shillings value of a company's output minus the value of the inputs it purchases from other companies. The buying power in many industrial markets is highly concentrated in the hands of a relatively few firms. A high percentage of industry sales is done by a small number of companies.

Regional Concentration of Industrial Users:

In Kenya at Thika, Ruaraka, Industrial area of Nairobi, there is a substantial concentration of many major industries and industrial users as a whole. They have vertical and horizontal

markets.