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Market saturation exists in a given industry when the available supply of goods equals or falls short of customer demand. A variety of factors, including more competition, lower market need and obsolescence, contribute to saturated conditions.arket saturation exists in a given industry when the available supply of goods equals or falls short of customer demand. A variety of factors, including more competition, lower market need and obsolescence, contribute to saturated conditions.
deÂ·satÂ·uÂ·raÂ·tion. 1. The act, or the result of the act, of making something less completely saturated; more specifically, the percentage of total binding sites remaining unfilled; for example, when hemoglobin is 70% saturated with oxygen and nothing else, its desaturation is 30%. Compare: saturation (5). 2.