I'm not a vendor, and I don't have an answer to your question, but if you're looking to go into business I can say that the market looks pretty saturated from where I'm sitting.
-S
That sort of depends on what your product is, doesn't it? If I come up with a widget that no one else makes then the market is wide open. I bet Slikstik is selling the crap out of their glowing joystick handles.
Also, I think the entire arcade component industry for home builders is a niche market. It is probably not a long term market either. You figure arcade games like we all know and love had a relatively short run. They appeared in the late 70'S and were passe before the 90'S. It is the mid 30 to mid 40 year olds that drive this market. People younger than this grew up with home video game consoles. People older than this were too old to take interest in arcade games. Sure there are some exceptions and sure our kids like to play these games on our cabinets, but I bet the customers driving this market are the 35-45 year olds. When we age and become less interested in this hobby, the market will evaporate. This forum has over 7000 participants. I'm sure the total number of people building cabinets is many many times larger. Still a niche market but large enough to support a product. My parents made a very nice living the last 10 years of their working years custom making Flags for the Goldwing community (Honda Motorcycle). They attended rallies and sold flags to dealerships, handled large orders for the GWRA yearly event. They produced probably 30-50,000 flags a year in what would be classed a small niche market. They did far better than I do as a senior engineer.
Niche markets aren't bad if your customer base can support your product. Sure your not going to become the next Microsoft. If you can make more than your day job and work for yourself, why not? Beats waiting for you job to get shipped to India or China.
Lastly, talking yourself out of perusing a business venture is the best way to fail. No market is saturated. If your product is better, you will displace someone. My parents business had many competitors but they made a superior flag that didn't get shredded by the wind as you drove down the road. The other vendors bought cheap flags from a manufacturer and resold them. My parents manufactured their own out of a heavy material and created a product that worked better.