Competitor Count Estimator: Businesses in Your Industry by Location (2022)

What if you could see that California has 94,672 restaurants and food service businesses while Wyoming has just 1,882? This Competitor Count Estimator reveals exactly how many businesses operate in your industry by location—and how you can position yourself in markets with the right competition level for your growth strategy.

The data shows dramatic differences: accommodation and food services (NAICS 72) range from 64,929 establishments in Texas to just 185 in American Samoa. This isn’t just about geography—it’s about understanding competition intensity, market saturation, and location opportunities that directly impact your market entry strategy.

Estimate competitor counts in your industry and location to understand market competition. This tool reveals competition level

This analysis examines County Business Patterns (CBP) data from the U.S. Census Bureau to count businesses (establishments) in specific industries by location across all U.S. states and counties. You’ll discover exactly how many competitors operate in your industry in each location, how competition levels vary by geography, and where opportunities exist for market entry.

What You’ll Discover:

• State rankings by competitor count for specific industries
• Industry-specific competition patterns revealing market saturation
• Location-specific competitor counts impacting market entry decisions
• Competition intensity indicators by industry and location
• Market opportunity identification (underserved vs. oversaturated markets)

Why This Matters: Understanding competitor counts helps you assess competition intensity, evaluate market saturation, and make strategic location decisions. Markets with many competitors indicate proven demand but intense competition, while markets with fewer competitors may offer opportunity but require careful market validation.

Competitor Counts Vary Dramatically by Location

The Numbers: Accommodation and food services range from 94,672 establishments in California to 1,882 in Wyoming—a 50x difference. This means California has 50 times more competitors in this industry than Wyoming.

So What? High-competition states like California and Texas offer massive markets with proven demand but intense competition. Lower-competition states like Wyoming may offer less saturation but require careful market validation. Your location choice directly impacts how many competitors you’ll face.

How to Use This: If you’re entering a high-competition market (50,000+ establishments), prepare for intense competition and focus on strong differentiation. If entering a lower-competition market (<10,000), verify market size and customer base before committing.

Industry-Specific Patterns Reveal Market Structure

The Numbers: Different industries show different competitor concentration patterns. Accommodation and food services has 94,672 competitors in California, while professional services has 142,540—showing industry-specific market structures.

So What? Each industry has unique competition patterns. Understanding your industry’s specific competitor counts helps you assess competition intensity accurately and make informed location decisions.

How to Use This: Always analyze competitor counts for your specific industry (NAICS code), not just overall business counts. Industry-specific data provides accurate competition assessment.

Location Strategy Must Balance Competition and Opportunity

The Numbers: The difference between the highest-competition state (California, 94,672) and moderate-competition states (Tennessee, 15,199) is 79,473 establishments—meaning California has over 6x more competitors.

So What? High-competition markets offer proven demand but require strong competitive advantages. Lower-competition markets may offer opportunity but need careful market validation. Your location choice should balance competition levels with market opportunity.

How to Use This: For established businesses with competitive advantages, high-competition markets offer proven demand. For new businesses, moderate-competition markets (10,000-30,000) often offer the best balance of opportunity and manageable competition.

Red Flags

• Extremely High Counts (100,000+): May indicate oversaturation with intense competition and limited market share potential
• Rapid Count Increases: Markets with rapidly increasing competitor counts may be approaching saturation
• Count-Population Mismatch: Markets where competitor counts are high relative to population may indicate oversupply

Green Lights

• Moderate Counts (10,000-30,000): Balanced markets with healthy competition and proven demand
• Growing Counts with Market Growth: Markets where competitor counts are increasing alongside population/employment growth signal expanding opportunity
• Industry-Aligned Counts: Markets where competitor counts match industry demand and market size offer sustainable competition levels

How to Use This Data

Follow this step-by-step process to estimate competitor counts and make data-driven location decisions:

Step 1: Identify Your Industry and NAICS Code

For Industry-Specific Analysis: Determine your NAICS code (North American Industry Classification System). This allows you to filter CBP data to see exact competitor counts in your industry.

For Multi-Industry Businesses: If you serve multiple industries, analyze each relevant NAICS code separately to understand competition levels for each segment.

Action: Look up your NAICS code at census.gov/naics. Common codes include:

• 54: Professional, Scientific, and Technical Services
• 62: Health Care and Social Assistance
• 72: Accommodation and Food Services
• 44-45: Retail Trade

Step 2: Count Competitors by Geography

Compare competitor counts across your candidate locations:

• State-level: Get broad competition comparison (e.g., California 94,672 vs. Wyoming 1,882)
• County-level: Identify specific markets within states with varying competition levels
• Metro-level: Analyze metropolitan areas for urban competition patterns

Action: Create a spreadsheet with your top 10 candidate locations. List competitor counts for each. Rank by competition level.

Step 3: Assess Competition Intensity

Match competitor counts to competition expectations:

• Very High (50,000+ establishments): Extremely competitive markets requiring strong differentiation
• High (10,000-50,000 establishments): Dense markets with significant competition but proven demand
• Moderate (1,000-10,000 establishments): Active markets with manageable competition
• Low (<1,000 establishments): Less saturated markets but require market validation

Action: For each candidate location, assess whether the competition level matches your competitive capacity and growth stage.

Step 4: Compare Competition to Market Size

High competitor counts don’t always mean oversaturation. Consider both competition and total market size:

• High Count + Large Market: Maximum competition but maximum opportunity
• High Count + Small Market: Intense competition in smaller market
• Low Count + Large Market: Less competition in large market (potential opportunity)
• Low Count + Small Market: Limited market, verify viability

Action: Create a matrix scoring each location on competition (30%) and total market size (40%). Rank by your strategic priorities.

Step 5: Make Your Location Decision

Combine competitor count analysis with other factors (market size, business climate, personal preferences) to choose your location.

Action: Create a decision matrix scoring each location on: competition level (30%), market size (30%), business climate (20%), and personal fit (20%).

Common Use Cases

Scenario 1: Starting a New Business → Focus on markets with moderate competitor counts (5,000-15,000). These markets offer proven demand without extreme competition.

Scenario 2: Expanding to New Markets → Compare competitor counts across candidate locations. Target markets with 10,000-30,000 competitors for balanced opportunity and competition.

Scenario 3: Established Business with Competitive Advantages → Consider high-competition markets (50,000+). Your competitive advantages can help you capture market share in proven markets.

Scenario 4: Seeking Underserved Markets → Consider markets with lower competitor counts (<5,000) that may offer opportunity, but carefully verify market size and customer base.

Questions to Ask Yourself

• What matters more: proven demand (high competition) or less competition (lower counts)?
• Can I compete effectively in a high-competition market, or do I need lower competition?
• Does my business model require high customer density (high competition) or can I succeed with less competition?
• Am I entering an established market or creating new demand?
• What’s my risk tolerance: proven high-competition markets or emerging lower-competition markets?

Action Items Checklist

• Identify your NAICS code and industry classification
• Count competitors in your industry for top 10 candidate states
• Analyze county-level competitor counts for specific markets within target states
• Assess competition intensity levels (very high/high/moderate/low) for each location
• Compare competitor counts to total market size for each candidate location
• Research business climate and policies in candidate markets
• Verify market size and customer base for lower-competition candidate markets
• Consult with Business Initiative for location strategy guidance

Step 3: Connect the dots. See how this data relates to your situation. You can find opportunities others miss.

Step 4: Take action. Use the insights to make better decisions.

Industry-Specific Recommendations

Professional Services (NAICS 54): Target markets with 20,000-50,000 competitors. Professional services benefit from business density for B2B opportunities while avoiding extreme oversaturation.

Retail Trade (NAICS 44-45): Focus on markets with 10,000-30,000 competitors combined with high population density. Retail needs customer density, but too many competitors can hurt margins.

Health Care (NAICS 62): Look for markets with 5,000-15,000 competitors with aging population trends. Health care demand is driven by demographics, not just competitor counts.

Accommodation and Food Services (NAICS 72): Target markets with 15,000-40,000 competitors in areas with tourism or high employment. Restaurant success depends on foot traffic and customer density.

Technology Services (NAICS 51): Prioritize markets with 10,000-30,000 competitors in tech hubs. Technology businesses benefit from talent pools and networking in competitive but established markets.

Common Mistakes to Avoid

Mistake 1: Ignoring County-Level Data Focusing only on state-level competitor counts misses critical local market differences. County-level counts can vary 10-50x within the same state. Always analyze your specific county, not just state averages.

Mistake 2: Choosing Based Solely on Low Competition Lower competitor counts don’t always mean better opportunity. Always verify market size and customer base. A market with 500 competitors may have limited opportunity if the customer base is small.

Mistake 3: Not Considering Industry-Specific Patterns Overall business counts don’t reflect your industry’s competition level. Always use NAICS-filtered data for your specific industry to get accurate competitor counts.

Mistake 4: Overlooking Market Size High competitor counts in large markets may offer more opportunity than low counts in small markets. Consider both competition and total market size.

Mistake 5: Ignoring Growth Trends Current competitor counts show today’s competition, but growth trends show tomorrow’s opportunity. Markets with increasing counts alongside market growth signal expansion.

Optimization Strategies

For Maximum Market Size: Target high-competition markets (50,000+ competitors) in large states. These markets offer the largest opportunity despite higher competition.

For Lower Competition: Focus on moderate-competition markets (5,000-15,000 competitors) in growing states. You get proven markets with manageable competition and expansion opportunity.

For Industry Clustering: Prioritize markets where your industry represents a high percentage of total businesses. Industry clusters provide networking and customer density advantages.

For Balanced Approach: Choose moderate-competition markets (10,000-30,000 competitors) with positive growth trends. You get proven markets with expansion opportunity without extreme competition.

Timing Considerations

Best Time to Enter High-Competition Markets: When you have capital and competitive advantage ready. High-competition markets reward quality and differentiation but require resources to compete effectively.

Best Time to Enter Growing Markets: Early in the growth cycle. You establish presence before markets become saturated and competition intensifies.

When to Reassess: Review competitor counts annually when new CBP releases become available. Market positions change, and what was optimal 2-3 years ago may not be today.

Resource Recommendations

For Market Research:

• Census Bureau County Business Patterns (official CBP data source)
• NAICS code lookup tools (identify your industry classification)
• State economic development websites (local market insights)
• Industry association reports (industry-specific market data)

For Location Support:

• Business Initiative location strategy services
• Local chamber of commerce (county-level business information)
• State Secretary of State websites (business registration requirements)

For Market Validation:

• Combine CBP competitor counts with ACS demographic data for complete market picture
• Research local competition and market saturation through business directories
• Consult with Business Initiative for personalized location guidance

FAQs - Frequently Asked Questions About Competitor Count Estimator: Businesses in Your

In Summary

Our comprehensive exploration of competitor counts by industry and location (2022) has revealed critical insights into competition intensity, market saturation, and location opportunities that can inform strategic business decisions.

Key Findings:

• Competitor counts vary dramatically by location—accommodation and food services range from 94,672 establishments in California to 1,882 in Wyoming (50x difference)
• Industry-specific patterns reveal unique competition structures—each industry shows different competitor concentration patterns by location
• Location strategy must balance competition and opportunity—high-competition markets offer proven demand but require strong competitive advantages
• County-level differences are even more dramatic—competitor counts can vary 10-50x within the same state
• Moderate-competition markets often offer the best balance—markets with 10,000-30,000 competitors provide proven demand with manageable competition

What This Means for Your Business: Understanding competitor counts helps you choose locations that match your competitive capacity and growth stage. High-competition markets offer proven demand but require strong differentiation. Lower-competition markets may offer opportunity but need careful market validation. The best approach balances competition levels (competitor counts) with market opportunity (total market size).

Practical Applications:

• Location Strategy: Use competitor counts to identify markets that match your competitive capacity
• Market Entry: Compare competitor counts across candidate locations to assess competition levels
• Competitive Analysis: Count competitors in your NAICS code to understand exact competition intensity
• Expansion Planning: Target moderate-competition markets with growth trends for expansion opportunities

Next Steps:

1. Identify your NAICS code and count competitors in your industry for top candidate locations
2. Analyze county-level competitor counts for specific markets within target states
3. Assess competition intensity levels (very high/high/moderate/low) for each candidate location
4. Compare competitor counts to total market size to identify optimal markets
5. Consult with Business Initiative for personalized location strategy guidance

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