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What is Sector Analysis?

Sector analysis is the study of an entire industry — its size, growth trajectory, competitive dynamics, and key players — to understand the landscape in which individual companies operate. There are two approaches: top-down analysis starts with the macro economy and industry trends, then identifies which companies are best positioned; bottom-up analysis starts with individual companies and aggregates to understand sector themes. Sector reports are produced by equity research analysts when they first pick up coverage of an industry, when a client asks for an industry overview, or when a thematic trend (like AI infrastructure spending) creates demand for a landscape view. Investment banks also use sector analysis in pitch books when advising on M&A transactions — understanding competitive dynamics is essential for identifying potential acquirers or targets.
The best sector reports go beyond listing companies and their financials. They answer: Where does value accrue in this industry? Is it the platform, the content creator, the distributor, or the picks-and-shovels supplier? Understanding value chain dynamics is what separates useful sector analysis from a data dump.

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Command Syntax

If a sector is not provided, the command asks: “Which industry would you like to cover?”

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What It Produces

  • Market overview with TAM, growth rates, and segmentation
  • Competitive landscape profiles of the top 5-10 players
  • Valuation context: current and historical trading multiples
  • Investment implications: best risk/reward opportunities, key debates
  • Charts: market growth, share trends, valuation history
  • Excel appendix with detailed company data

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How to Customize

  • To tailor the report for a specific audience (M&A pitch, client report, internal research), edit the sector-overview skill file
  • To connect to industry data sources, configure them in .mcp.json