Actually it looks like the market may become a very segmented marketplace with a lot of competitors. This is usually a good thing and its a good place to be for a startup.
And its obviously a very big pain that needs to be solved with lots of customers available.
A worse situation is a winner-take-all market with only a few large companies taking 80% of the market: PC-market (Lenovo,Dell), Social Networking (Facebook,Twitter) etc. Here its much harder to gain a foothold but there are companies that do it eg: AlienWare in the highend PC-Gamer market.
http://www.ericsink.com/Choose_Your_Competition.html
A worse situation is a winner-take-all market with only a few large companies taking 80% of the market: PC-market (Lenovo,Dell), Social Networking (Facebook,Twitter) etc. Here its much harder to gain a foothold but there are companies that do it eg: AlienWare in the highend PC-Gamer market.