After doing some research on a market segment related to an idea, i noticed that, ever so often, a new startup tries to address the space or a subset of the space and then dies without warning and or traction. Existing solutions in that space are fragmented and not widely used and kind of limp along.

Would one consider this a sign of the lack of a market despite the obvious allure? (or) Is it a market that's ripe for consolidation?

What signs would point to one over the other?