HGI Dashboard — Horizontal Gravity

How to Read This Dashboard

The Horizontal Gravity Index (HGI) measures how aggressively AI platforms are absorbing specialized software markets. Scores range from 0 to 1 — the higher the number, the more that standalone software companies are losing ground to all-in-one AI platforms. Think of it as a "disruption thermometer" for the software industry.

0 — 0.3 Emerging

0.3 — 0.7 Accelerating

0.7 — 1.0 Critical

Composite HGI The overall score combining all three sub-indices. It represents how much the entire software market is being reshaped by AI platform convergence. A weighted average of SaaS consolidation (35%), API density (25%), and vertical decline (40%).

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Feb 2026 weighted average

S(t) SaaS Consolidation Tracks how quickly organizations are dropping individual software tools in favor of all-in-one AI platforms. A rising S(t) means fewer standalone SaaS apps are being used per company. Source: Productiv SaaS Management Index.

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Apps per org declining

A(t) API Integration Measures how interconnected AI platforms have become with other software. Higher values mean platforms are acting as the central hub that everything connects through, reducing the need for standalone tools. Source: Postman State of APIs reports.

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Cross-platform density

V(t) Vertical Decline Measures the financial damage to specialist software companies as AI platforms expand into their territory. A high V(t) means pure-play companies (like Chegg) are losing significant market value. Source: Public equity markets data.

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Specialist market cap loss

Current Market Phase Based on the composite HGI score: Emerging (<0.3) means AI is present but not yet threatening. Accelerating (0.3-0.7) means active market share transfer is happening. Critical (>0.7) means standalone companies may no longer be viable.

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Index Formula The HGI combines three independently measurable signals. The weights reflect that vertical market cap decline (40%) is the strongest observable signal, followed by SaaS consolidation (35%) and API integration density (25%).

HGI(t) = α·S(t) + β·A(t) + γ·V(t)

Weights: α=0.35, β=0.25, γ=0.40

Horizontal Gravity Index

How to Read This Dashboard

Composite HGI The overall score combining all three sub-indices. It represents how much the entire software market is being reshaped by AI platform convergence. A weighted average of SaaS consolidation (35%), API density (25%), and vertical decline (40%).

S(t) SaaS Consolidation Tracks how quickly organizations are dropping individual software tools in favor of all-in-one AI platforms. A rising S(t) means fewer standalone SaaS apps are being used per company. Source: Productiv SaaS Management Index.

A(t) API Integration Measures how interconnected AI platforms have become with other software. Higher values mean platforms are acting as the central hub that everything connects through, reducing the need for standalone tools. Source: Postman State of APIs reports.

V(t) Vertical Decline Measures the financial damage to specialist software companies as AI platforms expand into their territory. A high V(t) means pure-play companies (like Chegg) are losing significant market value. Source: Public equity markets data.

Current Market Phase Based on the composite HGI score: Emerging (<0.3) means AI is present but not yet threatening. Accelerating (0.3-0.7) means active market share transfer is happening. Critical (>0.7) means standalone companies may no longer be viable.

Index Formula The HGI combines three independently measurable signals. The weights reflect that vertical market cap decline (40%) is the strongest observable signal, followed by SaaS consolidation (35%) and API integration density (25%).

Composite HGI with Sub-Indices — Quarterly

Industry HGI Trajectories — 2024 to 2030

Per-Industry Analysis (2026)

Stack Overflow Monthly Questions

Chegg Market Cap ($M)

Horizontal Gravity Index

How to Read This Dashboard

Composite HGI ?The overall score combining all three sub-indices. It represents how much the entire software market is being reshaped by AI platform convergence. A weighted average of SaaS consolidation (35%), API density (25%), and vertical decline (40%).

S(t) SaaS Consolidation ?Tracks how quickly organizations are dropping individual software tools in favor of all-in-one AI platforms. A rising S(t) means fewer standalone SaaS apps are being used per company. Source: Productiv SaaS Management Index.

A(t) API Integration ?Measures how interconnected AI platforms have become with other software. Higher values mean platforms are acting as the central hub that everything connects through, reducing the need for standalone tools. Source: Postman State of APIs reports.

V(t) Vertical Decline ?Measures the financial damage to specialist software companies as AI platforms expand into their territory. A high V(t) means pure-play companies (like Chegg) are losing significant market value. Source: Public equity markets data.

Current Market Phase ?Based on the composite HGI score: Emerging (<0.3) means AI is present but not yet threatening. Accelerating (0.3-0.7) means active market share transfer is happening. Critical (>0.7) means standalone companies may no longer be viable.

Index Formula ?The HGI combines three independently measurable signals. The weights reflect that vertical market cap decline (40%) is the strongest observable signal, followed by SaaS consolidation (35%) and API integration density (25%).

Composite HGI with Sub-Indices — Quarterly

Industry HGI Trajectories — 2024 to 2030

Per-Industry Analysis (2026)

Stack Overflow Monthly Questions

Chegg Market Cap ($M)

Composite HGI The overall score combining all three sub-indices. It represents how much the entire software market is being reshaped by AI platform convergence. A weighted average of SaaS consolidation (35%), API density (25%), and vertical decline (40%).

S(t) SaaS Consolidation Tracks how quickly organizations are dropping individual software tools in favor of all-in-one AI platforms. A rising S(t) means fewer standalone SaaS apps are being used per company. Source: Productiv SaaS Management Index.

A(t) API Integration Measures how interconnected AI platforms have become with other software. Higher values mean platforms are acting as the central hub that everything connects through, reducing the need for standalone tools. Source: Postman State of APIs reports.

V(t) Vertical Decline Measures the financial damage to specialist software companies as AI platforms expand into their territory. A high V(t) means pure-play companies (like Chegg) are losing significant market value. Source: Public equity markets data.

Current Market Phase Based on the composite HGI score: Emerging (<0.3) means AI is present but not yet threatening. Accelerating (0.3-0.7) means active market share transfer is happening. Critical (>0.7) means standalone companies may no longer be viable.

Index Formula The HGI combines three independently measurable signals. The weights reflect that vertical market cap decline (40%) is the strongest observable signal, followed by SaaS consolidation (35%) and API integration density (25%).