overcapacity

noun

over·​ca·​pac·​i·​ty ˌō-vər-kə-ˈpa-sə-tē 

-ˈpa-stē

: excessive capacity for production or services in relation to demand

Examples of overcapacity in a Sentence

The airlines are lowering their prices because of an overcapacity of seats.

Recent Examples on the Web

In China, decades of government support and heavy investment created significant overcapacity in the automotive sector. —Chris Isidore, CNN Money, 15 Feb. 2026

Authorities have sought to curb price wars across industries, where overcapacity has fueled a glut of goods and forced companies to cut prices. —Anniek Bao, CNBC, 11 Feb. 2026

Freight rates have fallen since last year due to overcapacity of container vessels worldwide, alongside a volatile demand environment in 2025 in which tariffs forced many shippers to pull forward orders of goods. —Glenn Taylor, Sourcing Journal, 10 Feb. 2026

China’s overcapacity and its support for manufacturers over consumers have also stoked excess supply that drags down prices. —Jason Ma, Fortune, 1 Feb. 2026

Word History

First Known Use

1877, in the meaning defined above

Rhymes for overcapacity

• audacity
• capacity
• loquacity
• mendacity
• opacity
• pugnacity
• rapacity
• sagacity
• tenacity
• veracity
• vivacity
• voracity