If we take 3rd gen as the example, it do sounds like the market is getting packed right now when it's actually not. Kpop market is getting bigger so we have more room for more groups to shine compare to even 2nd gen. Even more and more groups from small companies now are able to sell above 50k. It's even better now because these groups from non big 4 have international audiences when Korea ignores them. If it was not a problem during the previous gen when the market were still closed, I don't see why there's a problem now when kpop have bigger audiences worldwide.
Sm:
Suju- 2005
Shinee-2008
Snsd- 2007
F(x)- 2009
Jyp:
Wonder girls-2007
2PM- 2008
2AM-2008
Miss A- 2010
Yg: They're pretty consistent
Bigbang- 2006
2ne1- 2009
Dsp (considering they were still a big thing back then):
SS501- 2005
Ast1-2008
Kara- 2007
Rainbow- 2009
Same thing with this gen. Technically, we can count groups under Hybe as few companies.
Note: I saw someone making a thread about it will hard to determine the end of the generation because of this. You don't have to worry, lol. Kpop stans will let you know when it's happen. Some of the early 4th gen stans even forced to open the 'new chapter ' of kpop because they can't compete with the 3rd gen groups. If you ask me, 4th gen should only started with Ive cuz last year do feel like the new era of kpop not 5 years ago when Bts, Bp and Twice still dominating like crazy.