Entrepreneurship: Market Size & Share

The TAM - SAM - SOM Model is a useful method of estimating your market size.

• TAM: Total Attainable Market
• SAM: Serviceable Available Market
• SOM: Serviceable Obtainable Market

Learn more about the TAM - SAM - SOM Model starting on page 149 of 
The Handbook of Market Research for Life Science Companies [eBook] Access: UCI. 
(Don't let the title fool you! This book is helpful for ALL industries, not just life sciences.)
 

 Estimating B2B Market Size

In a B2B (business-to-business) market, companies make up your pool of potential customers, or market size.

To estimate the size of a B2B market, you need to determine the number of companies in your target market. 

This can be approximated by creating a list of companies that meet specific criteria (e.g., industry, location, size, etc.)

 Estimating B2C Market Size

In a B2C (business-to-consumer) market, people make up your pool of potential customers, or market size.

To estimate the size of a B2C market, you need to determine the number of people in your target market. 

The following resources can help you approximate the number of people that meet various demographic or behavioral (psychographic) criteria:

​SimplyAnalytics
Access: UCI
Geography: US
Maximum 3 users at once! A mapping and data visualization application that lets users create interactive maps, charts, and reports. Includes demographic, housing, employment, consumer spending, and business data for the United States. Users have access to SimmonsLOCAL consumer behavior data, including information on brands, and Claritas PRIZM, which offers market insights using demographics and consumer lifestyle data. Register for a free account to save and return to your work.

Mintel
Access: UCI - Authorized Affiliates
Geography: US
U.S. market research reports spanning U.S. sectors for consumer products and lifestyles. Includes extensive consumer survey data.

IBISWorld
Access: UCI
Geography: US
Brief, downloadable reports on key consumer behavior characteristics and demographics.

• Industry Research > US Business Environment Profiles

Census Bureau
Access: Public
Population, housing, economic, and geographic information from the United States Census.

Data USA
Access: Public
Visualization engine of U.S. public data. Includes information such as employment, housing, education, diversity, income, transportation, and health based on geography. Allows for easy side-by-side comparison of locations.

Population Reference Bureau
Access: Public
Useful for quickly making estimates based on worldwide population information.

CDC: Data & Statistics
Access: Public
The Centers for Disease Control and Prevention's Data and Statistics portal is an excellent resource for data and information on major medical conditions.

For additional resources for estimating B2C market size, see the Consumers page.

When researching market size and share, it's helpful to understand:
 

1. Market size and share information is not always readily available, especially for small, niche industries. 
 

2. It may be necessary to estimate the market size by:

• looking at a similar industry that can serve as a “proxy” or benchmark for your industry, or

• using pieces of information from various sources to estimate the information you’re looking for.
   

3. Determining a company's market share for a product that accomplishes a specific task isn't clear-cut.

• Companies rarely manufacture a single product (e.g., Apple manufactures phones, computers, watches, etc.).

• A product rarely serves a single purpose (e.g., an Apple Watch monitors heart rate and counts counts steps).​
   

Bottom line: The exact information you're looking for may not be available, and estimates may need to be made based on the information that is available.