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Understanding the market size and growth potential is essential for identifying opportunities and making informed business decisions. Below, we’ll break down the key components of market opportunity, how to calculate market size and growth, and why this is an important time to enter the market.
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This represents the total revenue opportunity available if your product or service were to capture 100% of the market share. It is usually calculated based on industry reports, market surveys, and economic data.
This is the segment of the TAM targeted by your products and services, reflecting the revenue potential within your reach.
This is the portion of the SAM that you realistically expect to capture within a defined timeframe, often based on your marketing strategy and competitive landscape.
Market Size = TAM × Market Penetration Rate