Estimating market size for software products

A summary of what we did to estimate market sizes:

Estimating the market size for a product is vital. Especially, if you are looking to raise funds.

There are three market sizes that we need to estimate.
1. Total Addressable Market (TAM)
  1. TAM represents the entire revenue opportunity for the product.
  2. Tip: The key question to ask yourself is, ‘where can I sell my product?’.
2. Serviceable Addressable Market (SAM)
  1. SAM is that part of the TAM that can be actually captured.
  2. Note: 100% of a TAM is not possible.
  3. Tip: The key question to ask yourself is, ‘What’s the actual share of the addressable market for my product?’.
3. Serviceable Obtainable Market (SOM)
  1. SOM represents exactly how much of the SAM can be realistically captured.
  2. Tip: The key question to ask yourself is, ‘Of the market, I can serve, what's the % of customers I can obtain?’.
We have attached a downloadable step-by-step guide (for estimating TAM, SAM, SOM). This is only a guide so you can customise it as per your needs.

Jump to blog 100 to refer to the overall product management mind map.

All the best! 😊

IDEA to PRODUCT to BUSINESS