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How Market Share is Calculated

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Market share is the percentage of a market for a product or service that is captured by a firm. It has several variations:

Revenue Market Share

Calculation of market share is based on a firm's gross revenue and industry statistics regarding the total value of a market. It can be calculated at the level of a firm, brand, product line or single product. Revenue market share is calculated as:
market share = (revenue / total value of market) x 100

Unit Market Share

Market share can also be calculated in terms of unit sales. For example, aircraft sales might be compared in terms of the number of aircraft sold in a year.
market share = (units sold / market unit sales) x 100

Volume Market Share

Many industries have their own methods of calculating sales volume and market share. For example, solar panel sales are often measures in megawatts. Commodities sales such as sugar may be measured by weight.
market share = (sales volume / market sales volume) x 100
Overview: Market Share
The percentage of a market captured by a firm.
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