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3 Types of Market Size

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Market size is an estimate of the market for a product or service. Estimates of market size are used in business planning, product development and marketing areas such as sales planning. The following are the common types of market size.

Total Addressable Market

The total size of a market at the industry or product category level. For example, the size of the global market for women's formal shoes. This typically serves as a reference for smaller firms and is potentially relevant to the revenue estimates of large firms with significant market share.

Serviceable Available Market

The total size of the market that you can reach with your distribution channels. For example, the size of the market for women's formal shoes in France.

Serviceable Obtainable Market

A conservative estimate of the percentage of the market you can realistically win given your brand, product position, marketing capabilities, customer base and distribution channels. For example, 6% of the market for women's formal shoes in France.
Overview: Market Size
Type
Definition
An estimate of the market for a product or service.
Notes
Market size is usually a revenue number such as $1 billion euros but can also be represented as unit volume such as 1,650,000 units.
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A definition of market potential with examples.

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An overview of total addressable market with an example.

Serviceable Available Market

An overview of serviceable available market.

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A definition of market penetration with several examples.

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An overview of serviceable obtainable market with an example.

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