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What is Total Addressable Market?

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Total addressable market, or TAM, is the global, regional or national market size for a product or service.


Total addressable market can be calculated by total sales or total unit sales for a year. Such data may be available from governments, industry associations and market research firms. TAM is often a global number but can also be calculated for a nation or region.


TAM may be calculated for a firm's entire product line. This is extremely relevant to large firms as they may require large markets to continue to grow. For example, an electronics firm with a high market share may expand their TAM by entering a new industry such as transportation infrastructure.
TAM is also relevant to small firms. A small company in an extremely large industry requires a unique value proposition that larger competitors will find difficult to match. Alternatively, a small firm with a small TAM might aim to take a high market share and plan to service the entire market.


The total addressable market for global telecom services was around 1.1 trillion Euro in 2016.
Overview: Total Addressable Market
Definition (1)
The global, regional or national market size for a product or service.
Definition (2)
The sales universe for a product or service.
Definition (3)
Total global dollar or unit sales for a particular type of product or service.
Also Known As
Related Concepts
Next: Target Market
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Market Research
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