A-Z Popular Blog Marketing Search »
Product Development
 Advertisements
Related Guides

What is Total Addressable Market?

 , updated on January 03, 2017
Total addressable market, or TAM, is the global, regional or national market size for a product or service.

Calculation

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.

Value

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.

Example

The total addressable market for global telecom services was around 1.1 trillion Euro in 2016.
Overview: Total Addressable Market
TypeMarket Research
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 AsTAM
Related ConceptsMarket Research
Target Market
Market Analysis
Business Models
Serviceable Available Market
Serviceable Obtainable Market
Target Market

Product Development

This is the complete list of articles we have written about product development.
Competitor Analysis
Critical To Customer
Customer Analysis
Customer Needs
Design Considerations
Design Principles
Design To Value
Early Adopters
Feasibility Study
Figure Of Merit
Go-To-Market
Latent Need
Market Fit
Market Research
Marketability
Moment Of Truth
Naive Design
Niches
Over-Positioning
Positioning
Premiumisation
Product Analysis
Product Culture
Product Design
Product Functions
Product Marketing
Product SWOT
Proof Of Concept
Sensory Analysis
Social Features
Target Market
More ...
If you enjoyed this page, please consider bookmarking Simplicable.
 

Market Research

A systematic investigation of market conditions including customers and the competition.

Competitive Intelligence

An overview of competitive intelligence.

Market Analysis vs Market Research

The difference between market analysis vs market research.

Market Penetration vs Market Share

The difference between market penetration and market share.

Target Market

A list of common types of target market.

Lead User

A definition of lead user with examples.

Competitor Analysis

A definition of competitor analysis with examples.

Product Development

A guide to product development.

Product Strategy

A checklist for developing a product strategy.

Product Differentiation

An overview of product differentiation.

Product vs Service

The business difference between products and services.

Moment Of Truth

A definition of moment of truth with a few examples.

Product Value

A definition of product value with examples.

Product vs Feature

The difference between a product and a feature.

Productization

A definition of productization with examples.

Target Costing

A definition of target costing with examples.

Market Fit

A definition of market fit with examples.

Service Development

The steps to develop and launch a new service.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map