Also known as: TAM

Total Addressable Market

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Definition

Total Addressable Market: Total Addressable Market (TAM) is the total revenue opportunity available if a product achieved 100% market share. It represents the maximum potential size of a market. TAM helps assess opportunity size but is less useful for practical planning than SAM and SOM.

Example Usage

“Our TAM calculation shows the global HR software market at $30 billion annually.”

Common Misconceptions

Big TAM means good opportunity. Execution ability matters more than market size.

TAM is your opportunity. It's a ceiling; SAM and SOM are more actionable.

TAM numbers should be huge for VCs. Credible analysis beats inflated numbers.

Related Terms

Market Size

Market size estimates the revenue opportunity for a product. TAM (Total Addressable Market) is total potential revenue. SAM (Serviceable Addressable M...

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