What is Total Addressable Market?
A definition of Total Addressable Market
“Total Addressable Market (TAM) is the total revenue opportunity available if a product or service achieved 100% market share in its segment or industry.”

Business Glossary > What is Total Addressable Market?
Examples of Total Addressable Market in a Sentence:
Understanding the Total Addressable Market helps in assessing the business’s growth potential.
Investors often look at the Total Addressable Market to gauge a startup’s potential.
A large Total Addressable Market can attract more competition.
Why is Total Addressable Market Important in Business?
Knowing the Total Addressable Market helps businesses quantify potential revenue and guides their strategic planning. If a market is large with minimal competition, it might represent a significant opportunity for growth.
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Associated Terms
Here are some associated business terms and synonyms for “Total Addressable Market”:
- Market Potential
- Revenue Opportunity
- Market Size
Uber Total Addressable Market
Uber calculated its Total Addressable Market by considering all taxi, car service, and ride-sharing opportunities worldwide, which justified its expansion strategy to become a major player in the global transportation market.
Final Notes on Total Addressable Market
When estimating the Total Addressable Market, consider both current market conditions and future trends. Understanding TAM aids in making strategic decisions and prioritizing competitive positioning.
This has been a definition of Total Addressable Market meaning.
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