Calculate TAM/SAM/SOM for market opportunities

Market sizing analysis

by wshobson · MIT license · ★ 39,857 on GitHub · v1.0.0 · updated Sep 21

Market sizing analysis cover

Calculate TAM/SAM/SOM for market opportunities using top-down, bottom-up, and value theory methodologies. Use this skill when sizing markets, estimating addressable revenue, validating market opportunity for a new venture, or building…

---
name: market-sizing-analysis
description: Calculate TAM/SAM/SOM for market opportunities using top-down, bottom-up, and value theory methodologies. Use this skill when sizing markets, estimating addressable revenue, validating market opportunity for a new venture, or building investor-ready market analysis for a startup pitch or business plan.
version: 1.0.0
---

# Market Sizing Analysis

Comprehensive market sizing methodologies for calculating Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) for startup opportunities.

## Overview

Market sizing provides the foundation for startup strategy, fundraising, and business planning. Calculate market opportunity using three complementary methodologies: top-down (industry reports), bottom-up (customer segment calculations), and value theory (willingness to pay).

## Core Concepts

### The Three-Tier Market Framework

Overview

Comprehensive market sizing methodologies for calculating Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) for startup opportunities.

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Market Sizing Analysis

Comprehensive market sizing methodologies for calculating Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) for startup opportunities.

Overview

Market sizing provides the foundation for startup strategy, fundraising, and business planning. Calculate market opportunity using three complementary methodologies: top-down (industry reports), bottom-up (customer segment calculations), and value theory (willingness to pay).

Core Concepts

The Three-Tier Market Framework

TAM (Total Addressable Market)

  • Total revenue opportunity if achieving 100% market share
  • Defines the universe of potential customers
  • Used for long-term vision and market validation
  • Example: All email marketing software revenue globally

SAM (Serviceable Available Market)

  • Portion of TAM targetable with current product/service
  • Accounts for geographic, segment, or capability constraints
  • Represents realistic addressable opportunity
  • Example: AI-powered email marketing for e-commerce in North America

SOM (Serviceable Obtainable Market)

  • Realistic market share achievable in 3-5 years
  • Accounts for competition, resources, and market dynamics
  • Used for financial projections and fundraising
  • Example: 2-5% of SAM based on competitive landscape
When to Use Each Methodology

Top-Down Analysis

  • Use when established market research exists
  • Best for mature, well-defined markets
  • Validates market existence and growth
  • Starts with industry reports and narrows down

Bottom-Up Analysis

  • Use when targeting specific customer segments
  • Best for new or niche markets
  • Most credible for investors
  • Builds from customer data and pricing

Value Theory

  • Use when creating new market categories
  • Best for disruptive innovations
  • Estimates based on value creation
  • Calculates willingness to pay for problem solution

Detailed patterns and worked examples

Detailed pattern documentation lives in references/details.md. Read that file when the navigation tier above is insufficient.

1---
2name: market-sizing-analysis
3description: Calculate TAM/SAM/SOM for market opportunities using top-down, bottom-up, and value theory methodologies. Use this skill when sizing markets, estimating addressable revenue, validating market opportunity for a new venture, or building investor-ready market analysis for a startup pitch or business plan.
4version: 1.0.0
5---
6 
7# Market Sizing Analysis
8 
9Comprehensive market sizing methodologies for calculating Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) for startup opportunities.
10 
11## Overview
12 
13Market sizing provides the foundation for startup strategy, fundraising, and business planning. Calculate market opportunity using three complementary methodologies: top-down (industry reports), bottom-up (customer segment calculations), and value theory (willingness to pay).
14 
15## Core Concepts
16 
17### The Three-Tier Market Framework
18 
19**TAM (Total Addressable Market)**
20 
21- Total revenue opportunity if achieving 100% market share
22- Defines the universe of potential customers
23- Used for long-term vision and market validation
24- Example: All email marketing software revenue globally
25 
26**SAM (Serviceable Available Market)**
27 
28- Portion of TAM targetable with current product/service
29- Accounts for geographic, segment, or capability constraints
30- Represents realistic addressable opportunity
31- Example: AI-powered email marketing for e-commerce in North America
32 
33**SOM (Serviceable Obtainable Market)**
34 
35- Realistic market share achievable in 3-5 years
36- Accounts for competition, resources, and market dynamics
37- Used for financial projections and fundraising
38- Example: 2-5% of SAM based on competitive landscape
39 
40### When to Use Each Methodology
41 
42**Top-Down Analysis**
43 
44- Use when established market research exists
45- Best for mature, well-defined markets
46- Validates market existence and growth
47- Starts with industry reports and narrows down
48 
49**Bottom-Up Analysis**
50 
51- Use when targeting specific customer segments
52- Best for new or niche markets
53- Most credible for investors
54- Builds from customer data and pricing
55 
56**Value Theory**
57 
58- Use when creating new market categories
59- Best for disruptive innovations
60- Estimates based on value creation
61- Calculates willingness to pay for problem solution
62 
63## Detailed patterns and worked examples
64 
65Detailed pattern documentation lives in `references/details.md`. Read that file when the navigation tier above is insufficient.
66 
67 
View all files on GitHub →

Details

Version
1.0.0
Updated
Sep 21, 2026
License
MIT
Stars on the repo
★ 39,857
Checked
Source
wshobson/agents ↗
Creator
wshobson · 179 listings
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