TAM, SAM, and SOM Explained

Market sizing is crucial for any business strategy. It is done through three concentric circles:

• TAM (Total Addressable Market): The total market demand for a product/service.

• SAM (Serviceable Addressable Market): The part of TAM you can serve based on your capabilities.

• SOM (Serviceable Obtainable Market): The realistic market share you can capture.

This hierarchy is used for investment pitches, product strategy, and revenue forecasting.