Market Size

Definition of Market Size

The total potential sales or revenue opportunities available for a product or service in a given market.

Explanation of Market Size

Market size refers to the total revenue or sales volume that can be generated within a specific market over a defined period. It represents the potential opportunity for businesses operating in that market. Market size is typically measured in terms of monetary value (dollars) or the number of units sold. For example, the market size for smartphones might be calculated based on the total annual sales revenue of all smartphone manufacturers. Understanding market size helps businesses assess the viability of entering a market, make informed investment decisions, and develop strategic plans. It provides insights into the potential demand, growth prospects, and competitive landscape. By analyzing market size, companies can identify opportunities for expansion, allocate resources effectively, and set realistic goals. The goal is to understand the market’s potential and make strategic decisions that drive business growth and profitability.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.