Market Size & Growth
Understanding your Total Addressable Market
Your Progress
Section 2 of 5TAM-SAM-SOM Framework
Before building, validate your market exists and is growing. Three critical numbers:
TAM (Total Addressable Market)
Total revenue opportunity if you captured 100% globally. Example: Global solar market = $420B by 2030.
SAM (Serviceable Available Market)
The portion you can realistically reach with your product. Example: US commercial solar rooftops = $15B.
SOM (Serviceable Obtainable Market)
What you can win in 3-5 years given competition. Example: 5% of US commercial solar rooftops = $750M.
🎯 Interactive: Market Size Calculator
Explore market size projections across sectors and geographies. Select sector, region, and timeframe to see TAM.
Select Sector
Select Geography
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2030Solar Energy
Global Market - 2030
Key Growth Drivers
- •Falling panel costs
- •Grid parity achieved
- •Policy support
- •Corporate PPAs
Market Segments
- •Utility-scale
- •Commercial rooftop
- •Residential
- •Materials/equipment
📊 How to Validate Market Size
Top-Down Approach
Start with macro data (industry reports, government stats) and narrow down.
Bottom-Up Approach
Count potential customers, multiply by pricing, extrapolate.
Example: Solar Rooftop Startup
🚩 Market Sizing Red Flags
"It's a $5 trillion market"
TAM too broad signals lack of focus. "Global energy market" ≠ your market. Be specific.
"We only need 1% market share"
Weak signal. Shows you haven't identified customer segments or go-to-market strategy.
Flat or declining market
VCs want 20%+ CAGR. Mature markets are hard. Climate tech advantage: most sectors growing 15-40%/year.