TAM, SAM and SOM
TAM, SAM and SOM are three nested market-size estimates: the total market, the part you can serve, and the share you can realistically win.
What it means
Total addressable market (TAM) is the revenue available if every possible buyer used the product. Serviceable available market (SAM) narrows that to the segment your product and sales channels can reach. Serviceable obtainable market (SOM) is the slice you can plausibly capture within a stated time period. A SOM figure should rest on sales capacity or a comparable company share, not on hope.
AI tools can draft these numbers quickly, but the inputs decide the result. Suppose a team sizes a payroll-software market. It might start from BLS employment counts for a set of industries and multiply by an annual software spend figure from a cited report. Each input needs its own source and date, or the top line looks precise while resting on guesses.
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Cite this entry
https://aimarketresearchtools.com/glossary/tam-sam-som/