Market Size for B2B Business in 2026 [Example]
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1. Total Addressable Market (TAM)
High-level market for your niche.
Your audience is a part of this community.
Money
Annual spendings
$200B per year
People
Annual customer base
15M businesses
Calculations
Step-by-step logic
The total available market (TAM) for B2B services worldwide includes all businesses that could potentially use your product or service. According to recent data, there are approximately 30 million businesses in the U.S. alone, and estimates suggest around 50 million globally. Focusing on the scalable nature of B2B services, we consider that about 30% of these could benefit from your offering, leading to a potential revenue estimate of $200 billion annually, given an average annual spend of $13,300 per business.
2. Serviceable Addressable Market (SAM)
The portion of your TAM that you can realistically reach.
These people are your potential customers.
Money
Annual spendings
$30B per year
People
Annual customer base
2.25M businesses
Calculations
Step-by-step logic
The serviceable addressable market (SAM) takes into account the businesses that are realistically reachable based on your product's specifications and geographic limitations. Assuming that your business targets small and medium-sized companies primarily, which make up around 15% of all global businesses, we focus on that subset. Therefore, targeting about 15% of the TAM leads us to an estimate of 2.25 million businesses, which, with an average annual spend of $13,300, gives a SAM of $30 billion annually.
3. Serviceable Obtainable Market (SOM)
The portion of SAM that you can realistically capture.
These people are your customers.
Money
Annual spendings
$3M per year
People
Annual customer base
225 customers
Calculations
Step-by-step logic
The serviceable obtainable market (SOM) represents what you can capture realistically in your first year. Utilizing a conservative estimate that you can capture about 10% of the SAM given your marketing strategies, that leads us to approximately 225 businesses. If each of these businesses spends around $13,300 annually, that results in a projected SOM of $3 million in the first year, which aligns with realistic sales targets for a new business in this sector.
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