Market Size for Community in 2026 [Example]

The total addressable market (TAM) for online community platforms can be calculated by estimating the number of businesses globally that utilize online community solutions. According to recent reports, there are approximately 1.2 million small businesses in the world that could potentially benefit from community-building tools. Assuming an average annual spend of $3,000 per business on community-related services, this results in a TAM of approximately $3.6 billion annually.

This figure takes into account various community platforms and tools that cater to different industries, making it a conservative estimate given the growing trend of businesses investing in community engagement to boost customer loyalty and retention.

The serviceable addressable market (SAM) narrows down the TAM by focusing on small businesses actively seeking community solutions. Out of the 1.2 million small businesses, around 20% are likely engaged with or interested in community services, leading to an estimate of 240,000 businesses. With a realistic average annual spend of $3,000 per year tailored specifically to a community-building platform, the SAM is valued at $720 million.

This segment considers businesses that have a higher propensity to adopt community engagement strategies, acknowledging that not every small business will invest equally.

The serviceable obtainable market (SOM) further refines the SAM by focusing on the portion of the market that is realistically reachable within the first year. Estimating that a new community platform can capture approximately 5% of the targeted audience (240,000 businesses), we arrive at 12,000 potential customers in the first year.

This translates to an expected revenue of around $36 million, assuming that these customers spend an average of $3,000 annually on the community platform. This conservative estimate provides a more realistic picture of market penetration for a new business within its initial operating year.