Market Size for Development agency 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

$300B

People

Annual customer base

1.5M businesses

Calculations

Step-by-step logic

The global development agency market is estimated to be around $300 billion. This includes all businesses in need of development services, such as software, web, and mobile app development. The estimate captures around 1.5 million businesses globally that are engaged in or could potentially utilize the services of a development agency, including SMEs and startups, across various sectors.

2. Serviceable Addressable Market (SAM)

The portion of your TAM that you can realistically reach.
These people are your potential customers.

Money

Annual spendings

$60B

People

Annual customer base

300K businesses

Calculations

Step-by-step logic

Considering your agency focuses primarily on small to medium-sized enterprises (SMEs), the serviceable addressable market narrows to approximately $60 billion. This is based on the fact that SMEs make up roughly 20% of the overall market, amounting to around 300,000 businesses that actively require development services annually. These businesses tend to have the budget and need for consistent developmental support, fitting your target perfectly.

3. Serviceable Obtainable Market (SOM)

The portion of SAM that you can realistically capture.
These people are your customers.

Money

Annual spendings

$3M

People

Annual customer base

150 customers

Calculations

Step-by-step logic

For your first year, realistically capturing around 5% of the SAM translates to approximately $3 million in revenue. This would involve about 150 customers, assuming your average contract value per client is around $20,000. This expectation is conservative, given the competitive nature of the market and the need for effective marketing approaches to engage with these customers.

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