Market Size for HR agency in 2026 [Example]

The Total Available Market (TAM) for HR services includes companies of all sizes around the globe that require HR assistance.

As of 2023, it is estimated that there are around 30 million businesses worldwide, and approximately 50% of them seek external HR support due to various needs, such as recruitment and compliance.

Assuming an average spending of $10,000 per business annually on HR services, the total TAM is calculated as follows: 15 million businesses x $10,000 = $150 billion.

The Serviceable Addressable Market (SAM) narrows down to small and medium-sized enterprises (SMEs), specifically those with 1 to 500 employees.

This segment has been estimated at around 10% of the global business population.

With 3 million SMEs worldwide and an average spending of $10,000 on HR services, SAM is calculated as: 1.5 million businesses x $10,000 = $15 billion.

The Serviceable Obtainable Market (SOM) focuses on what a solopreneur can realistically capture in the first year.

A conservative estimate assumes capturing 1% of the SAM, which translates into 15,000 customers in the first year.

With an average annual spend of $10,000, this results in: 150 customers x $10,000 = $1.5 million.