Market Size for Online 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
$600B
People
Annual customer base
1.2B
Calculations
Step-by-step logic
The total available market (TAM) for online business encompasses the entire global internet user population, roughly estimated at 4.8 billion people.
Assuming around 25% of these users engage in online business activities, this leads to approximately 1.2 billion potential users.
With the average online business contributing around $500 in annual revenue per participant, the total TAM is calculated as 1.2B users * $500 = $600B.
2. Serviceable Addressable Market (SAM)
The portion of your TAM that you can realistically reach.
These people are your potential customers.
Money
Annual spendings
$150B
People
Annual customer base
300M
Calculations
Step-by-step logic
The serviceable addressable market (SAM) narrows the focus to those actively starting or running online businesses, which can be conservatively estimated at 300 million people.
Assuming that about 25% of internet users engage in online business, we can target those most likely to spend money on products/services—which translates to 300 million potential customers.
If each of these businesses generates an average revenue of $500 annually, the SAM would be 300M users * $500 = $150B.
3. Serviceable Obtainable Market (SOM)
The portion of SAM that you can realistically capture.
These people are your customers.
Money
Annual spendings
$5M
People
Annual customer base
10,000
Calculations
Step-by-step logic
The serviceable obtainable market (SOM) represents a realistic share that can be captured in the first year.
Given competitive pressures and the early business stage, a conservative estimate would be capturing 0.03% of the SAM. This translates to about 10,000 customers in the first year.
If each of these customers contributes $500 annually, the SOM would thus be 10,000 users * $500 = $5M.
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