Market Size for Website 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
$50 billion
People
Annual customer base
1 billion users
Calculations
Step-by-step logic
The total available market (TAM) includes all internet users globally who could benefit from having a personal or business website. As of 2023, there are about 5 billion internet users worldwide.
Assuming that websites are essential for personal branding or business presence, approximately 20% of these users may require a website. This leads to a TAM of 1 billion potential users. Given that the average spend on website creation and maintenance is around $50 per user annually, this results in a TAM of $50 billion.
2. Serviceable Addressable Market (SAM)
The portion of your TAM that you can realistically reach.
These people are your potential customers.
Money
Annual spendings
$15 billion
People
Annual customer base
300 million users
Calculations
Step-by-step logic
The serviceable addressable market (SAM) is focused specifically on individuals and small businesses looking for a basic website setup. The target demographic includes freelancers, solopreneurs, and small businesses, which make up roughly 30% of all internet users.
This leads to approximately 1.5 billion people being potential customers. However, considering geographical limitations and market penetration, we estimate that about 300 million users are realistic targets within this niche. A conservative average annual spend of about $50 leads us to a SAM of $15 billion.
3. Serviceable Obtainable Market (SOM)
The portion of SAM that you can realistically capture.
These people are your customers.
Money
Annual spendings
$1.5 million
People
Annual customer base
30,000 users
Calculations
Step-by-step logic
The serviceable obtainable market (SOM) reflects the percentage of the SAM that your business can realistically capture within the first year. For small businesses, capturing 1-2% of the SAM in the first year is a realistic target.
Assuming a 0.5% market share of the 300 million potential users (SAM) leads to around 30,000 users. If each of these users pays an average of $50 for website services, you can expect an SOM of $1.5 million in revenue for your first year.
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