Market Sizing Frameworks

Frameworks and methodologies for estimating market size and validating market opportunity.

Overview

Market sizing answers the critical question: "Is this opportunity large enough to pursue?" It provides the foundation for strategic decisions, resource allocation, and investment prioritization.

Core Principle: Market sizing is educated guessing with documented assumptions. The goal is reasonable estimates and order-of-magnitude accuracy (is it $1M, $10M, or $100M?), not false precision.

Key Insight: Always use multiple methods (bottom-up, top-down, value theory) to triangulate and validate estimates. If methods disagree by more than 2-3x, your assumptions need scrutiny.

When to Use This Skill

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• market-analyst - For TAM/SAM/SOM calculation and market validation