TAM, SAM & SOM
TAM, SAM, and SOM are three nested estimates of market size. TAM (Total Addressable Market) is total demand if you captured everyone, SAM (Serviceable Addressable Market) is the portion your product and geography can actually serve, and SOM (Serviceable Obtainable Market) is the realistic share you can win in the near term given competition and capacity.
Picture three shrinking circles: TAM is the whole pie, SAM is the slice your offering fits, and SOM is the bite you can realistically take. Teams calculate them top-down from industry figures or bottom-up by multiplying your target account count by expected average revenue, then use the result to size opportunity, set targets, and prioritize markets.
The common pitfall is inflating TAM by counting buyers you can never reach, which makes goals look easy but misleads planning. Related terms include ICP and pipeline.
Last updated: 14 June 2026