pdmpill 4 – How to determine the market size?

Market sizing is never accurate, no matter what method is used, but it doesn’t need to be. Remember that is better to be broadly right than precisely wrong. There are two strategies to estimate market size:

  1. Top-down “optimistic” approach based on total market size: start with a broad market size figure and narrow it down to the target market by using assumptions and statistics.
  2. Bottom-up “conservative” approach based on market trends: sum-up known data from market participants (supply and demand side). This approach is more robust since it takes into account the capacity limitations of the industry.

By Cristian URECHE

Cristian is a Senior Product Manager with experience shipping tech products in more than 30 countries. He later became an entrepreneur and built an award-winning IoT startup pioneering PropTech and smart access technologies. He was invited out of 2,000 entrepreneurs to join the French Tech Ticket program in Paris for one year. Besides possessing expertise in AI, Cristian is well versed in the end-to-end product development cycle with an active and influential leadership style.