TAM: Overall potential of the market

The Total Available Market (TAM) is an estimate of the total sales potential that a product or service could achieve worldwide, regardless of existing market barriers or the company's current market penetration. This metric helps startups and investors understand and evaluate the scale of the market opportunity by painting a picture of how large the market could be in a best-case scenario. Analysing the TAM enables companies to plan their long-term growth strategies, set priorities and allocate resources efficiently to the most promising market segments.