What is TAM (Total Addressable Market)?
TAM (Total Addressable Market) represents the theoretical maximum market size if a product or service reached all potential customers and achieved 100% market share. It's used to gauge market potential and set broad direction for investment and product strategy, typically expressed as annual revenue. While a large TAM doesn't guarantee success, understanding the market ceiling is essential for predicting growth limits, making it a key metric in early strategy development.
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