Sizing methodology

Every SectorIntel number is meant to survive a challenge in a board room. That means no black boxes: this is exactly how the figures are built, cross-checked, and sourced. It’s textbook market-sizing practice — nothing proprietary, which is the point. You can reproduce it, and you should verify it.

1 · Bottom-up TAM / SAM / SOM

We count the market from the ground up: how many buyers exist, how many are relevant, what each pays, and how often. Every factor is a public number with a citation.

TAM = buyer universe × relevant share × annual contract value × purchases/year SAM = TAM × servable share (geography + segment you can actually serve) SOM = SAM × captured share (realistic multi-year capture)

TAM is the whole addressable pool per year; SAM narrows it to what a real offer serves; SOM is the defensible slice. Stating the narrowing explicitly is what separates a credible SOM from a wishful one.

2 · Two independent cross-checks

A single method is a single point of failure. We size the same market two more ways, each anchored to a different public number, so agreement is genuine corroboration rather than a restatement.

Top-down = reference market × addressable share × capture share Value-theoretic = annual value pool × defensible vendor capture share

The top-down hangs off a broader published market; the value-theoretic sizes the economic value the sector unlocks (labour saved, losses avoided, throughput gained) and the fraction a vendor can price for.

3 · Triangulation & confidence band

The three TAM estimates are reduced to their median — the central estimate, robust to one method running high or low so a single optimistic input can't drag the headline number up. We then measure disagreement as a spread — (highest − lowest) ÷ median — and report a band, not a false-precision point:

SpreadGradeHow we present it
≤ 40%TightMedian as the headline figure — defensible
≤ 100%ModerateRange, not a point; the method driving the high end is disclosed
> 100%WideNo single number quoted — at least one input needs a better public source before it's defensible

4 · Growth projection

Forward figures compound the present size at a CAGR that is itself sourced or implied from two dated public figures — never invented.

future value = present value × (1 + CAGR)^years implied CAGR = (end ÷ start)^(1/years) − 1

5 · The sourcing gate

The differentiator is enforced in software, not just promised. Every figure carries a citation slot; a report cannot be certified for delivery until every required figure — the parent-market size, the unit count, the price, the value pool, the CAGR, and each region's regulatory read — carries a real public source. Open slots are shown in red until filled, and the gate refuses to certify while any required slot is empty. Rules we hold every figure to:

Educational market analysis — not investment, legal, or tax advice. The methodology and any illustrative numbers here are general market data for internal planning use only, not a securities recommendation or a valuation opinion on any specific company or security. Verify every figure against its cited source before relying on it — markets move.