Market analysis

✅ Why this step defines the size, structure, and shape of your opportunity

Before you build, you need to know what you’re getting into.

Market analysis gives you a structured view of your industry landscape—who the players are, how big the opportunity is, and what’s driving change. It helps you assess if the market is growing, shifting, or saturated—and how your product fits in. This isn’t about guessing trends—it’s about making informed, strategic decisions.

📘 What you’ll assess

  • Total addressable market (TAM), serviceable market (SAM), and ideal entry segment (SOM)
  • Market size (revenue, units, geography, or audience size)
  • Growth rates and trend drivers (tech, regulation, consumer behaviour)
  • Industry structure: dominant players, barriers to entry, channel dynamics
  • Risks and forces that could affect entry or growth

🛠️ Tools and methods

✅ Market Analysis Checklist

Define the market boundaries clearly—what’s in, what’s out
Estimate TAM, SAM, and SOM using public data or bottom-up models
Identify growth trends and emerging behaviours
Map industry players and channel structures
Note regulatory, economic, or supply risks
Summarise strengths, weaknesses, and entry opportunities

Market Scope Table (TAM/SAM/SOM)

MetricDescriptionEstimateNotes
TAMGlobal market for category£4B/yearIncludes all similar products
SAMTargeted submarket (region/segment)£320M/yearUK + DACH B2B market
SOMExpected reachable market at launch£12M/yearEarly adopters via D2C
  • Use public market reports, startup pitch decks, or investor tools
  • Validate with interviews or survey data if possible

⚠️ Mistakes to avoid

  • Using vague or inflated estimates with no logic behind them
  • Confusing audience size with buying potential
  • Ignoring competition, regulation, or channel complexity
  • Skipping trend and timing signals—growth curves matter

💡 From commercial teams

“Market analysis showed our TAM was huge—but our SOM was tiny. That changed our strategy from VC to bootstrapping.”

– Co-founder, Wearable Safety Devices

💡 Even small markets can be smart markets—if they’re reachable and profitable.

🔗 Helpful links & resources

  • Market Sizing & Analysis Template
  • Download: TAM–SAM–SOM Calculator Sheet
  • Article: How to Analyse Markets Without Getting Lost in Data
  • Follow-on: Go-to-Market Planning

✍️ Quick self-check

Have we defined the realistic market we can serve—not just the global potential?
Do we understand the dynamics shaping this market—growth, barriers, trends?
Have we mapped out major players, segments, and risks?
Are our size estimates grounded in logic, data, and our entry plan?

🎨 Visual concept (optional)

Illustration: A layered market diagram with concentric circles for TAM, SAM, and SOM. Arrows point to a target wedge marked “First buyers: SME contractors, UK market”. Sticky notes say: “Fastest growth: IoT retrofit”, “Avoid: overserved smart homes”.

Visual shows how market analysis focuses your strategy—so you aim where the opportunity actually is.
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