What is Total Addressable Market (TAM)? Definition + Examples
Total Addressable Market (TAM) is the total annual revenue opportunity available for a product or service if it captured 100% of a defined market. TAM represents the outer boundary of growth potential for a business. For B2B companies, TAM is typically calculated by identifying the target customer segments (by company size, industry, geography, or use case) and estimating the total annual spending in that category. TAM drives go-to-market strategy, sales territory planning, and investor conversations about growth potential.
