What Is Market Size & Shares?

Written by rick suttle Google
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What Is Market Size & Shares?
What Is Market Size & Shares? (Image by Flickr.com, courtesy of kevinzhengli)

Market share is a business term that is used to measure the percent of a market that a company has for specific products (i.e. share of Crest versus all toothpastes). Market size is total size of all of the specific products in that category or industry.

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Market share and size are important because competing companies want to know the potential market for their products in a specific industry. If a new company sees there is little potential in a particular industry, they would not likely enter it.

Types of Market Share & Size

Revenue market share and size is one type of market share and size. Revenue market size is the total dollar amount that is spent for a particular product (i.e. laundry detergent) in a market. Revenue market share is the percent of those dollars that are spent for a specific company's brand (s) within that market.

Other Types of Market Share & Size

Unit market share and size is another measuring tool for market share and size. Unit market size is the total number of units that are sold in a particular product category or market. Unit market share pertains to a specific company's percent of unit sales within that market for their brands or products. (See reference 1 below for more details on market share.)

Effects of Market Share & Size

Market share and size never stay the same. Some companies gain market share within a segment at the expense of others. An increase in advertising versus a competitor can have positive effects on a company's market share as can knowing the preferences of consumers in advance.


The economy can affect market share and size. For example, the total dollars (revenue market size) spent on cars has plummeted in recent years because of the economy.

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