TAM / SAM / SOM
Market sizing framework: total, serviceable available, and serviceable obtainable.
Definition
TAM (Total Addressable Market) is the total revenue opportunity if 100% of the market used the product. SAM (Serviceable Available Market) narrows to the segment the company can serve given regulatory, geographic, and product constraints. SOM (Serviceable Obtainable Market) is the realistic share over a defined timeframe.What this means in practice
Investors expect bottom-up TAM/SAM/SOM models. In MedTech, sizing must reflect procedure volumes, addressable indications, reimbursement constraints, and competitive dynamics.- •Top-down sizing ('1% of a $10B market') without unit economics is a red flag in any pitch.
Related terms
Grouped by themeEditor's picks
· Hand-selected related conceptsFounder & Investor Primer
· From this learning pathFDA submission demonstrating a device is substantially equivalent to a legally marketed predicate.
Analysis of whether a product can be sold without infringing third-party IP.
FDA program providing expedited review for devices that treat life-threatening or irreversibly debilitating conditions.
Ledger of all securities issued by a company and who owns them.
More in Commercialization
· Same categoryIndustry code governing interactions between U.S. medical-device companies and healthcare professionals.
Convening of external experts to advise on strategy or product.
U.S. criminal statute prohibiting remuneration to induce federal healthcare business.
Primary references
3 sources- 1
a16z: market sizingVerifieda16za16z.com
- 2
AdvaMed Code of EthicsVerifiedAdvaMedadvamed.org
- 3
AHRMM - Healthcare Supply ChainVerifiedAHRMMahrmm.org
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