Market size
Market size is total sales or demand within a specified market and period, measured consistently in units or money. Define the product, customers, geography and time horizon; the estimate is only as useful as those boundaries and its evidence. Changes in market size can affect an organisation’s sales even when its market share is unchanged. Separate market growth from competitive share gains when evaluating sales performance and planning capacity.
Worked example
A market grows from 100,000 to 120,000 units. At an unchanged 10% share, a business’s sales rise from 10,000 to 12,000 units. The extra 2,000 units reflect market growth rather than an improvement in share.
Common mistake
Calling any increase in the organisation’s sales a market-share gain without checking total market movement.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Supporting | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |