Market Share Calculator
Calculate your market share and compare your position against competitors. Add up to 5 competitors for a side-by-side market share breakdown.
Your annual revenue or ARR
Total addressable market revenue
Competitors (optional, up to 5)
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Understanding Market Share Analysis
Market share analysis is essential for understanding your competitive position. It tells you not just how big you are, but how big you are relative to the market and your competitors. This context is critical for strategy, fundraising, and M&A decisions.
Market Share Formula
Market Share = Your Revenue / Total Market Revenue × 100. The key challenge is defining the market correctly. Too broad and your share looks insignificantly small. Too narrow and you overstate your position. Use your TAM, SAM, or SOM depending on the context and audience.
Competitive Dynamics
Market share is a zero-sum game — your gains come at competitors' expense (unless the overall market is growing). Track market share trends over time, not just snapshots. Consistently gaining share indicates strong competitive positioning, while losing share signals the need for strategic adjustment.
Market Concentration
Analyze how market share is distributed. A fragmented market (many players, each with small share) often presents consolidation opportunities. A concentrated market (few dominant players) requires differentiation or niche strategies. The Herfindahl-Hirschman Index (HHI) formally measures market concentration.
Frequently Asked Questions
- What is market share?
- Market share is the percentage of total industry revenue or sales captured by a single company. It is calculated as: Market Share = (Company Revenue / Total Market Revenue) × 100. A company with $5M in revenue in a $100M market has 5% market share. It is a key indicator of competitive position and industry influence.
- How do you calculate market share?
- Market Share (%) = (Your Revenue / Total Market Revenue) × 100. Use consistent time periods (annual is most common) and consistent definitions of the market. You can also calculate market share by units sold, customers served, or other volume metrics instead of revenue.
- Why is market share important?
- Market share indicates competitive strength, pricing power, and growth potential. Higher market share often correlates with better economies of scale, stronger brand recognition, and greater negotiating leverage with suppliers. Investors use market share trends to assess whether a company is gaining or losing competitive ground.
- What is the difference between market share and market penetration?
- Market share measures your revenue as a percentage of total market revenue (comparing you to competitors). Market penetration measures what percentage of potential customers you actually serve (comparing you to the total opportunity). A company can have low market share but high penetration in its niche segment.
- How can I increase my market share?
- You can increase market share by: (1) competitive pricing to attract price-sensitive buyers, (2) product innovation to differentiate from competitors, (3) expanding distribution channels, (4) acquiring competitors or their customers, (5) investing in brand and marketing to increase awareness, or (6) entering adjacent market segments.