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How Market Share is Calculated for B2B Companies

Finding the market share of your company is like finding a slice of pizza that someone left for you in your fridge. While the slice you found is great, you end up wishing you could eat the whole damn pizza. Similarly in a business, all you (and your competitors, for that matter) often get is just a slice—unless of course your product is revolutionary and has created an industry for itself; then by all means, you deserve the entire pizza and then some more.

Today, most industries aren’t monopolized by a single entity or organization, despite several of them having clear market leaders. In other words, these markets comprise several different companies that are always fighting for a bigger slice of the pie, while the pie itself continues to grow or shrink over time. To make informed business decisions, organizations want to keep a close eye on how the market is shared by these companies. But how do you go about calculating the market share of all these organizations?

This guide will show you a couple of super quick methods to calculate the market share of companies. Let’s start with a definition.

What is Market Share?

Market share can be defined as the portion of the industry or market that a company can call its own. More specifically, it is the percentage of the total sales or revenue made by a company in comparison to the total sales or revenue made by all the companies within the entire industry. 

Do not make the mistake of confusing market share for TAM or Total Addressable Market. You can learn what TAM is and how you can calculate it here.

How Market Share is Calculated

The first method to finding the market share of a company involves a simple formula and some data hunting, while the second is a free tool that requires no work on your part. Here we go!

Method 1: A Simple Formula to Calculating the Market Share of a Company

The formula to how market share is calculated is fairly simple. As we mentioned earlier, market share can be defined as the percentage of the total sales a company makes in comparison to the total sales made within the entire industry. Putting that into a formula, we get:

Market Share = (A Company’s Total Revenue/ Total Industry Revenue) x 100

Your company’s total revenue can easily be obtained internally.

A lot of financial statements and performance reports can be easily accessed with a quick search. As a result, Google comes to the rescue when trying to obtain the number for your total industry revenue. Many market research agencies like Gartner and Deloitte release industry reports that contain this number for a lot of the industries out there.

An Example

Let’s say your CRM company earned a revenue of $10 million in 2020. Now a small Google search about the CRM industry reveals that its revenue for the same year was at $44 billion. So using the above formula we get:

How Market Share is Calculated Example

This means your CRM company has a ~0.023% market share in the global CRM industry.

Method 2: Finding the Market Share for Any B2B Tech Company

If you’d like to avoid all the data hunting and calculations from the previous step, you can simply find the market share of any B2B tech company out there by heading over to Slintel’s Free Technographic Insights tool.

The thing with B2B tech companies is that they may have multiple products that fall into multiple industry categories. Our tool helps you find the market share within each distinct category.

Step 1:

Once you’re on the technographic insights page, you can type in the company whose market share you’d like to find. If the product you’re looking for is listed under multiple categories you will be given a list to choose from.

How Market Share is Calculated for B2B Companies

Step 2:

Be sure to click on the particular category within which you want to find the market share for.

market share how to calculate

Step 3:

You can further compare the product’s market share with competitors, get detailed customer insights such as Customers by Employee Count, Industry and Country.

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Alternative Step

Alternatively if you’d like to find category specific market share you could scroll down the technographic insights page and find the different categories within the B2B tech industry and pick the B2B tech product you’d like to find the market share of. 

How Market Share is Calculated for B2B Companies

Within each category you can also find a market share order-ranked list.

It really is that easy!

We hope you found this useful 🙂

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Vasisht Nagarkatti

Vasisht Nagarkatti

Vasisht Nagarkatti handles content marketing at Slintel. A content ninja, Vasisht relishes any opportunity to get his creative juices flowing. Marketing, journalism, music, photography, filmmaking and web design are a few trades that Vasisht may find himself dabbling in.

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