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Calculation of potential market capacity

Potential market capacity is the threshold at which that industry, segment or niche can reach maximum consumption.
This indicator reflects the ability of the market to consume a certain amount of the product you are interested in, and also clarifies the development opportunities in the segment. 

The growth prospect is easy to calculate by comparing the potential capacity and the actual volume of the sector you are interested in. If the volume is higher, then the market is oversaturated - it is worth considering whether it makes sense to enter a niche with such high competition. When the volume does not reach the potential capacity, there is a growth prospect.

Understanding the market capacity helps to make managerial decisions, plan to enter new niches and find arguments for investors.

What is included in the structure of the study

The main purpose of the analysis is to find out how close the market is to saturation and what is the level of competition. 

When calculating the market capacity, the following indicators are analyzed:

  • Dynamics of demand and factors influencing it: for example, seasonality.
  • Features of your product or service: cost, competitive advantages, demand, consumption rates.
  • External factors on which the situation in the segment depends: sanctions and reduction of imports, tax subtleties, the level of state control of the industry.
  • Purchasing power of the target audience.
  • Regional features - climate, local traditions, infrastructure.

To get a professional market capacity calculation:

  1. Send us an application in a form convenient for you: by letter, through the feedback box or by phone. 
  2. Our manager will contact you: he will clarify the tasks of your business, ideas for the research vector, wishes
  3. If you don’t know exactly which study is right for you, the manager will help you set goals and suggest solutions
  4. We will prepare a commercial offer, describe in detail the research methods, indicate the exact terms and cost of the service.
  5. We will help you to draw up a technical task taking into account your tasks and wishes
  6. After agreeing on all the details, we will send you a contract for signing and an invoice for paying for the study.
  7. If analysts have clarifying questions, your personal manager will provide communication and keep you informed of the progress of work 
  8. Based on the results of the analysis, you will receive a detailed report with answers to the questions posed in the terms of reference, data on the potential capacity of the selected sector and conclusions about the factors affecting it

If necessary, we will finalize the report free of charge within the agreed TOR
We will calculate the market capacity in an expression convenient for you: in the amount of goods that can be sold, or in money.

Cost of analysis

The price of the service is affected by:

  • availability of information;
  • industry specifics;
  • scope of the task;
  • the uniqueness of your product or service: it is more difficult to find relevant data for the analysis of qualitatively new products;
  • research geography;
  • terms of work: urgent orders usually cost more;
  • When ordering several studies, we will offer you a discount.

We approve the final cost after drawing up a research plan and agreeing on the terms of reference. It does not change unilaterally.

With a low budget, you can purchase a ready-made calculation of the capacity of your or similar market. If no ready-made report was found for the sector, another study that assessed this indicator will do. The cost of the finished calculation is significantly lower than the individual order. In addition, you do not have to wait for the results, but this option does not take into account the individual characteristics of the request. 

What will be required from you

  • Information about your business and tasks that you would like to solve with our help
  • Your vision of the purpose of the study, plans for using its results
  • Data you would like to see in the report
  • Willingness to fill out a small questionnaire: it will help to formulate a wish and clarify the task