A short post about the difference

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between market size and market capacity. For some reason, these concepts are often confused. In this post, we will try to figure it out:

What is the difference between market size and market capacity?
What are market size and capacity indicators used for?
What are the methods for calculating the size and capacity of the market?
Market capacity is the maximum volume of sales that can be achieved within a certain period. Market capacity is an abstract, theoretical value that a company needs to understand the possibilities and extent hong kong cell phone number list of market saturation. In most markets, it is not possible to accurately determine capacity, since the very concept of potential sales depends on a large number of factors that are extremely difficult to take into account when calculating market capacity.

There are no universal methods for calculating market capacity; each market is unique in the consumer behavior of its buyers. In general, the methodology for calculating market capacity comes down to an attempt to:

introduce a typical consumer (with definition of socio-demographic or other characteristics)
understand how much of the product under study a typical client consumes on average during the billing period
the data is multiplied by the sum of typical/potential customers in a given territory
Often, quantitative surveys have to be used to determine market capacity, since there is simply no data on consumer behavior (habits, volumes, and frequency of purchases). But desk marketing research can also be used to determine capacity. Desk research is usually used to determine market capacity when budgets and deadlines are limited. This method can calculate market capacity fairly quickly, but you need to be prepared for a higher error.