How large or small is the market in which a company is operating? Who are the people a company is selling to? A well-managed company will ask these questions, and more. They will also want to know the growth rate of the market. Op top of that a company will look towards new markets to expand into.

Markets can be small, such as the local neighborhood for a small corner variety store, or large, as for Intel selling chips worldwide.

The size of the market is measured by the total number or value (currency) of units sold for a given period of time, usually one year. The market growth rate is calculated by dividing this year’s market size by last year’s market size.

Obtaining accurate market size data can be a challenge. You might want to ask market research companies or do surveys. You might try statista.com as well. That web sit has a free account option but you’d need to join at $199 per month to get the other 93% of the data.

Here is the formula:

For more information, The Main KPI Types has a list of some KPIs and their types.