How to calculate market shareΒ
To gauge your competitiveness and track your progress, itβs important to compare your business against your industryβs averages. Hereβs how to calculate the market share you hold:
1. Define your market and time period: Specify product/category, customer segment, geography, and channels, then set a clear window of time to look at. Generally, market share should be calculated regularly (quarterly or annually) to monitor performance trends and identify competitive shifts. New or rapidly growing businesses may find it helpful to review this data more frequently.
2. Pick your measurement type:Β Choose revenue or units, and stick with it so you can analyse trends. Make sure your data reflects the same scope and period.
3. Compile your sales and market/competitor totals:
- If youβre comparing your sales to the whole market, gather total industry sales for the same scope/time.
- To compare your performance to competitors, total top competitorsβ sales for the same scope/time.
4. Apply the market share formula:
Market Share (%) = (Your Sales Γ· Total Market Sales) Γ 100Β
We explain more about how to calculate a company's market share below.
5. Review, record, and repeat: Β Calculate regularly (typically quarterly or annually) to monitor trends and competitive shifts. Document your sources and assumptions so your calculations remain repeatable.