Digital Archive Device Market - TAM Small Museums
The total addressable market (TAM) for small museums with a budget of less than $1 million is approximately $4.16 billion, with the total number of small museums in the United States at approximately 11,200. We were able to come to these totals by triangulation of the total revenue for all museums in the United States in conjunction with the total number of museums in the United States. The calculations that we used to reach these figures are outlined below.
Total Number of Small Museums
Since no pre-compiled information could be found in regard to the number of small museums with a budget under $1 million, we triangulated the figure based on the categorization of all museums in the United States according to budget. According to an American Alliance of Museums statistics report, annual museums budgets are as follows: $350,000 represented 8% of all museums, $350,000 — $499,999 represented 6% of all museums and $500,000 — $999,999 represented 18% of all museums. We added these percentages together to reach a total of 32% of museums that are classified as falling in the small range in the United States. According to a 2016 report, there are over 35,000 museums located in the United States. When we apply the 32% total that we reached from the calculations listed above to the overall total number of museums, we come to a total of approximately 11,200 small museums with a budget under $1 million in the United States. There was no available information about volunteers or staff members who have multiple responsibilities in regard to small museums from the last 2 years. One report did state that the ratio of volunteers to paid staff was 18:1 for museums whose annual budgets are under $250,000. It was also noted that overall, volunteers typically outnumber paid full time employees two to one.
There was no pre-compiled information available for the total addressable market for small museums with an annual budget of less than $1 million so we triangulated our answer based on the total revenue of all museums in the United States in conjunction with the total number of small museums that we calculated above. According to a 2018 statistics report, the total market size for all museums in the United States is $13 billion. We determined the total addressable market for small museums by multiplying the total U.S. market size of $13 billion by 32%, giving us $4.16 billion as the total addressable market for small museums with an annual budget of less than $1 million.
By triangulating the available data on the total market size of museums in the United States as well as the percentages of those organizations that operate at less than a $1 million annual budget we were able to determine that the TAM for small museums is approximately $4.16 billion and that there are approximately 11,200 small museums operating in the United States.