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I need to know the TAM (total addressable market) of sport app lication market and the TAM of the social chat market
Hello! Thanks for your question about the TAM for sports applications and social chat applications. The short version is that although the TAM for sports apps is difficult to determine, it is estimated to be around $1.54 billion, while the TAM for social chat apps is calculated to be approximately $22.4 billion. Below you will find a deep dive of my findings.
METHODOLOGY
I and my colleague searched through industry reports, government reports/databases, and trusted media sites that contained any useful information regarding the TAM for both the sports app market and the social chat app market. The sports app and social chat app markets listed no definitive information on the current TAM. However, we were able to calculate estimated TAMs based on data we found.
TAM FOR SPORTS APP MARKET
In regards to the TAM for sports applications, very few resources exist revealing a definitive revenue opportunity. However, the estimated 268 billion mobile downloads that will take place by the end of 2017 are expected to generate an income of $77 billion. According to statista.com, about 2.18% of the mobile apps used are in the sports category, which would bring the estimated income of the sports app market to $1.68 billion. The sports app market seems to be growing consistently and rapidly. It was even the fastest growing category in the mobile apps market in June 2016. The market is also experiencing a 16% growth in time spent on sports app usage. The Market Research Store also has additional information of which you can request a sample. You can find it by clicking here.
An important note or disclaimer to consider is that sports apps, which are what the above stats regard, differ from sports and fitness apps (exercise, pedometer, and health tracker apps), which drew an estimated $400 million in 2016 and are expected to grow at a CAGR (Compound Annual Growth Rate) of 23.78%.
TAM FOR SOCIAL CHAT APP MARKET
In regards to social chat apps, the TAM is expected to grow to $27.2 billion by 2022. Social chat app usage currently outweighs that of social networks. The total user base of the top four chat apps outnumbers the total user base of the top four social network apps. The social chat apps are expected to continue growing to an estimated 2 billion users globally by 2018. Chatbots are estimated to see a growth from $703.3 million to $3,172.0 million ($3.2 billion), at a CAGR of 35.2%.
To calculate an estimated TAM for the social chat app market, we used the CAGR of 4.0% for the market shown in a February 2017 article in Universal Hunt along with the previous data showing that the market will reach $27.2 billion by 2022. Although the 4.0% CAGR does not come from the same source as the other data, it was the only number that was found after extensive searching. Using this data and Investopedia's CAGR calculator, we calculated an estimated 2017 TAM of $22.4 billion using the assumptions of 5 periods (2017-2022) and an ending Value of $27.2 billion. We did this by changing the value in the Beginning Value field incrementally until the resulting CAGR was a close to 4.0% (the exact value was 3.96%).
CONCLUSION
To wrap it up, the TAM for the sports app market is roughly $1.68 billion dollars which is based on the 2.18% it occupies of the entire $77 billion industry. The calculated TAM for the social chat market is approximately $22.4 billion. Also, chatbots are estimated to see a growth from $703.3 million to $3,172.0 million ($3.2 billion), at a CAGR of 35.2%. Again, The Market Research Store also has additional information of which you can request a sample. You can find it by clicking here.
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