Market size refers to the total potential sales or revenue that can be generated within a specific market for a product or service. It is typically measured in terms of the number of potential customers or the total monetary value of sales. Understanding market size helps businesses assess opportunities and make informed decisions about entering or expanding in a market. To determine market size, companies often analyze factors such as demographics, consumer behavior, and industry trends. This information can be gathered through market research, surveys, and data analysis. A larger market size generally indicates more potential for growth and profitability, making it an essential consideration for strategic planning.