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 value of sales in a given period. Understanding market size helps businesses assess opportunities and make informed decisions about entering or expanding in a market. To calculate market size, companies often analyze factors such as demographics, consumer behavior, and industry trends. This information can be gathered through market research, surveys, and analysis of existing data. A larger market size generally indicates more potential for growth and profitability.