TAM (Total Addressable Market). The total market volume amounts to $24 billion. The financial data exchange industry is an extensive sector encompassing a wide range of companies and services related to financial data exchange. This includes companies specializing in financial data analysis, fintech companies, as well as all financial institutions, corporations, and individuals worldwide requiring access to financial data for investments, analysis, and decision-making. The global market for financial data exchange (according to MarketsandMarkets reports) is estimated at around $10 billion in 2022 and is expected to reach approximately $20 billion by 2026, exhibiting a Compound Annual Growth Rate (CAGR) of roughly 20% over the forecasted period. This growth is attributed to factors such as increasing demand for real-time financial data, the growing adoption of cloud-based solutions for financial data exchange, and the rising popularity of algorithmic trading.
The global online trading platforms market was valued at approximately $14 billion in 2022 and is expected to grow by about 9% through 2028. This growth is driven by factors like the increasing adoption of mobile trading platforms, the growing popularity of cryptocurrencies, and the rising demand for automated trading solutions. Overall, the demand for financial data providers and trading platforms is significant and is expected to continue growing in the coming years as more individuals and companies turn to digital solutions to meet their financial needs.
SAM (Serviceable Addressable Market). Represents the portion of TAM that our company can realistically target and serve. Our available market lies in the SAAS (Software as a Service) segment for predictive financial analytics and is estimated at $6.5 billion per year (based on Statista data: T3 Technology Hub and Orion Advisor Services research), with 25% attributed to Morningstar.
SOM (Serviceable Obtainable Market). Represents the portion of SAM that we can effectively serve and generate revenue from in the short to medium term. Based on market needs and our existing contact base, by conservative estimates, in the next 2-3 years, our reach could encompass 2% of the SAM market, equivalent to $130 million per year (excluding the industry’s annual growth rate of over 15% year on year).
As of the end of 2020, Bloomberg terminal subscribers numbered approximately 325,000 according to publicly available sources. These are all potential clients of ours, the majority of whom fall within TAM and will become accessible after the implementation of our additional products. This means that in the foreseeable future, our SAM market will expand by nearly fourfold, and profitability may increase exponentially.