What is market share?

Market share is the percentage of a market’s total revenue (or unit sales) that one company captures. If a market is worth $100M annually and your product books $5M, you hold 5% market share. It is the classic scoreboard metric for competitive position.

For smaller companies, absolute market share often matters less than its direction and its relative version — how you compare against the two or three competitors buyers actually shortlist you with. Growing share in a defined niche is usually a more actionable goal than moving a decimal point in a giant market.