How do I estimate the market size for my patented technology?

Question

Beyond the Patent · Accepted Answer

Bottom-up beats top-down: count the products your claims could read on, their prices, and their volumes, then sum. Context helps — IT & telecom alone represents about 38.5% of the patent licensing market, so which slice you're sizing matters as much as the total.

The defensible method: define the specific applications your claims cover, identify the products sold into each, estimate annual unit sales and prices from public financials and industry reports, and apply a realistic royalty rate. A patent touching $500M of annual product sales at a 4% royalty is a $20M-a-year theoretical ceiling — that arithmetic is what buyers run on you.

The mistakes to avoid: quoting trillion-dollar industry totals for a niche component, and confusing the market you touch with the market you can capture. Credible, conservative sizing wins more negotiations than big numbers — buyers discount fantasy instantly. Building a market sizing that survives diligence is a core piece of every score we deliver.

How do I estimate the market size for my patented technology?

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