How to calculate market share
Market share = your sales ÷ total market sales × 100
It can be measured in revenue or in units sold, for a whole country or for a specific segment, such as dental clinics in Stockholm.
Why market share matters
- It shows whether you are growing faster or slower than the market as a whole.
- Larger players often benefit from scale, recognition and pricing power.
- In a flat market, growth has to come from competitors, so it helps you understand the competition.
Share of search and share of voice
When sales data isn’t available, marketers use proxies. Share of search, a brand’s share of all branded searches in its category, often tracks market share closely. Share of voice measures a brand’s share of advertising or visibility, for example in the search results for the category’s main keywords.
Market share example
A regional bakery chain sells 12 million kr a year in a city where all bakeries together sell 150 million kr. Its market share is 8%. Next year the market grows to 160 million kr and the chain sells 13.6 million, a share of 8.5%. Sales grew by 13%, while the market grew by 7%, so the chain is gaining ground.
How to estimate market share when data is missing
- Find the total market size from industry reports, government statistics or trade bodies.
- Use your own sales as the numerator.
- If you cannot find sales data, estimate share of search: compare brand searches against competitors in a tool such as Google Trends.
- Estimate share of voice by comparing visibility for key search terms.
- Repeat the same method each quarter to see the trend.
Market share mistakes
- Defining the market too broadly, so the share looks tiny, or too narrowly, so it looks huge.
- Comparing figures from different years or sources.
- Chasing share at a loss. A smaller, profitable share can be better.
Market share FAQs
What is relative market share?
Your share compared with the largest competitor’s. See competitive analysis and niche marketing.
How do I grow share?
Win customers from competitors, enter segments or raise loyalty. See brand loyalty and marketing research.