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market share
/ˈmɑːrkɪt ʃɛər/
percentage of total sales in a market
The company increased its market share from 15% to 20% last year.
The company's sales grew compared to competitors, capturing a larger portion of the market.
Business
formal
the percentage of total sales in a market that a particular company or product achieves
Apple's market share in the smartphone industry reached 25% in 2023.
Apple sold 25% of all smartphones globally in 2023.
The new startup gained significant market share within six months of launch.
The startup captured a large portion of the market quickly.
Market share is often calculated as (company's sales / total market sales) × 100. It can be measured in units sold or revenue generated.
Collocations
gain market shareto increase one's portion of the marketlose market shareto decrease one's portion of the marketmarket share leaderthe company with the largest percentage of sales in a market
Related Phrases
Pro Tip
How to calculate market share
Market share is typically calculated as: (Your Company's Sales / Total Market Sales) × 100. For example, if your company sold 500 units and the total market sold 5,000 units, your market share is (500/5000)×100 = 10%.
Gold Rule
Market share vs. market size
Market share measures your portion of the market, while market size refers to the total sales volume of the entire market. A company can have a small market share in a large market or a large share in a small market.
Word Origin
The term combines 'market' (from Old English 'market', meaning 'a meeting at a fixed time for buying and selling') and 'share' (from Old English 'scearu', meaning 'a division or portion'). The phrase emerged in the early 20th century as business analysis became more sophisticated.
Usage Notes
Market share is a key metric in competitive analysis. It can be reported as a percentage or in absolute terms (e.g., units sold). Companies often aim to increase market share as a strategic goal.
Word Breakdown
market
a place or system where goods and services are exchanged
rootshare
a part or portion of something
rootEnglish Dictionary