Understanding MarketsandMarkets' Role in Tech Market Analysis: A More Nuanced View
We've refreshed our advisory SageNote on MarketsandMarkets to reflect a deeper understanding of their business model and market position. While our initial analysis highlighted important concerns from employee feedback, conversations with their leadership team have revealed a more complex picture worth sharing with the analyst relations community.
Niche approach
MarketsandMarkets operates in a specific niche: providing Total Addressable Market (TAM) estimates for emerging technology segments. This is inherently challenging work. These markets are often undefined, with shifting boundaries and limited historical data. Neither MarketsandMarkets nor other analyst firms track these segments currently, making accurate data collection and market definition substantially difficult.
The firm employs a structured seven-step methodology to tackle these challenges, triangulating data from various sources including earnings reports, vendor announcements, and industry patterns. They're transparent about their approach and its limitations, acknowledging that many markets they analyze may not develop into major segments.
Inherent risks
However, this positioning creates both opportunities and risks. In today's environment of tech market hype, especially around AI and quantum computing, there's significant demand for optimistic TAM numbers. Business executives often seek these figures to support investment cases. This dynamic can lead to inflation of market size estimates across the industry.
For AR professionals, this creates a specific challenge. While MarketsandMarkets' TAM forecasts can serve tactical needs - particularly for emerging technologies where established analysts lack coverage - their limited impact on market perception means they shouldn't drive strategic resource allocation.
New SageNote
Our updated advisory SageNote digs deeper into these dynamics, offering:
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- A detailed analysis of MarketsandMarkets' methodology and market position
- Insights into their research processes and quality controls
- Guidance for AR professionals on appropriate use cases
- Recommendations for evaluating and leveraging their research
The full analysis is available to SageCircle clients and provides a framework for understanding when and how to engage with firms focused on emerging market sizing.
Key takeaway
While concerns about research quality and aggressive sales tactics persist, understanding MarketsandMarkets' specific market position and methodological approach helps AR professionals make more informed decisions about engaging with them. Their research can provide value in specific contexts, particularly for emerging technologies, but should be viewed as one input among many rather than a definitive source.
#AnalystRelations #MarketResearch #TechIndustry #TAM #EmergingTech
What are your thoughts on balancing tactical opportunities with strategic AR goals when working with emerging market research firms?
Great insights into MarketsandMarkets' niche approach and methodology. We recently hosted a webinar with them, diving into similar topics and gaining fresh perspectives. For those interested, we’ve shared our key takeaways and insights on the IIAR> blog. https://analystrelations.org/2024/10/03/iiar-analyst-firm-webinar-markets-and-markets-10th-october/
It is refreshing to hear that others find MM challenging. I tried to work with them in the past. I have found their methodology to be haphazard at best. Their market definitions are very wide and can inflate their market sizing by a great deal. I always warn business planners and product management to take most forecasts with a grain of salt until they can decipher the market definitions. It can be as simple as looking at the vendors they consider to determine that the market is extremely wide and may not be appropriate for your TAM efforts.
Technology business executive and strategist
1 个月As a former product manager now working in analyst relations, your reference to “significant demand for optimistic TAM numbers” certainly rings true. Coincidentally, we met yesterday with one of their key North American executives, and he was refreshingly candid about their goals and prospects toward a place in the Pantheon. We left the meeting feeling optimistic that M&M are developing the ability to wrap sober analysis around fragile TAM estimates, in markets for which data is otherwise largely unobtainable.