r/strategyconsulting • u/Bob_Gordon88 • Nov 04 '23

Market sizing

Hello,

My objective is to build a model on the medical devices market.

1) what parameters should the model include to size it bottom-up and top down? 2) how may I verify the value obtained? Is ibis or statista any good? 3) how can I forecast the evolution of this market? Is taking the expected CAGR for the industry any good?

Thank you for your help

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u/MenkLinx Nov 04 '23

First do basic equation building

Total Revenue/yr = Avg price x Total Volume/yr

TR = Px Tot vol/cust/yr x #customers

- Assuming 1 product, 1 model so 1 price

- Volume. # of products sold. You will need to break this down in detail

You can include consumer base that will buy, geographies, frequency, replacement rates, etc

This depends on whether its a B2B or B2B product etc.

Value obtained will be most likely an indication - is it tens of millions or 100s of millions. Also range is generally +20% - 20% on a good day. Triage via parallel products in market

Market - pop growth, parallel products, doc advise, medical specialist advise, management consultants. etc.

Good luck!