What is Slack’s true total addressable market, also known as TAM?
Slack estimates the market opportunity for providers of workplace business technology software platforms for communication and collaboration to be $28 billion. This was calculated by estimating the total number of companies in its addressable market across large enterprises (> 5,000 employees), medium-sized organizations (250–5,000 employees), and emerging and small businesses (10–250 employees), as well as by applying annual recurring revenue (ARR) to each organization based on its size and location.
Gartner estimates that Slack’s direct market for collaboration services will increase to $6.6 billion by 2023 from $4.3 billion in 2019 and the entire collaboration services segment will reach $37.9 billion by 2023 from $28.4 billion in 2019.
IDC estimates that Slack’s direct market for team collaboration applications will increase to $5.8 billion by 2022 from $3.5 billion in 2019 and the entire collaborative applications segment will reach $31.2 billion by 2022 from $22.2 billion in 2019.
Both Gartner and IDC estimate that Slack’s direct market will be growing at an incredible pace, by 20% and 12% CAGR, respectively.