The markets page displays a value revenue which sums all of the underlying organization revenue estimates for that market classification.
The page also displays a market size for that market classification which is often different from the total revenue.
Over time our analyst built market sizes and machine learning driven revenue estimates, those values will come closer together. For now, here are a few reasons why those numbers are different.
1. Revenue is Lower than Market Size. Long Tail
HolonIQ Market Sizing Methodology includes a number of approaches from economic indicators, demand and supply side builds. Almost all markets around the world are made up of a number of very large companies, a large number of medium to large sized companies and depending on the market a large to very large number of small to medium-sized organizations. In addition to the nearly 1 million organizations we cover in our analysis, there may be hundreds, thousands and sometimes millions of firms participating in a market that are not identified on the platform. In our supply side build, this cohort is called the 'Long Tail' and we estimate the concentration of the market or un-identified revenue to inform the market size.
Through this Long Tail assumption, the market size reflects revenue that is not identified in a sum of all organization revenue estimates.
2. Revenue is Higher than Market Size. Diversified Firms.
Organizations are classified on our platform on their primary activity. For large diversified firms, that can be quite challenging and quite often this means a large firm that represents a very large revenue base, is automatically summed as part of it's primary classification. This in effect over-states the revenue for that classification and understates the revenue in other classifications it is active.
While this is adjusted for in our supply side market sizing activity and in very large markets that are hundreds of billions or trillions of USD in size the impact is lower, this is the main reason why revenue is higher than market size in the markets page.
3. Digital Education Market Sizes
In the education industry, historically our market sizes have been focused only on digital revenue such as education technology hardware, software and services. Meanwhile the revenue field is summing up all underlying revenue estimates for all organizations in that classification, regardless of whether the revenue is digital or not.
We're in the process of modifying our education classification system to capture both analog and digital expenditure, but for now treat the revenue as a complete total and the market size as digital only.