TAM
If BrainSpark were to achieve total global domination in edtech games, they would develop games for learners of all levels worldwide. We found that the total market size for edtech games was $12.24 billion. (https://www.verifiedmarketresearch.com/product/educational-games-market/#:~:text=Educational%20Games%20Market%20Size%20And,explicit%20or%20incidental%20educational%20benefits).
However, if we narrow this down to the most likely area for Brainspark Games, we focus on university-level education. Additionally, since Brainspark Games found that humanities subjects, such as history, did not lend themselves to games, they have refocused on STEM games.
Number of all university students around the world: 254 million students
“Approximately 40% of four-year college students must first take a remedial math course.” Cite: https://theconversation.com/why-putting-off-college-math-can-be-a-good-idea-205284
254 * 0.4 = 101.6 million students
https://www.grandviewresearch.com/industry-analysis/education-technology-market
“These games can cost between $12.99 and $27.99, depending on the game and the age group it’s intended for.” https://www.educationalinsights.com/shop/games
Approximating average revenue per user: Averaging 13 and 28, we can consider the average price for games to be 20.5$.
101.6 million students x 20.5 $ = 2.08 Billion USD = TAM Size
SAM
Geographically, we will consider English speaking countries (UK, Canada, Australia, Ireland)
Demographically, we’re targeting total university students in English speaking countries. Narrowing it down, we target the ones that are taking advanced math courses.
US University students number: There were approximately 18.58 million college students in the U.S. in 2022 (Source).
Canada: In 2022, around 2.19 million students were enrolled in postsecondary institutions in Canada (Source).
Australia: Australia has more than 1.6 million university students, including both domestic and international students (Source).
Ireland: In 2022/23, there are a total of 256,785 students for all modes of study (Source).
India: In 2022, there are a total of 43.3 million students in higher education across India (Source). Higher education is mostly English based, but some schools have options in native languages, so we can approximate that 85% of these students speak proficient English for 36.81 million students
Total number of university students in English speaking countries: 18.58 million+2.19 million+1.6 million+ 0.25 million+36.81 = 59.43 million students
Those who are taking advanced level math courses: “According to available data, approximately 50% of university students take advanced math courses, with “advanced math” often referring to courses like calculus, linear algebra, or other higher-level mathematics beyond basic calculus.” (Source).
Potential Users in Target Market: 59.43 Million * 0.5 = 29.715 million university students in english speaking countries who are taking advanced math.
Approximating average revenue per user: $20.5 (same as before).
29.72 million students x 20.5 $ = 609.26 Million USD = SAM Size
SOM
For the serviceable obtainable market, we have chosen university students in the United States taking upper-level math courses. This is primarily due to the prevalence of higher education in the U.S. and the cultural openness to unconventional learning tactics.
By the end of 2021, Math Quest, designed for university students taking math courses, had over 100,000 downloads.
Brainspark Games are currently developing Math Quest 2: more advanced topics for university-level math courses, as well as features requested by students, like adaptive difficulty levels and multiplayer study modes.
Potential Users in Target Market: There were approximately 18.58 million college students in the U.S. in 2022, with 50% of university students taking “higher-level courses”. 18.58 * 0.5 = 9.29 million university students in the United States actively taking advanced math courses.
Approximating average revenue per user: $20.5.
9.29 million students x 20.5 $ = 190.445 Million USD
We think that, given their past success, BrainSpark can reasonably capture 1% of this market, which means that SOM Size = 1.90 Million USD
