TAM

$36.8 billion

Definition and approach: TAM is defined as the global market for software test automation and the broader software-development tooling spend that TestSprite could theoretically address (all organizations buying automated testing / test-automation platforms and related developer tooling). Primary source and calculation: MarketsandMarkets reports an "Automation Testing" market of USD 28.1 billion in 2023 and projects USD 55.2 billion by 2028 (CAGR ~14.5%). Applying that CAGR forward two years yields: 28.1 × (1.145)^2 ≈ USD 36.8 billion for 2025 (rounded). Cross-checks: industry-level developer-tooling reports show the software development tools market at roughly USD 36.1 billion (2024), and specialist QA/testing sub-segments (e.g., crowdsourced testing) are multi‑billion‑dollar markets as well — these independent figures are directionally consistent with the TAM above when the problem definition is focused on automated testing plus adjacent developer testing tools. Therefore, USD 36.8B is a 2025 estimate for the total addressable market relevant to an IDE‑integrated AI test agent (top‑down, automation/testing + developer tooling lens).

• prnewswire.com
• wiseguyreports.com
• grandviewresearch.com

SAM

$6.63 billion

Definition and approach: SAM is the portion of the TAM addressable by an IDE‑integrated, developer‑facing AI testing platform (software/platform spend rather than professional services or hardware). Top‑down calculation: start with the TAM estimate (USD 36.84B for 2025), apply a conservative platform/software share of ~60% (many ALM/low‑code/testing reports show platforms capturing a majority of software/tooling dollars), producing a platform addressable pool ≈ USD 22.1B. Narrow that to the subset that is specifically code‑level, developer‑driven test automation (IDE integrations, unit/integration/debugging automation, shift‑left tooling) — conservatively assumed at ~30% of platform spend (reflecting the move toward developer‑centric testing and IDE extensions) — yielding SAM ≈ 36.84B × 0.60 × 0.30 ≈ USD 6.63B. Bottom‑up cross‑check (seat pricing view): global developer population ≈ 28.7M; VS Code usage ~73.6% (largest IDE), giving ~21.1M IDE users. Using a Copilot‑comparable price proxy (~$19/user/month ≈ $228/yr) and a conservative 20–25% addressable adopter rate among IDE users yields a near‑term seat revenue pool ≈ 21.1M × 0.25 × $228 ≈ USD 1.2–1.3B. Interpretation: the top‑down SAM (USD 6.63B) represents the broader platform and enterprise procurement opportunity for an IDE‑embedded test agent; the bottom‑up seat calculation (~USD 1.2–1.3B) is a plausible near‑term, direct‑seat revenue subset if selling mainly seat subscriptions into IDE users.

• prnewswire.com
• precedenceresearch.com
• marketintelo.com
• statista.com
• stackoverflow.co
• github.com

SOM

$66.3 million

Definition and approach: SOM is the realistically attainable share of SAM in the near term (first 3–5 years) given competitive dynamics, go‑to‑market limitations, and realistic traction assumptions for a new B2B developer tooling company. Assumption and calculation: using a conservative capture assumption of 1% of the SAM within the 3–5 year window (a commonly used conservative benchmark for early‑stage B2B SaaS market penetration), SOM = 1% × USD 6.63B ≈ USD 66.3M. Rationale and context: market‑sizing guidance and VC/startup playbooks commonly assume early entrants will capture a small fraction (often << 1%–few % of SAM) before scaling; therefore 1% is a defensible, conservative planning assumption for an IDE‑integrated test agent that reaches product‑market fit and begins enterprise sales. Bottom‑up plausibility check: 1% of a targeted seat pool (e.g., converting ~0.5–1% of the ~5M–6M immediate paying seats used in the bottom‑up scenario) at a subscription price in the same range produces a similar mid‑tens‑of‑millions ARR figure, consistent with the SOM above. This SOM should be treated as an early traction target rather than long‑term scale potential.

• theclueless.company
• finrofca.com
• scribd.com