Trend analysis tells you WHERE the market is going. CAGR (Compound Annual Growth Rate) is the standard metric for measuring market growth over time. Understanding trends is essential for projecting future market size and timing your entry.
CAGR
CAGR = (End Value / Start Value)^(1/Years) - 1
Smoothed annual growth rate over a period.
Future Market Size
Future Size = Current Size × (1 + CAGR)^Years
Ultrasound Market Projection
Current market (2024): €8.2B, CAGR: 5.4% Projected 2029: €8.2B × (1.054)^5 = €10.7B 3D segment growing faster at ~8.2% CAGR: €2.1B → €3.1B by 2029
Key Takeaways
- CAGR smooths growth over a period — it's the standard metric.
- Use CAGR to project future market size for your business plan.
- High CAGR (>10%) attracts investors — it means a growing opportunity.
- Your segment may grow faster or slower than the overall market.