Global Remote Work TAM
Identify and/or calculate the global total addressable market (TAM) for remote work between now and the year 2025. This value will be based on the total amount of money — represented in $USD — that companies would spend on communicating remotely for work purposes. This information will be used to help build a product/professional service that is aimed at helping business improve the quality and impact of their remote communication processes between humans in their "workplace."
Associated Costs & Requirements for Remote Work
- Common costs associated with working remotely, regardless of the type business involved, include:
- 1) Internet accessibility
- 2) Laptop(s)/desktop computer(s)
- 3) Equipment for home office (phone, communication equipment, special technology/programs for work, etc.)
- 4) Furniture for home office (desk, chair, etc.)
- 5) Rent/membership costs for co-working space
- The internet bandwidth requirements for online Zoom meetings range from 2.0-6.0 Mbps for video, 150-300 kbps for screen sharing, and 60-80 kbps for audio. Google Hangouts requires a minimum of 300 kbps but ideally would use between 2.6-4.0 Mbps for optimal results with video calls. Skype calls require anywhere from 100 kbps to 4 Mbps for voice and video calls, as well as screens sharing.
Actual Size of Remote Workers Globally
- According to Owl Labs 2018 Global State of Remote Work, approximately 18% of employees around the world always work from home. This compares with 13% that worked from home one day per week, 21% that worked from home more than one day per week, and 16% that worked remotely one day per month. About 32% of global employees reported that they never work remotely.
- The World Bank Group indicates that as of 2019, there were 3.489 billion people in the global workforce. In 2015, the global workforce amounted to 3.338 billion persons. This represented a growth rate of 4.52% from 2015 to 2019.
- If the growth rate persisted from now to 2025, then there would be approximately 3.647 billion people in the global workforce by the year 2025.
Calculating Global TAM of Remote Work by 2025
- Verizon offers business-ready internet solutions that includes download speeds from 3-15 Mbps for $42.99 (rounding up to $43) per month.
- If 18% of all employees globally work from home, then in 2025, this would amount to 0.656 billion individuals.
- Assuming that a company would cover the internet costs associated with remote work for their employees, it would cost approximately $516/employee each year. With 0.656 billion employees working remotely in the year 2025, this would amount to $338.496 billion/year in associated internet costs.
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