Wouldn't it be great to have a solution that you could just sell anywhere and that everyone would want to buy? This is usually utopia, for such solutions there are probably already a hundred vendors already out there trying to do exactly this.
What is a market? There are established markets and new potential markets. The former is often addressed by long standing solution providers and 'me too'players. A 'me too' player is usually a company offering solutions that already exist but with the intent to do it cheaper or better than existing players. Or it could be that the market is so big that there is room for many players.
A new potential market is where innovative companies try to address problems that currently can not be solved very well or it could be offering something which an industry does not realise (yet) could bring them a lot of value - hence you create a market through what you offer. Some of the biggest companies across the globe today started by doing this, Microsoft, Apple, IBM, Facebook. In short you create a need for businesses and/or consumers.
The other aspect to consider when identifying a market is its value locally versus globally. A solution addressing problems that are common throughout the world and scale well are well suited for a global market. On the contrary, solutions addressing problems that are specific to a region and perhaps requires a large services component may be more suited towards a local market. This could be a state, country or small group of countries.
Numerous industries are very dynamic and contain vendors that have to perform in a fast paced world. What was a market yesterday may not be a market today, tomorrow everything may look completely different again. Validating and identifying your market can be a tedious task, nonetheless it is important to ensure efficient use of resources and in defining your business strategy.
There are numerous factors that can influence the potential market for your offering. They range from financial outlooks (global and locally), technology availability and consumer trends to local politics, cultures and language. You should consider the following:
Within how long do you need to be profitable?
What is your level of investment/funding and risk willingness?
How quickly do you want to grow?
Is your focus confined to a geographic region or do you wish to be a global player?
These are all questions that you should consider when determining your market and your go to market strategy. Many markets are very dynamic and change very quickly with regards to both solution needs and competitor landscape. Make sure you stay up to date, keep your eye on the ball and never get too comfortable. Be innovative, continually evolve and always consider new market opportunities. A market which is very profitable today may for many reasons be very different tomorrow indeed.