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What is the United States market-size (TAM) for the Transportation companies with more than 100 owned vehicles industry?
Hello! Thanks for your question about the US market-size for transportation companies with more than 100 owned vehicles .
The most useful sources I found to answer your question are this list detailing the 100 largest for-hire trucking companies along with revenue and fleet size, as well as this report from the American Trucking Associations. The short version is that the US market-size for transportation companies with more than 100 owned vehicles is around $310 billion, which includes trucking companies (making up most of the revenue), car rental companies and taxi/limo fleets. The TAM for trucking only is around $280 billion.
I've not included ride-sharing companies like Uber or Lyft because of their lack of owned inventories; public transportation companies as each city uses different providers; or bikes as they fit the definition of "vehicle" only in the broadest of senses.
TRUCKING INDUSTRY
The American Trucking Association has said that in 2014, the transportation industry using trucks was $700.4 billion and for 2015 it was $726.4 billion. There are no reports on the state of the industry in 2016, but applying the 2014-2015 growth rate to 2016 (an increase of around 3.7%), we get around a $753 billion market size for the trucking industry.
Unfortunately, after an exhaustive search, I found no source that cited the breakdown of the industry by the number of vehicles each company had. I did find that 97.3% of them have less than 20 trucks, with 90.8% having 6 or less. Because there are around 500,000 (most likely a bit more) trucking companies, that means there are around 13,500 companies with more than 20 trucks. Figuring out that number for more than 100 was not possible with publicly available reports as no (public) report breaks down the industry in this way.
The best source I could find detailing the amount of vehicles each company had was this list of the top 100 largest for-hire carriers that serve the US. All of them have more than 100 vehicles (most of them have more than 1,000). Adding up their revenues gives a total of $211 billion, around 28% of the total market. Given that the lowest ranking company on this list had $180 million in revenue, it's unlikely that the market revenue will grow much higher. In fact, I've taken the liberty of doing some data analysis on these revenues to find a possible trend that could help narrow the number. Notice how the revenue gets smaller and smaller, in a shape that follows a power law distribution. Fitting a trend line to this data, one can see that the revenue is following the formula y = 50,000,000*x^(-1.174). I've applied this formula to the next 10,000 entries to get a sense of how much revenue those companies would have. Summing up the revenues gives a market size of around $280 billion assuming that batch had more than 100 trucks.
CAR RENTALS
Because "transportation company" could signify any company that has any type of vehicle taking some kind of cargo somewhere else, I've included the TAM for the Car Rental industry and the Taxi industry, as they were the industries for which fleet size data was available.
There are big players in the car rental industry, with the top 5 companies controlling almost 75% of the market share globally, according to this report. I've found through Euromonitor, that the TAM for car rentals in the US is around $27 billion and most of these companies have well over 100 vehicles. One could consider that these biggest companies make up almost the entire market, as shown by their fleet size and revenue data here. Almost all the revenue is won by Enterprise, Avis, Hertz, Fox, Advantage, ACE, U-Save, International Franchise Systems and Affordable/Sensible. That chart has an extra entry for "Independents" suggesting much smaller companies, with a combined revenue of $595 billion. Even discounting those, however, the final TAM for large car rental companies is still around $28 billion.
TAXIS & LIMOS
The total market size for taxis and limos is around $19 billion according to IBIS World. I was able to find a survey of limo operators where it cites that 13% of them worked at companies with 51 or more cars. Of course, this isn't the required 100, but it's enough to get a sense of the TAM. Applying this percentage to the market size stated earlier, we get a TAM of around $2.4 billion.
CONCLUSION
To wrap it up, the US market-size for transportation companies with more than 100 owned vehicles is around $310 billion, which includes trucking companies (making up most of the revenue), car rental companies and taxi/limo fleets. The TAM for trucking only is around $280 billion.
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