US Market Size by Industry: Commercial Fleets

Part
01
of seven
Part
01

US Market Size by Industry: Food & Beverage

The estimated TAM of the United States food and beverage commercial vehicle market is 3,328,589 units: 768,698 tractors, 1,220,167 trucks, and 674,149 trailers.

Market Size

  • According to the National Private Truck Council (NPTC), there are 200,000 firms in the United States that operate private fleets; these account for 68% of the outbound freight in the United States.
  • The top 500 private-fleet-operating companies in the United States collectively operate 1,921,825 commercial vehicles: 189,523 tractors, 1,213,409 trucks, and 518,414 trailers. F&B companies account for 18.26% of the total CV fleet (calculations shown in the spreadsheet).
  • Food & beverage companies account for 42.74% of all tractors, 10.60% of all trucks, and 27.23% of all trailers (calculations shown in the spreadsheet).
  • Seventy-four percent of the privately-operated fleet in the beverage industry is owned by the companies themselves (the remaining are leased). Assuming the statistic holds true for the whole F&B sector (including food), F&B companies own 13.51% (74%*18.26%) of the privately-operated fleet.
  • In 2018, there were 12,397,822 new commercial vehicle registrations in the United States.
  • Assuming that F&B’s share of the commercial vehicle market is the same as its share of fleet and that F&B’s share in the top 500 represents its share in the overall market, the size of the F&B market in 2018 in terms of the number of commercial vehicles sold was 1,674,946 (13.51%* 12,397,822).
  • Tractors account for 23.08% of all F&B CVs, trucks account for 36.64%, and trailers account for 40.23% (calculations shown in the spreadsheet).
  • Therefore, the breakdown of the 2018 F&B commercial vehicles market is
    • Tractors: 386,809 (23.08%*1,674,946)
    • Trucks: 613,987 (36.64%*1,674,946)
    • Trailers: 674,149 (40.23%*1,674,946)
    • Total: 1,674,946

TAM

  • Privately-operated fleet accounts for 68% of the outbound freight in the United States and 74% of the privately-operated fleet is owned. Assuming that privately-operated fleet's share of outbound freight in the F&B sector is also 68%, the proportion of F&B freight that is transported by F&B company-owned vehicles is 50.32% (74%*68%).
  • Therefore, the TAM of the F&B CV market is 3,328,589 (1,674,946/ 50.32%). The TAM includes all CVs owned and leased by F&B companies and the outsourced-freight CVs.
  • Assuming that the proportion of freight handled by all owned vehicle types is the same, the breakdown of TAM is
    • Tractors: 768,698 (386,809/ 50.32%)
    • Trucks: 1,220,167 (613,987/ 50.32%)
    • Trailers: 1,339,724 (674,149/ 50.32%)
    • Total: 3,328,589 (1,674,946/ 50.32%)

Research Strategy

We searched for the required statistic across publicly available research reports, government databases, and industry portals; however, none of the aforementioned sources provided a sectoral breakdown of the United States commercial vehicle market. We also searched in food and beverage logistics portals but did not find any success. However, we were able to gather data points from across multiple sources and triangulate an estimate.
Part
02
of seven
Part
02

US Market Size by Industry: Local Delivery

After looking through market reports, articles, and databases, the total available market for the segment of the local delivery industry that uses commercial fleet could not be determined using information available in the public domain. Some helpful findings, as well as the methodology used for this research, can be found below.

Helpful Findings:

  • The market size for the local delivery services industry in the US is valued at $116.2 billion.
  • United Parcel Service of America, Inc., XPO Logistics, Inc., FedEx Corporation, and USPS (United States Postal Service) are some of the major players in this market.
  • The growth of the last-mile delivery market in the US is primarily driven by e-commerce sales. Online retail sales in the US reached US$453.5 billion in 2017, a 16% growth from 2016. As more consumers are drawn into e-commerce, customer expectation towards fast and free delivery also grows.
  • Delivery companies like FedEx and UPS are attempting to reduce delivery times for last-mile deliveries with the use of local trucks. These local deliveries are usually taken care of by smaller commercial vehicles such as Class 4 and 5 vehicles.
  • Conglomerate transportation companies such as XPO Logistics and Schneider also make use of fleets of Class 4 vehicles and larger trucks that allow them to handle the last-mile delivery of larger items such as appliances and furniture.

Research Strategy:

We started our search by looking for market reports that detail the total available market for the segment of the local delivery industry that uses commercial vehicle fleets in the US. While we were able to find several reports and articles on the local delivery services industry in the US, most were focused on its market size as a whole and not on the segment that uses commercial vehicle fleets. The research team attempted to look for articles that may detail information relevant to the project. We were able to find information on the challenges and opportunities for fleets in the last mile delivery market, however, no information on the segment of the local delivery industry that uses commercial vehicle fleets in the US could be found in the public domain.

From the above strategies, it was evident that we needed to pull data together from different sources to triangulate an estimate. Since we already have the US market size for the local delivery services industry, we just needed to have the percentage of the local delivery services industry that makes use of commercial vehicle fleets. We looked for market reports and articles that may reveal this information. We were able to find a report on the last mile delivery market that includes an in-depth look into the commercial vehicle segment of the market, however, it is locked behind a paywall. We were also able to find that package delivery firms such as FedEx and UPS are looking into the reduction of delivery times through the use of local trucks, but data needed to triangulate for the total available market for the segment of the local delivery industry that uses commercial vehicle fleets could not be found in the public domain even after an exhaustive search. We have therefore opted to report some general insights into the local delivery industry concerning commercial vehicle fleets. The following paywalled report may have more useful information.
Part
03
of seven
Part
03

US Market Size by Industry: Logistics

The market for the segment of the logistics industry that uses commercial vehicle fleets in the United States was valued at $700 billion in 2017 and $796.7 billion in 2018.

Logistics Industry Segmentation

  • Many industry reports segment the logistics markets as follows:
    • By mode of transport, the logistics industry is divided into railways, roadways, airways, and waterways.
    • By the end-user, the industry is divided into healthcare, manufacturing, trade & transportation, telecommunication, government & public Utilities, banking & financial services, retail, media and entertainment, and information technology.
    • By geography, the logistics industry is divided mostly into North America, Europe, Asia-Pacific, and LAMEA.

Over-the-road Transportation in the Logistics Industry

Part
04
of seven
Part
04

US Market Size by Industry: Utilities

The estimated TAM of the United States utilities commercial vehicle market is 2,927,263 units: 23,478 tractors, 2,385,248 trucks, and 518,535 trailers.

Market Size

  • According to the National Private Truck Council (NPTC), 200,000 firms in the United States operate private fleets; these account for 68% of the outbound freight in the United States.
  • The top 500 private-fleet-operating companies in the United States collectively operate 1,921,825 commercial vehicles: 189,523 tractors, 1,213,409 trucks, and 518,414 trailers. Utility companies account for 16.06% of the total CV fleet (calculations shown in the spreadsheet).
  • Utility companies account for 1.31% of all tractors, 20.72% of all trucks, and 10.54% of all trailers (calculations shown in the spreadsheet).
  • Forty-six percent of the privately-operated class 8 trucks in the beverage industry are leased (the remaining are owned). Assuming the statistic also holds true for all vehicle classes in the utility sector, utility companies own 8.67% ((100%-46%)*16.06%) of the privately-operated fleet.
  • In 2018, there were 12,397,822 new commercial vehicle registrations in the United States.
  • Assuming that utilities' share of the commercial vehicle market is the same as its share of fleet and that utilities' share in the top 500 represents its share in the overall market, the size of the utility market in 2018 in terms of the number of commercial vehicles sold was 1,074,891 (8.67%* 12,397,822).
  • Tractors account for 0.08% of all utility CVs, trucks account for 81.48%, and trailers account for 17.71% (calculations shown in the spreadsheet).
  • Therefore, the breakdown of the 2018 utility commercial vehicles market is
    • Tractors: 8,621 (0.08%*1,074,891)
    • Trucks: 875,863 (81.48%*1,074,891)
    • Trailers: 190,406 (17.71%*1,074,891)
    • Total: 1,074,891

TAM

  • Privately-operated fleet accounts for 68% of the outbound freight in the United States and 46% of the privately-operated fleet is leased. Assuming that privately-operated fleet's share of outbound freight in the utility sector is also 68%, the proportion of utility freight that is transported by utility-company-owned vehicles is 36.72% ((100%-46%)*68%).
  • Therefore, the TAM of the utility CV market is 2,927,263 (1,074,891/ 36.72%). The TAM includes all CVs owned and leased by utility companies and the outsourced-freight CVs.
  • Assuming that the proportion of freight handled by all owned vehicle types is the same, the breakdown of TAM is
    • Tractors: 23,478 (8,621 / 36.72%)
    • Trucks: 2,385,248 (875,863/ 36.72%)
    • Trailers: 518,535 (190,406/ 36.72%)
    • Total: 2,927,263
    (numbers may vary slightly because of rounding off)

Research Strategy

We searched for the required statistic across publicly available research reports, government databases, and industry portals; however, none of the aforementioned sources provided a sectoral breakdown of the United States commercial vehicle market. However, we were able to gather data points from across multiple sources and triangulate an estimate.
Part
05
of seven
Part
05

US Market Size by Industry: Construction

The estimated TAM for commercial vehicle fleets in the construction industry is an estimated 453,600 vehicles. Among these, semi-tractors, semi-trailers and class 1 through 8 trucks are included. Vehicles in the construction segment represent 13% of privately-owned commercial vehicle fleets.

Estimated TAM for Commercial Vehicle Fleets Used in the Construction Industry

  • The estimated total addressable market for commercial vehicle fleets in the construction industry segment is approximately 453,600 in the United States.
  • It is estimated that 200,000 firms in the United States have private fleets. Of the top 500 of these firms, 13% are related to construction.
  • According to the fleet vehicle report, 9.1% of all fleet trailers, 5.20% of tractors, and 10% of trucks are handled by companies in the construction area.
  • Approximately 274,000 fleet trailers were sold in the United States in 2019. Assuming statistics of the top 500 companies hold true for the overall market, 24,934 of these trailers would have been sold to construction companies.
  • 244,637 fleet tractors were sold in the United States in 2019. Assuming statistics of the top 500 companies hold true, 12,721 of these tractors would've been sold to construction companies.
  • Approximately 3 million trucks were sold as fleet vehicles in the United States in 2019. Assuming statistics for the top 500 companies hold true, 300,000 of these trucks would have been sold to private fleets in the construction industry.
  • In 2018, there were 12,397,822 new commercial vehicle registrations in the United States. According to the number of trucks, trailers, and tractors owned by private fleets working in the construction industry, 337,655 of these vehicles registered would have been related to them. That would represent 2.7% of total sales.
  • It is estimated that potential vehicle sales for 2020 would be 16.8 million. 2.7% of this total would be 453,600 commercial vehicles.

Research Strategy

After searching specialized reports in the truck and construction industry, a direct estimate or calculation for TAM for commercial fleet vehicles used in the construction industry could not be found. There are reports that claim to have this information; however, these are behind pay-wall. Therefore, we took into consideration a report that details the companies that own the top 500 private fleets among different industries in order to calculate an estimated TAM for the industry.



Part
06
of seven
Part
06

US Market Size by Industry: Mining

There were 2,628 heavy commercial vehicles sold to the mining industry in 2018. And, 984,809 commercial vehicles -- 185,447 tractors, 424,952 trucks, and 374,096 trailers-- were sold to the oil & gas industry the same year.

Market Size of Mining (excluding Oil & Gas)

  • There are 15,020 "truck drivers, heavy and tractor-trailer" in the US mining industry.
  • There are 1,800,330 "heavy and tractor-trailer truck drivers", 915,310 light truck drivers, and 414,860 driver/sales workers in the United States.
  • Typically, the mining industry uses heavy-duty trucks. Also, there are no employment statistics for light truck drivers in mining (indicating the use of heavy CVs).
  • Therefore, heavy truck and trailer drivers in the United States mining industry account for 0.83% (15,020/(1,800,330)) of all heavy truck and trailer drivers in the US.
  • There were 251,000 class 8 trucks and 64,000 class 7 trucks sold in the United States in 2018; the total number of heavy-duty trucks sold was 315,000 (251,000+64,000).
  • Assuming that the mining industry's share of new heavy truck purchases will be the same as its share of heavy truck drivers, there were 2,628 (0.83%*315,000) commercial vehicles sold to the mining industry in 2018.

Market Size of Oil & Gas

  • According to the National Private Truck Council (NPTC), 200,000 firms in the United States operate private fleets; these account for 68% of the outbound freight in the United States.
  • The top 500 private-fleet-operating companies in the United States collectively operate 1,921,825 commercial vehicles: 189,523 tractors, 1,213,409 trucks, and 518,414 trailers. Oil & gas companies account for 14.71% of the total CV fleet (calculations shown in the spreadsheet).
  • Oil & gas companies account for 28.09% of all tractors, 10.05% of all trucks, and 20.72% of all trailers (calculations shown in the spreadsheet).
  • Forty-six percent of the privately-operated class 8 trucks are leased (the remaining are owned). Assuming the statistic also holds true for all vehicle classes in the oil and gas sector, oil and gas companies own 7.94% ((100%-46%)*14.71%) of the privately-operated fleet.
  • In 2018, there were 12,397,822 new commercial vehicle sales/ registrations in the United States.
  • Assuming that oil and gas' share of the commercial vehicle market is the same as its share of fleet and that oil and gas' share in the top 500 represents its share in the overall market, the size of the oil and gas' market in 2018 in terms of the number of commercial vehicles sold was 984,809 (7.94%* 12,397,822).
  • Tractors account for 18.83% of all oil and gas' CVs, trucks account for 43.15%, and trailers account for 37.99% (calculations shown in the spreadsheet).
  • Therefore, the breakdown of the 2018 oil and gas' commercial vehicles market is
    • Tractors: 185,447 (18.83%*984,809)
    • Trucks: 424,952 (43.15%*984,809)
    • Trailers: 374,096 (37.99%*984,809)
    • Total: 984,809
    (numbers do not add up because of rounding off)
Part
07
of seven
Part
07

US Market Size by Industry: Federal Government

In the U.S., there are a total of 414,792 commercial vehicles that operate in the US federal government as of 2018. While there are 375 government agencies, only a select amount of the agencies use commercial vehicle fleets. To calculate the US TAM for the segment of the US federal government that uses commercial vehicle fleets, we listed the number of employees in each department that uses commercial fleets. Except for the USPS, all federal agencies must acquire their vehicles using the services provided by the U.S. General Services Administration (GSA).

There are 169,239 employees total in the civilian departments with commercial vehicle fleets. In the military, there are approximately 1,288,596 people. In the civilian and defense/military agencies, there are 95,637 and 98,980 trucks respectively. The U.S. Postal Service has a fleet of 220,175 trucks. Speculating on the future market, we determined the TAM to be half of the employees in the civilian agencies and the U.S. Postal Service, and approximately 10% of people in the military. This value is obtained from the proportion of trucks in comparison with the number of employees. This assumption is created based on the fact that not all employees use trucks, and for those that do, there is a 1:1 ratio between driver and truck.

Therefore, after calculation with the percentages, we obtain 85,000 employees in the civilian agencies, 130,000 people in the military, and 250,000 employees in the U.S. Postal Service. That would amount to 465,000 federal employees. Therefore, based on employee numbers, we speculate the TAM to be 465,000 units.

We can also describe the TAM with market value. In 2018, the total market of federal commercial vehicles amounted to $2,928,668,097. Since 2014, the market value has stayed around that value. Therefore, we can also describe the TAM as approximately $2,900,000,000.

Out of the 375 government agencies, only 39 have commercial fleets. The employee and commercial vehicle count are broken down into their respective departments below.

American Battle Monuments Commission

  • 77 employees
  • light trucks: 14
  • medium trucks: 2
  • heavy trucks: 0
  • truck subtotal: 16

Court Services and Offender Supervision Agency

  • light trucks: 1
  • truck subtotal: 1

Department of Agriculture

  • 6,510 employees
  • light trucks: 15,754
  • medium trucks: 8,882
  • heavy trucks: 2,279
  • truck subtotal: 26,915

Department of Commerce

  • 944 employees
  • light trucks: 381
  • medium trucks: 406
  • heavy trucks: 60
  • truck subtotal: 847

Department of Energy


Department of Health and Human Services

  • 1,611 employees
  • light trucks: 520
  • medium trucks: 282
  • heavy trucks: 80
  • truck subtotal: 882

Department of Homeland Security

  • light trucks: 9,113
  • medium trucks: 4,981
  • heavy trucks: 1,164
  • truck subtotal: 15,258

Department of Justice

  • 490 employees
  • light trucks: 6,259
  • medium trucks: 1,117
  • heavy trucks: 1,099
  • truck subtotal: 8,475

Department of Labor

  • 110 employees
  • light trucks: 265
  • medium trucks: 227
  • heavy trucks: 381
  • truck subtotal: 873

Department of State


Department of the Interior

  • 672 employees
  • light trucks: 7,899
  • medium trucks: 8,347
  • heavy trucks: 2,846
  • truck subtotal: 19,092

Department of the Treasury

  • 167 employees
  • light trucks: 97
  • medium trucks: 52
  • heavy trucks: 10
  • truck subtotal: 159

Department of Transportation

  • 411 employees
  • light trucks: 780
  • medium trucks: 1,033
  • heavy trucks: 146
  • truck subtotal: 1,959

Department of Veterans Affairs

  • 2,121 employees
  • light trucks: 1,436
  • medium trucks: 1,286
  • heavy trucks: 869
  • truck subtotal: 3,591

Environmental Protection Agency


Equal Employment Opportunity Commission


Federal Communications Commission


Federal Trade Commission


General Services Administration

  • 1,055 employees
  • light trucks: 51
  • medium trucks: 18
  • heavy trucks: 1
  • truck subtotal: 70


Library of Congress

  • heavy trucks: 5

NASA


National Archive & Records Administration

  • light trucks: 3
  • medium trucks: 12
  • heavy trucks: 7
  • truck subtotal: 22

National Gallery of Art

  • 823 employees
  • medium trucks: 2
  • heavy trucks: 3
  • truck subtotal: 5

National Science Foundation


Nuclear Regulatory Commission

  • light trucks: 1
  • heavy trucks: 2
  • truck subtotal: 3

Office of Personnel Management


Peace Corps


Small Business Administration

  • 7,385 employees
  • light trucks: 2
  • medium trucks: 1
  • heavy trucks: 1
  • truck subtotal: 4

Smithsonian Institution

  • 3,932 employees
  • light trucks: 157
  • medium trucks: 72
  • heavy trucks: 29
  • truck subtotal: 258

Social Security Administration

  • 62,726 employees
  • light trucks: 6
  • medium trucks: 5
  • heavy trucks: 22
  • truck subtotal: 33


Tennessee Valley Authority

  • light trucks: 597
  • medium trucks: 897
  • heavy trucks: 139
  • truck subtotal: 1,633

US Agency for Global Media

  • light trucks: 44
  • medium trucks: 20
  • heavy trucks: 16
  • truck subtotal: 80

Corps of Engineers, Civil Works

  • light trucks: 2,801
  • medium trucks: 1,778
  • heavy trucks: 637
  • truck subtotal: 5,216

Defense Agencies

  • light trucks: 742
  • medium trucks: 611
  • heavy trucks: 480
  • truck subtotal: 1,833

Department of Air Force

  • light trucks: 17,914
  • medium trucks: 11,782
  • heavy trucks: 6,944
  • truck subtotal: 36,640

Department of Army

  • light trucks: 11,787
  • medium trucks: 11,782
  • heavy trucks: 5,279
  • truck subtotal: 30,151

Department of Navy

  • light trucks: 9,674
  • medium trucks: 7,228
  • heavy trucks: 3,324
  • truck subtotal: 20,226

United States Marine Corps

  • light trucks: 1,946
  • medium trucks: 1,715
  • heavy trucks: 1,253
  • truck subtotal: 4,914

2016 count of active duty personnel: 1,288,596


US Postal Service:

Sources
Sources

From Part 06
Quotes
  • "U.S. mines produced an estimated $82.2 billion of raw mineral materials in 2018 – a 3 percent increase over the revised total of $79.7 billion in 2017– the U.S. Geological Survey announced in its annual Mineral Commodity Summaries published Feb. 28."
Quotes
  • "The trucking industry is experiencing a shortage of nearly 61,000 truck drivers in 2018, according to the American Trucking Association."
Quotes
  • "According to data from the U.S. Bureau of Labor Statistics (BLS) Occupational Employment Statistics (OES) survey, a nationally representative survey of nonfarm business establishments, there were approximately 1.75 million heavy and tractor-trailer truck drivers in the United States in 2017, along with 877,670 light truck or delivery services drivers and 427,000 driver/sales workers.6"