10.9Industry

Trucking & Freight Carriers

Truckload, LTL, flatbed, refrigerated, tanker, and specialized trucking carriers moving freight over road networks.

8
Segments
31
Verticals

Overview

Trucking & Freight Carriers covers the trucks that carry the overwhelming majority of U.S. domestic freight (over 70% of tonnage) across truckload (TL), less-than-truckload (LTL), and specialized/flatbed operations. At roughly $403 billion across ~165,000 establishments, it is a massive, foundational, but intensely fragmented industry where most carriers are small fleets or owner-operators and even the largest hold tiny market shares.

It is highly cyclical with the freight cycle: the 2021–22 boom sent rates soaring (inflating these figures), followed by a brutal 2023–24 freight recession. LTL is the more consolidated and attractive segment (network-based, higher-barrier, and reshaped by Yellow's 2023 collapse, which redistributed share). Structural forces include the chronic driver shortage and turnover, the long-promised but slow-arriving autonomous-truck transition, EV trucks, and digital brokerage.

Market snapshot

Market size
~$403B
Growth
~8.0%CAGR (2017–22, nominal)
Companies
~148,555 firms
Firms by employee count

93% of firms have fewer than 20 employees: 138,087 micro-businesses, below most mandates.

The investable universe10,468 firms with 20+ employees
20–99
7,88475%
100–499
1,65016%
500+
9349%

The largest transportation market and the most fragmented, with tens of thousands of carriers operating a handful of trucks each. Freight is a cyclical, spot-priced commodity, but the fragmentation means consolidation returns show up as buying density on a lane rather than as pricing power.

NAICS 484110, 484121, 484122, 484220, 484230. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Per-mile/per-shipment freight rates

Key economics

Revenue per firm
$2,713,836
Revenue per employee
$255,957
Employees per firm
10.9
Recurring revenue
Moderate

contract and spot freight

EBITDA margin
Thin, highly cyclical with freight rates
Capex intensity
High

Characteristics

  • Scale-driven: payroll is only 23% of revenue, so the cost base is assets, not headcount
  • Deep strategic-buyer pool: 934 firms exceed 500 employees, so a scaled asset has trade buyers
  • Carries 70%+ of U.S. freight tonnage.
  • Intensely fragmented; 165,000+ carriers.
  • Highly cyclical (2021–22 boom, 2023–24 recession).

NAICS 484110, 484121, 484122, 484220, 484230. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Geographic concentration

AlabamaAlaskaArizonaColoradoFloridaGeorgiaIndianaKansasMaineMassachusettsMinnesotaNew JerseyNorth CarolinaOklahomaPennsylvaniaSouth DakotaTexasWyomingConnecticutMissouriWest VirginiaNew MexicoArkansasCaliforniaDelawareDistrict of ColumbiaHawaiiKentuckyMarylandMichiganMississippiMontanaNew HampshireNew YorkOhioOregonTennesseeUtahVirginiaWashingtonWisconsinNebraskaSouth CarolinaIdahoNevadaVermontLouisianaRhode IslandNorth DakotaIllinoisIowa

Illinois leads at more than twice the national concentration, with North Dakota and Iowa behind. Chicago is the country's freight interchange; the plains states carry high trucking intensity because agriculture and energy generate more freight per resident than anywhere else.

IllinoisNorth DakotaIowa

U.S. Census Bureau, 2022 Statistics of U.S. Businesses (firms by state), NAICS 484110/484121/484122/484220/484230. Concentration shown by location quotient.

M&A deal context

Deal activityHigh

Who’s acquiring

  • Trucking strategics (Knight-Swift et al.)
  • LTL & specialized consolidators
  • PE-backed fleet platforms

What’s driving deals

  • TL roll-ups and LTL consolidation (post-Yellow).
  • Freight-recession-driven distress and consolidation.
  • Autonomous, EV, and digital-brokerage disruption.

Segments in this industry

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