Truck market in US

any thoughts?

(edited)

Hey there,
Are you talking about revenue or demand for trucks in the US?

Assuming Demand, we can estimate it in the following way:

Our Goal: #trucks sold / year

#trucks = (trucks/person) * (total amount of people)
- = 1 truck per 100 person (assumption) * 300M people
- = 3M truck in total
Life-span of trucks are approximately 10 years
#truck / lifespan
- = 3M/10y = 300K/y (this is your answer if you believe the market is steady)
If you want to integrate a trend:
- say we have a positive trend in sales because oil prices are dropping globally.
- Approximately 5% per year, so 5% of the total amount will increase
- = 300K*5% = 15K
- Answer of 300K + 15K = 315K
The answer would be: In average 315K trucks will be sold per year in the US.

If you are talking about revenue, assuming the retail price of a truck is about 30K. So revenue generated per year would be $9.45M.

Cheers,
D

Market Sizing

Market Sizing Cases are used to test your quantitative and reasoning skills. The interviewer evaluates your structure, numbers-handling and business sense.

14 Comment(s)

Important Facts

It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.

9 Comment(s)

Related case(s)

Oliver Wyman case: Full Electrons Ahead

Solved 29.2k times | Rating: (4.7 / 5.0)

Difficulty: Intermediate | Style: Real Case, Candidate-led (usual style) | Topics: Growth strategy, Market analysis, Market sizing, Operations strategy

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Nutripremium

Solved 33.5k times | Rating: (4.5 / 5.0) |

Difficulty: Advanced | Style: Candidate-led (usual style) | Topics: Market analysis, Market entry, Market sizing

Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany. Nutripremium has two main lines of products: Vitam ... Open whole case

Children vaccine

Solved 31.2k times | Rating: (4.4 / 5.0) |

Difficulty: Advanced | Style: Candidate-led (usual style) | Topics: Market entry, Market sizing, New product

Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched th ... Open whole case

Gas station

Solved 22.3k times | Rating: (4.3 / 5.0) |

Difficulty: Intermediate | Style: Interviewer-led (McKinsey style) | Topics: Market entry, Market sizing

How many gas stations are there in Paris? Suppose a friend of yours wants to open a gas station in Paris. What aspects should he consider? Open whole case

Airport taxi

Solved 13.5k times | Rating: (4.7 / 5.0)

Difficulty: Intermediate | Style: Candidate-led (usual style) | Topics: Market sizing, Profitability analysis

Dubai Airport has decided to counter the chaos in the airport taxi service by commencing a bidding process to assign airport taxi services to 3 operators only. After years of cheating passengers, black-market drivers and unlicensed cabs, the airport has had enough of the problems and is now taking a ... Open whole case

Related BootCamp article(s)