Fuel Cards Market Size, Share & Industry Analysis, By Type (Branded, Universal, Merchant), By Application (Fuel Refill , Parking , Vehicle Service, Toll Charge , Others ) And Regional Forecast, 2024-2032

Fuel cards benefit fleet vendors by capturing low-level data on the mileage of vehicles, gallons of fuel filled, and the need for servicing the automobile. Fuel card service providers have initiated towards embedded telematics interface and robust reporting facilities as standard product offerings to improve fleet management productivity. These cards are available in various forms, such as branded fuel cards, universal fuel cards, and merchant cards. The integration of telematics with fuel cards and an increase in demand for fuel cards from emerging countries are expected to provide lucrative opportunities for the market.

The major market driver for the fuel cards market is the need for improved fuel management and penetration of digital transaction solutions among the transport industry. Fuel cards provide good quality data on fuel purchases and help monitor individual vehicle and driver fuel economy. In addition, discounts on fuel cards have been encouraging drivers or fleet managers to use fuel cards over credit cards.

• According to India's Ministry of Informatics and Information Technology, digital transactions increased to 55.5 billion in 2021 from 10.8 billion in 2017, showing a CAGR of 50.4%.

The factor that is expected to inhibit the market's growth is the lack of security measures associated with fuel cards. Drivers have to travel out of their way to find a forecourt where they can refuel, triggering a growth in the fuel card market size. However, various fuel card companies are developing ways to use transactional data to better assess the transactions.

Fuel cards are either open-loop or closed-loop. Branded fuel cards or closed-loop fuel cards are issued by fuel companies and can be used for a particular brand only. For instance, BP, ExxonMobil, and Sunoco are companies issuing branded fuel cards. On the other hand, the universal fuel cards or open-loop fuel cards have high efficiency in providing universal coverage, actionable insights, level 3 data capture, online reporting tools, and demand for advanced products.

Europe dominates the global market for fuel cards and is expected to grow significantly during the forecast period. The major factors driving the market's growth in this region are the presence of major players and the rapid adoption of the latest payment technology in the market. The companies such as BP and Shell have resulted in the high adoption of fuel cards in Europe.

• For instance, the Shell fuel card has been accepted at over 27,000 sites in the region, and it has expanded its services to other parts of the World, including the Middle East and African countries.


• Furthermore, WEX Europe services also added its Esso card acceptance network in the U.K.

Growing acceptance of branded cards in more fuel station networks across European countries is expected to create opportunities for fuel cards in the region.

IMPACT OF COVID-19 ON FUEL CARDS MARKET

The fuel cards market is expected to take a short amount of time before recovering from the impact of the COVID-19 pandemic due to low oil and gas demand. The lockdowns and reduction in trade reduced the demand for oil and gas, reducing the need for fuel cards. However, the rise in digital transactions, coupled with companies' efforts in fuel cards, is anticipated to enhance demand.

• In 2020, BP Spain supplied free fuel for emergency services through Routex fuel cards. Customers could donate their loyalty points for the same.


• In 2020, BP Germany's Aral Retail Network donated over 10000 fuel cards to health workers. Similarly, in Poland, the company gave hospitals BP Supercards to fund fuel for emergency services.

As the demand for oil and gas is growing due to the easing of COVID-19 restrictions, the demand for fuel cards is anticipated to grow.

KEY INSIGHTS

The report will cover the following key insights:

• Recent advancements in fuel cards


• Key industry trends


• The regulatory landscape for fuel cards


• Key industry developments (Mergers, acquisitions, and partnerships)


• Impact of COVID-19 on the market

ANALYSIS BY APPLICATION

The market is segmented into fuel refill, parking, vehicle service, toll charge, and others based on the application.

Fuel refill dominates the market and is expected to grow significantly during the forecast period. The transaction value of these fuel cards has been growing owing to the high application of fuel cards in fuel refills. For instance, Hindustan Petroleum Corporation Limited introduced the HPCL HP Refuel program, a powerful loyalty and payment program that gives its owners and operators a complete fuel management solution. This solution is provided with control, security, convenience, and attractive reward points. Due to these benefits, the high adoption of fuel cards at petrol pumps for fuel refills boosts the fuel card market.

REGIONAL ANALYSIS

North America is a major market for fuel cards, owing to the increased inclination of consumers toward digital transaction solutions, such as mobile wallets, prepaid cards, and contactless payment in the region. The U.S. holds the major share and dominates the market in the region, followed by Canada. Furthermore, the governments in the region are determined to support the implementation of a cashless society. The proliferation of smartphone applications for digital transactions is further expected to boost the market's growth.

The Asia Pacific is expected to grow in an analyzed time frame due to booming IT infrastructure and hefty investments from the private and public players in the region. Countries such as India, China, and Japan are major contributors due to their dense population and increasing use of vehicles.

KEY PLAYERS COVERED

The report will include profiles of key players such as ExxonMobil, Royal Dutch Shell, BP, Puma Energy, Engen Limited, TotalEnergies, Petro-Canada, FleetCor Technologies, Inc., First National Bank, Wex Inc., Arco Limited, U.S. Bancorp Investments, Inc., Comdata, Sunoco, Repsol, Edenred, Radius Payment Solutions Limited, and DKV Mobility.

SEGMENTATION

KEY INDUSTRY DEVELOPMENTS

• In March 2021, Confidence Petroleum India secured a contract to set up CNG MRUs (mobile refueling units) on a build and operate basis from Central U.P. Gas (CUGL). CUGL is a joint venture of GAIL and Bharat Petroleum Corporation, which will ease the distribution of CNG fuel in geographical areas.


• In March 2019, WEX Inc. acquired Go Fuel Card, which is the fuel card business of EG Group. The business is headquartered in the Netherlands, with approximately 200,000 proprietary cards in circulation across Belgium, France, Netherlands, and Luxembourg. This acquisition had made WEX Inc strengthen its position in Europe by expanding its footprint in attractive markets and broadening its card acceptance through a proprietary card network.