Cashless fuel transaction is becoming the norm as most prefer to avoid unreasonable difficulties while refueling their car and want to move on as quickly as possible. This is making such a buzz and the card companies are seeking to draw incentive points and other incentives even more consumers that significantly fann the spark for a stronger growth of the fuel card market in the years ahead.
The global fuel card market is yet to realize its full potential but is expected to reach a modest 5.47% CAGR during the forecast period (2018-2023). A market valuation of USD 826.3 billion by 2023 seems plausible by 2023 for the fuel card market. Market Research Future’s (MRFR) study on the same industry has a sharp eye on the drivers who are likely to play a major role in the company’s development in the coming years.
The fuel card market is now attracting tremendous attention from fleet administrators and vehicle owners who tend to keep an eye on fuel usage in order to maximize logistics by reducing costs.
Going cashless however has its own chance. A daunting security breach threat is looming all the time and it can considerably endanger the privacy issues that can be a deterrent to the fuel card market during the forecast period. At the same time, the regulatory system may still raise certain concerns that can discourage others from entering the wagon.
The highest market share for the fuel card is accounted for in North America. The region’s fast-paced life, the urge to go cashless and the prevalence of the internet at any point have a knock-out impact on the market share of fuel cards. The United States is the principal contributor to the growth of the regional market. The stellar proliferation of the internet across sectors has a significant impact on life, and one of these is the fuel card that aims to reduce daily problems.
It is all due to the influences of the western portion of the continent that Europe is getting a fantastic ride. The UK, Germany and France are major contributors. The area rejoices at the growth due to the emergence of large prepaid corporate card service providers and connection to the internet. In addition, several suppliers of fuel cards are from North America and Europe, which have a profound impact on the market.
Over the coming years the APAC field is expected to shift the ball game. In the coming years, the APAC market will be a big opportunity because many of the developing nations are yet to understand their full potential in pursuing fuel card business possibilities. This has caused many foreign firms to step in and develop their facilities accordingly. The region is projected to register the fastest growth among its peers over the forecast period. China, India, and Japan are to become major contributors due to their dense population and growing use of vehicles.
Based on the card type, the fuel card market can be segmented into individual fuel card, business fuel card, and prepaid fuel card. Among these segments, business fuel cards segment has the significant lead.
Based on the vehicle type, the fuel card market can be bifurcated into heavy fleets and light fleets. Heavy fleets segment has the market edge.
Based on the application, the fuel card market can be segmented into toll charge, parking, fuel refill, vehicle service, and others. Toll charge segment leading the pack with considerable market revenue.
The fuel card market companies are Arco Limited (U.K.), Royal Dutch Shell (Netherlands), FleetCor Technologies, Inc. (U.S.), ExxonMobil (U.S.), BP (U.K.), Wex Inc. (U.S.), Puma Energy (Singapore), Oilibya (Libya), Engen Limited (South Africa), First National Bank (U.S.), Fuelman (U.S.), British Petroleum (U.K.), and Comdata (U.S.).
The global demand for fuel cards is predicted to shine brilliantly with many companies chipping in with their own strategic moves. The business is expected to grow with the individual firms. It’s bound to get help from mergers, acquisitions, new product launch, collaboration, and other smart moves to push the boundary far.