According to a new report the global fuel cards market was valued at $595,720m in 2016, and is projected to reach $842,410m by 2023, growing at a CAGR of 5.3% from 2017 to 2023.
Fuel Cards Market by Type and Application: Global Opportunity Analysis and Industry Forecast, notes that the fuel refill application segment witnessed high demand in 2016, as fuel cards help to determine the gallons or litres of fuel filled along with the details on mileage of vehicles.
In addition, increase in usage of cashless payment methods, growth associated with prepaid cards, and rise in number of fleet owners and small and medium enterprises are expected to fuel the fuel cards market growth in the near future. Moreover, the vehicle service segment witnessed increased adoption of fuel cards across various regions, owing to increase in number of fleets globally that use cards to pay for vehicle maintenance and expenses at the discretion of the fleet owner.
The Europe fuel cards market was the largest in terms of market size in 2016, owing to growth in the automobile sector and developments in smart chip technology. Global players focus on offering value-added services such as payment of vehicle repairs and other expenses to strengthen their product offering. In addition, industry participants are focused on providing enhanced security to avoid any fraud or misuse of payment transactions.
Major oil companies, merchants, and suppliers need to securely receive a huge range of payments instruments, including partner fuel and loyalty cards. In addition, with strict regulations, fleet cards providers need to adapt to varying legal frameworks, as well as numerous cybersecurity threats.
Increase in demand for mobile payments and rise in number of large fleets are anticipated to augment the market penetration. The prominent markets, such as North America, Europe, and Asia-Pacific, provide growth opportunities to the global fuel cards market. Moreover, growth in adoption of cashless payments methods is expected to boost the fuel cards market growth in the near future.
Europe was the highest revenue contributor in 2016, accounting for around 42.09% share of the overall fuel cards market. In addition, Asia-Pacific is projected to grow at the highest CAGR of 7.1% during the forecast period, driven by rise in number of motor vehicles in emerging countries such as China, South Korea, and Japan.
KEY FINDINGS OF THE STUDY
- The universal fuel card type accounted for the highest share of the global market in 2016, growing at a CAGR of 5.1% from 2017 to 2023.
- Europe generated the highest revenue in 2016, valued at $250,739m.
- The fuel refill segment dominated the global fuel card market, in terms of market size, during the forecast period.
- US dominated the North America fuel cards market in 2016. In addition, Canada, China, India, South Africa, and the other emerging markets are anticipated to provide significant opportunities for major players.