The global fuel card market could record a modest 5.47% CAGR during the forecast period (2018-2023), reveals Market Research Future (MRFR). The market value is expected to be USD 826.3 billion by 2023, adds MRFR.
Market Boosters and Key Barriers
Fuel card offers a dynamic outlook of the operations to fleet managers, in addition to helping drivers make cashless payment for fuels and other expenses. In recent years, fuel cards have been used in conjunction with telematics to make use of GPS data for purchasing data. This is done to track the fleet and driver performance. The latest study by Fleetmatics reveals that telematics helps bring down the fuel consumption by 573 million gallons per year, which has managed to save close to USD 2.2 Bn.
The global fuel card market could benefit most from the soaring demand for cashless fuel transactions. Rise in the number of value-added services related to fuel cards also adds to the market strength. Apart from this, numerous loyalty offerings are given to retain customers in the face of evolving market space.
Fuel card manufacturers are making extensive use of online channels as well as mobile applications to offer services. This provides an omnichannel experience to the users. To increase the adoption of fuel cards, host card emulation is now being used which offers in-house payment solutions.
The fuel card industry has been segmented with respect to card type, vehicle type and application.
Depending on the card type, the fuel card market is considered for business fuel card, individual fuel card, and prepaid fuel card. Between these, the business fuel cards segment has taken the lead in the global market and could retain its position even during the review period.
With regard to the vehicle type, the fuel card market is split into heavy fleets and light fleets. Heavy fleets segment is expected to gain maximum revenue in the coming years.
Application-wise, the fuel card market can be narrowed down to parking, fuel refill, toll charge, vehicle service, and others. The toll charge segment accounts for substantial market revenue and has acquired the top spot among all the application segments.
North America, Middle East & Africa, Asia Pacific and Europe are the primary markets for fuel card.
North America is currently reigning with the largest share in the fuel card market. The region is marked with people leading a fast-paced life, inclination towards cashless payment, and high internet proliferation are having a lucrative effect on the fuel card market. The United States (U.S.) is reckoned to be the most profitable market in the region for fuel card. Europe has established itself as a strong contender in the global fuel card market, backed by the massive contribution made by the western part of the region. Some of the significant contributors in the region are the United Kingdom (U.K.), France, and Germany. The regional market has a strong foundation, thanks to the presence of a large number of prepaid corporate card service providers along with internet affinity.
APAC is another region in the global fuel card market to reckon with, as it is estimated to record the fastest growth rate during the impending period. India, Japan, and China are touted to be at the vanguard of the market, given the dense population and rising use of vehicles.
Countries in the Middle East and Africa are not yet adept at technological skills and therefore lack a well-developed IT infrastructure. These factors are bound to have a dismal effect on market growth in the region.
Some of the top competitors in the worldwide fuel card market include Puma Energy (Singapore), BP (U.K.), Royal Dutch Shell (Netherlands), Fuelman (U.S.), Wex Inc. (U.S.), Comdata (U.S.), Engen Limited (South Africa), First National Bank (U.S.), British Petroleum (U.K.), FleetCor Technologies, Inc. (U.S.), ExxonMobil (U.S.), Arco Limited (U.K.), Oilibya (Libya), to mention a few.