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The fuel cards market size is forecast to increase by USD 2.98 billion, at a CAGR of 6.36% between 2023 and 2028. In today's digital age, the transportation industry has witnessed significant advancements, with fuel cards emerging as a key offering. Fuel cards provide numerous benefits to businesses and individuals, including cost savings through volume discounts, real-time transaction reporting, and streamlined accounting processes. Additionally, the rise of loyalty programs associated with fuel cards offers further incentives, such as rewards points or cashback, enhancing the value proposition. As digitalization continues to penetrate every sector, fuel cards offer a convenient and efficient solution for managing fuel expenses, fostering cost savings, and rewarding loyal customers. The market report provides market size, historical data, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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The market is a significant segment in the transportation industry, enabling efficient fuel payments and expense management for both commercial fleets and individuals. Fuel cards facilitate digital transactions at certified gas stations, providing a mobile, frictionless experience for cardholders. Advanced payment methods like smart cards and standard cards offer added security features and streamlined vehicle service, parking, toll charge, and fuel rewards. Fuel retailers benefit from fuel card partnerships, expanding their customer base and enhancing the shopping experience through Platinum Status programs and Fuel Rewards. Card issuers leverage data capture and telematics integration to optimize fleet management and expense management. Environmental initiatives are also gaining importance, with many fuel card providers promoting eco-friendly practices and incentives for the use of alternative fuels. Fuel cards cater to various sectors, including commercial fleets and individuals, helping manage fuel-related expenses and additional expenses. Shell Oil Products and other major players in the oil industry issue fuel cards, offering financial services tailored to their customers' needs. The future of the fuel cards market lies in continued innovation, focusing on advanced payment methods, data security, and environmental sustainability.
Rising penetration of digitalization in every sector is notably driving market growth. The fuel cards market is experiencing significant growth due to the increasing preference for digital transaction solutions among multinational companies and large business organizations. Prepaid cards, mobile wallets, and contactless payments are gaining popularity, leading to increased demand for fuel cards. Additionally, the acceptance of virtual currency and government initiatives to promote a cashless society are driving market expansion. The proliferation of smartphone applications for digital transactions and the rise of contactless and automated payment methods, particularly in response to the ongoing pandemic, are further fueling market growth. Fuel cards offer cost savings through real-time car mileage tracking, fuel consumption monitoring, and fleet management. They also provide fraud and misuse prevention measures, ensuring trust and bargaining power for fleet operators and trucking companies.
Further, eco-friendly initiatives, such as fuel incentives, fuel tax, and fuel subsidies, are also encouraging the adoption of fuel cards. Digital transformation in logistics, delivery services, and e-commerce activities is further boosting the market. Fuel cards offer advanced features, including data analytics for reporting, telematics for vehicle location and route efficiency, and breakdown prevention. They can be integrated with infotainment systems, allowing for seamless fuel transactions and vehicle maintenance management. Digital fuel cards also offer security measures, such as odometer readings and tax information, ensuring accurate and transparent transactions. In conclusion, the fuel cards market is poised for growth due to the increasing trend towards digital transactions, the need for cost savings and efficiency in fleet operations, and the integration of advanced technologies. Players in the market include Amazon Pay, Mastercard, ToneTag, Fastag, and various other industry players. Thus, such factors are driving the growth of the market during the forecast period.
Strategic alliance and acquisition is the key trend in the market. Fuel cards have become increasingly popular digital transaction solutions for managing fuel consumption and associated expenses for fleet operators and vehicle owners. These cards offer cost savings, real-time car mileage tracking, and fraud prevention measures, making them a trusted choice for businesses with large fleets and high fuel usage. In the digital transformation era, fuel card providers are collaborating with technology companies and financial institutions to strengthen their offerings. For instance, Shell Oil Company's acquisition of MSTS Payments, LLC's Multi Service Fuel Card business in November 2021, and UTA Edenred's partnership with ServiCon Service eG in March 2022, are examples of such strategic alliances. These collaborations bring advanced technology, robust business infrastructure, and skilled talent to the fuel card market, enabling providers to offer more value-added services like data analytics, reporting, eco-friendly initiatives, and digital operations. Furthermore, fuel cards facilitate fuel incentives, tax information, security measures, and logistics optimization for fleet drivers, truck repairs, and maintenance, vehicle parts, fuel grades, and odometer readings. In the context of e-commerce activities, delivery services, and Amazon's growing influence, fuel cards play a crucial role in fuel tax and subsidies management, telematics, vehicle location, route efficiency, and breakdown prevention. Thus, such trends will shape the growth of the market during the forecast period.
Lack of awareness and infrastructure is the major challenge that affects the growth of the market. Fuel cards offer digital transaction solutions for managing fuel consumption and associated expenses for fleet drivers and vehicle owners. These cards provide cost savings through fuel incentives, tax information, and real-time car mileage reporting. However, challenges such as fraud and misuse can arise without proper security measures. Developing countries like India, Brazil, Chile, and South Africa have a low adoption rate of fuel cards due to a lack of awareness and established infrastructure. This situation negatively impacts market growth. In India, for example, electronic fuel cards are still in their infancy. Oil marketing companies must invest in awareness programs and technology to provide reliable customer service. Digital transformation in the logistics and delivery services sectors, driven by e-commerce activities, is increasing the demand for fuel cards. Digital operations, including telematics and vehicle location tracking, improve route efficiency and breakdown prevention.
However. prepaid cards offer cost savings and control for fleet operators and truck maintenance providers. Eco-friendly initiatives, such as fuel tax and subsidies, incentivize the use of fuel cards. Mastercard, Amazon, ToneTag, and Fastag are leading players in this market. Key features include fuel grades, odometer readings, and vehicle parts purchasing. Security measures, such as biometric authentication and real-time alerts, ensure trust and bargaining power for cardholders. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The branded segment is estimated to witness significant growth during the forecast period. Branded fuel cards, issued by fuel station brands such as Exxon Mobil Corporation, BP plc, and Sunoco LP, are increasingly preferred by small businesses with brand loyalty or a strong presence in specific regions. These cards offer several benefits, including purchase bonuses, online access to reporting and transaction controls, and introductory annual percentage rates (APR) or low fees. These advantages contribute to the growth of the branded fuel cards segment. Digital transaction solutions have revolutionized fuel consumption management, enabling real-time car mileage tracking, route efficiency, and breakdown prevention for fleet operators and trucking companies.
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The branded segment accounted for USD 3.33 billion in 2018. Digital fuel cards can be integrated with infotainment systems, enabling seamless transactions and vehicle location tracking. Prepaid cards offer cost savings and control over fuel consumption. Amazon, Mastercard, ToneTag, Fastag, and other digital payment providers are entering the fuel card market, offering advanced features like contactless payments, mobile wallet integration, and real-time transaction processing. Fleet drivers and truck maintenance and repair services can benefit from these offerings, as they can easily manage fuel expenses, vehicle parts, and tax information. Telematics and vehicle location data provide valuable insights for fleet operators to optimize logistics and delivery services.
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Europe is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Fuel cards serve as an essential tool for businesses and individuals managing transportation expenses, particularly those related to fuel purchases for commercial fleets. These cards enable digital transactions at certified gas stations, providing a mobile, frictionless payment solution for fleet managers. Advanced payment features include smart cards and standard cards, which offer additional benefits such as vehicle service, parking, toll charges, fuel rewards, and platinum status.
Further, Shell Oil Products and other fuel retailers accept these cards, allowing cardholders to earn in-store rewards and financial services. Branded fuel cards offer specific advantages, while universal fuel cards provide more flexibility with a wider network of merchant acceptance. Telematics integration facilitates data capture and expense management, enhancing security features and environmental initiatives. Fleet vendors and reporting facilities further streamline the fuel purchasing process, making fuel cards an indispensable tool for effective fleet management.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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Title: Fuel Cards: Streamlining Fuel Payments and Expense Management for Transportation Businesses Fuel cards have revolutionized the way businesses, commercial fleets, and individuals manage fuel payments and related expenses. These payment solutions enable digital transactions at certified gas stations, offering a mobile, frictionless experience. Advanced payment methods, such as smart cards and standard cards, are widely used, providing added security features and financial services. Fuel cards cater to various needs, including vehicle service, parking, toll charges, and fuel rewards. Platinum status and In-Store Rewards are popular incentives for cardholders, offering additional benefits at Shell Oil Products and other fuel retailers.
Moreover. fleet managers greatly benefit from fuel cards, as they facilitate expense management, data capture, telematics integration, and reporting facilities. Card issuers and fuel retailers collaborate to provide these services, ensuring a seamless experience for both parties. Universal fuel cards and merchant cards cater to businesses with diverse fueling needs, while branded fuel cards offer loyalty programs and environmental initiatives. Fleet vendors and telematics interface further enhance the functionality of fuel cards, making them an essential tool for effective fuel management.
Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.36% |
Market growth 2024-2028 |
USD 2.98 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.58 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 39% |
Key countries |
US, UK, Germany, China, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bharat Petroleum Corp. Ltd., BP Plc, China National Petroleum Corp., DKV EURO SERVICE GmbH and Co. KG, Edenred SE, Exxon Mobil Corp., FirstRand Ltd., FleetCor Technologies Inc., Hindustan Petroleum Corp. Ltd., Indian Oil Corp. Ltd., OLA Energy Holdings Ltd., PETRONAS Chemicals Group Berhad, Shell plc, TotalEnergies SE, Trafigura Group Pte. Ltd., U.S. Bancorp, WEX Inc., and Worldline SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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