Fuel Card Market

The expansion of retail fuel networks globally contributes to the growth of the Global Fuel Card Market Industry. As more fuel stations partner with fuel card providers, the accessibility and convenience of using fuel cards increase for consumers and businesses alike. This expansion is particularly evident in emerging markets, where the proliferation of fuel stations enhances the reach of fuel card services. Consequently, the market is poised for growth, with projections indicating a rise to 9.36 USD Billion in 2024. This trend suggests that the availability of fuel card options will continue to attract new users and drive market expansion.

The Global Fuel Card Market Industry is significantly influenced by the volatility of fuel prices. As fuel costs continue to rise, businesses are compelled to adopt fuel cards as a strategic measure for cost management. Fuel cards provide companies with the ability to monitor fuel expenditures closely, allowing for better budgeting and financial planning. This trend is particularly relevant in regions experiencing sharp increases in fuel prices, where companies seek to mitigate expenses. The anticipated growth of the market to 21.4 USD Billion by 2035 reflects the ongoing necessity for businesses to manage fuel costs effectively.

The Global Fuel Card Market Industry experiences a notable surge in demand for fleet management solutions. As businesses increasingly seek to optimize operational efficiency, fuel cards serve as a crucial tool for monitoring fuel consumption and managing expenses. This trend is particularly evident in logistics and transportation sectors, where companies leverage fuel cards to track vehicle performance and reduce costs. The industry's growth is projected to reach 9.36 USD Billion in 2024, with a compound annual growth rate of 7.83% anticipated from 2025 to 2035. This indicates a robust market potential driven by the need for effective fleet management.

Technological innovations play a pivotal role in shaping the Global Fuel Card Market Industry. The integration of advanced technologies such as mobile applications, real-time tracking, and data analytics enhances the functionality of fuel cards. These advancements enable users to access detailed reports on fuel usage, identify fraudulent activities, and streamline payment processes. As a result, businesses are increasingly adopting these sophisticated systems to improve their fuel management strategies. The projected market growth to 21.4 USD Billion by 2035 underscores the importance of technology in driving efficiency and transparency within the fuel card sector.

The Global Fuel Card Market Industry is increasingly influenced by the growing focus on sustainability and environmental concerns. Businesses are becoming more aware of their carbon footprints and are seeking ways to reduce emissions associated with fuel consumption. Fuel cards that offer insights into fuel efficiency and carbon emissions are gaining traction among environmentally conscious companies. This shift towards sustainable practices is likely to drive market growth, as organizations prioritize eco-friendly solutions. The industry's projected growth to 21.4 USD Billion by 2035 indicates a significant alignment with global sustainability goals.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, North America held the largest share of 40.1% in the Fuel Card market in 2022 and is expected to maintain its dominance during the forecast period. The North America is the largest market for Fuel Card. Because it has more financial institutions than any other, the region has attracted international investors. Local players dominate the North American market, resulting in severe entry hurdles. The North American fuel card market is bifurcated into the US, Canada, and Mexico.

The US is the largest contributor to the regional market, with a share of 84.09% of the total market in 2022. The US is followed by Canada, holding over 11.32% in the same year. The factors contributing to the market growth include increased adoption of cashless payment modes, rising use of prepaid cards, an increasing number of fleet owners, and small and medium-sized enterprises. Additionally, the presence of strong players operating in the fuel distribution industry associated with the fuel card market and their strategic initiatives to increase their market share in the region add to the market growth.

For instance, Shell acquired fuel card business-MSTS Payments in North America. According to a report by Value Penguin in November 2021, more than 93.1% of households own at least one vehicle. The US population utilizes fuel cards to refill their vehicles' fuel tanks with gasoline, diesel, and others, through a widely spread network of gas stations. For instance, WEX has a strong network of 45,000 service stations in the US that covers more than 95% of fuel stations, offering more than 70 fleet/fuel cards varieties. The company collaborates with different brands such as 76, BP, ExxonMobil, Sunoco, and others.

Fleet cards provide a convenient and comprehensive method of reporting associated with their use, allowing fleet owners/managers to receive notifications in real-time reports and set buying limits with their cards, enabling them to stay and make informed decisions of all their business-related expenditure.

Figure2: FUEL CARD MARKET SIZE BY REGION 2022 & 2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

The Western Europeans Countries like Greece, Norway, and Iceland were among the fastest-growing markets for new cars, which are expected to increase the adoption of fuel card transactions in the region. Fuel cards benefit every fleet business or individual automobile owner by providing discounted fuel prices, reclaiming tax and accounting (because many fueling transactions are done without receipts), competitive rates offered by fuel card providers, and a variety of additional advantages.

Furthermore, convenient tracking of fuel usage, EV charging, and related costs assists people and businesses in monitoring and controlling carbon emissions (in ICE vehicles) and contributing to the national objective of zero-emission by the end of 2025. The Norwegian Parliament has enacted rules to provide incentives for zero-emission vehicles until the end of 2022. As a result, the number of battery electric vehicles (BEVs) on the road in Norway has increased, accounting for over 64% of the market share, with 470,000 registered BEVs on the road as of February 2022.

As a result, quick charging infrastructure that accepts fuel cards is likely to increase in demand in the Norway region, with monetary benefits such as toll reductions, public parking, and so on. The presence of fuel card companies offering several benefits such as less fuel expenditure for a period, innovative services that complete the customer requirements, efficient fleet management, and save time, have expanded the market size and is expected to boost further with the rising awareness in the region.

Some of the other fuel card providers operating in the region include Allstar One, BP Supercharge, UK Fuels Fleetone, Texaco Fastfuel, and The Fuel Store Card. The country is home to several semiconductor and consumer electronics companies that contribute to the adoption of fuel cards in the region. Additionally, government initiatives such as fuel rationing are expected to boost the demand for fuel cards during the forecast period.

With a strong presence across different verticals and geographies, the Fuel Card market is highly competitive and dominated by established, pure-play vendors. Over 15 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Fuel Card market is highly competitive, with many vendors offering similar products and services.

The major players in the market include FLEETCOR, WEX Inc., WAG Payment Solutions PLC, B.P. PLC, Exxon Mobil, Royal Dutch Shell, Radius, and U.S. Bancorp, and Others. Some players like Royal Dutch Sheel, Fleetcor, and others have witnessed the market trend and thus, added charging and fuel options in their portfolio, as electric vehicles are gaining traction and governments across the globe are supporting these trends. Further, companies are collaborating and accepting other brands' fuel cards at their fuel stations, this will reshape the growth approach of the market.

For instance, FLEETCOR, a business payments company, has agreed with Exxon Mobil, enabling Fuelman cards to be accepted at over 12,000 Exxon and Mobil stations in the U.S. Additionally, Exxon Mobil will accept FLEETCOR's Comdata trucking cards at commercial fueling locations from next year.

The fuel card market is highly competitive with the presence of well-established local players. Also, international players are expanding their business globally by establishing long-term trade relations with local players to penetrate the local and regional markets. In such a scenario, the market space for the new entrants is highly competitive, however, by leveraging the power of technology and growing the electric vehicle segment the new entrants can penetrate the market by offering innovative solutions under such segments creating growth opportunities for them as well as market in coming years.

The Fuel Card Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.