The global fuel card market was valued at approximately US$ 6.29 billion in 2018 and is projected to expand at a compound annual growth rate (CAGR) of 5.8% from 2019 to 2027, reaching an estimated US$ 10.39 billion by the end of the forecast period.
The surge in digitization across various sectors, particularly in logistics and transportation, is significantly boosting the demand for effective and transparent payment solutions. Additionally, evolving consumer preferences and rapid technological advancements are pivotal factors contributing to the transformation within the global payments and card industry. The widespread adoption of mobile devices has encouraged consumers to favor mobile and in-app payment options over conventional payment methods. This shift towards alternative payment solutions is expected to enhance the uptake of fuel cards in North America.
Governments in this region are actively developing policies aimed at attracting foreign direct investments (FDIs) in the technology sector, driven by the growing demand for improved digital services from consumers. For example, the Chinese government has eased restrictions on new market entrants to stimulate foreign and private capital investments in its economy. In the realm of digital innovation, China is focused on maintaining its competitive edge through initiatives like Industry 4.0, Made in China 2025, and Internet Plus. Similarly, Australia has initiated efforts to foster digital transformation across various sectors, exemplified by its 'Digital Transformation Strategy'. Over the past three years, Australia has introduced several transformative services, including Airport SmartGates, myTax, and Medicare, aimed at converting traditional services into digital formats. This strategy outlines a roadmap leading up to 2025. The increasing tech-savvy population, heightened investments in digital solutions by businesses, and supportive government policies promoting digitization are key drivers anticipated to propel the demand for fuel cards in the Asia Pacific region.
The fuel card market is categorized based on type, application, and geographical region. In terms of type, the market is divided into branded fuel cards, merchant fuel cards, and universal fuel cards. In 2018, the universal fuel cards segment held a significant share of the global fuel card market. The merchant branded fuel cards segment is expected to experience rapid growth, with a projected CAGR of 6.6% during the forecast period. Furthermore, the market is segmented by application into fuel refill, parking, vehicle service, toll charges, and other related services.
The overall size of the fuel card market has been determined through a combination of primary and secondary research methods. The research process commences with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative insights regarding the fuel card market. Additionally, numerous primary interviews are conducted with industry stakeholders and experts to validate the data and analysis. Participants in this process typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the fuel card sector.
Key players in the market include Allstar, Arco, Caltex, Chevron Texaco, Commdel, EDC, Engen Petroleum Ltd., FastFuel, Fleetcare Pty Ltd, fuelGenie, Fuelman, and HDFC Bank, among others. While some market participants are not detailed in this report, they can be included upon request.