According to a new report published by Allied Market Research, titled, “Fuel Cards Market," The fuel cards market was valued at $735.04 billion in 2022, and is estimated to reach $2760.6 billion by 2032, growing at a CAGR of 14.4% from 2023 to 2032.
Fuel cards are specialized payment cards issued by fuel companies, financial institutions, and fleet management providers. These cards are used primarily for the purchase of fuel and other vehicle-related expenses. These cards are used primarily for the purchase of fuel and other vehicle-related expenses. Various fuel card systems can integrate with other software solutions, such as fleet management software and accounting systems. This integration streamlines expense tracking, reporting, and reconciliation processes. Some fuel card systems integrate with vehicle maintenance records, helping businesses keep track of servicing and repair costs, which can optimize maintenance schedules and reduce downtime. Contactless payment methods, including NFC (Near Field Communication) and mobile wallet apps, are becoming increasingly popular.
Fuel card providers are integrating these technologies, allowing cardholders to make secure and convenient payments and gather fuel rewards at fuel stations using their smartphones and contactless cards. Furthermore, with the rise of digital transactions, there is a growing focus on security. Fuel card providers are implementing advanced security features like biometric authentication, tokenization, and real-time fraud detection to protect cardholder data and prevent unauthorized use. Moreover, fuel card technology is leveraging data analytics and artificial intelligence (AI) to provide businesses with valuable insights into fuel consumption patterns, driver behavior, and cost-saving opportunities. AI-driven algorithms help optimize routes and fuel efficiency. Therefore, these fuel cards market trends are driving the growth of the fuel cards market.
Furthermore, on the basis of fuel cards market analysis the major market players adopted various strategies to increase the competition and offer enhanced services to their customers. For instance, in September 2022 Exxon Mobil Corporation signed an agreement with Fleetcor technologies. This agreement aimed to enhance the fuelling experience for the consumers. Moreover, in May 2020, Royal Dutch Shell plc launched Shell Fleet Maintenance Hub that offers users to witness fleet maintenance data overview and a network of discounted maintenance providers. Therefore, such strategies foster fuel cards market growth in the BFSI sector.
On the basis of card type, the universal segment holds the largest fuel cards market share of the fuel cards market size in the year 2022. This is attributed to the increasing use of this fuel card by millions of people to monitor their fuel usage. In addition, features like expense reports, instant accounting function, and other effective money saving tools helps individuals in managing and controlling their fuel expenses.
On the basis of region, Europe dominated the fuel card market in the year 2022. This is because of the increase in prepaid cards and the increasing acceptance of fuel cards in the region.
The pandemic had a negative impact on the fuel cards market. This is mainly attributed to the decrease in fuel consumption, shift in usage pattern of consumers, increased emphasis on cost control, digital transformation, focus on contactless payments and government support and incentives. The low volume of travel by people during the pandemic affected the consumption of fuel thus impacting fuel card usage. In addition, due to remote work implementation, fewer physical operations took place thus impacting the usage of fuel card technology.
Furthermore, companies implemented cost-cutting measures to survive in the pandemic situation by offering fuel rewards and thus the use of fuel card technology was closely monitored to avoid unnecessary expenses. Moreover, the pandemic accelerated the adoption of digital technologies across industries. Fuel card providers and users started adopting digital solutions, such as mobile apps and online platforms, to manage fuel card accounts and transactions, this again resulted in a fair amount of investment. In addition, contactless payments came into force due to the pandemic, as people avoided physical contact to restrict the transmission of the virus. Responding to the same the fuel card providers had to invest and bring the same technology to their cards to survive the market change. Eventually, fuel-related subsidies and incentives affected the way businesses used fuel cards, influencing their choices of fuel suppliers and card providers. Therefore, COVID-19 overall had a negative impact on the fuel cards market.
Key Findings of the Study
- By application, the fuel refill segment led the fuel cards market trends in terms of revenue in 2022.
- By type, the universal segment led the fuel cards market share in terms of revenue in 2022.
- By region, North America generated the highest revenue for fuel cards market size in 2022.
The key players profiled in the fuel cards market analysis are BP p.l.c., Exxon Mobil Corporation, FirstRand Limited, FleetCor Technologies, Inc., U.S. Bancorp, WEX Inc., Libya Oil Holdings Ltd., Puma, Engen Petroleum Ltd. and Royal Dutch Shell PLC. These players have adopted various strategies to increase their market penetration and strengthen their position in the fuel cards industry.