According to a new report published by Allied Market Research titled, “Fuel dispenser Market by Fuel Type, Dispenser System, and Flow Meter: Opportunity Analysis and Industry Forecast, 2020–2027,”. The global fuel dispenser market size was valued at $2.4 billion in 2019, and is projected to reach $3.3 billion by 2027, growing at a CAGR of 5.7% from 2020 to 2027.
Fuel dispenser system consists of two main components, electronic and mechanical. Electronic components control displays, i.e., meter reading from sensors to display fuel volume, pressure, and price of fuel delivered. Mechanical part consists of pump, valves, and electric motor that controls the fuel. These two parts works simultaneously while delivering fuel into a vehicle to deliver appropriate calculations of the fuel dispensed. Fuel dispensers are installed at various locations from rural to urban to ensure reliable pumping of fuel into vehicles, storage tanks, and containers.
Rapid urbanization and industrialization in developing economies across the globe is expected to rise the demand for fuels, which, in turn, is anticipated to drive the market growth during the forecast period. Rise in disposable income result in higher consumer spending toward vehicles, which has increased the demand for dispensing systems in regions such as Asia-Pacific, Europe, and the Middle East. However, rise in demand for CNG and hydrogen vehicles across the globe, owing to rise in awareness and stringent government regulations toward vehicle emissions is expected to restrain growth of the petroleum-based dispenser market in the coming years. On the contrary, technological advancements in fuel dispensing technologies such as introduction of artificial intelligence, machine learning, cloud, and IoT-based platforms to provide smart retail management solutions to consumers is expected to create opportunities for key players operating in the fuel dispenser market.
Depending on fuel type, the petroleum fuels segment held the highest market share of around 51.3% in 2019, and is expected to maintain its dominance during the forecast period. This is attributed to rise in demand for petroleum fuels such as petrol, diesel, and kerosene from the automotive and transportation industry. In addition, rise in transportation activities, owing to the emerging tourism sector from various economies across the globe is expected to propel demand for petroleum fuels, which, in turn, is projected to drive the fuel dispenser market growth from 2020 to 2027.
On the basis of dispenser system, the submersible dispenser system segment held the largest market share of 76.8% and growth rate of 5.7%, in terms of revenue in 2019, and is expected to maintain its dominance during the forecast period. This growth is attributed to rise in demand for submersible fuel dispenser systems, owing to its advantages such as fast fueling, active air elimination, safety & ease of maintenance, simple servicing, and reliability. In addition, initial maintenance and service costs of submersible systems is lower as compared to other systems, which is expected to propel growth of the market during the forecast period.
On the basis of flow meter, the electronics segment held the largest share, in terms of revenue, and is expected to grow at a CAGR of 5.8%. This is attributed to rise in demand for electronic fuel dispensers, owing to their high accuracy, reliability, and performance as compared to mechanical fuel dispensers. In addition, technological advancements in fuel dispenser technologies such as online payment, printing, digital measurement, and automated fuel dispensing systems are projected to drive growth of the electronics fuel dispenser market during forecast period.
On the basis of region, Asia-Pacific garnered a dominant share in 2019, and is anticipated to maintain this trend during the forecast period. This is attributed to large number of key players, consumers, and availability of manufacturing facilities in these countries. In addition, rise in urbanization and industrialization in countries such as China and India increases demand for fuels, which further drives growth of the fuel dispenser market during the forecast period.
The global fuel dispenser market analysis covers in-depth information of the major industry participants. The key players operating and profiled in the report include Bennett Pump Company, Korea EnE Co., Ltd., Censtar Science & Technology Corp. Ltd, Beijing SANKI Petroleum Technology Co., Ltd, Scheidt & Bachmann GmbH, Dover Corporation, Zhejiang Lanfeng Machine Co., Ltd, Tatsuno Corporation, Fortive Corporation, and Tominaga Mfg. Company.
Other players operating in the fuel dispenser industry are Neotec, Piusi S.p.A., Lafon Technologies, XL Techniques, Gemsl, and others.
COVID-19 impact on the market
The fuel dispenser market has witnessed steady growth in 2020, owing to the outbreak of the COVID-19 pandemic. The outbreak has negatively impacted various industries and countries across the globe. However, owing to the lockdown imposed across the globe, there is decrease in growth rate of industries such as transportation, railway, oil & gas, and energy. In Europe, economies, such as Germany, France, Spain, and Italy, are following stringent measures, such as maintaining social distance and limiting movements to prevent spread of coronavirus. Moreover, such safety measures have been witnessed across the globe, which further impacted growth of the market.
Key Findings Of The Study
- In 2019, the petroleum fuel segment accounted for majority of the market share, and is expected to maintain its lead throughout the forecast period.
- In 2019, the submersible dispenser system segment accounted for around 76.8% share in the global fuel dispenser market, and is expected to maintain its dominance throughout the forecast period.
- In 2019, the electronics segment accounted for 84.7%, and is anticipated to grow at a rate of 5.8%, in terms of revenue, increasing its share in the global market.
- Petroleum fuels is the fastest-growing fuel type segment in the Asia-Pacific fuel dispenser market, expected to grow at a CAGR of 5.9% during 2020–2027.
- Asia-Pacific is expected to grow at the fastest rate, registering a CAGR of 5.9%, throughout the forecast period.
- In 2019, Asia-Pacific dominated the global fuel dispenser market with more than 45.7% of the share, in terms of revenue.