Fuel Card Market: Omni-channel Experience Enhances Personalized Customer Servicing
Fleet management has become an important task for fleet owners in a highly mobilized world. With the number of cars increasing as a result of ride-hailing and sharing apps, the trend has put an added responsibility on owners to efficiently manage their fleets and adopt cost-effective methods. Stakeholders in the fuel card market are simplifying the work of fleet owners by offering them reward points, discounts and other lucrative incentives.
The production of smart card is estimated to reach an output of ~300 million units by 2027 in the fuel card market. Hence, manufacturers are making efforts to elevate the personalized experience of customers, based on analytics. They are adopting the omni-channel experience approach to make customer experience more seamless. This approach is complemented with online channels to make the process of customer acquisition easier, time-saving, and cost-efficient. Stakeholders in the fuel card market are developing mobile applications to implement customer servicing, and these apps also help customers locate the nearest fuel station.
Another driver is the migration towards EMV (Europay, MasterCard, and Visa). Card-issuing players are increasing investments toward EMV to provide the benefits of chip-based cards to customers.
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Co-branded Fuel Cards Offer Seamless Digital Cashless Transactions
Co-branded fuel cards are being increasingly adopted by customers as a result of significant changes in their lifestyle and spending capacity. Stakeholders in the fuel card market are offering added benefits in co-branded cards, which has led to the growing adoption of fuel cards.
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The branded cards segment is anticipated to grow in terms of market share, and is projected to reach a production output of ~400 million units by 2027 in the fuel card market. Since Asia Pacific is anticipated for increased market growth, stakeholders are aiming to increase the penetration of branded cards in non-metro cities and towns of India. For instance, in September 2019, HDFC Bank LTD. an Indian banking and financial services company, announced the launch of a co-branded fuel credit card with Indian Oil Corporation Ltd. an Indian petroleum refining company, to promote digital cashless transactions.
Thus, stakeholders in the fuel card market are encouraging customers in smaller towns and cities to adopt digital cashless payments.
Troubleshooting and Innovation Help Overcome Technological Hindrances
The fuel card market is moderately fragmented, which has encouraged emerging players to enter the market. However, certain challenges need to be addressed by stakeholders in this space. Omni-channel experience and analytics have opened up new opportunities for stakeholders in the fuel card market. However, within these opportunities, certain drawbacks in the framework are likely to impede market growth.
The fuel card industry is a complex environment to navigate complete end-to-end solutions for its many customers. Hence, it is virtually impossible for a single company to handle multiple functions of a modern fuel card management system. Thus, innovation is the key to constantly identify which function needs troubleshooting.
For instance, the security of payments is a huge concern in the market, as a result of data breaches. Hence, manufacturers are introducing tokenization and biometric authentication to enhance security and make digital payments safer. Leading retailers and card issuers are integrating tokenization in cards, as the technology offers end-to-end encryption of mobile-based payments.
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Technological advancements are simplifying the work of customers and fleet owners. As such, stakeholders in the fuel card market should innovate new technologies such as telematics interfaces and cardholder verification methods. However, the challenges faced by fleet owners are anticipated to significantly affect market growth, since fleet management accounts as one of the major sources of income for stakeholders in the market. Thus, stakeholders should focus on re-examining payment and system processes according to changing customer preferences.
Card-issuing players are introducing new technologies that comply with the growing range of rules, regulations, and reporting standards. Stakeholders should offer loyalty programs to customers, especially fleet owners, since fleet owners are always on the lookout for profitable offerings.
Fuel Card Market: Definition/Overview
- A fuel card is a payment card most commonly used at diesel, petrol, gasoline, and other fuel stations.
- Fuel cards can also be used to pay for the maintenance and expense of vehicles. Generally, fuel cards are printed with the company name, signature strip, and vehicle registration number.
- The global fuel card market is projected to expand at a CAGR of ~6%, increasing from ~US$ 35 Bn in 2019 to ~US$ 55 Bn by the end of the forecast period in 2027.
Global Fuel Card Market: Regional Overview
- Asia Pacific is likely to be the fastest-growing region in the global fuel card market during the forecast period, due to supportive government initiatives to encourage cashless transactions. Furthermore, growing urbanization and increasing development of fleet management solution systems are likely to boost the demand for fuel cards in the next few years.
- Europe is the largest regional market in the global fuel card market. Significant consumer awareness about the advantages of fuel cards is driving market growth in the region. Moreover, rising fuel prices is leading individuals to keep a track of their fuel purchases, which helps them save on fuel costs.
Global Fuel Card Market: Trends
- Developing countries are easing their tax policies and encouraging individuals to opt for cashless transactions, which is expected to boost the fuel card market in these regions. Advanced smart features provided by key fuel card providers are set to create new avenues for market growth.
- A growing contactless card and prepaid industry along with technological modernizations in fuel card, and the convenience and benefits provided by these cards, are projected to offer opportunities for the global market throughout the forecast years.
- The fleet management market is impacted by technology all around. The adoption of fleet management software in data management and analytics has been growing, which is driving the demand for corporate fuel cards.
Global Fuel Card Market: Drivers, Opportunities, and Restraints
- Companies are actively witnessing growth revival in developing economies such as Brazil, China, India, South Africa, and Mexico, due to economic advancement coupled with increasing number of cashless transections. This can be seen as a potential growth opportunity to introduce fuel card services in these markets, leading to high impact over the forecast period.
- Contactless and prepaid technology are comparatively new in the fuel card market. According to Kalyani Pillay, Chief Executive of South African Banking Risk Information Centre (SABRIC), contactless payment cards are a highly secure option, just as traditional cards. SABRIC has not faced any registered crime incidents related to tap and go/contactless cards.
- Measures such as switching to more fuel-efficient vehicles, eliminating idle time, reducing the fleet size, and timely maintenance can help decrease fuel consumption. Managing the budget during variance in fuel prices remains a challenge. As fuel prices are difficult to predict, it is difficult to plan and budget in advance. This can act as a restraint to the growth of the fuel card market.
Global Fuel Card Market: Key Segments
The global fuel card market has been segmented based on type, technology, end user, and region.
- By Type
- In terms of type, the global fuel card market has been divided into branded, universal, and merchant. Currently, the universal segment holds the highest share in the global fuel card market.
- By Technology
- On the basis of technology, the global fuel card market has been classified into standard card and smart card. At present, the standard segment holds the most substantial share in the global fuel card market.
- By End User
- In terms of end user, the global fuel card market has been categorized into individual and corporate. In 2018, the individual segment held a major share of the global fuel card market.
- By Region
- Based on region, the global fuel card market has been divided into: North America (U.S., Canada, and Rest of North America), Europe (U.K., France, Germany, and Rest of Europe), Asia Pacific (China, Japan, India, and Rest of Asia Pacific), Middle East & Africa (GCC, South Africa, and Rest of Middle East & Africa), and South America (Brazil and Rest of South America). Europe has the highest share in the global fuel card market.
Global Fuel Card Market: Competition Landscape
- The global fuel card market is highly competitive with the presence of several global and regional players.
- Companies are investing in product innovation to increase their customer base.
- Some of the key players operating in the global fuel card market are
- Shell Group
- BP plc.
- Total fuel Card
- WEX Inc.
- Puma Energy
- Engen Petroleum Ltd
- Absa Bank Limited
- Standard Bank
- First National Bank (FNB).
Global Fuel Card Market – Scope of the Report
Transparency Market Research’s recent report on the fuel card market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the fuel card market analyzes the scenario for the period of 2019 to 2027, wherein, 2018 is the base year and 2017 and earlier is historical data. The report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.
This TMR study on the fuel card market provides data on the developments undertaken by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the global fuel card market gives readers an individual understanding of the market.
The report highlights significant factors that are constantly determining the growth of the fuel card market, untapped opportunities for manufacturers, trends and developments, and other insights across various key segments. Macroeconomic factors that are directly or indirectly affecting the growth of the fuel card market have also been incorporated in the report.
The study discusses the underlying trends and impact of various factors that are driving the global fuel card market, along with their influence on the evolution of the market. The study also offers Porter’s Five Force Analysis, value chain analysis, price trend analysis, and SWOT analysis of the global fuel card market, in order to highlight the crucial growth tactics and opportunities for market players in the landscape.
Key Questions Answered in This Report on the Fuel Card Market
- How much revenue will the fuel card market generate by the end of the forecast period?
- Which type of fuel card is likely to gain the maximum market share by 2027?
- What regions currently contribute the maximum share to the overall fuel card market?
- What are the indicators expected to drive the growth of the global fuel card market?
- Which region is likely to be a lucrative market during the forecast period?
- What are the essential strategies incorporated by key stakeholders in the global fuel card market to expand their geographical presence?
- What are the major advancements being witnessed in the global fuel card market?
This report answers these questions, and more, about the global fuel card market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
Global Fuel Card Market – Research Methodology
The TMR report on the global fuel card market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. The competitive scenario of the global fuel card market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data and current trends, researchers of the global fuel card market arrive at predictions and estimations, and calculate the forecasts for the market. The report uses an analytical triangulation method to estimate the numbers and figures of the global fuel card market, with both, the bottom-up and top-down approaches.
Global Fuel Card Market – Segmentation
The report on the global fuel card market provides information on the basis of type, technology, end user, and region. Each of these segments have been analyzed to provide readers a holistic view of the said industry.
Middle East & Africa