Fuel Dispenser Market Size, Share & COVID-19 Impact Analysis, By Fuel Type (Petrol/Gasoline, Diesel, CNG, and Others), By Dispenser System (Submersible System and Suction System), By Flow Meter (Mechanical and Electronic), and Regional Forecast, 2020-2032

The global fuel dispenser market size was USD 2.54 billion in 2019 and is projected to reach USD 3.94 billion by 2032, exhibiting a CAGR of 5.74% during the forecast period.

Fuel dispensers ensure easy access to different kinds of fuels. They are installed at various locations to pump the fuel into vehicles, storage tanks, or portable containers. They ensure the pumping of an accurate amount of fuel in the tank. The increasing number of national and international transportation activities and the rising investments in building CNG stations are expected to boost the usage of fuel dispenser systems.

Growth in the automotive industry with increasing adoption of dual fuel or multi-fuel vehicles and significant developments in dispenser technology are the key factors driving the growth of this market. Various governments have planned targets to achieve carbon-free emissions and deployment of CNG stations in the coming years, which would hold significant growth opportunities for the this market. However, an increasing focus on adopting electric vehicles is restraining market growth.

Demand for LNG to Decrease Amid COVID-19 Pandemic, Market Growth to Hamper in the Upcoming Years

The outbreak of COVID-19 is affecting the businesses of various industries around the world. Almost every country is reporting new cases of infection and significant measures are being adopted to curb the transmission of coronavirus. Oil and petroleum products are mainly used in the transportation sector, power generation plants, and various other applications for industrial purposes. However, a decline in domestic and international travel, business closures, and lockdown measures in many countries have shrunk the demand for natural gas. Hence, this pandemic has hampered the consumer behavior of the oil & gas industry, thereby dramatically impacting the fuel dispenser market growth.

The demand for oil is anticipated to fall by a record of 9.3 million barrels per day (mbd) year-on-year in 2020. As per the International Energy Agency, the demand for the 2nd quarter is expected to be below 23.1 mbd, as compared to last year. Hence, the declining fuel prices along with a halt in the demand for fuel from the transportation sector as a result of coronavirus would obstruct growth. As per a report by the Energy Information Administration (EIA) & Short-Term Energy Outlook (STEO), dry gas production will drop to 88.65 billion cubic feet per day (bcfd) in 2020 and 84.02 bcfd in 2021. Thus, the spread of coronavirus poses a threat to the demand for CNG and LNG industry, which would hamper the growth of this market significantly.

LATEST TRENDS

Increasing Number of National and International Transportation Activities is a Current Trend

The increasing number of national and international transportation activities, propelled by the growing import and export activities, are some of the trending factors in this market. Also, many countries such as the United States, Germany, the United Kingdom, and China are outsourcing their manufacturing units to other countries, wherein lower costs are incurred. However, the increasing rate of economic growth, globalization, and the development of smart cities would accelerate the growth prospects for the global logistics market. Furthermore, the supportive trade agreements and free trade agreements (FTAs) in Asia Pacific region, as well as the Trans-Pacific agreement are also contributing to the increasing trade activities among countries.

Rising Usage of Cost-effective Alternative Fuel in the Automotive Industry is a Prominent Trend

The growth in the automotive industry is primarily attributed to the increasing usage of alternative fuel in the automotive industry for cost-effectiveness, fuel efficiency, and emission control. The CNG and LPG vehicles are growing rapidly in developing countries, owing to the lower cost of both fuels, as compared to the volatility of petroleum product prices. Besides, vehicles running in CNG and LPG are considered green alternatives to petroleum-operated vehicles. As per Bloomberg data 2020, automakers had a sale of more than 17 million vehicles in the U.S. for a fifth consecutive year in 2019. Furthermore, new vehicle sales for 2019 were originally forecast to fall between 16.7 million to 16.9 million units. Hence, the achievement of estimated sales targets is anticipated to create a growth trajectory in the automotive industry, which would further bolster the growing demand for these dispensers in the coming years.

DRIVING FACTORS

Increasing Adoption of Dual Fuel or Multi-Fuel Vehicles to Accelerate Demand for Fuel Dispensers

Dual fuel vehicles enhance the thermal efficiencies of internal combustion engines while simultaneously reducing their emissions. It offers a solution to poor efficiency and mitigates the emissions from single fuel vehicles. Dual-fuel vehicles are designed to operate interchangeably on natural gas with a diesel pilot or on 100% diesel fuel. The depletion of petroleum products would enable people to shift to electric vehicles and other alternative technologies. Hence, the increasing adoption of dual fuel or multi-fuel vehicles would drive the growth of this market during the forecast period.

Rising Technological Advancements in Fuel Dispensers to Drive Growth

The introduction of technologically advanced fuel dispensers would help to boost the market growth. Advanced fuel dispensers aid in attending more vehicles at a time for pumping fuel. It includes a scanner, customer identification keypad, video screen, barcoding, and magnetic card terminal to offer more reliable and precise metering and refueling. In addition, key players are increasingly coming up with better and advanced products such as customizable dispensers of fuel to improve customer experience. Hence, technologically advanced dispensers are set to drive market growth during the projected time frame.

RESTRAINING FACTORS

Increasing Awareness for Adopting Electric Vehicles to Restrain Growth

The increasing fuel prices and the impact of conventional fuel vehicles on the environment have further raised the awareness of adopting electric vehicles.  In Europe, a regulation has been set up to cut carbon emission by 15% for lightweight commercial vehicles by 2025. Hence, stringent regulatory standards, along with the increasing awareness programs for adopting electric vehicles, would restrain the market growth.

SEGMENTATION

By Fuel Type Analysis

Rising Demand for Energy  to Propel the Petrol/Gasoline Segment

Based on fuel type, the market is segmented into petrol/gasoline, diesel, CNG, and others. The petrol/gasoline segment held a dominant share of the market in 2019 owing to the growing energy demand from industrial and commercial applications. It is primarily catered by petrol/gasoline. The diesel segment is projected to hold the second-largest market share due to its wide applications in mechanical engines, power generators, mobile drives, locomotives, construction equipment, automobiles, and various other industrial applications.

The CNG segment is also set to showcase high Fuel dispenser market share owing to the growing environmental concerns and high volatility in oil prices. The application of CNG would deliver high auto-ignition temperature, low operational cost, and less lubrication. At the same time, it is safer than petrol and diesel, as well as environmentally friendly. The other segment includes biodiesel, methanol, and kerosene. It is expected to grow at a steady rate due to the increasing application of biodiesel & kerosene in the transportation & aviation industries, respectively.

By Dispenser System Analysis

Lower Installation Cost is Set to Augment Growth of Submersible System Segment

Based on the dispenser system, the market is divided into submersible systems and suction systems. The submersible system segment holds a larger portion of the market share owing to lower installation, maintenance, and service costs. An underground fuel tank has a single pressure outlet connecting the fuel dispensing units in the refilling station. These factors would drive the submersible system segment in the near future.

By Flow Meter Analysis

Electronic Segment to Grow Considerably Backed by its Ability to Deliver Higher Accuracy & Stability

Based on the flow meter, the market is segmented into mechanical and electronic. Electronic flow meters have higher accuracy, high stability, and are more reliable than mechanical flow meters. This would escalate the growth of the electronic flow meter segment during the projected period. However, mechanical flow meters use moving parts to measure the flow of liquid or gas flowing through the pipes, which signifies an obsolete technology.

REGIONAL INSIGHTS

The market size in Asia Pacific stood at USD 1.05 billion in 2019. Countries such as China, India, and other developing economies are focusing on eliminating the adverse effects of vehicle emissions on the environment and increasing the price of gasoline, which would help to drive the increasing demand for natural gas vehicles (NGVs). For instance, in 2017, Volkswagen signed an agreement to expand the application of CNG in Europe with a projected target to achieve 1 million sales of CNG vehicles by 2025 and increase the number of CNG filling stations from 900 to 2,000 stations.

North America is estimated to hold the second-largest share in this market, globally. The growth is attributable to the increasing sale of new vehicles as per the auto industry forecasts, which is estimated to reach 16.7 million to 17.1 million vehicles in the United States. The growing number of CNG stations would help to boost the market growth. In August 2020, Chesapeake Utilities Corporation signed an agreement with Atlanta Gas Light (AGL), a wholly-owned subsidiary of Southern Company Gas, to construct and maintain a CNG filling station near the Port of Savannah in Georgia by 2021.

Europe houses a large number of natural gas vehicles as it is considered to be the cleanest fuel. Countries in the region such as Germany, Italy, Netherlands, Russia, and Ukraine have 868, 1044, 176, 235, and 207 CNG stations, respectively. Natural gas vehicles are key factors in achieving a 30% carbon reduction target by 2030. That is why the European Union is investing USD 179.17 million in the development of CNG stations. These factors are attributable to the growth of the market is expected in this region.

The Middle East & Africa is also set to show considerable growth in the market as countries of this region are involved in the oil business which includes the transportation of oil. It would further lead to the high demand for fuel dispensers in the coming years. The rising need for natural gas vehicles, along with the development of refueling infrastructure in Latin America would propel the demand for these dispensers in this region.

KEY INDUSTRY PLAYERS

Key Players Focus on Strengthening Their Distribution Networks to Intensify Competition

The market is consolidated owing to the strong product portfolios and remarkable distribution networks of major companies in developed and emerging countries. Currently, Gilbarco Veeder-Root, Wayne Fueling Systems, LLC, Tatsuno Corporation, and Tokheim are leading the market accounting for a dominant share in 2019 which would result in the healthy growth of the market by 2027.

Other key players such as Korea EnE Co., Ltd., Censtar, Lumen Instruments, Hongyang Group Co., Ltd., and other small companies have also entered the competition by introducing advanced features in dispensers. Companies are focused on mergers and acquisitions to extend their revenue. For instance, in June 2019 Gilbarco Veeder-Root signed an agreement to acquire Midco Limited. The latter designs and manufactures fuel dispensers and related fueling station equipment. Hence, a growing initiative by major competitors has influenced the market competitiveness in the forecasted period.

LIST OF KEY COMPANIES PROFILED:

• Gilbarco (North Carolina, US)


• Wayne Fueling Systems (Texas, US)


• Tatsuno Corporation (Tokyo, Japan)


• Tokheim (Dundee, Scotland)


• Censtar Science and Technology Corporation (Zhengzhou city, China)


• Zhejiang Datian Machine Co., Ltd (WENZHOU, ZHEJIANG)


• Bennett Pump (Michigan, US)


• Dover Fueling Solutions (Texas, US)


• Scheidt and Bachmann (Mönchengladbach, Germany)


• Neotec (Athens, Greece)


• Beijing Sanki Petroleum Technology Co., Ltd. (Beijing, China)


• Shenzhen Kaisai Electric Motor Co., Ltd. (Shenzhen, China)


• Piusi S.p.A. (Suzzara, Mantova)


• Zhejiang Lanfeng Machine Co. Ltd (Zhejiang, China)

KEY INDUSTRY DEVELOPMENTS:

• On April 27, 2021, Dover Fuelling Solution (DFS) has bagged a contract by Shell for the provision of its site automation with Tokheim Fuel POS. The contract involves a demonstration of the Tokheim Fuel POS point-of-sale system and combing an easy touchscreen interface that can connect with other systems including dispensers, payments. CCTV, EV charging, and others.


• On February 18, 2021, Scheidt & Bachmann GmBH has collaborated with Pyramid Computer GmBH to promote self-checkout solutions at fuel retail sites. This includes the implementation of modern Kiosk systems and improvement in customer experience by shortening the waiting time.


• In December 2020, PIUSI has launched the new Suzzarable-3, a complete range of dispensers for IBC tanks and suitable for all the needs and applications.


• In November 2020, Harmons has deployed EMV-Compliant chip cards and NFC transactions on the Bennett Pacific dispensers. This enables the development of a custom solution that allows Harmons to transfer sales data to their head offices.

REPORT COVERAGE

The fuel dispenser market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, product types, advancement in dispenser technology, and leading applications across various dispensing liquids. Besides this, the report offers insights into the industrial trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market for fuel dispensers over recent years.

Report Scope & Segmentation