Gas Stations
Companies in this industry primarily sell fuel for motor vehicles; they may also offer car repairs or inspections. No major companies dominate the industry. Although major oil companies own few retail fueling outlets, many gas stations contract to sell specific brands of fuel.
As a part of the global oil and gas refining and marketing industry, the global gas station market is forecasted to grow by nearly $43 billion between 2020 and 2024, according to Technavio. The growth is driven by the inbound and outbound tourism and growth in national and international transportation. The Asia Pacific is the fastest-growing region for the fuel station market, owing to the rising adaptation of fuel-powered vehicles in developing nations such as India and China, according to the Fortune Business Insights.
The US gas station industry includes about 17,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $100 billion. Revenue for the industry, driven mainly by fuel consumption, can vary significantly from year to year, depending on the price of crude oil.
The industry includes some truck stops but excludes establishments that are combination gas station/convenience stores, which account for the majority of fuel retailers and are covered in a separate industry profile.
Competitive Landscape
Demand depends on the volume of consumer and commercial driving. The profitability of individual companies depends on the ability to secure high-traffic locations, generate high-volume sales, and buy gas at the lowest possible cost. Large companies have advantages in purchasing and finance. Small companies can compete effectively by having superior locations. The US industry is concentrated: the top 50 companies generate about 60% of revenue.
As more retailers have added gas to their merchandising mix and big oil companies exit the fuel retailing, the competitive landscape for gas stations has expanded to include not only convenience stores, but also mass merchandisers, warehouse clubs, and grocery stores.
Potential long-term threats to gasoline stations include self-driving vehicles and ridesharing services, which could reduce the number of miles driven by helping better coordinate trips, and gas delivery startups, such as Filld and WeFuel, which allow drivers to bypass service stations. The number of single-store operators have decline by about 55% in 2021, according to the National Association of Convenience Stores (NACS).
Products, Operations & Technology
Fuel for motor vehicles accounts for about 90% of industry sales. Other products also include candies, prepackaged cookies, and snack food; automotive
... plus:
Sales & Marketing
,
Finance & Regulation
,
Regional & International Issues
,
Human Resources
Also includes the following chapters:
Quarterly Industry Update
,
Industry Indicators
,
Business Challenges
,
Trends and Opportunities
,
Call Preparation Questions
,
Financial Information
,
Industry Forecast
,
Industry Websites
,
Glossary of Acronyms