Fuel Dispenser Market

Market Overview

The global fuel dispenser market had a market share of USD 2,392 million in 2021 and is estimated to project at a CAGR of 5.7% and reach USD 3,728 million during the forecast period. A fuel dispenser is a device used to refuel automobiles at service stations and other fueling stations. Fuel dispensers pump various liquid and gaseous fuels into automobile units. These fuels include gasoline, diesel, compressed natural gas (CNG), biofuels, ethanol, hydrogen, etc. The primary components of a fuel dispenser system are electronic and mechanical.

Electronic components regulate displays, such as meter readings from sensors that indicate fuel volume, pressure, and delivered fuel cost. The mechanical component comprises a fuel-controlling pump, valves, and electric motor. These two components function to calculate the correct amount of fuel dispensed while fueling a vehicle. Fuel dispensers are deployed in various rural and urban settings to enable dependable fueling of cars, storage tanks, and containers.

The global fuel dispensers market is estimated to expand during the forecast period due to the increased consumption of petroleum fuels and CNG products from emerging economies and the rapid expansion of the dual-fuel or hybrid vehicle sector. However, increased knowledge and stricter government rules about car emissions, increased demand for electric vehicles, and a decline in the number of petroleum-based fueling stations are expected to restrain the fuel dispenser market's growth. On the contrary, technological advances and research and development toward highly efficient gasoline dispenser systems are anticipated to generate chances for market leaders.

Market Dynamics

Market Driving Factors

Growth in Petroleum and CNG Product Demand in Emerging Economies

Increasing demand for petroleum fuels and CNG products from growing economies like China, Brazil, India, Australia, and South Korea is anticipated to be the primary factor propelling the growth of the fuel dispenser market. In these rising economies, there is also a quick acceptance of natural gas vehicles and an increase in the consumption of petroleum fuels. This is predicted to increase the need for gas stations, which is likely to push the expansion of the global fuel dispenser market over the period.

Vehicle markets in growing nations like India, China, Brazil, and others are expanding rapidly. Furthermore, advanced economies such as North America and Europe account for most automobile production and sales. China is the largest country-level market with the highest production and sales data since 2014 due to technical improvements, superior manufacturing facilities, and a dramatic increase in population, which leads to high demand for vehicles. Such rapid development in vehicle production and sales is anticipated to increase the need for petroleum and other fuels, which will, in turn, drive the expansion of the global market throughout the forecast period.

Increase in Dual Fuel/Hybrid Vehicles to Favor Market Growth

Rapid growth in hybrid car production and sales is anticipated to propel the expansion of the global fuel dispenser market over the forecast period. In addition, hybrid vehicles demonstrate numerous advantages over conventional vehicles, such as the potential to achieve zero emissions, economic benefits, the flexibility to run on alternative fuels, and power generation from regenerative braking, all of which contribute to the expansion of the global market.

Furthermore, hybrid vehicles are more time- and safety-efficient than conventional vehicles due to their capacity to create regenerative power while applying the brakes. Also, dual fuel vehicles have advantages such as reduced price, reduced emissions, lower service, and smoother operation, which are anticipated to fuel their demand in the coming years, driving the global fuel dispenser market. In addition, the development of hydrogen gas-powered vehicles, which do not release carbon emissions, require less energy than diesel fuel, and create minimal noise and vibration, is anticipated to drive market expansion throughout the forecast timeline.

Market Restraining Factors

Growing Interest in Electric Vehicles and Reducing Number of Fuel Stations

During the forecast period, the market for fuel dispensers is anticipated to be restrained by the increasing demand for electric vehicles and government efforts and investments in the electric vehicle industry. Consequently, due to attempts to promote electric vehicles, the production of electric vehicles is anticipated to expand exponentially, reducing the demand for petroleum-based or other traditional fuel dispensers in the coming years.

In addition, rising pollution levels and diminishing fossil fuel supplies have increased the government's focus on electric vehicles. In addition, the surge in carbon emissions has accelerated global warming at an alarming rate, compelling nations worldwide to limit their carbon emissions. Numerous nations provide incentives to encourage the usage of zero-emission automobiles (electric or hybrid). Numerous countries across the globe offer financial incentives such as tax exemptions and tax credits. These factors are anticipated to restrain the global market's expansion during the forecast period.

Key Market Opportunities

Advancements in Research & Development and Technologies 

Technological advances such as incorporating digital innovations, and automation, among others, play a crucial part in expanding the global fuel dispenser market. In addition, the advent of embedded electronic dispensing systems, cloud platforms, and other digital systems in fuel dispensers is anticipated to generate opportunities for market leaders. Demand from consumers for a smooth retail fueling experience, faster and more efficient fuelling, and other features has raised the focus of critical stakeholders, resulting in a rise in research and development activities aimed at developing highly efficient fuel dispenser systems. This is predicted to provide significant opportunities for market leaders in the fuel dispenser space in the coming years.

Regional Analysis

The global fuel dispenser market is segmented as North America, Asia-Pacific, Europe, and LAMEA.

Why are Asia-Pacific and Europe Projected to be the Most Lucrative Market during the Assessment Period?

Europe will hold a share of USD 1,058 million with a CAGR of 5.8% during the forecast period. In Europe, fuel dispensers are widely utilized in retail and commercial stations. The German market for fuel dispensers is the largest in Europe. During the forecast period, the European market will likely be driven by the rising demand for fuel dispensers from various applications, such as petrol, diesel, gasoline, and electric vehicle stations. However, the increasing desire for high-performance, fuel-efficient, and low-emission automobiles throughout the region is driving a massive increase in the market for electric vehicles. In addition, implementing rigorous government rules regarding car emissions and environmental pollution is anticipated to increase the market for electric vehicles, increasing the demand for electric charging dispensers over the forecast period.

Asia-Pacific is expected to command the largest share of USD 1,899 million growth with the highest CAGR of 6.3%. The fuel dispenser market in Asia-Pacific is primarily driven by rising economies such as China, Japan, India, and Australia, as the automotive and transportation sectors experience significant expansion. This is due to the vast number of major vendors and manufacturing facilities available in these nations. In addition, the rise in population and economic development in countries like China, India, and others is raising the need for automobiles, which will propel the expansion of the market for fuel dispensers over the forecast period. The rising demand for gasoline, diesel, natural gas, and other fuels in Asia-Pacific, particularly in China and India, is driving the demand for fuel dispensers and will likely drive the global fuel dispenser market in the coming years.

Segmental Analysis

Fuel type, dispenser system, flow meter, and region are various global fuel dispenser market segments.

On the Basis of Fuel Type

Based on fuel type, the segmentation of the global market has been done as Petroleum Fuels, Compressed Fuels, Biofuels, and Others.

Petroleum fuels are expected to have the largest market during the forecast period growing at a CAGR of 6.2% and reaching USD 2,110 million. Fuel dispenser systems utilize petroleum-based fuels such as gasoline, diesel, kerosene, etc. Automotive fuels typically consist of gasoline or petrol and diesel. Kerosene is utilized as a fuel for jet and rocket heaters and as an addition to diesel to counteract cold-temperature effects. Increased demand for petroleum fuels such as gasoline, diesel, and kerosene from the automotive and transportation industries is anticipated to drive petroleum fuels market expansion throughout the forecast period. To satisfy this demand for fuels, there is an increase in demand for gasoline stations, which is anticipated to drive the expansion of the global fuel dispenser market during the period. In addition, a surge in hybrid electric vehicle usage and demand is predicted to boost the fuel dispenser market expansion in the coming years.

Biofuels are expected to grow with the highest CAGR of 6.6% and reach USD 261 million by 2030. Biofuels are fuels derived from renewable energy sources, such as organic matter or trash. In the transportation industry, biofuels are employed as a substitute for conventional fuels or can be combined with petroleum fuels. Increased demand and interest in biofuels from the transportation and car industries for use in vehicle propulsion is anticipated to boost the biofuel fuel dispenser market during the forecast period. In addition, stringent government rules regarding emissions from the combustion of conventional fuels are likely to increase the demand for biofuels, which is anticipated to boost the growth of the global fuel dispenser market.

On the Basis of Dispenser System

The segmentation is done as submersible system and suction system based on the dispenser system.

The Submersible system is expected to hold a share of USD 3,155 million with a CAGR of 6.2% during the forecast period. A submersible system is a device that consists of a submerged motor near the pump body. It forces fluid from above- or below-ground gasoline storage tanks to the dispenser system, effectively refueling vehicles. The market for submersible fuel dispenser systems, owing to their benefits such as quick refueling, active air elimination, safety & convenience of maintenance, straightforward servicing, and dependability, is anticipated to propel market expansion over the forecast period. In addition, submersible systems' startup, maintenance, and service costs are cheaper than those of other systems, contributing to the market's growth during the examined period.

The suction system is expected to hold a market share of USD 954 million with a CAGR of 6.2%. Fuel is drawn from the storage tank into the fuel dispenser in a suction system before being dispensed into the vehicle. Suction dispenser systems are more efficient than submersible systems due to their high suction and dispensing capacities, projected to fuel the market's expansion throughout the forecast period. However, suction dispenser systems are expected to see sluggish growth during the projected period due to high installation, maintenance, and service costs.

On the Basis of Flow Meter

Based on the flow meter, the segmentation of the global market is done as Mechanical and Electronics.

Electronics is expected to hold a massive share of USD 3,454 million, growing the highest CAGR of 6.1% during the forecast period. Electronic fuel dispensers have multiple characteristics, such as pre-set, digital display, and instant receipt printing utilizing a tiny printer. Electronic flow meters are more dependable, steady, and accurate at measuring flow than mechanical ones. The market's growth for electronic fuel dispensers due to their superior accuracy, dependability, and performance compared to mechanical fuel dispensers is anticipated to propel global fuel dispenser market expansion during the forecast period. Furthermore, an upsurge in the number of fuelling stations increases the need for gasoline from transportation applications, which is predicted to propel the global fuel dispenser market expansion further.

Recent Developments

• In 2022, Scheidt & Bachmann GmbH and Kuwait Petroleum North West Europe have agreed to introduce SIQMA innovations to Belgium and Luxembourg.
• In 2022, Scheidt & Bachmann GmbH installed a parking management system in the Commercial Area annexed to the Shopping Centre Parque Ademuz in Valencia.
• In 2022, Scheidt & Bachmann GmbH and Worldline will join hands and launch a new fuel solution for Europe. This solution will help fuel retailers deliver a more comprehensive payment solution for customers at petrol stations.