Running on empty: Industry profitability will continue to decline due to increasing swipe fees

The Gas Stations industry has experienced significant revenue volatility over the five years to 2018. As more Americans have returned to work, total vehicle miles have also increased, bolstering purchases of gasoline. In addition, as per capita disposable income has continued to increase, some consumers have traded up to higher-priced premium fuel. Moreover, the strengthening retail and manufacturing sectors have boosted demand for diesel from trucking industries, while the introduction of diesel-compatible passenger cars supported diesel fuel sales from individuals. Although revenue fell due to declining crude oil prices, profitability grew amid falling purchase costs...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Volume sales of gasoline are anticipated to decline, hindering growth in revenue
  • The presence of low-cost competitors also driven operators out of the industry
  • Demand for premium-grade gasoline is anticipated to grow
  • Industry Report - Starting a New Business Chapter

    The primary barrier to entry for the Gas Stations industry is the declining state of the industry. Due to volatile input costs and swipe fees, many establishments have operated in the red over the past five years, causing the number of enterprises to decline. Additionally, operators have struggled to drive traffic to their locations due to the growing competition from gas stations that operate on-site convenience stores and retailers that offer vehicle fuel.The large capital investment required to establish an operation represents a barrier to entry. While the level of capital investment depends on whether the prospect chooses to franchise a station or open an independent business, both business models are costly. For...purchase to read more.

    Additional Insights for the Gas Stations Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Gas Stations Industry are

  • Proximity to high traffic areas
  • Having a wide and expanding product range
  • Supply contracts in place for key inputs
  • IBISWorld analysts also discuss how external factors such as Total vehicle miles and Per capita disposable income in the Gas Stations industry impact industry performance..

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    What's in this report

    What is the Gas Stations Industry?

    This industry comprises gas stations that retail automotive fuels, offer repair services and sell replacement parts and accessories. Gas stations that operate convenience stores on their premises are included in the Gas Stations with Convenience Stores industry (IBISWorld report 44711).

    Industry Products
  • Gas
  • Diesel
  • Automotive services (e.g. repairs, car washes and general parts)
  • Nonautomotive fuel
  • Industry Activities
  • Retailing automotive fuels (e.g. diesel fuel and gasoline)
  • Selling automotive-related goods
  • Providing automotive-repair services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total vehicle miles
  • Per capita disposable income
  • World price of crude oil
  • Tax credits for energy efficiency

  • Current Performance
  • Falling oil prices affect revenue gains
  • A matter of convenience
  • Profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Muted growth
  • Growing competition
  • Distributors move in
  • Table: Gas Stations Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gas Stations Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Local Freight Trucking
  • Long-Distance Freight Trucking
  • Local Specialized Freight Trucking
  • Tank & Refrigeration Trucking
  • Public Transportation
  • Consumers

  • Key Selling Industries
  • Auto Parts Wholesaling
  • Gasoline & Petroleum Wholesaling
  • Petroleum Refining
  • Tire Wholesaling

  • Products & Services
  • Diesel
  • Gas
  • Other
  • Automotive services (e.g. repairs, car washes and general parts)
  • Nonautomotive fuel
  • Chart: Gas Stations Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers
  • Businesses
  • All other
  • Chart: Major Market Segmentation for the Gas Stations Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Gas Stations

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gas Stations Industry

  • Industry Globalization
    Royal Dutch Shell PLC, Andeavor,
  • Table: Royal Dutch Shell PLC - financial performance
  • Table: Andeavor - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gas Stations Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Gas Stations Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • World price of crude oil (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • A mid-range petroleum product (with a higher boiling point than gasoline) typically used as a fuel for internal combustion engines.
  • Gasoline
  • A light liquid petroleum product typically used as a fuel for internal combustion engines.
  • Hybrid Vehicle
  • A vehicle that uses two different power sources to run, in most cases referring to an electric battery in conjunction with a gasoline engine.
  • Major Oil Company
  • A large vertically integrated oil company that refines and wholesales fuel and may also operate gas stations and pump crude oil.
  • Swipe Fee
  • A fee that banks and credit card companies charge gas stations owners when consumers use credit cards for purchases.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gas Stations Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Gas Stations:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Gas Stations market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Gas Stations, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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