Spike in fuel prices as well as carbon emissions from the energy sector has forced manufacturing companies in other sectors to undertake measures to reduce their energy expenses as well as consumption. Fuel cards are a viable solution to aid the European Union (EU) in meeting its zero-emission target by 2020.
What are Fuel Cards?
Fuel cards are plastic cards embedded with CHIP or PIN technology to make financial transactions at fuel pumps, service stations, and supermarket forecourts. These cards are encrypted to preserve data during transactions. They are widely used by fleet vehicle managers and commercial vehicle users to track fuel usage and reduce energy costs. Rise in fuel prices as well as adoption of alternative energy sources in Europe are encouraging adoption of fuel cards.
Fleetmatics allow managers to track vehicle mileage and prevent fuel theft or fraud. Advent of Internet of Things (IoT) plays a major role in simplifying this technology. Peer-to-peer sharing is also expected to play a major part in shaping the fuel card industry.
Fuel Cards enabling Reduction in Expenditure
Fuel card providers are partnering with fuel providers to encourage adoption. Growing acceptance can lead to better fuel management and reduce the burden on fossil fuel. In addition, loyalty points and other gifts are expected to entice consumers in the long run. For instance, Red Bull GmbH, an Austrian company, has seen a drop in its expenses due to the adoption of fuel cards and fuel management software.
Service stations are building electric vehicle charging points to capitalize on the trend of electric vehicles. Major proponents of the trend include British Petroleum (BP) and Shell. Texaco and Total are also working on similar moves to gain a larger share in the fuel card market.
Market Overview
The fuel cards in Western Europe market is predicted to attain high revenues by 2021, according to a report on Radiant Insights, Inc. It is driven by zero-emission policies of the European Union as well as need to lower carbon emissions. Cashless payment schemes are projected to encourage market growth over the forecast period (2016 – 2021).
Fleet vehicles, compact recovery trailers (CRT), and commercial vehicles are major end users in the market. The fleet vehicle segment is anticipated to display a high CAGR over the forecast period as they are a key component in international trade. Various markets like Slovenia can exhibit a respectable CAGR due to high influx of vehicles and construction of service stations. Noteworthy market players include Shell Global; Esso; Allstar Products Group; and WEX Inc.
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