Gas Station Industry Outlook

Goals

To gather insights on the U.S. gas station space outlook.

Early Findings

U.S. Gas Station Industry

  • U.S. gas stations generated $109 billion revenue in 2019, excluding convenience stores, a fall from the previous year.
  • The revenue of gas stations in the U.S. has been very volatile over the last 5 years.
  • They have risen as the employment rate has gone up and more people drove to work, but drops in the oil price have reduced revenue.
  • Stronger retail and manufacturing sectors also impact gas stations positively by increasing the demand for diesel.
  • The number of gas station businesses has also fallen to 21,103.
  • The industry's growth is down 3.7% between 2014 and 2019.
  • The two top gas station companies in the U.S. by market share are Shell and Marathon.

Threats and Opportunities

  • Americans are driving more miles with their vehicles, which represents an opportunity for gas stations.
  • However, new generations of vehicles that are more fuel efficient can reduce the profitability of gas stations.
  • The biggest threat facing the U.S. gas station industry is the advent of electric vehicles (EVs) and hybrid electric vehicles (HEVs).

Changes in the Space

  • The industry is about to be transformed as oil and gas prices are highly volatile, and EVs and EHVs are becoming more popular, reducing U.S. gas demand by 5% to 20% by 2035.
  • The U.S. gas station industry will have to move from a vehicle-centric model to a customer-centric model to survive.
  • This means that companies in this space will have to use digital tools to extend their relationship with customers beyond infrequent stops at the station.
  • This will imply a transformation of their stations, networks, and assets.
  • Gas station companies will need to offer other services beyond gasoline to attract consumers.
  • In the U.S., some companies have started experimenting with Amazon lockers in their gas stations, an expansion of their food offerings, and electric vehicles charging hook-ups.
  • Some stations have completely converted from gas to charging EVs.
In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals.

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