New York, May 21, 2021 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Saudi Arabia Fuel Station Market – Growth, Trends, COVID-19 Impact, and Forecasts (2020 – 2025)” – https://www.reportlinker.com/p06074764/?utm_source=GNW
Moreover, in order to provide impetus to the country’s economy, the economic diversification of Saudi Arabia, which primarily remains dependent on crude oil supply, has become imperative. The Government of Saudi Arabia focused on the development of the downstream sector, with an aim to diversify the country’s economy.
– Factors, such as expansion of existing fuel station infrastructure and increasing investment in the sector by both, the national firms and foreign players, are expected to drive the fuel station market in the country during the forecast period.
– As of 2019 budget, the Saudi government is planning to invest heavily more in the construction business, which includes new cities, shopping complex, etc. The new construction will not only boom the real state business, but it will also increase the need for a new fuel station in the constructed areas.? Thus, this is expecetd to provide great opportunity for the market.
– However, factors, such as increasing adoption of electric vehicles, and lack of government surveillance and regulations to oversee the fuel station industry, are expected to hinder the growth of the fuel station market in Saudi Arabia, in the coming years.
Key Market Trends
Increasing Investment for Infrastructure Development ?to Drive the Market
– Saudi Arabia government is looking forward to find suitable solution to growing fuel demand due to the increasing quantity of on road vehicle. The government is looking for investment in the fuel infrastructure and establish fuel station to provide a last mile connectivity, especially for the rural parts of the country.?
– A huge number of foreign companies have shown interest to invest in the fuel stations across the country which in turn is likely to drive the fuel station market.?
– In, Feb 2019, Saudi Aramco and Total formed a Joint Venture(JV) to develop a network of fuel and retail services in Saudi Arabia. The JV formed has a 50-50 stake of both the companies and have planned to invest around USD 1 billion till 2025 in the Saudi fuel retail market.
– Additionally, Emirates National Oil Company (ENOC) , a wholly-owned entity of the Government of Dubai announced it’s plans to invest close to AED 2.2 billion to increase its service station network by more than eight-fold by 2030 to reach 124 stations to meet the growing fuel station demand in Saudi Arabia.?
– Aldrees Petroleum and Transport Services Co. plans to open 64 new fuel stations in 2019.The company also plans to close 14 stations this year after shutting down four in Q4 2018.?
– Moreover, with increasing emphasis being laid upon by government and growing foreign investment, the number of fuel station is expected to witness a huge growth during the forecast period.?
Increasing Adoption of Alternate Vehicles to Restrain the Market
– Under the Saudi Vision 2030, the Saudi government is looking forward to reducing its dependency on oil. As the automobile sector accounts for a significant share of oil consumption in the country, the government plans to ensure sustainable future, by executing several reforms in the country, such as promoting cleaner fuel-based automobile. Like the global trend, the country is increasingly adopting the hydrogen-based engines and electric vehicles. In addition, the traditional vehicles also account for a large amount of greenhouse gas emissions in the country. Promotion of hydrogen-based engines and electric vehicles is expected to result in the reduction of GHGs in the country.
– On June 2019, Saudi Arabia inaugurated its first auto hydrogen fuel station. The station is a joint venture between Saudi Arabian Oil Company (Aramco) and the Air Products and was opened at the Dhahran Techno Valley Science Park. This pilot project represents an exciting opportunity for Saudi Aramco and Air Products to demonstrate the potential of hydrogen in the transport sector and its viability as a sustainable fuel for the future
– Moreover, keeping in mind the climate change, most of the major companies in the country are paying attention to the adoption of renewables in the country energy mix, and thus, investing in the business of electric vehicles. In a bid to move forward toward the Saudi 2030 Vision, the Saudi Electricity Company has signed an agreement with Japanese firms, Tokyo Electric Power Company, Tecaoca Coco Energy Solutions Company, and Nissan Motor Company, to implement an electric vehicle pilot project. Under the agreement, fast-charger stations are expected to be developed to charge EVs in 30 minutes.
– Similarly, in September 2018, the country invested USD 1 billion in Lucid Motors, for the manufacturing of its first electric vehicle. Such efforts of the country indicate its increasing interest toward electric vehicle adoption, and this is expected to hamper the demand for fuel stations in the country, as electric vehicles are a direct substitute for conventional ICE based vaehicle which runs on gasoline and diesel.
– According to IEA, there is expected to be a 50 million electric vehicles on the road in the country by 2025, and 300 million by 2040, from close to the 2 million now. This is expected to cut domestic fuel demand from fuel-based vehicles in the country, which in turn, is expected to prohibit the demand for fuel station over the forecast period. Moreover, the falling cost of associated equipment, such as battery, which has witnessed a fall of 79% from 2010 to 2017, is expected to result in reduction in the cost of electric vehicles and increase its uptake in the country, during the forecast period.
The fuel station market in Saudi Arabia is highly fragmented. Some of the leading market players include Tas’helat Marketing Company, Aldrees Petroleum and Transport Services Company, and ADNOC Distribution, ENOC, and Saudi Aramco Oil Co.
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Read the full report: https://www.reportlinker.com/p06074764/?utm_source=GNW
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