Saudi Arabia Gas Station Market Size
| Study Period | 2019-2027 |
| Base Year For Estimation | 2021 |
| Forecast Data Period | 2024 - 2028 |
| Historical Data Period | 2019 - 2020 |
| CAGR | 5.30 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Gas Station Market Analysis
The Saudi Arabia Fuel Station market is expected to witness a demand of 539.45 thousand barrels per day by the end of this year and is projected to register a CAGR of over 3.47% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.
- Over the medium term, the population growth, the expected increase in the country’s economy, and the increasing urbanization and industrialization activities are expected to supplement the demand for the installation of fuel stations in the country, meeting the rising demand for fuels.
- On the other hand, the lower fuel demand from rural areas has resulted in underdeveloped fuel station network across these regions in the country. Companies are also reluctant to upgrade the technologies, such as automation, or set up facilities, such as car wash and coffee shops, owing to reduced profitability.
- Nevertheless, Saudi Arabia is working on a dynamic fuel delivery model. During the forecast period, a greater number of fuel stations are expected to come up which would start delivery of fuel to homes. The service is likely to provide advantages such as avoidance of city traffic and scorching heat while driving to get the vehicle refueled offering significant growth opportunity for the fuel station market players in the coming years.
Saudi Arabia Gas Station Market Trends
This section covers the major market trends shaping the Saudi Arabia Fuel Station Market according to our research experts:
Increasing Investment for Infrastructure Development to Drive the Market
- The Kingdom of Saudi Arabia is looking for investment in the fuel infrastructure and establishing fuel stations to provide country-wide connectivity, especially for the rural parts of the country. A huge number of foreign players showed interest in investing in the fuel stations across the country, which is expected to drive the fuel station market's growth.
- Saudi Arabia plans to expand the existing fuel station infrastructure by providing numerous amenities such as convenience stores, car care services, electric vehicle charging ports, and increasing investment in the sector by both the national firms and foreign players.
- In November 2022, The Oman Oil Marketing Company (OOMCO) signed a Memorandum of Understanding (MOU) with Tamiyoz, a Saudi Arabian real estate investment, and development firm, to facilitate the expansion of OOMCO service stations throughout the Kingdom. In addition to the 10 sites that OOMCO currently operates in eastern and western Saudi Arabia, 16 more sites are in the pipeline across the country, which is going to further expand OOMCO's footprint in eastern and western as well as southern Saudi Arabia., which is expected to drive the fuel station market's growth during the forecast period.
- In April 2021, the Saudi Automotive Services Company (SASCO) opened eight new fuel stations in Saudi Arabia. The eight sites include convenience stores, branded restaurants, coffee shops, and ATM services. The three fuel stations are in Madinah and one in the Kingdom's southern region, with a total investment of about USD 5.6 million financed through banking facilities with local banks. The other four stations were renovations spread across the Kingdom's southern, central, and western provinces. The company increased its network over the last few years, and as of 2021, it operates over 200 stations in Saudi Arabia.
- In May 2021, Saudi Arabia's General Authority for Competition issued a no-objection certificate for Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) to acquire 15 service stations in the Eastern Province of Saudi Arabia. The 15 service stations are owned by First Mazaya Company, one of the leading companies in Saudi Arabia that manage and operate fuel stations.
- In October 2021, Saudi Aramco and TotalEnergies launched the first two service stations of their joint retail network in Riyad. It is a part of a joint venture (JV) agreement between Aramco and TotalEnergies in 2019, with plans to upgrade a network of 270 service stations and expand the range of quality retail services available across Saudi Arabia.
- Moreover, with increasing government emphasis and growing foreign investment, the number of fuel stations is expected to witness 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 almost a quarter of oil consumption in the country, the government plans to ensure a sustainable future by executing several reforms in the country, such as promoting a shift toward cleaner fuel-based automobiles.
- Like the global trend, Saudi Arabia is drafting policies to adopt hydrogen-based engines and electric vehicles. Traditional vehicles also account for a large amount of greenhouse gas emissions in the country. The promotion of these vehicles is expected to result in the reduction of GHGs in the country.
- Owing to climate change, most of the major companies in the country are paying attention to the adoption of renewables in the country’s energy mix, thus investing in the business of electric vehicles.
- •n October 2021, the Saudi Arabia government planned to increase the electric car fleet in Riyadh to 30% by the end of 2030. The plan aimed to halve carbon emissions in the city of 8 million people over the next nine years.
- Further, in February 2022, Avass Group signed an agreement with Saudi Arabia to jointly manufacture electric buses. The agreement bolsters Avass Group’s plans to mass manufacture all-electric buses in Saudi Arabia..
- To support the electric vehicle market, the country is planning to expand its EV charging infrastructure. For instance, in April 2022, Altaaqa Alternative Solutions, a part of the Jeddah-based diversified Zahid Group, and TotalEnergies signed a preliminary agreement to develop and install integrated electric vehicle charging stations in Saudi Arabia. Under the Altaaqa EV brand name, the companies are going to develop EV charging infrastructure encompassing all phases of supply equipment deployment, such as engineering, project management, supply, installation, and technical support.
- In April 2022, the Government of Saudi Arabia signed an agreement to buy 100,000 electric vehicles within ten years from Lucid Motors, which is part-owned by the Kingdom’s Public Investment Fund (PIF). The agreement is part of the Vision 2030 plan to diversify away from fossil fuels and create a more sustainable society.
- The declining cost of associated equipment, such as batteries, and government's push towards the use of Electric Vehicles (EVs) is expected to reduce the cost of electric vehicles and increase their uptake in Saudi Arabia during the forecast period.
Saudi Arabia Gas Station Industry Overview
The Saudi Arabia fuel station market is moderately fragmented in nature. Some of the major players in the market (in no particular order) include Tas’helat Marketing Company, Aldrees Petroleum and Transport Services Company, ADNOC Distribution, ENOC, and Saudi Aramco Oil Co. among others.
Saudi Arabia Gas Station Market Leaders
Aldrees Petroleum & Transport Services Co. (Aldrees)
ADNOC Distribution
Emirates National Oil Company (ENOC)
Saudi Aramco Oil Co.
TotalEnergies SA
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Gas Station Market News
- In November 2022, the Al-Sharif group signed a long-term contract with Benzene Petrol Stations Company Limited to operate electric vehicle charging stations in its gas stations across Saudi Arabia. The partnership comes as an extension of Al-Sharif Holding’s commitment to making a contribution to the transfer of the latest clean energy technologies to the Kingdom.
- In March 2022, Oman Oil Marketing Company (OOMCO) opened its fifth fuel service station in the Kingdom of Saudi Arabia. It is a part of the OOMCO strategy to accelerate its expansion in Saudi Arabia and its global footprint. As of March 2022, the company has five fuel stations in Saudi Arabia, and it secured 11 other fuel station locations in the country, which are at different stages of development.
Saudi Arabia Gas Station Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Gasoline Production and Demand Forecast in thousand barrels per day, till 2027
4.3 Fuel Price Analysis
4.4 Number of Fuel Station Analysis
4.5 Scenario of Fuel Stations in Rural and Metropolitan Area in Saudi Arabia
4.6 Analysis on Consumer Behavior Pertaining to Fuel Stations in Saudi Arabia
4.7 Fuel Stations Expansion Targets by Companies/Government
4.8 Government Policies and Regulations
4.9 Recent Trends and Developments
4.10 Market Dynamics
4.10.1 Drivers
4.10.2 Restraints
4.11 PESTLE Analysis
5. COMPETITIVE LANDSCAPE
5.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
5.2 Strategies Adopted by Leading Players
5.3 Company Profiles
5.3.1 TotalEnergies SE
5.3.2 Aldrees Petroleum and Transport Services Company (APTSCO)
5.3.3 Wafi Energy Co.
5.3.4 Petromin Corporation
5.3.5 Oman Oil Marketing Company (OOMCO)
5.3.6 ADNOC Distribution
5.3.7 Emirates National Oil Co. Ltd LLC (ENOC)
5.3.8 NAFT Services Co. Ltd
5.3.9 Saudi Arabian Oil Company (Saudi Aramco)
- *List Not Exhaustive
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
Saudi Arabia Gas Station Industry Segmentation
A Fuel Station, also known as petrol station or gas station, is a facility that sells fuel and engine lubricants for motor vehicles. Fuel dispensers are used to pump gasoline and diesel into the tanks within vehicles and calculate the financial cost of the fuel transferred to the vehicle. The report covers the market size and forecasts for the Fuel Station market across Saudi Arabia. For each segment, the market sizing and forecasts have been done based on demand (Thousand Barrels Per Day).
Saudi Arabia Gas Station Market Research FAQs
What is the current Saudi Arabia Fuel Station Market size?
The Saudi Arabia Fuel Station Market is projected to register a CAGR of 5.3% during the forecast period (2023-2027).
Who are the key players in Saudi Arabia Fuel Station Market?
Aldrees Petroleum & Transport Services Co. (Aldrees), ADNOC Distribution, Emirates National Oil Company (ENOC), Saudi Aramco Oil Co. and TotalEnergies SA are the major companies operating in the Saudi Arabia Fuel Station Market.
Saudi Arabia Gas Station Industry Report
Statistics for the 2023 Saudi Arabia Gas Station market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Gas Station analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
