total number of electric vehicles Global sales are expected to increase by 55% year-on-year, with more than 10.5 million EVs sold in 2022. Additionally, EVs are expected to account for around 13% of global passenger vehicle sales in 2022, up from 8.3% in 2021. In addition to consumer acceptance, sales growth The adoption of electric vehicles is massive Driven by worldwide government policies, electrification targets and incentives to build supporting infrastructure, For example, the European Union banned the sale of new petrol and diesel cars from 2035, with new, stricter emissions standards for cars and vans, while the US Inflation Reduction Act (combined with California’s adoption of the Advanced Clean Cars ) II regulations by many states) could result in a substantial increase in the market share of electric vehicles in the United States.
New challenges for operators in the field
it all opens Big challenges for all the actors involvedFrom consumers to vehicle manufacturers, from states to those involved in charging infrastructure. just the latter can be an important node, as well as a The turning point for how we know petrol pumps today, According to a recent DBRS Morningstar report, fueling operators will face three main challenges: significant investment requirements, intense competition, changing business and operating models (urban stations versus highways).
Lack of easily accessible, fast and reliable charging infrastructure One of the main challenges to the adoption of electric vehicles, according to a report by the International Energy Agency, is that there were 2.7 million public charging points worldwide at the end of 2022, a 55% increase compared to the 2021 stock, and is projected to That will increase by another 35% in 2023, with China, Europe and North America continuing to invest heavily in rolling out EV charging infrastructure.
According to DBRS Morningstar, despite this rapid growth (from a small base), this shift away from the sale of fossil fuel-based products is unlikely to have a profound impact on the oil and gas sector in the short to medium term, and Service station operators should be given time to take a balanced approach When it comes to adjusting its overall infrastructure and service offering. However, they will face significant challenges: Europe and North America have already seen a rapid decline in the number of filling stations over the past two decades due to intense competition and low margins, and a further decline from the transition to electric vehicle charging. There may come further consolidation in the sector.
What does this mean for petrol station operators?
For gas station operators to remain relevant, they need to adapt and future-proof their business by addressing several key challenges. In response to the change, large gas station operators as well as the world’s largest oil and gas companies such as BP, Shell, Exxon and Chevron have begun construction. Significant investment in electric vehicle charging infrastructure, While these investment requirements are significant, service station operators can benefit from government incentives and are likely to form partnerships with third-party service providers for installation, maintenance and repairs, reducing their investment burden.
DBRS Morningstar also reports that while fuel sales are currently the main driver of traffic, a large proportion of total sales for service station operators are already offered by more profitable ancillary products and services, such as convenience and food, as well as is derived from the related propositions. Services like car wash. Given the long charging times for electric vehicles, with convenient locations, long opening hours and easy parking Petrol stations may be increasingly suitable for selling a wider range of productsFrom snacks and ready meals to the big spenders.
As far as competition is concerned, gas station operators will be involved in It also competes with charging points set up by the government as utilities enter the marketas well as charging points located at retailers and other destinations. Ultimately, as the competitive landscape evolves, service stations may evolve differently depending on their location, price or ability to offer additional services, and the profile of their customer base. Due to their high volume and limited surrounding options, it is Motorway service stations are likely to be more suitable for infrastructure deployment Electric vehicle charging and governments are more likely to consider public-private partnership models for the development or expansion of charging infrastructure in these locations. Urban gas stations, especially those with limited space and no other value or service offerings, are the most vulnerable.