December 11, 2024
Reflecting on the Fueling Industry in 2024: Consumer Experience, Clean Energy, and What’s to Come
Across the industry and here at Dover Fueling Solutions®, 2024 was one for the books. The popularity of electric vehicles continues to shake up forecourts as owners adapt to the unique needs of these drivers. At the same time, members of the fueling industry are seeking unique competitive advantages to serve retail and fleet customers well and keep them returning. Increased interest in convenience and personalized experience challenge owners to get creative, while connected forecourt technology and EV charging station enhancements make way for new opportunities.
But how exactly did the industry develop and trend in 2024?
As the year closes, we are taking a step back to explore our key insights on how the fueling industry continues to evolve, key trends emerging on the forecourt, and what we can expect to see next.
Customer is King
As the saying goes, the customer is always right, and the fueling industry is no different. But 2024 shows us the importance of meeting customer expectations is growing.
Based on trends from each function and segment of the industry, we see a strong connection in dominance of the customer-focused mindset. Increasingly, this is where sites are differentiating from competitors. From c-store loyalty to electric vehicle charging to fleet services, personalization, efficiency and utility for consumers, and streamlined experiences enabled through technology all put the customer at the center of the forecourt.
Electric vehicles steadily grew in popularity. As of Q3, nearly 350,000 new EVs hit the roads in America, up 7.8% from the same period last year. With significant investment in clean energy and charging infrastructure from the Inflation Reduction Act, the EV market significantly lowered barriers to entry for consumers and businesses alike. But the growth of EV can create stronger competition.
To court consumers, more station operators began adding amenities to make the charging experience similar to that of a gas-powered vehicle driver. Additional features like awnings, trash disposals, security cameras, and windshield washers entice drivers seeking a comfortable charging environment. EV drivers in California are 37% more likely to choose a charger with additional amenities, according to Business Wire.
Operating an EV network became easier as well this year with the National Electric Vehicle Infrastructure (NEVI) program removing critical hurdles of ownership. Here at DFS, we were also excited to launch our own Wayne PWR™ DC fast charger, designed and manufactured in Austin, Texas, and built to last and easily fit into any forecourt in the US.
When it comes to repeat business, c-stores are learning from other retailers’ ability to build satisfying customer relationships through the adoption of loyalty programs and enhancements to make fuel trips more fulfilling. A 2022 Gartner study found that 50% of consumers used loyalty programs for gas discounts, and it’s safe to assume that number has since grown as customers continue to describe troubles with inflation.
Many industry chains either launched new or extended loyalty programs this year, and the trend is catching on with mid-sized and smaller networks. For brands simply adjusting their programs, increased personalization, including specific AI-powered insights, was the most popular update. With these trends in mind, DFS also launched our own integrated loyalty offering to provide DFS Anthem UX® platform-equipped dispensers with an effortless elevation in customer experience.
Even fleet businesses are updating driver experience by moving to advanced touchscreens which make transactions and communications more efficient. While the B2B segment of fueling has traditionally been slower to adopt technology, more sites are recognizing the business case for equipment that can withstand rapid changes in regulation and technology.
Know Your Business with Investments in Efficiency and Automation
We also found owners were equipping their businesses with new technology that helps them better understand their market and streamline their processes.
EMV payment compliance changes fully went into effect for fleet sites, increasing the number of updates to payment terminals and even entire fleet dispensers. Chip-enabled fuel cards continued to strengthen protection across entire networks and enable more precise data tracking.
For retailers, increasing site efficiency was high priority for retailers, but depending on each forecourt’s current capabilities, owners accomplished this goal in different ways. For sites with aging equipment, managers opted to upgrade their fuel inventory management systems to prevent unseen hazards. Site owners experiencing high maintenance costs or concerns about payment security showed interest in remote monitoring software.
The most dedicated to streamlining sought out fuel site controllers as more options launched for retail and fleet businesses. Manual connectivity between dispensing equipment, transaction management, and new IoT technology is taxing, so automating the communication lowers total cost of ownership while freeing time to focus on broader operations. With options available for multiple types of configurations and different business functions – including the PetroVend Synergy Fuel Site Controller™ for fleet services and the DFS Fusion® automation server v3 for retail – innovation in the industry continued to focus on and empower connectivity. New advancements that ensure more universal equipment compatibility also contributed to greater interest this year.
What to Anticipate in 2025
As we enter the coming year, the future of fueling in North America is in many ways undefined and 2025 could prove to be one of the most transformative years for the industry yet. Rapidly changing regulations and customer needs are difficult to time, but our industry professionals have a few key predictions to consider.
North America will continue to learn from the successes and challenges of electric vehicle adoption abroad. While EV adoption may not accelerate as it did in 2023, steady growth will continue into 2025 and enable auto manufacturers to more effectively volume plan. The vehicles hitting the market will also feature increasingly higher charging rates, which could encourage confidence in the industry. Recent infrastructure advancements will help businesses and new electric drivers handle growth, and further investment at the state level will continue to support expansion.
For drivers, we can expect to see continued interest in consumer experience. If inflation continues to ease and relieve wallets, the choice between one stop and another will more often come down to customer loyalty and intentional experiences over price. We can expect to see more tailored programs to encourage strong customer relationships on the forecourt and in c-stores, such as pre-order/pickup services and rewards offerings.
We also may begin to see a rise in the use of artificial intelligence for fueling and convenience. Adoption is still in early stages, but going forward, we anticipate AI features that can be integrated into existing systems will make transforming your technology accessible and valuable.
What can safeguard against any major shakeups is a strong base of loyal consumers and a forecourt that efficiently adapts and expands with their needs. What that means for individual businesses depends on their market, yet by consistently learning from the industry, forecourt operators can find competitive advantages in changing times.
Useful Links:
Electric vehicle sales mark another record in Q3, thanks to higher incentives, more choices. Cox Automotive Inc. (2024, October 14). https://www.coxautoinc.com/market-insights/q3-2024-ev-sales/
Ev charging: Like gas stations, EV Chargers need amenities and other sources of revenue to succeed. Business Wire. (2024, September 10). https://www.businesswire.com/news/home/20240910689788/en/EV-CHARGING-Like-Gas-Stations-EV-Chargers-Need-Amenities-and-Other-Sources-of-Revenue-to-Succeed#:~:text=%E2%80%9CEV%20drivers%20are%20telling%20us,Transportation%20Studies%20at%20UC%20Davis.