DUBLIN–(BUSINESS WIRE)–The "Saudi Arabia Fuel Station Market – Growth, Trends, and Forecast (2019 – 2024)" report has been added to ResearchAndMarkets.com's offering.
As of 2018, the Kingdom of Saudi Arabia (KSA) held the second-largest proven oil reserve in the world, after Venezuela.
Saudi Arabia was the largest crude oil producer in 2016. In 2017, the country took a strategic decision of oil production cut, to aid in the increasing crude oil prices, which, in turn, resulted in the country being the second-largest crude oil producer, as of 2018. 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.
- 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.
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 shift toward cleaner fuel-based automobile. Like the global trend, the country is on the urge of 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 these 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 a greater number of electric vehicles are deployed in the country.
- According to IEA, there is expected to be 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, with more than 85% of the market share accounted by small private players in 2018. Some of the leading market players include Tas'helat Marketing Company, Aldrees Petroleum and Transport Services Company, and Naft Services Company.
Key Topics Covered
1.1 Scope of Study
1.2 Market Definition
1.3 Study Assumptions
1.4 Study Deliverables
1.5 Research Phases
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
4.2 Crude Oil Refining Capacity Forecast to 2024
4.3 Refined Products Production Forecast to 2024
4.4 Motor Gasoline Production Forecast to 2024
4.5 Refined Products Consumption Forecast to 2024
4.6 Fuel Price Analysis
4.7 Number of Fuel Station Analysis
4.8 Government Policies and Regulations
4.9 Recent Trends and Developments
4.10 Market Dynamics
4.11 PESTLE Analysis
5 COMPETITIVE LANDSCAPE
5.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
5.2 Strategies Adopted by Leading Players
5.3 Company Profiles
5.3.1 Tas'helat Marketing Company
5.3.2 Aldrees Petroleum and Transport Services Company (APTSCO)
5.3.3 Al Osais International Holding Company
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)
6 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/rryqpm
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