Saudi Arabia Gas Station Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR (2024 - 2029) | 2.38 % |
| Market Concentration | Medium |
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 size is estimated at 516.01 Thousand barrels per day in 2024, and is expected to reach 580.45 Thousand barrels per day by 2029, growing at a CAGR of 2.38% during the forecast period (2024-2029).
- Over the medium term, the increasing automotive sales and increasing investments in fuel station infrastructure across Saudi Arabia are expected to drive the market.
- On the other hand, the increasing adoption of alternative fuel vehicles in the country in order to meet the carbon emission targets set by the country can potentially hinder the market's growth during the forecasted period.
- 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 the 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 opportunities for the fuel station market players in the coming years.
Saudi Arabia Gas Station Market Trends
Increasing Automotive Sales In Saudi Arabia
- Saudi Arabia's automotive industry is expected to grow in a decent phase with the Vision 2030 program enabling domestic manufacturing and penetration of new technology and investments in the automotive industry. This is expected to increase domestic automotive sales and exports to neighboring countries.
- Saudi Arabia is one of the most advantageous and fastest-growing automobile markets. Multiple factors, such as the availability of labor, R&D efforts, geographic advantage, and supportive government policies, propel Saudi Arabia's automobile industry. Additionally, with a positive outlook on the country's economy and greater household purchasing power, automobile sales in Saudi Arabia are set to witness a strong surge in sales.
- According to the International Organization of Motor Vehicle Manufacturers (OICA), the total sales volume of vehicles (including all types of vehicles) in Saudi Arabia reached 6,16,491 units compared to around 5,56,559 units in 2021, representing an increase of almost 10.8% compared to 2021. In Saudi Arabia, the improved macroeconomic conditions, along with tens of thousands of driving licenses issued to women, positively impacted Saudi's auto market and services industry.
- Further, in early 2022, the Saudi National Automotive Manufacturing Co. (SNAM) confirmed laying the foundation stone for the first car assembly plant in Jubail Industrial City. According to SNAM, the assembly plant, along with the testing area, will reach 120,000 sq. m, and the plant's production capacity is set to hit 30,000 cars annually. Such target capacity is anticipated to be achieved within two or three years.
- In March 2023, Oil giant Saudi Aramco announced that it is preparing to join carmakers Geely and Renault in a new joint venture in hybrid and internal-combustion vehicles. Aramco has signed a letter of intent to become a potential minority stakeholder in the subsidiary. In November 2022, French automaker Renault announced teaming up with China's Geely to develop and produce engines, gearboxes, and other components for hybrid, petrol, and diesel vehicles.
- According to Renault, the Aramco partnership is expected to give the joint venture a head start in the race towards ultra-low-emissions ICE (internal combustion engine) powertrain technology. All these scenarios will likely boost the automotive industry and sales in Saudi Arabia and support the market for fuel stations in the coming years.
- Furthermore, the demand for commercial vehicles is also increasing from the construction sector, given the Kingdom's extensive pipeline of infrastructure projects. With this, the major global OEMs – Isuzu Motors, Mercedes, Man, and Volvo- have been trying to increase their heavy-duty vehicle production capacities in the country.
- Thus, the recovering trends of new vehicle sales are expected to grow significantly and continue over the forecast period, creating considerable demand for fuels and associated infrastructure in the coming years.
Increasing Adoption of Electric Vehicles to Restrain the Market
- Under the Saudi Vision 2030, the Saudi government looks forward to reducing its oil dependency. As the automobile sector accounts for almost a quarter of oil consumption in the country, the government aims to ensure a sustainable future by executing several reforms, such as promoting a shift toward cleaner fuel-based automobiles. Due to this, Saudi Arabia has been witnessing an increase in the adoption of alternative fuel vehicles, particularly electric vehicles (EV) and hydrogen-powered vehicles.
- With the country's rise in electric vehicles, the demand for charging stations will also increase. This demand necessitates the development of extensive vehicle charging infrastructure in the country, which is expected to increase charging stations on highways, parking, and commercial spaces, reducing reliance on fuel stations for other purposes.
- Moreover, the government of Saudi Arabia has launched various initiatives like tax credits, subsidies, and infrastructure developments. These steps are expected further to increase electric vehicle adaption in the country.
- For instance, in February 2022, Avass Group signed an agreement with the Saudi Arabian government to develop electric buses in the country jointly. The company is expected to manufacture electric buses in the country.
- The Saudi Industrial Development Fund has released a plan through which the country aims to have more than 65,000 electric vehicles on the road by the end of 2030. The electric vehicle market share in 2030 would be 10% of total automotive sales (ICE+EV) in Saudi Arabia.
- Additionally, recent technological advancements have significantly increased electric vehicles' driving range and efficiency. At the same time, various OEMs have also entered the market, which could decrease electric vehicle prices, further increasing their adaptability.
- Therefore, as per the points mentioned above, the increasing adaption of electric vehicles is expected to hinder the growth of the fuel station market in Saudi Arabia.
Saudi Arabia Gas Station Industry Overview
Saudi Arabia's fuel station market is moderately fragmented. Some of the major players in the market (in no particular order) include Aldrees Petroleum and Transport Services Company, ADNOC Distribution, TotalEnergies SE, Emirates National Oil Co. Ltd LLC (ENOC), and Saudi Aramco Oil Co., among others.
Saudi Arabia Gas Station Market Leaders
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Aldrees Petroleum & Transport Services Co. (Aldrees)
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ADNOC Distribution
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Emirates National Oil Company (ENOC)
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Saudi Aramco Oil Co.
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TotalEnergies SE
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Gas Station Market News
- 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 came as an extension of Al-Sharif Holding’s commitment to contributing to the transfer of the latest clean energy technologies to the Kingdom.
- 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 had 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 Fuel 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 Consumption and Demand Forecast, till 2029
- 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
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4.10 Market Dynamics
- 4.10.1 Drivers
- 4.10.1.1 Increasing Automotive Sales In Saudi Arabia
- 4.10.1.2 Increasing Investments In Fuel Station Infrastructure
- 4.10.2 Restraints
- 4.10.2.1 Increasing Adoption Of Alternate Fuel Vehicles
- 4.11 PESTLE Analysis
5. COMPETITIVE LANDSCAPE
- 5.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 5.2 Strategies Adopted by Leading Players
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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
- 5.4 Market Ranking/Share Analysis**
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 6.1 Upcoming Large-Scale Residential And Commercial Projects
Saudi Arabia Gas Station Industry Segmentation
A fuel station, also known as a 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 Saudi Arabia fuel station market 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 gasoline consumption.
Saudi Arabia Fuel Station Market Research Faqs
How big is the Saudi Arabia Fuel Station Market?
The Saudi Arabia Fuel Station Market size is expected to reach 516.01 thousand barrels per day in 2024 and grow at a CAGR of 2.38% to reach 580.45 thousand barrels per day by 2029.
What is the current Saudi Arabia Fuel Station Market size?
In 2024, the Saudi Arabia Fuel Station Market size is expected to reach 516.01 thousand barrels per day.
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 SE are the major companies operating in the Saudi Arabia Fuel Station Market.
What years does this Saudi Arabia Fuel Station Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Fuel Station Market size was estimated at 503.73 thousand barrels per day. The report covers the Saudi Arabia Fuel Station Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Fuel Station Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Fuel Station Industry Report
Statistics for the 2024 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 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
