Half empty: The accelerating adoption of fuel-efficient cars will place downward pressure on demand

Over the five years to 2019, the Gas Stations industry in Canada has been very volatile, reflecting the movements of underlying crude oil prices worldwide. Due to the relatively inelastic demand for vehicle fuel, demand does not significantly decline when prices rise. However, as lower crude oil prices caused operators to lower the retail price of gasoline, revenue was negatively affected. Operators endured intense competition from gas stations that operate alongside convenience stores. Consumers increasingly turned to retailers that offer fuel along with food, beverages and other sundries due to the convenience of these locations...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • As lower crude oil prices caused operators to lower the retail price of gasoline, revenue was negatively affected
  • Petroleum refiners process crude oil into gasoline
  • The labour force in the industry is expected to suffer
  • Industry Report - Industry Investment Chapter

    The Gas Stations industry in Canada is highly capital intensive. Using wages as a proxy for labour and depreciation as a proxy for capital, IBISWorld estimates that for every dollar spent on labour in the industry, $0.69 will be spent on capital in 2019, up from $0.60 in 2014. Considerable funding is needed to acquire fixed assets such as retail facilities, dispensers, storage tanks, pumps and point of sale systems. Capital intensity increases as operators expand their stations and replace old equipment. Over the five years to 2019, depreciation as a share of industry revenue has risen slightly, as operators waited longer to replace old equipment and renovate facilities...purchase to read more.

    Additional Insights for the Gas Stations Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Gas Stations Industry are

  • Upstream vertical integration
  • Supply contracts in place for key inputs
  • Proximity to high traffic areas
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Net gasoline sales in the Gas Stations industry impact industry performance..

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    What's in this report

    What is the Gas Stations Industry?

    This industry comprises establishments primarily engaged in retailing gasoline, diesel fuel and automotive oils. More specifically, this industry excludes gasoline stations operated in conjunction with a restaurant or other type of operation, such as convenience stores. Establishments that operate restaurants or convenience store franchises on behalf of their owners are also not included in the industry.

    Industry Products
  • Premium gasoline
  • Midgrade gasoline
  • Regular unleaded gasoline
  • Regular leaded gasoline
  • Diesel fuel
  • Parts
  • Services and repairs
  • Industry Activities
  • Selling automotive fuels (e.g. diesel fuel and gasoline)
  • Selling automotive goods
  • Providing automotive repair services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • Net gasoline sales
  • National unemployment rate
  • Per capita disposable income

  • Current Performance
  • Crude oil price volatility persists
  • Intensifying external competition
  • Industry consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • External competition
  • Industry consolidation
  • Table: Gas Stations Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gas Stations Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Local Freight Trucking in Canada
  • Long-Distance Freight Trucking in Canada
  • Local Specialized Freight Trucking in Canada
  • Tank & Refrigeration Trucking in Canada
  • Public Transportation in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Auto Parts Wholesaling in Canada
  • Gasoline & Petroleum Wholesaling in Canada
  • Petroleum Refining in Canada
  • Tire Wholesaling in Canada

  • Products & Services
  • Regular unleaded gasoline
  • Diesel fuel
  • Parts
  • Services and repairs
  • Premium gasoline
  • Regular leaded gasoline
  • Midgrade gasoline
  • Chart: Gas Stations Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers
  • Transportation industries
  • Agricultural sector
  • Industrial companies
  • Public organizations
  • Chart: Major Market Segmentation for the Gas Stations Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Gas Stations

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gas Stations Industry

  • Industry Globalization
    Imperial Oil Limited, Suncor Energy Inc., Parkland Fuel Corporation, Royal Dutch Shell PLC,
  • Table: Imperial Oil Limited - financial performance
  • Table: Suncor Energy Inc. - financial performance
  • Table: Parkland Fuel Corporation - financial performance
  • Table: Royal Dutch Shell PLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gas Stations Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Gas Stations Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Per capita disposable income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A midrange petroleum product, with a higher boiling point than gasoline, used as a fuel for internal combustion engines.
  • Gasoline
  • A light liquid petroleum product used as a fuel for internal combustion engines.
  • Hybrid
  • A vehicle that uses two different power sources to operate, in most cases referring to an electric battery in conjunction with a gasoline engine.
  • Swipe Fee
  • A fee that banks and credit card companies charge gas station owners when consumers use credit or debit cards for purchases.
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    Why buy this report?

    IBISWorld’s Gas Stations market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Gas Stations:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Gas Stations market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Gas Stations, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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