Half empty: The industry will experience subdued growth as competition increases

Over the five years to 2018, the Gas Stations industry in Canada has experienced revenue volatility as crude oil prices plummeted. Consequently, industry revenue is expected to decline over the five years to 2018. Over the five years to 2023, the industry's performance is expected to remain tepid, as competition grows. Moreover, while the world price of crude oil is expected to rebound strongly, steady prices coupled with lower demand will cause the industry's performance to stagnate over the latter half the forecast period. However, growing demand from the trucking sector will offset lower demand from consumers in the latter half of this period, enabling industry revenue to grow slowly over the five years to 2023...read more.

Industry Statistics & Market Size
Revenue
$36bn
Annual Growth 13-18
-1.9%
Forecast Growth 18-23
Profit
Employment
35,145
Businesses
6,303

Industry Threats & Opportunities

  • Competition caused some operators to compete on price, hindering profitability
  • Widespread industry exit provided an opportunity for ambitious entrepreneurs
  • As the world price of crude oil returns to growth, gas station operators will raise their prices
  • Industry Report - Industry Key Buyers Chapter

    The Gas Stations industry in Canada exhibits a low level of market share concentration, with the four leading operators anticipated to contribute 22.1% of industry revenue in 2018, down from 23.7% in 2013. While the leading oil and gas companies have historically controlled a substantial share of the market, these companies have divested their retail operations over the years due to tight profit margins, contributing to lessening market share concentration. These multinational companies have sold their fuel stations to independent owner operators, nonrefiner marketers and retail companies. As big-box retailers, such as Costco, have entered the fuel retailing business in recent years, market share concentration has further declined. How...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 Total vehicle-kilometres 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
  • Mid-grade 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
  • Total vehicle-kilometres
  • 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
  • Mid-grade gasoline
  • Regular leaded 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
    ProfitPurchasesOther
  • 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 Ltd., Suncor Energy Inc.,
  • Table: Imperial Oil Ltd. - financial performance
  • Table: Suncor Energy Inc. - 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Gross sales of Gasoline in Canada (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Diesel
  • A mid-range 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gas Stations market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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