By: Scott Negley
Last year was transformative for the fueling and convenience industry, characterized by technological advancements and evolving consumer expectations. EV adoption grew, spurring the release of new and improved chargers and forecourt upgrades designed to address current infrastructure challenges; rewards and loyalty programs advanced to better meet heightened consumer preferences; and retailers turned to technology to increase automation and efficiencies. As we look ahead to the next year, I believe these market shifts will continue to shape the sector’s trajectory, leaving retailers with two options—adapt and seize the opportunities at hand or risk falling behind.
EV Charging Infrastructure Expands—With a Competitive Edge
EV purchases were up 11% YoY in Q3 2024—a trend partly driven by consumers and businesses looking to take advantage of tax credits before potential changes—yet the expansion of EV charging infrastructure hasn’t kept pace. We saw an initial influx of EV charger product releases, but with many distributors prioritizing speed over quality, a shocking percentage of chargers experienced immediate downtime, leaving consumers with a general lack of trust in infrastructure. This presents a significant roadblock for drivers looking to switch to EVs and retailers aiming to offer a seamless customer experience. However, it also opens up key opportunities.
Research from Next 10 and the Institute for Transportation Studies at UC Davis found that 37% of EV drivers are more likely to choose a charging station with added amenities. In response, retailers should consider introducing new benefits. Features such as premium convenience stores, security cameras, awnings, trash disposal and windshield cleaning stations could serve as competitive differentiators for EV owners seeking greater comfort and convenience. While many existing charging options fell short of both consumer and retailer expectations, distributors are now rising to the challenge by introducing new and improved chargers with the goal of rebuilding consumer trust, one reliable charger at a time.
For retailers considering EV charger integration, prioritizing quality over cost is essential. Selecting partners who have designed their chargers with reliability and future-proofing in mind can assure site owners that they’re installing a durable solution that will continue to meet evolving consumer needs and stand the test of time.
The Consumer-centric Forecourt
As in recent years, 2024 saw an increased emphasis on the consumer fueling experience, and this trend will only become more prominent in 2025 amid heightened competition. Consumers crave personalization, efficiency and connection—and simply offering a rewards program isn’t enough. A successful rewards program must be tailored to your customers’ specific preferences and behaviors while accounting for the fact that these behaviors can shift depending on the type of customer and even the time of day.
A 2022 Gartner study found that 50% of consumers used loyalty programs for gas discounts, and it’s safe to assume that number has grown as consumers continue to navigate inflationary pressures. Commuters may want pre-ordering or pickup options to help save time. Tech-savvy and budget-conscious consumers likely prefer seamless loyalty programs that offer discounts and can be accessed via apps or online platforms. Depending on the c-store’s location and time of day, retailers should also consider adjusting promotions to match time-specific preferences—like coffee in the morning and snacks around lunchtime.
On the other hand, fleet customers are looking for advanced touchscreens that make transactions and communications more efficient. The full implementation of EMV payment compliance for fleet sites in 2024 has led to increased updates to payment terminals and even entire fleet dispensers. Chip-enabled fuel cards help enhance protection across networks.
Different consumers want different features. Evolving to meet consumers where they are will increase brand loyalty, customer retention and attraction.
Technology and Automation Reshape Operations
Beyond consumer-facing innovations, fueling site operators have been turning to automation and data-driven solutions to enhance efficiency. These enhancements have been varied based on operational needs. 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. One of the most impactful operational upgrades in 2024 came in the form of fuel site controllers. Manual connectivity between dispensing equipment, transaction management, and new IoT technology is laborious, so automating the communication not only lowers total cost of ownership but also frees site owners to focus more on broader operations.
In 2025, we expect to see a rise in artificial intelligence adoption too. While this is still early, retailers should prioritize easily integrated features that help streamline current processes. It won’t be about who’s the most innovative, but who’s the most innovative in the right ways. It’s important to use AI and automation tools on high-value areas of the business where you’ll achieve the highest ROI.
What’s on the Horizon for 2025?
With another year of innovation behind us, 2025 is set to bring further transformation to the fueling and convenience industry. North America will continue to learn from the successes and challenges of EV adoption and find ways to better cater to consumer needs and expectations. The traditional gas station experience will shift from being exclusively characterized as a fuel up to one that’s defined by loyalty, convenience and an intentional experience. This will be further accelerated by the creative ways retailers adapt to beat out competition and enhance their offerings. On the business side, we’ll see retailers implement technologies that help automate and streamline current operations, prioritizing areas of the business that see the highest ROI. The most successful retailers will continue to monitor these market shifts and adapt accordingly.
Scott Negley, senior director, product management, Dover Fueling Solutions, a part of Dover Corporation and a leading provider of advanced energy dispensing equipment, electronic automation and payment systems, automatic tank gauging and subscription solutions to fueling and convenience retail customers worldwide. Comprised of brands Wayne Fueling Systems, Tokheim, OPW Fuel Management Systems, ClearView, ProGauge, Fairbanks, AvaLAN Networks and LIQAL, DFS is dedicated to offering a broad range of solutions that power vehicles, including conventional fuel and clean energy products that support gasoline, diesel, bio-diesel and ethanol as well as LNG, H2, LPG, CNG and EV chargers.
