Gas Stations Now Have An EV Future

As the number of EVs on the roads rises, the demand for electric vehicle charging infrastructure continues to grow. People are especially looking for fast-charging solutions on the go! Fuel retailers leverage this trend as they are located around major roadways and attract services from convenience stores and restaurants to cafes and car washes. The gas stations are now installing EV charging infrastructure to expand their business by tapping the environmentally conscious and affluent EV drivers who might not generally visit them.

It’s no secret that the electric vehicle industry is booming, and over 10 million EVs have been sold last year. As per data, by 2030, the number of electric vehicles like cars, trucks, vans, and buses is predicted to rise to over 240 million.

Fuel retail and electric vehicles are not polar opposites as much as they might appear. While EVs do not need gas to run, gas stations around the roadways are ideally suited for installing electric vehicle charging infrastructure.

Forward-thinking fuel retailers are now tapping into the EV market and installing high-powered DC charging stations to adapt to the new market shift.

Gas stations adapt to changing customer behavior

The fuel retail sector is constantly evolving to adapt to the market and its regulatory shifts. Gas stations are a practical and useful solution to fuel automobiles, and the sole focus was on dispensing fuels. With time, gas station owners have realized the potential of their accessible locations and have started providing auxiliary services like food outlets and convenience stores. Car wash services have also been introduced in many gas stations, and the recent trend of EV charging has also gained momentum.

While fuel retail is the cornerstone of the modern economy, they are coming under increasing pressure as years have passed. Environmental concerns and the transition to electric mobility have declined fuel retail demand. The ‘new electric mobility’ might cause this slowdown, but ironically, this shift is one of the greatest opportunities for modern gas stations in the 21st century.

As electric vehicles are gaining ground in countries and cities worldwide, electric mobility is the ‘new normal’ when it comes to transportation in the next few decades. The three sectors that account for the vast growth of EVs are private passenger vehicles, original equipment manufacturers (OEMs), and business fleets.

Private passenger vehicles

The private citizens are the main driving force behind the transition towards electric mobility. As per the IEA 2023 Global EV outlook, electric vehicles and additional zero-emission vehicles might account for 2/3rd of new vehicle sales by 2040 in the developed markets. The number can increase further with the contemporary economic and policy initiatives by the international government bodies.

The main technological development that enables this growth is the arrival of fast charging. Many potential EV drivers are uncertain about finding fast electric vehicle charging stations and cite ‘range anxiety.’ This is one of the main barriers that deter people from electric vehicles. However, with the advent of fast charging, you can now charge the electric vehicle in minutes versus hours. Several networks of fast charging stations are coming up across towns and highways to address the driver’s fears of being unable to charge the electric vehicle.

Business Fleets

As consumers are more open to electric vehicles, even governments and businesses are ramping up the electrification of their fleets. Whether due to consumer, voter, or shareholder pressure, organizations seek to electrify the fleets to meet climatic pledges.

IKEA, UPS, Uber, and Amazon have announced fleet electrification, and they are trying to proactively meet their emission reduction targets and address the climate crisis. This trend has accelerated the adoption of electric mobility in the mainstream population by creating many 2nd hand opportunities, increasing the availability with lease companies, and growing the tech support ecosystem. When combined with existing trends in sharing e-commerce and the economy, the social shifts have made business fleets a vital part of this electric mobility transition.

OEM – Original equipment manufacturers

By 2025, OEMs plan to release 400 new EV models in the market to ramp up EV production. This paves the way for the urgent need for fast EV charging infrastructures. With the rise of EVs for private use, the advancement of fleet electrification and the expansion of OEM into EV charging infrastructure has brought to light the massive requirement for charging infrastructures.

Nowadays, even governments are focusing on electric vehicle charging infrastructure and making significant financing commitments for its growth. For instance, in the EU, there is a target set of 3 million public charging points by the end of 2023, and this is a part of the European Green Deal.

Again, in the UK, the government is supporting the EV movement and investing £1.6 billion to reach the goal of setting up 300,000 public EV chargers by the year 2030.

Driven by this growing demand for electric vehicle charging stations and government incentives, the electric vehicle charging value pool is expected to rise sky-high. This gives the opportunity to fuel retailers to stay ahead in the business and captivate the growing customer demand.

DC charging stations for fuel retailers

Both in terms of market position and location, fuel retailers are perfectly positioned to capitalize on this transition towards electric mobility. With the advent of high-power DC chargers in the market, EV charging can be done really fast. DC or level 3 charging stations can charge the battery of an electric vehicle within minutes and faster than a regular AC charging station. This allows EV drivers to quickly top-up the vehicle before a long trip. 

Once the rolling out of these charging stations begins, it will increase the transition toward electric mobility and provide fuel retailers an opportunity to gain more customers and stay ahead in the business.

Why should gas stations start installing EV charging stations now?

When you are installing electric vehicle charging stations, you are bound to attract affluent and new customers without significant brand loyalty, yet they spend more, stay longer, and return often. This can help fuel retailers increase revenue and upsell their services, such as convenience stores and EV charging stations.

Moreover, the transition towards electric mobility is giving rise to independent actors like Charging Shop operators and OEMs (who make the vehicle). Both these actors are vying for a piece of the pie. At the same time, the forward-thinking fuel retailers focus on investing in electric vehicle charging infrastructure today to consolidate their position in tomorrow’s ecosystem mobility.