The market of gas stations - Germany

1.1 Introduction

The market of service stations is closely linked to the use of internal combustion engines. However, to meet the recent environmental challenges, there are now a variety of services offered in these facilities, especially the dissemination and democratization of the sale of alternative fuels. Here are the most notable alternative fuels that are most commonly used:

• Biofuels: made from renewable raw materials (vegetable oils or agricultural waste).
• Compressed natural gas (CNG) and liquefied natural gas (LNG).
• Liquefied petroleum gas (LPG), a mixture of propane and butane, often used as a fuel for vehicles with internal combustion engines.
• Electricity, used to power battery electric vehicles (EVs).

Globally, the service station market is not experiencing impressive growth, with a CAGR of around 2%. In fact, there is an overall decrease in the number of gas stations in urban areas related to the development of these spaces. To adapt to these changes and changing demand, operators need to offer alternative fuels or other services such as vehicle cleaning or retail sales. These developments are driven by the desire to diversify revenue sources to better cope with the crises in the energy sector.

Overall, there are no notable differences in the service station market in Germany, as the CAGR of the German market is currently around 2.5%. However, the German service station market is structurally different, as almost 50% of service stations in Germany are family-owned businesses. In addition, Germany is particularly affected by the energy crisis, and several experts estimate that 15% of service stations in Germany will disappear by 2030 due to the energy transition.

• The main companies in this sector in Germany are Aral and Fastned, as well as international giants such as Shell.

However, the German service station market will undergo significant changes, with a move toward alternative fuels. Today, less than 20% of service stations in Germany offer them (including charging stations for electric vehicles). Therefore, traditional companies need to adapt to remain competitive and meet the changing needs of this structurally changing sector.