Uncovering fuel dispensing’s next step

A recent report by Dover Fueling Solutions (DFS) examines how far forecourt technology has advanced from its early days to today's new service stations and the current clean energy revolution.

From alternative fueling options and advertising screens to loyalty programs and in-car connectivity, the fuel retail industry has come a long way from its early days to its current transformation. Although one can certainly expect current trends to continue, how has the refueling experience changed over time and what can it tell us about the future developments to be expected?

A recent report by Dover Fueling Solutions (DFS) examines how far forecourt technology has advanced from its early days to today's new service stations and the current clean energy revolution.

A history of the service station

The origins of the gas station lie in the late 1800s when motorists had to visit their nearest ‘dispensing retailer’ prepared with a bucket to be filled by their pharmacist. The first fuel pump wasn’t used until 1905, when American inventor Sylvanus Bowser developed a product to safely transfer gasoline from a barrel to a car’s fuel tank. The year was a landmark in American transportation history, with 25,000 cars sold across the country.

Further products would then develop in line with increasing consumer demand. Much debate centers around who can claim to be the “first-ever refilling station,” with various sites popping up around the early 1900s. Most agree, though, that fueling giant Gulf would open the first drive-up service station in 1913, selling fuels and other amenities.

In 1930, Tokheim introduced the industry’s first power pump with an air separator to market. Following this, purpose-built refilling stations would become a ubiquitous presence on roadsides around the world.

Their inception would also provide wider economic benefits, with adjacent restaurants and repair shops popping up to cater to demand. Today, this has swelled to an estimated 141,000 fuel stations across Europe, with a further 145,000 in the USA. Italy dominates the European market with 21,700, Germany with 14,458, and Turkey with 13,011.

The evolution of the fuel dispenser

As more and more refueling stations have emerged across the globe, fuel dispensers have evolved to encompass advancements across safety, security, fuel type, measurement, payment, loyalty, branding, and media.

Early embryonic versions would require manual operation, including pumping by hand or foot. This lent itself to onsite attendants who would refill your car on your behalf, in contrast to the self-service dispensers of the 21st century.

Across the early part of the 20th century, fuel pumps would see various advancements, including analog clock faces for measurement, glass cylinders, and marketing globes bearing the name of the fuel supplier atop the pump.

Perhaps the biggest breakthrough would arrive in 1940 with the advent of the first automated fuel dispenser, which used electronic technology to control flow and measure volume in addition to displaying information such as price and fuel used.

In 1964, Herbert Timms developed a system to activate pumps remotely, leading to the growing popularity of the self-service pumps from brands such as Tokheim or Wayne. In 1986, the first 24-hour gas station was established, complete with pay-at-the-pump services before intuitive smartphone payment would finally arrive in 2016.

What does the future hold for forecourts?

While this potted history of the fuel dispenser provides a broad view of refueling changes over time, huge changes will continue in the future.

Of course, one key development will be how the mainstream adoption of electric vehicles (EVs) – and other alternative energy vehicles such as hydrogen, liquified natural gas (LNG) or compressed natural gas (CNG) – will reshape the consumer refueling experience.

By nature, EV lends itself to longer dwell times, with even the most rapid EV public chargers taking 20-40 minutes to recharge.

Forecourt station owners can capitalize on this uptake in dwell time by enhancing retail and entertainment offerings. Convenience stores will likely be transformed into multi-purpose hubs with fresh food and a fast, easy, and digitally-enabled shopping experience. This could include easy payment through apps, cashless stores, and whole-basket scanning.

EV ownership will likely fuel demand for subscription model pricing whereby drivers routinely visit the same charging hubs around their weekly activities. Station owners can leverage loyalty programs to drive revenue, with big hitters like Shell, BP, and Total already rolling out EV subscription schemes to underpin their forecourt portfolios.

In addition, expect to see increasing modernization of the pump, with dispensers evolving to create a seamless digital consumer experience.

“Today’s forecourt customers expect more than ever. Think more interactivity, more choices, more experiential fun. This brings huge revenue opportunities for retailers with the technology to bundle up purchases at the pump. While customers are refueling their vehicles, it’s the ideal time to advertise your other products and services as you’re no longer limited to the static messaging signages of yesteryear,” explains Soren Powell-Holse, Director of Dispenser Product Strategy & Marketing at DFS.

Conclusion

If history is anything to go by, we can expect to see even more changes to the forecourts of the future. Due to the proliferation of various clean energy technologies, we’ll likely see multi-energy-hubs which cater towards various refueling streams.

Expect also to see an emphasis on loyalty programs, more intuitive payment and an extensive C-Store offering. Savvy, forward-thinking station owners will take note and future-proof their forecourts accordingly.