A 2019 report by BCG predicts that 80% of conventional gas stations could be driven out of business by 2035.
Decline and Adaptation
Gas stations are facing a decline due to factors such as stricter regulations and a shift toward electric vehicles. Many gas station owners are adapting by offering electric vehicle charging services as well as gas pumps.
Last September, California’s Governor signed an executive order directing the state to end new gas car sales by 2035.
Sustainability and Evolution
As electric vehicle adoption rises, gas stations need to adapt to stay relevant. To survive, gas stations will have to renew their business model by offering diversification including electric vehicle charging points and improving customer experience through digital services.
Gasoline sales will drop 25% or more, accelerating the ongoing drop in gas stations since the 1980s. Road maintenance depends on gas taxes, so the Legislature added fees for electric vehicles to make up for lost revenue.
Installing electric vehicle charging stations keeps gas stations relevant for the future. When there are no longer horses, horse stable businesses must adapt.
A study found 25% of gas stations globally risk closure by 2035 without changes.
Looking Ahead
In summary, as electric vehicle adoption accelerates, gas stations need to adapt quickly by adding charging stations, improving customer amenities, and finding ways to offset lost revenue.
Gas stations today make their money from selling the motoring public things from coffee, soda, and beer to candy and chips that have higher profit margins.
With the phase out of gas-powered cars, do California communities need new gas stations? This Chevron gas station at the corner of Hwy 111 and Monroe St. is one of several gas stations within close proximity to each other in central Indio, Calif., April 25, 2023.
The future of gas stations after 2035 is likely to undergo a significant transformation. As the world moves towards cleaner energy, gas stations may evolve into charging hubs for EVs or hydrogen refueling stations. Only time will tell how gas stations will adapt to the changing energy landscape.