Frost & Sullivan released a new study revealing that mixed-energy fleets are projected to increase given anticipated commercial electric vehicle (EV) adoption rates. According to the study, 80% of mixed-energy fleet operators intend for at least 25% of their fleets to be comprised of EVs by 2030 and 42% stated that half or more of their fleet would be composed of EVs by 2030. This study was commissioned by WEX, a global commerce platform simplifying the business of running a business.
The global survey, “Commercial EV Transition: Global Insights on a Mixed-Energy Fleet Future,” offers comprehensive insights for organizations to navigate and capitalize on the shift to electrification in Europe, North America, and Asia-Pacific.
The transition to a mixed-energy fleet — which integrates EVs and internal combustion engine (ICE) vehicles — is not a one-time switch but a gradual process. Adoption rates for EVs can vary significantly depending on factors such as the region, industry, and an organization’s scope and size. Understanding the underlying dynamics can be crucial for optimizing operations and achieving long-term benefits.
“Organizations know EVs can benefit commercial fleets, but electrification is a gradual process that involves more than just vehicle replacement,” said Carlos Carriedo, COO, Americas payments & mobility at WEX. “This report’s findings indicate a fleet manager’s focus isn’t on ‘if’ or ‘when’ to transition but on ‘how best.’ A key strategy is recognizing the value of mixed-energy fleets for a smooth and effective shift to electrification.”
Key findings:
- Decarbonization is the key driver of the transition: 70% say it is an “important” or “cornerstone” component of their business strategy, and only 3% are not considering decarbonization at all. This underscores its importance to organizations’ strategies for cost savings, sustainability, and brand image.
- Operational efficiency is paramount during the transition: Despite electrification challenges such as high upfront costs (64%), 50% of surveyed organizations have already invested in charging infrastructure.
- Streamlining charging and payments is crucial: A substantial proportion (78%) of organizations have charging on-site, though charging en-route and at home were also widely used. Ninety percent of fleets have the same payment options for Internal Combustion Engine (ICE) and EVs. Dual ICE/EV payment card availability ranks as the top influencing factor when choosing a payment card.
- Smart digital solutions could help future-proof fleets: Over half of the respondents (58%) struggle with route planning, while 49% struggle to collect data, and 40% face challenges integrating fleet management software for ICE vehicles and EVs.
“The findings indicate that while the transition to EVs is underway, it’s not without challenges. With 78% of fleets charging onsite and 62% using public facilities, issues like identifying the best use cases, the best vehicles for those use cases, and the best charging strategies for those vehicles across a complex public and private infrastructure are significant,” said Jay Collins, SVP & GM, EV & mobility at WEX. “The mixed fleet adoption strategy enables businesses to acclimate to the nuances of EV integration gradually, ensuring operational efficiency throughout the transition period.”
The report also highlights the broader industry implications, noting that the top three challenges for fleet operators are the cost of fuel (67%), operational costs (66%), and profit margins (59%). These challenges reflect fleet managers’ pressures to manage expenses and maintain profitability while transitioning to new technologies and sustainable practices.
Filed Under: Technology News