According to the survey conducted by Frost & Sullivan and commissioned by WEX between February and March 2024, 80% of mixed-energy fleet operators intend for at least 25% of their fleets to be comprised of EVs by 2030.
A new survey reveals that mixed-energy fleets are projected to increase, given anticipated commercial electric vehicle (EV) adoption rates.
According to the survey conducted by Frost & Sullivan and commissioned by WEX between February and March 2024, 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.
“The commercial EV transition: Global insights on a mixed-energy fleet future,” a 2024 global survey, 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 both EVs and internal combustion engine (ICE) vehicles — is not a one-time switch but a gradual process.
Regional Variations and Strategic Considerations
Adoption rates for EVs can vary significantly depending on the region, industry, and an organization’s scope and size. Understanding the underlying dynamics can be crucial to 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,” Carlos Carriedo, chief operating officer of Americas Payments & Mobility at WEX, said.
“The commercial EV transition: Global insights on a mixed-energy fleet future,” a 2024 global survey, offers comprehensive insights for organizations to navigate and capitalize on the shift to electrification
The report’s findings indicate a fleet manager’s focus isn’t on ‘if’ or ‘when’ to transition but on ‘how best.’ Carriedo continued that a key strategy is recognizing the value of mixed-energy fleets for a smooth and effective shift to electrification.
“Operators will maintain a mix of traditional and electric vehicles for the foreseeable future, introducing complexities in operations, infrastructure, energy sourcing, and payments. A mixed-energy fleet approach mitigates risk, allowing businesses to adapt, learn, and, if they desire, transition fully to electric mobility when the infrastructure is ready,” Carriedo said.
Key findings of the report include:
- Decarbonization is the key driver of the transition: 70% say it is an “important” or “cornerstone” component of the business strategy, and only 3% are not considering decarbonization. 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 was also widely used. 90% of fleets have the same payment options for internal combustion engines (ICE) and EVs. Dual ICE/EV payment card availability is the top factor when choosing a payment card.
- Smart digital solutions could help future-proof fleets: Over half of the respondents (58%) struggle with route planning, 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 on-site 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,” Jay Collins, general manager of Energy Transition at WEX, said.
The mixed fleet adoption strategy enables businesses to acclimate to the nuances of EV integration gradually, ensuring operational efficiency throughout the transition period, according to Collins.
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.
WEX’s Role in Fleet Electrification
Building on over four decades of expertise in managing organizational data flows, WEX is now integrating EVs into the mix to help businesses navigate and manage the transition lifecycle of mixed-energy fleets to achieve their financial, operational, and sustainability goals.
WEX has over 600,000 commercial fleet customers worldwide, including over 19.4 million vehicles serviced globally as of Q2 2024.
