Frost & Sullivan has officially published results from a study commissioned by WEX, the global commerce platform simplifying the processes of running a business. According to certain reports, the study claims that mixed-energy fleets are projected to increase given anticipated commercial EV adoption rates. Named as “The Commercial EV Transition: Global Insights on a Mixed-Energy Fleet Future,” a 2024 global survey, the research in question brings to the fore comprehensive insights for organizations to navigate and capitalize on the shift towards electrification across North America, Europe, and Asia-Pacific.
You see, the stated effort goes on to reveal how more than 80% mixed-energy fleet operators intend for at least 25% of their fleets to be made up with electric vehicles (EVs) by 2030, whereas on the other hand, nearly 42% operators stated that half or more of their fleet would be composed of EVs by the same deadline.
Talk about these results on a slightly deeper level, we begin from the fact that they deem decarbonization as a key driver of this transition, with 70% participants saying it is an “important” or “cornerstone” part of their business strategy. Against that, only 3% of operators were found to not consider decarbonization at all. Such a disparity treads a long distance to reveal the component’s importance to organizations’ strategies for cost savings, sustainability, and brand image.
The next major thing unpacked by this report was how operational efficiency is paramount during the transition. The same became clear after it was confirmed that, despite electrification challenges such as high upfront costs (64%), nearly 50% of surveyed organizations have already invested in charging infrastructure.
“Organizations know EVs can benefit commercial fleets, but electrification is a gradual process that involves more than just vehicle replacement,” said Carlos Carriedo, Chief Operating Officer of 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.”
Another highlight stems from a claim that streamlining charging and payments is going to be crucial moving forward. We get to say so because an estimated 78% of organizations have switched to charging on-site. Having said so, charging en-route and at home were also widely used. As for payments, more than 90% of the fleets were found to have the same payment options for Internal Combustion Engine (ICE) and EVs. Here, dual ICE/EV payment card availability ranked as the top influencing factor when choosing a payment card.
Rounding things up would be a particular finding, which said that smart digital solutions could help future-proof fleets. This delivers a rather interesting follow-up to a separate piece of reality, where over half of the respondents (58%) were deemed to struggle with route planning, while 49% were deemed to struggle in terms of collecting data. Apart from that, 40% of respondents reported facing challenges when 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.”
Among other things, the report also highlighted broader industry implications. This translated to zeroing upon top three challenges for fleet operators i.e. cost of fuel (67%), operational costs (66%), and profit margins (59%).
“Operators will maintain a mix of traditional and electric vehicles for the foreseeable future, introducing complexities in operations, infrastructure, energy sourcing, and payments,” said Carriedo. “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.”
