A new study conducted by Frost & Sullivan and commissioned by WEX (NYSE: WEX) has forecasted a significant rise in mixed-energy fleets due to the increasing adoption of electric vehicles (EVs). The research, titled “The Commercial EV Transition: Global Insights on a Mixed-Energy Fleet Future,” reveals that 80% of mixed-energy fleet operators plan to have at least a quarter of their fleets comprised of EVs by 2030, with 42% aiming for half or more.
The 2024 global survey provides essential insights for organisations navigating the shift to electrification across Europe, North America, and Asia-Pacific. The transition to mixed-energy fleets, which combine EVs and traditional internal combustion engine (ICE) vehicles, is expected to be a gradual process rather than an immediate overhaul. Adoption rates will vary based on factors such as region, industry, and organisational size, making it crucial for businesses to understand these dynamics to optimise their operations and realise long-term benefits.
Carlos Carriedo, Chief Operating Officer of Americas Payments & Mobility at WEX, commented on the findings, stating, “Organisations are aware of the benefits of EVs for commercial fleets, but the transition involves more than just vehicle replacement.” Carriedo emphasised that fleet managers are now focused on “how best” to transition rather than “if” or “when.” He noted that recognising the value of mixed-energy fleets is a key strategy for a smooth and effective shift towards electrification.
The study highlights several challenges and strategies associated with this transition. Decarbonisation is identified as a major driver, with 70% of respondents considering it a crucial part of their business strategy. Despite high upfront costs, with 64% of organisations citing this as a challenge, 50% have already invested in charging infrastructure.
Efficient charging and payment systems are also vital, with 78% of organisations providing on-site charging facilities. Many fleets utilise public and home charging as well, and 90% have aligned payment options for both ICE and EV vehicles. Dual payment card availability for ICE and EVs is a significant factor in payment card selection.
The report reveals that many fleet operators face difficulties with route planning and data collection, with 58% and 49% struggling in these areas respectively. Integration of fleet management software for both ICE and EV vehicles also presents challenges for 40% of respondents.
Jay Collins, SVP & GM of EV & Mobility at WEX, noted, “The transition to EVs is underway but not without challenges. The mixed fleet adoption strategy allows businesses to adapt gradually, ensuring operational efficiency during the transition period.”
The study also underscores broader industry challenges, including fuel costs, operational expenses, and profit margins, which remain significant concerns for fleet managers.
WEX, with over 600,000 commercial fleet customers and more than 19.4 million vehicles serviced globally as of Q2 2024, is leveraging its extensive experience to support organisations in managing the mixed-energy fleet transition, focusing on financial, operational, and sustainability goals. For more information, please visit www.wexinc.com.