Conducted by Frost & Sullivan and commissioned by WEX, the
report offers insights for organizations managing mixed-energy
fleets across markets in Europe, North America, and
Asia-Pacific.
A new study by Frost & Sullivan commissioned by WEX (NYSE:
WEX), the global commerce platform simplifying the business of
running a business, reveals that mixed-energy fleets are projected
to increase given anticipated commercial 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 electric
vehicles (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. 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, Chief Operating
Officer, 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.”
"Operators will maintain a mix of traditional and electric
vehicles for the foreseeable future, introducing complexities in
operations, infrastructure, energy sourcing, and payments,”
Carriedo continued. “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."
Key findings include:
- 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.
With over four decades of expertise and experience in managing
how fleet data flows through an organization, WEX is now
integrating EV into that experience to help organizations
effectively adopt and manage the mixed-energy fleet transition
lifecycle to drive their financial, operational, and sustainability
goals, backed with WEX’s continued commitment to data security and
privacy. WEX has over 600,000 commercial fleet customers worldwide,
including more than 19.4 million vehicles serviced globally as of
Q2 2024.
About the Fleet Study
These are the findings of a Frost & Sullivan study
commissioned by WEX between February-March 2024. Frost &
Sullivan interviewed mixed-energy fleet operators from over 500
organizations across seven markets in Europe (273 respondents), the
United States (110 respondents), and two markets in Asia-Pacific
(120 respondents) about their journey toward electrification. Each
decision-maker surveyed had at least one EV in their fleet when
surveyed.
A free copy of “The Commercial EV Transition: Global Insights on
a Mixed-Energy Fleet Future”’ can be downloaded here. Market-level
insights can be viewed for the United Kingdom, Belgium, the
Netherlands, Luxembourg, France, Germany, Italy, the United States,
Australia, and New Zealand.
About WEX
WEX (NYSE: WEX) is the global commerce platform that simplifies
the business of running a business. WEX has created a powerful
ecosystem that offers seamlessly embedded, personalized solutions
for its customers around the world. Through its rich data and
specialized expertise in simplifying benefits, reimagining
mobility, and paying and getting paid, WEX aims to make it easy for
companies to overcome complexity and reach their full potential.
For more information, please visit www.wexinc.com.
Forward-Looking Statements
This press release contains forward-looking statements
including, but not limited to, statements about the transition to
and adoption of mixed-energy commercial fleets. Any statements in
this press release that are not statements of historical facts are
forward-looking statements. When used in this press release, the
words “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “project,” “will,” “positions,”
“confidence,” and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain such words. Forward-looking statements relate to
our future expectations, and are not historical facts and
accordingly involve known and unknown risks and uncertainties and
other factors that may cause the actual results to be materially
different from future results expressed or implied by these
forward-looking statements, including whether the transition to and
adoption of mixed-energy commercial fleets will continue as
currently expected; as well as other risks and uncertainties
identified in Item 1A of our Annual Report on Form 10-K for the
year ended December 31, 2023, filed with the Securities and
Exchange Commission on February 23, 2024 and subsequent filings
with the Securities and Exchange Commission. The forward-looking
statements speak only as of the date of this press release and
undue reliance should not be placed on these statements. The
Company disclaims any obligation to update any forward-looking
statements as a result of new information, future events, or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240918260333/en/
Media: WEX Julie Lydon, 415-816-9397 Julie.Lydon@wexinc.com
Investors: WEX Steve Elder, 207-523-7769 Steve.Elder@wexinc.com
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