We can expect more mixed-energy fleets on the roads as they are projected to increase over the next few years.
A recent study by Frost & Sullivan, commissioned by WEX, indicates a significant rise in mixed-energy fleets as commercial EV adoption accelerates. In fact, according to the survey, 80% of fleet operators who already have a mix of internal combustion engine (ICE) and electric vehicles (EVs) plan to have at least 25% of their fleet be electric by 2030. Nearly 50% anticipate that EVs will make up half or more of their fleet by then.

The shift is driven by a growing emphasis on sustainability. As Carlos Carriedo, Chief Operating Officer, Americas Payments & Mobility at WEX said: “Decarbonization has become a top priority for organizations of all sizes and transitioning towards mixed-energy fleets is one effective way to achieve that. Fleet managers aren’t debating if they should go electric, they’re figuring out the best way to integrate EVs and internal combustion engine (ICE) vehicles.”

The benefits of incorporating EVs into commercial fleets are clear – but the transition takes time. EV adoption can align with environmental goals, meet public and policy demands for zero-emission transportation, and appeal to eco-conscious customers. However, the path to electrification isn’t without its challenges. High upfront costs, infrastructure concerns, and varying adoption rates across companies and governments all play a role.

To better understand the commercial EV adoption landscape, the researchers surveyed over 500 commercial mixed-energy fleet operators (ranging in size from 2 to 500+, with at least 1 EV in the inventory) across Europe, North America, and Asia-Pacific. You can read more about what’s happening in Australia further below.

The findings highlight several key trends driving the shift to mixed-energy fleets:

  • Decarbonization is the key driver of the transition: 70% of respondents 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 like high upfront costs (64%), 50% of surveyed organizations have already invested in charging infrastructure.
  • Streamlining charging and payments is crucial: Most organizations (78%) have on-site charging, but charging en route and at home are also common. The ability to use the same payment options for both ICE and EVs is a top priority.
  • 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 takeaway? The transition to mixed-energy fleets is well underway. While challenges to adopting EVs remain, the benefits are clear and organizations are actively seeking solutions to streamline the process.

Insights specific to Australia

Here’s a look at how surveyed organizations in Australia (60) reported navigating the transition to mixed-energy fleets.

  • Approximately one in four Aussie organisations see decarbonization as a “cornerstone” of their business strategy, but fewer than half (46%) have actually set a date to make it happen with their fleets.
  • What’s driving the change is a mix of top-down pressure from the CEO or Board (76%), regulatory compliance (75%), and a growing market demand as customers increasingly want sustainable options (71%).
  • Collecting and analyzing data from their ICE vehicles isn’t easy, and that’s making it tough for 63% of Aussie fleet operators to plan the best routes when they have a mixed-energy fleet. And half of them said integrating software for ICE and EVs is too difficult. This may be especially problematic since 95% use their own in-house systems instead of third-party telematics solutions.
  • Aussie fleet operators are among the least likely to use public stations compared to other markets (53%), citing the usual pain points: stations are hard to find, unreliable, and maintenance is a bit neglected.
  • Conversely, depot charging is used by 77% of Aussie fleets. But the price tag that comes with setting up their own charging stations is seen as a major roadblock.
  • When it comes to paying, fleet operators want one payment method – 58% say being able to use a fuel card for both gas and charging is the most important factor when making a vendor decision.