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Inside WEX
Survey: how Germany is navigating the transition to commercial mixed-energy fleets
We can expect more mixed-energy fleets on the roads as they’re 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 Germany 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 Germany
Considered one of the comparatively more mature EV markets, here’s a look at how surveyed organizations in Germany (60) reported navigating the transition to mixed-energy fleets.
- Decarbonization is a big deal for German organizations, and it’s driven primarily by three things: government support and initiatives (74%), their commitment to reducing their carbon footprint (71%), and protecting their brand image (69%).
- However, setting clear targets for decarbonization remains a challenge. In Germany, for instance, only a small fraction of organizations have defined these goals (16%), the lowest percentage across all surveyed markets.
- One of the biggest hurdles identified across all markets, including Germany, is optimizing routes for mixed-energy fleets. This is made even more challenging by the difficulty in collecting and analyzing data (67%). Most German companies are relying on their own systems (95%) instead of using specialized third-party telematics providers, and that can make it tough to get a clear picture of what’s happening on the road.
- When it comes to charging, German fleets are leading the way in using public charging stations (82%). However, that comes with its own set of challenges. Long wait times (82%) and limited availability (61%) are major frustrations.
- Seventy-three percent of German fleet operators use on-site charging, and it’s seen as the most convenient option. However, it’s not without its hurdles – and is considered more challenging in Germany than in other markets due to high installation costs, space limitations, and the complexity of getting permits.
- Finally, when it comes to payment solutions, security is the top priority for German fleet operators who want to make sure that transactions are safe and secure.
Read the press release announcing the report’s launch.
Dig into insights from other markets:
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