WEX Inc.

09/18/2024 | Press release | Distributed by Public on 09/18/2024 00:21

Survey: how the United Kingdom 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 the United Kingdom 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 the United Kingdom

Here's a look at how surveyed organizations in the United Kingdom (61) reported navigating the transition to mixed-energy fleets.

  • UK organisations are feeling the pressure to decarbonise from customers who expect them to be greener (80%), and they know it impacts their brand image (77%). Plus, several of them have made internal commitments to reduce emissions (77%). It's interesting to see that in the UK, along with places like Benelux and New Zealand, organisations are more concerned about their reputation and what their customers think than costs.
  • A significant 73% of UK fleets have set a specific target date to reduce emissions. That's much higher than the global average of 59%.
  • The biggest roadblock is public charging. It's causing a lot of headaches for UK organisations that are trying to make the switch. UK fleets rely on public charging (70%) more than fleets in other countries (62% on average), but they also find it more frustrating than other markets. Finding a station is tough, charging speeds are inconsistent, and even paying can be a hassle.
  • Finally, when it comes to payment solutions, security is the top priority for fleet operators in the UK. Fifty-six percent of UK survey respondents want to make sure that transactions are safe and secure. This was also the top priority for 65% of German fleet operators.

Read the press release announcing the report's launch.

Dig into insights from other markets:

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