As businesses around the world work to meet sustainability targets and reduce operational costs, the transition to EVs is gathering pace. Yet, many companies are discovering that moving toward a fully electrified fleet isn’t something that can happen overnight. A new Frost & Sullivan report, commissioned by WEX, highlights a growing trend: mixed-energy fleets are becoming a pragmatic solution for companies balancing decarbonization goals with the financial realities of fleet operations.
The drive toward decarbonization is a significant factor influencing fleet electrification. According to the report, 70% of respondents noted that decarbonization is an important or cornerstone component of their business strategy. For larger fleets, this number is even higher, as businesses face increasing pressure from governments, customers, and supply chain partners to reduce carbon emissions.
At the same time, fleet electrification is seen as a pathway to significant cost savings. The report reveals that lower operational costs were among the top drivers for fleet operators moving toward EVs. With fewer moving parts, EVs generally require less maintenance than internal combustion engine (ICE) vehicles, offering long-term savings in servicing and repairs. Additionally, powering EVs with electricity tends to be more cost-stable compared to fluctuating fuel prices, providing further financial predictability.
Despite the long-term benefits, the initial costs of electrification can be daunting for many businesses. Upfront investments in EVs and charging infrastructure remain a challenge, as highlighted by fleet managers in the study. This is where mixed-energy fleets come into play—offering flexibility and a phased approach that allows companies to gradually integrate EVs while still leveraging the value of their existing ICE fleets.
A mixed-energy fleet consists of a blend of EVs, hybrids, and traditional ICE vehicles, providing businesses the opportunity to begin lowering their carbon footprint without disrupting operations. By integrating EVs incrementally, companies can avoid the significant capital outlay associated with replacing entire fleets all at once. In fact, 80% of fleet operators surveyed indicated that they expect at least 25% of their fleets to be comprised of EVs by 2030.
Transitioning to mixed-energy fleets is not without its hurdles. The report highlights challenges such as route planning complexities, differences in fueling versus charging infrastructure, and the need for new fleet management software. However, advancements in fleet management tools are helping businesses streamline operations and maximize the value of both their EV and ICE assets.
By using data-driven insights and decision-making tools, fleet operators can optimize vehicle deployment, manage charging schedules, and predict energy demand. These technologies, combined with smart payment systems that integrate fuel and charging costs, are proving to be valuable in managing the complexity of a mixed-energy fleet.
As companies continue to prioritize decarbonization, mixed-energy fleets are emerging as a practical solution. While the transition to a fully electric fleet may take time, the benefits of adopting EVs—including cost savings, reduced emissions, and improved operational efficiency—are clear. With careful planning and the right tools, businesses can balance their environmental goals with financial realities, positioning themselves for success in an increasingly electrified future.
