Research Report
Lead the charge: Fleet electrification accelerated
For organizations that own or operate fleets, the pressure to decarbonize is on. Are you ready?
5-minute read
October 11, 2023
Research Report
For organizations that own or operate fleets, the pressure to decarbonize is on. Are you ready?
5-minute read
October 11, 2023
The transport industry is responsible for 25% of carbon emissions globally, with road transport alone accounting for three quarters of this output. Converting fleets such as cars, vans, trucks and buses from internal combustion engine (ICE) vehicles to battery electric vehicles (BEVs) can significantly reduce the sector’s carbon footprint and help corporations and public entities meet their sustainability targets.
While numerous governments globally are taking steps to electrify public transport, ramping up the electrification of private commercial fleets will be a true game changer.
Organizations are aware of this and are moving towards electrifying their fleets in response. They are also keenly aware that electrification has critical strategic implications relating to regulatory compliance, competitive positioning and carbon reduction targets.
Our research reveals the vast majority of fleets have either not yet started the process of electrification or are less than a quarter of the way through. Whilst those in North America have made most progress there is a long way to go across all regions.
30%
of executives say they have no EVs in their fleet
54%
of executives say that EVs make up a maximum of a quarter of their fleet
21%
of executives expect full electrification to happen after 2035
54%
of executives expect full electrification to happen after 2030
A wide range of challenges are impeding progress. Capital investment and infrastructure requirements are currently the most significant challenges; however, a range of challenges across strategy, finance, infrastructure, culture, operations and digital technology are impeding progress.
Companies that build a strategic business case engaging the whole organization will set new performance standards.