Fleet electrification has largely focused on the light-duty vehicle (LDV) segment to date. However, recent developments with electric medium- and heavy-duty vehicles (MHDVs) point toward encouraging signs of future growth in that segment. For example, the 2017 introduction of the Tesla Semi, BYD’s debut of its refuse truck in 2018, and the success of electric buses in China over the last 4 years all show momentum toward larger fleet electrification. Many fleets have made commitments to use electricity in all or part of their vehicles in the next decade, including large MHDV fleets such as DHL, UPS, FedEx, and several city bus fleets in China.
Fleet electrification is being driven by battery innovations, energy economics, and government regulation of transportation pollution. Cost reductions in batteries and other plug-in EV (PEV) technologies are reducing the purchase price of PEVs. Simultaneously, oil prices are projected to rise in the near term, increasing the economic benefit of PEV fleets. In addition, governments are incentivizing PEV adoption with purchase incentives and emissions reduction goals. While the transportation industry is transforming its energy system, it is also being disrupted by innovations in automated vehicle systems and advances in battery energy density. Vehicle automation will likely encourage greater use of LDVs to augment alternative or public transportation modes and transform MHDV markets and uses.
This Navigant Research report analyzes the global market for LD and MHD PEV fleet vehicles. The study provides an analysis of the market issues related to fleet electrification, including drivers like government policies and battery innovations and challenges with charging infrastructure. Global market forecasts, segmented by vehicle class and region, extend through 2030. The report also examines the key industry players related to fleet electrification and provides case studies of notable projects from around the globe.