Market Overview: Fleet Decarbonization

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Executive Summary

The electrification and optimization of fleets is shifting from a health and safety prerogative – mainly focused around air quality – to a decarbonization priority for many businesses. Sectors with a high proportion of fleet emissions, such as postal services, telecommunications and consumer goods, are setting ambitious reduction targets, and adopting different levers to decarbonize their fleets – ranging from optimizing existing fleets to purchasing electric vehicles (EVs) and sustainable fuels. This report identifies tech solutions and innovations in the fleet decarbonization market, as well as new business models, and examines how they are evolving. 
The market for fleet decarbonization is expanding as firms address high transport emissions
Corporate strategies to tackle fleet emissions vary by industry
The five levers of fleet decarbonization
Innovations in fleet decarbonization solutions will drive market expansion
Battery and recycling innovation will propel fleet decarbonization and limit environmental impacts
OEMs, start-ups and established providers invest in charging infrastructure offerings
Alternative fuels gain traction as interim solutions for hard-to-electrify heavy-duty vehicles
Software solutions support fleet decarbonization strategy development and implementation
Figure 1. In the GHG Protocol, fleet emissions fall into all three Scopes 
Figure 2. Organizations will prioritize investment in charging infrastructure, alternative fuels and current fleet upgrades over the next three years
Figure 3.
The five fleet decarbonization levers
Figure 4. Major investments in battery manufacturing and recycling firms: August 2023 to February 2024
Figure 5. Fleet managers and sustainability leads require similar data for different priorities

About the Authors

Alessandra Leggieri

Alessandra Leggieri

Industry Analyst

Alessandra Leggieri is an Industry Analyst in the Verdantix Net Zero & Climate Risk practice. Her current research agenda focuses on solutions for GHG emissions and net ze…

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Ryan Skinner

Ryan Skinner

Research Director, Net Zero & Climate Risk

Ryan is the Research Director for the Verdantix Net Zero & Climate Risk practice. He guides the research team to develop compelling research at the intersection of net zer…

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