Market Overview: Fleet Decarbonization
11 Mar, 2024
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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
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
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
Sion Power, Eight Roads, Redwood Materials, California Energy Commission (CEC), PKA, Volvo Trucks, Hyundai, ABB, CTVC, Volta Trucks, VDL, Daimler Truck, BlackRock, International Council on Clean Transportation, Mitra Chem, Northvolt, Tesla, Rondo Energy, Electra, Å Energi, UPS, GHG Protocol, Royal Mail, Marubeni Corporation, Decarbonization Partners, Qatar Investment Authority, International Energy Agency (IEA), Element Energy, Chevron, BMW, Allianz, Skeleton Technologies, IRONGREY, PepsiCo, FedEx, BT Group, Proterra, DHL, Ascend Elements, Traton Group, Bolt Earth, Daily Logistics Group (DLG), Schneider Electric, Viridos, Plan A, McKinsey & Company, Volvo Group, Alphabet International, Green Biofuels, Heliox, DPD, Ben & Jerry’s, Just Climate, Proctor & Gamble, Geotab, Clearvision Ventures, Volkswagen, PGGM, National Grid, ROCSYS, Goldman Sachs Asset Management, Nikola Corporation, T. Rowe Price, Temasek Holdings, General Motors, Maj Invest, Sightline Climate, Hertz, Shell, Amazon, USPS (United States Postal Service), Breakthrough Energy Ventures, Siemens, Morrow Batteries, National Grid Partners, maxwell+spark, ev.energy, Exponent Energy, Walmart, Capricorn Investment Group, Dynamon, BP, LG Energy Solution, SIXT, US Environmental Protection Agency (EPA), EV Connect, Amazon Web Services (AWS), Mercedes-Benz Trucks, Nysnø, Unilever, InCharge Energy, AT&T, Toyota, INERATEC, Cohort Ventures, Holcim, Veolia
About the Authors
Alessandra Leggieri
Industry Analyst
Alessandra is an Industry Analyst at Verdantix, specializing in carbon management and software for product carbon footprints. Her research spans over 100 vendors in the carbon…
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Ryan Skinner
Research Director
Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc…
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