Customer Demand Drives Fleet Energy Transition, Teletrac Navman Report Reveals

Teletrac Navman, a leading connected mobility platform and a subsidiary of Vontier, recently released the Mobilizing the Future of Fleets Report: 2025 Energy Edition. The report, conducted in November 2024, surveyed 536 fleets across Australia, New Zealand, Mexico, the United Kingdom, and the United States, revealing significant insights into the energy transition of these businesses. One of the most striking findings is that 63% of fleet operators cite customer demand as a major influence in their decision to switch to alternative energies. This indicates a strong correlation between consumer preferences and corporate actions, with sustainability becoming a critical aspect of brand reputation and long-term commercial strategies. Only 29% of respondents mentioned regulatory pressure and government mandates as primary drivers, underscoring that the movement towards greener practices is largely market-driven rather than policy-mandated. Teletrac Navman's CEO, Alain Samaha, emphasized that companies are not merely meeting compliance requirements but are genuinely committed to sustainable operations to enhance their corporate image. "Customers recognize the importance of sustainable operations, and according to our research, are making active decisions around the businesses they support based on their sustainability credentials," he stated. The report also highlights that despite the push for sustainability, fleets are still primarily focusing on operational improvements to optimize their current vehicles. Eighty-four percent of the surveyed operators prioritize this approach, with regular vehicle maintenance (49%), optimizing vehicle utilization (36%), and investing in driver training (28%) being the top strategies. These efforts aim to reduce emissions and improve efficiency without immediate significant capital expenditures. However, there is a noticeable trend towards Capex investments. Sixty-one percent of fleet operators are upgrading to more fuel-efficient vehicles (48%) or switching to those using alternative fuels (31%). This split approach reflects a balance between short-term cost management and long-term sustainability goals. Larger fleets, with 50 or more vehicles, are particularly proactive, with 62% already working on improving their sustainability performance and planning for further advancements. When it comes to transitioning strategies, 46% of respondents use external consultancy for vehicle suitability assessments, while 42% prefer an end-of-life replacement approach. Thirty percent have conducted a Total Cost of Ownership (TCO) analysis, a vital step in ensuring financial viability and preventing future complications in vehicle selection. The report further notes the diversity of energy sources being adopted. Sixty-one percent of fleet operators use more than one energy type, with Plug-in Hybrid Electric Vehicles (PHEVs) at 39%, Battery Electric Vehicles (BEVs) at 37%, and natural gas at 23%. This mixed-energy approach allows operators to adapt to different operational requirements and environmental conditions. A smaller segment, 8%, has already transitioned at least half of their fleet to alternative energy sources, with 48% expecting to achieve this milestone within the next two years. By 2029, 85% of fleets anticipate having transitioned at least half of their vehicles, signaling a gradual but steady shift towards sustainable practices. Samaha acknowledged the challenges and variations in the transition process. "The push for fleet sustainability is at a pivotal moment. There is no single viewpoint on the best path forward and while concerns persist, many operators see decarbonization as a strategic advantage," he remarked. He stressed the importance of accurate data and actionable insights in navigating this complex landscape, ensuring that decisions align with both business needs and sustainability targets. Industry Insights and Company Profiles: Industry experts laud Teletrac Navman's report for its comprehensive overview of fleet energy transitions. They note that the data supports the growing trend of customer-driven sustainability, which is likely to accelerate the adoption of alternative energy sources. Teletrac Navman, known for its robust connected mobility solutions, is well-positioned to assist fleets in this transition. As a Vontier company, Teletrac Navman leverages the broader technological and industrial expertise of Vontier, enhancing its ability to provide cutting-edge solutions for fleet management and sustainability. Vontier, listed on the NYSE under VNT, is a global industrial technology company focusing on productivity, automation, and multi-energy solutions. With a portfolio that includes Teletrac Navman, Vontier aims to drive the development of a more connected and sustainable mobility ecosystem. The company's approach is rooted in continuous improvement and innovation, supported by the Vontier Business System, which emphasizes efficiency and safety across all operations.