Global Electric Fleet Charging Market Grows at 23.1% CAGR

The focus in the electric vehicle industry is now squarely on electrifying fleets as a key strategy for creating a more sustainable and eco-friendly transportation sector. The goal of this transition is to not only lower emissions but also to leverage the economic and operational advantages that electric vehicles provide to commercial fleets.

A significant portion of EV sales, much more than commonly perceived, are actually to fleet managers. For example, in the UK, out of the 315,000 EVs sold in 2023, as many as 242,235 were acquired by the fleet sector. 

The commercial electric vehicle fleet is somewhat lagging behind passenger vehicles in terms of electrification. This delay can be attributed to several factors, including concerns about the total cost of ownership (TCO) and the availability of suitable electric models for heavy-duty tasks, both of which are key concerns in EV fleet management. However, the landscape is changing.

Analysis from McKinsey suggests that by 2025, the TCO for light commercial vehicles (LCVs) and medium-duty trucks (MDTs) will reach parity with internal combustion engine (ICE) vehicles in the US, with a significant impact on the electric vehicle fleet market. This projection is partly due to the tax incentives provided under the Inflation Reduction Act 2022, signaling a pivotal moment that could accelerate the adoption of battery electric vehicles (BEVs) across various fleet segments. 

Concerns About EV Fleet Charging Infrastructure 

Despite earlier optimistic outlook, EV adoption has shown signs of slowing in certain regions, leading some fleet managers to reconsider their electrification strategies. This caution comes as manufacturers change their plans due to market demands and supply chain issues, leading businesses to question how much they should invest in electrification. 

Concerns about the EV charging infrastructure for fleets add another layer of complexity to the decision-making process. While fleets primarily rely on home and depot charging, the necessity for public charging introduces challenges. The current charging network, characterized by a shortage of charge points, inoperable equipment, and lengthy wait times, may create doubts about the viability of a full transition to electric for some fleets. 

Global Electric Fleet Charging Market Size 

Amidst the challenges facing fleet electrification, the fleet charging market stands out as a significant area of growth and opportunity. With a compelling CAGR of 23.1%, the global fleet charging market is set for considerable growth, from a valuation of USD 3.45 billion in 2022 to an estimated USD 26.4 billion by 2032, according to Market Research Future.  

Source: Statzon/ Market Research Future

Market Research Future defines fleet charging as a comprehensive solution that includes the installation and management of fleet charging stations tailored to the specific needs of a fleet. This approach ensures that charging is convenient and efficient, supporting the transition towards electrified transportation in a significant way. Fleet charging encompasses the infrastructure and services necessary to provide electric power to a collection of EVs operated by a fleet. These fleets could be owned by businesses, government agencies, or various organizations. 

Although the initial setup of EV chargers represents an upfront investment for businesses, this cost is quickly offset, especially when leveraging incentives aimed at reducing the expense of purchasing and installing EV chargers for both homes and businesses. These savings make the investment in fleet charging infrastructure both economically viable and attractive in the long term. 

Fleet charging accounts for about 12% of the overall charging infrastructure market, valued at USD 25.2 billion in 2022, ranking it third after residential and roadside charging.  

Global Fleet Charging Market Size by Charger Type

Evaluating the charging needs for fleet electrification depends on several critical factors including vehicle range, daily mileage, route plans, and battery capacity. Understanding the operations of the fleet, such as the times vehicles leave and return for charging and the power level needed within that charging window, is essential. Some fleets may require fast-charging solutions due to tighter turnaround times, while others might only need partial top-ups nightly if their daily routes are significantly shorter than the vehicle's range. 
 
Depot charging, where vehicles are charged overnight at a central location, is commonly relied upon by fleets for several reasons. The time vehicles are idle overnight provides a sufficient window for charging. Depot charging also offers complete control over the charging process, ensuring vehicles are ready for operation at the start of each workday. 
 
Since depot charging relied mostly on overnight charging, Level 2 charging perfectly aligns with this downtime, offering a full charge by morning without the need for faster, more expensive options. This practicality, combined with its lower installation costs compared to Level 3 or DC Fast Charging, makes it an economical solution for fleets. 

This cost-effectiveness, combined with the fact that Level 2 chargers are adequate for the typical nightly charging needs of most fleet vehicles, explains the dominance of fleet depot charging as can be seen from the market breakdown below:

Level 2 charging represented USD 2.2 billion in 2022, accounting for 60.8% of the total global fleet charging market. 

Level 3 charging, while faster, accounted for USD 1.25 billion in 2022, making up 39.2% of the market. 

Source: Statzon/ Market Research Future

Looking ahead, Level 2 charging is expected to grow at a compound annual growth rate (CAGR) of 22.3%, reaching USD 15.9 billion by 2032. Level 3 charging is projected to see even faster growth at a CAGR of 24.3%, expected to hit USD 10.7 billion by 2032. This anticipated growth reflects the evolving needs of electric fleets, including the demand for faster charging options as battery technologies improve and the operational ranges of electric trucks expand. 

The consulting firm, Arthur D. Little points out that fleet depot charging will dominate this decade, especially for electric truck fleets covering shorter distances. However, depot charging's importance decreases as trucks get bigger batteries and handle longer hauls. This change means there will be more need for charging at public places and specific destinations and as trucks with larger batteries become more common, there will be a higher demand for chargers that are a lot more powerful.  Faster charging with a full megawatt capacity will become crucial for a semi-truck, as well as stations that can simultaneously charge multiple trucks at that power level will be crucial.   

Top Companies in Fleet Charging Market 

In electric vehicles fleet charging market, key players from the wider EV charging station industry are asserting a strong presence. Based on the Market Research Future's analysis reflected in the chart, ABB is a leader in the space with a market share of 10.2%, followed by Tesla, which has made a notable entry with a 7.3% share. Siemens AG has secured a 3.9% share. On the smaller end, Phihong USA Corp. holds a share of 0.5%, and ChargePoint, a prominent name in charging solutions, has 2% of the fleet charging market. Collectively, these leading companies account for 24.5% of the total electric fleet charging market, while the rest, a substantial 75.5%, is composed of a variety of smaller competitors. 

Source: Statzon/ Market Research Future

This distribution suggests that while a few players hold notable shares, the "Others" category—comprising various smaller and niche providers—represents the majority, indicating a fragmented market with plenty of opportunities for growth and competition. The presence of numerous smaller players also points to specialized solutions and customized services that cater to the specific needs of fleet operators, which can be critical in a market where one-size-fits-all does not always apply.

Source:  Statzon, Market Research Future report on Global Fleet Charging Market, McKinsey, Forbes, Arthur D. Little