As the fleet industry enters 2025, leading experts highlight critical trends and challenges. Key focus areas include electrification, sustainability, artificial intelligence, cost pressures, and the need for stronger government support. From EV adoption hurdles and charging infrastructure gaps to budget constraints and innovative technology integration, the sector faces a pivotal year.
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Sustainability and Electrification at the Forefront
The shift to sustainable fleet operations remains a dominant theme in 2025, with many experts agreeing that electrification, while vital, is not a one-size-fits-all solution. Paul Hollick, Chair of the Association of Fleet Professionals (AFP), emphasises the need for government action:
"Fleet adoption of electric and zero-emission vans has stalled. More support is required to improve affordability, charging, and regulation, particularly around the 4.25-tonne vehicle weight issue."
Infrastructure remains a key concern. Hollick points out the disparity between those with off-road parking who can charge vehicles cheaply and others forced to rely on costly public charging.
Similarly, Rory Mackinnon, Commercial Director at Holman, highlights the importance of decarbonisation strategies beyond EVs. He suggests using lighter ICE vehicles, hybrids, and smart routing software to reduce CO₂ emissions while managing costs.
The Role of Artificial Intelligence
AI continues to be a game-changer for fleet management. Beverley Wise, Regional Director at Webfleet, notes the transformative potential of predictive analytics and automation:
"AI can drive quicker, informed decisions, support driver behaviour analysis, and identify fuel-saving opportunities. But the quality of data feeding these systems is critical."
Wise warns that poor data undermines the effectiveness of AI tools, making robust data management essential for fleets looking to leverage these technologies effectively.
Cost Pressures and Budget Management
Cost concerns are a common thread across expert opinions. Rising expenses for insurance, servicing, and maintenance have left fleet budgets under strain. Mark Holland, Operations Director at ATS Euromaster, advises fleets to adopt a proactive approach to inspections and SMR planning:
"Inflationary pressures are driving up labour and material costs, making SMR more expensive. However, sacrificing safety for reduced spend is not the answer."
Decarbonising Existing Fleets
While EVs dominate the sustainability narrative, many businesses are still operating ICE fleets. Paul Holland, Managing Director of Corpay, stresses the need for businesses to focus on reducing emissions from existing vehicles:
"The scales will eventually tip in favour of EVs, but in the meantime, efficient driving, fuel management, and better route planning are crucial to minimising environmental impact."
Infrastructure and Technology Integration
The rapid development of EV charging infrastructure is another key priority for 2025. Adam Rodgers, UK and Ireland Country Director at Easee, highlights government mandates for 99% reliability of rapid chargers and 24/7 helplines as critical steps:
"These measures will provide much-needed confidence for fleets travelling through regions with limited charging options. The second-hand EV market's growth will also make electrification more viable for smaller fleets."
Natasha Fry, Head of Sales at Mer Fleet Services, predicts significant advances in charging technology, with smart charging and dynamic load balancing set to simplify EV fleet operations.
Collaboration and Leadership
Experts agree that collaboration between fleet managers, policymakers, and technology providers is essential to overcoming the challenges of 2025. Clear government direction on the ZEV mandate and targeted investment in infrastructure will play a pivotal role in accelerating the transition to a sustainable future.
As Richard Evans, Sales Director at Jaama, puts it:
"Fleets must embrace technology and data integration to reduce risks, achieve compliance, and boost efficiency. Solutions that seamlessly integrate apps and platforms will be vital for success."
What are the biggest challenges for fleets in 2025?
What opportunities lie ahead?
What is the role of government?
Experts call for clear policies on ZEV mandates, better incentives for EV adoption, and significant investment in charging infrastructure to support the transition.