Europe is gaining prominence as a fleet management market, marked by technologically advanced vehicles equipped with factory-installed fleet management solutions. The robust growth in Europe's transportation and logistics sector is anticipated to drive substantial expansion in the fleet management market, fueled by government mandates on hardware use.
According to BIS Research, the Europe fleet management market (excluding the U.K.) is projected to reach $4.71 billion by 2031 from $0.968 billion in 2022, growing at a CAGR of 19.22% during the forecast period 2022-2031.
The digitization of commercial vehicles is recognized as a pivotal factor driving the European fleet management market. Fleet management systems are vital in organizing and presenting the data generated through this digitization. According to a report from "The European Automobile Manufacturers' Association," there was a 9.6% surge in European Union commercial vehicle sales in 2021. This number, combined with the increasing adoption of fleet management hardware, is anticipated to impact the Europe fleet management market's growth substantially.
On 2nd November 2023, Volkswagen Group announced its subsidiary, Elli, is introducing an innovative solution tailored for electric vehicle (EV) fleets across Europe. Branded as Elli Fleet Charging, this system enables companies in Germany, Italy, Spain, and Austria to efficiently manage and optimize the costs of charging their electric fleets. Having undergone a market introduction phase spanning several months, over 650 German companies and fleet managers are already successfully leveraging Elli's product.
Moreover, the integration of electric vehicles into European fleets is steadily increasing, with one in seven company fleet cars already fully or partially electric— a notably higher ratio than that observed in the global population. This upward trend is propelled by the urgent need to decrease carbon emissions and comply with evolving legal regulations. As a result, effectively managing the charging of electric fleets is becoming progressively essential for companies.
Giovanni Palazzo, CEO and SVP of Volkswagen Group Charging & Energy at Elli, emphasizes the unique challenges of electric fleet management compared to traditional fleet management. He said, "Electric fleet management differs from classic fleet management because company car drivers aren't just charging on the road. Companies need a solution that has an integrated multi-national billing system that covers all types of charging cases, from the public fast charging station to the private home charger with a Measuring Instruments Directive (MID) energy meter. Elli offers turnkey software and hardware solutions that completely cover this use case."
Elli Fleet Charging ensures efficient and cost-effective fleet management. It also alleviates the administrative burden for both employers and employees. The Fleet Management Console provides complete cost transparency and real-time visibility, empowering companies to seamlessly monitor and optimize their electric fleet charging operations.
Elli's effective fleet charging allows company car drivers to charge at various locations, including public charging stations, via an app or Radio Frequency Identification (RFID) card, simplifying payment and billing processes. Moreover, the software efficiently handles home charging, integrating a digital reimbursement system. Coupled with the smart Elli Charger Pro, the software automates and documents the reimbursement of charging costs. Elli also extends its support by offering installation and maintenance services for home chargers through its experienced partner, ChargeGuru.
In an expansion of services scheduled for April 2024, Elli Fleet Charging will encompass at-work charging solutions, providing planning, installation, and maintenance options for standard and fast-charging stations on company premises. Following the imminent launch in Italy, Spain, and Austria, Elli plans to roll out its fleet charging solution in other European countries in the coming months.
Elli can be envisioned as a pivotal player in the European mobility service landscape, striving to ensure a seamless charging experience to decarbonize society for future generations. The vision is to position Elli as a premier international charging and energy provider, contributing significantly to the evolution of sustainable and eco-friendly mobility solutions.
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