As we look ahead to the next three years, fleet managers are poised to navigate a landscape marked by significant challenges and opportunities. The Arval Mobility Observatory’s Fleet and Mobility Barometer 2025 (“The Barometer”) highlights three main areas of fleet and mobility transformation, based on the main challenges and drivers expressed by the 8,061 company fleet and mobility stakeholders in 28 countries. The three main areas are environmental sustainability, cost efficiency, and employee satisfaction.
Environmental sustainability: electrification and charging strategies
Environmental sustainability is tightly linked to fleet electrification, and companies are investing in the development of charging strategies. According to the report, 85% of companies interviewed have a charging policy or plan to have one in the future.
One of the foremost challenges for fleet managers is the implementation of alternative energy technologies, with 34% citing this as a top obstacle in the coming three years. Additionally, 31% of companies view adapting to restrictive public policies on Internal Combustion Engines (ICE) as a significant challenge. To comply with these regulations, companies are increasingly turning to alternative energy technologies and setting decarbonisation goals.
The transition to electrified fleets is driven by environmental concerns, regulatory pressures, and the need to reduce fuel expenses while enhancing company image. However, the speed of electrification differs between passenger cars and light commercial vehicles (LCVs).
Passenger cars: 69% of companies are already using or considering using at least one alternative energy technology (Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, or Hybrid Electric Vehicles) in the next three years, with Europe leading at 75%, while Latin America lags at 42%.
LCVs: 9% of companies are already using and 12% are considering using an electric LCV (eLCV) in the next three years. However, fleet managers are becoming less optimistic, as consideration for eLCVs has dropped from 15% (2024) to 12% (2025).
Fleet and mobility stakeholders expect 17% of their fleets to be BEVs (20% in Europe) and 10% to be eLCVs (12% in Europe) within the next three years. However, barriers remain, primarily the lack of charging infrastructure and high purchase costs.
To address these issues, companies are developing comprehensive charging strategies:
- 85% of companies have a charging policy or plan to have one.
- 55% have installed or plan to install charging points at company premises.
- 50% support or plan to support company car drivers for home charging installation, with 98% providing full or partial financial support.
Additionally, 13% of companies have set targeted decarbonisation goals, with 26% currently evaluating such goals. Among these companies, 56% consider employee mobility as a moderate to significant contributor to their decarbonisation targets.
Cost efficiency: managing rising total cost of ownership (TCO)
Cost efficiency remains a top priority for fleet managers, with 41% of companies already including second-hand vehicles in their fleets.
Mitigating rising TCO has become a critical concern, with 31% of companies identifying it as a major challenge. This is particularly pronounced in Latin America (43%) and North America (49%), where economic conditions have increased operational costs. While the concern is also present in Europe (27%), it is less pressing compared to other regions.
To combat rising costs, companies are exploring various financing methods:
- Full-service leasing remains popular, with 27% of companies using it as their main financing method.
- 37% of companies plan to introduce or increase the use of full-service leasing in the next three years.
Additionally, 41% of companies are already integrating second-hand vehicles into their fleets, with another 43% planning to do so in the next three years. While adoption rates are consistent across regions, North America reports a higher usage rate (48%).
Despite cost concerns, optimism remains high. The report shows that 91% of companies expect their fleets to remain stable or grow in the next three years, with 27% expecting growth. This optimism is fuelled by business expansion and HR-related needs, particularly in North America and Europe.
Employee satisfaction: the growing role of HR in mobility strategies
Companies are increasingly positioning employees at the centre of fleet and mobility transformation, with 45% of companies citing HR needs—such as talent acquisition and employee retention—as primary reasons for developing mobility policies and solutions.
Employee satisfaction is also shaping corporate mobility strategies, with 32% of companies identifying responsible driving promotion as a major challenge. As a response, telematics and connected vehicle technologies are gaining traction:
- 40% of companies have adopted telematics tools.
- However, only 15% of fleet managers currently use telematics data, while 47% plan to start using it within the next three years.
- The primary uses of telematics data include vehicle security (36%), driver behaviour and safety (32%), and operational efficiency improvement (27%).
Mobility solutions are also becoming more prevalent, driven by HR-related needs and environmental concerns. The report finds that:
- 79% of companies are using or considering implementing mobility policies within the next three years.
- 60% are using or considering mobility solutions within the same period.
Among mobility solutions, car sharing is the most popular (23% usage and consideration). There is also growing interest in bike leasing, with adoption expected to rise from 4% today to 8% within three years.
Mobility policies such as public transport expense reimbursement (20%), car or cash allowance (17%), and short/mid-term rental vehicles (17%) are widely implemented. These policies and solutions contribute to overall mobility efficiency and sustainability while addressing employee needs.
Oana Duma, Head of Arval Mobility Observatory, summarises the findings:
“The Arval Mobility Observatory’s Fleet and Mobility Barometer 2025 underscores the critical need for a balanced approach to fleet and mobility management, addressing environmental, economic, and employee-related challenges.
“While the transition to electrified fleets faces obstacles such as charging infrastructure and purchase prices, these challenges also present opportunities for innovation and growth. Companies are developing charging strategies and exploring cost-efficient financing methods, such as full-service leasing and incorporating second-hand vehicles into their fleets. Additionally, the focus on employee mobility policies and solutions not only addresses HR needs but also contributes to overall fleet efficiency and sustainability. By leveraging telematics and connected vehicle technologies, companies can promote safer driving practices, reduce accidents, and enhance operational efficiency.
“Ultimately, the Barometer 2025 emphasises that by transforming these challenges into catalysts for change, companies can successfully navigate the future of fleet and mobility management,” she concluded.
The findings of Arval Mobility Observatory’s Fleet and Mobility Barometer 2025 highlight that environmental sustainability, cost efficiency, and employee satisfaction are interwoven drivers of transformation. Companies that integrate these elements into their fleet strategies will be better positioned to thrive in the evolving mobility landscape of the future.
