Top 5 Fleet Electrification Trends to Watch in 2026

Two years ago at NTEA’s Work Truck Week, electric vehicles dominated the conversation. Every OEM touted its electrification solutions. The message was clear: the future is all-electric, and it’s happening now.

Fast-forward to today and the picture looks different.

“It’s clear the EV market is not where it was just two years ago,” said Jeremy Dewey, manager of energy and fuel for Holman (www.holman.com), who has spent the past four and a half years focused solely on electrification strategy. “The market has matured in a lot of ways, but it has also become quite a bit more complex. What we’re seeing now is fewer blanket proclamations and more disciplined decision-making.”

That complexity – driven by shifting regulations, infrastructure challenges and evolving fleet needs – is reshaping how fleets approach electrification.

So, as you plan for 2026, here are the five key trends to keep on your radar.

1. Fleets temper all-electric ambitions with more strategic approaches.
The days of all-or-nothing thinking are over. Fleets are moving away from pure electric strategies toward what Dewey calls “going smart.”

“The smart move isn’t just about going electric. It’s really about letting the data guide your decision,” Dewey explained. “The future of fleet electrification or fleets in general isn’t a binary choice anymore. It’s blended, it’s strategic, it’s regional, whichever fuel type makes the most sense for each use case.”

This shift reflects a more mature understanding of fleet operations. Not every vehicle can – or should – go electric. Success depends on factors like vehicle type, daily mileage, domicile location and infrastructure availability. Savvy fleet managers are using data to determine the right fuel type for each application rather than forcing a one-size-fits-all solution.

2. Electric work trucks and medium-duty options finally arrive at a larger scale.
There’s good news for fleets looking beyond sedans and light-duty pickups: the market is finally delivering.

“We’re finally starting to see more electric work trucks, vans, and medium- and heavy-duty units hit the market, which is a game changer for fleets that have a desire for that type of application,” Dewey said.

The expanding options mean more utility fleets can find EVs suited to their specific needs. However, order-to-delivery times vary significantly. Some manufacturers are delivering production units on schedules comparable to traditional vehicles. But others are still ramping up capacity after securing pre-production orders.

The key takeaway? If you’re considering EVs for 2026, start conversations with OEMs early to understand realistic delivery timelines for your applications.

3. Infrastructure lags, but smart charging offers new revenue streams.
Infrastructure remains one of the biggest hurdles to widespread fleet electrification. Grid strain, permitting delays and site planning challenges continue to slow deployment.

But there’s a silver lining in emerging technologies like vehicle-to-grid (V2G) and smart charging systems.

V2G technology allows idle EVs to send stored energy back to the grid during peak demand periods, helping stabilize the grid while potentially generating revenue for fleet operators. Dewey explained that there is an opportunity to monetize some of the back and forth of that energy by selling it “back to the grid at times where prices are high” and recovering “that energy and recharge when demand is low and prices are low.”

Additionally, fleets can participate in demand-response programs and receive compensation from utilities for agreeing not to charge vehicles during peak demand periods. These programs are still in early stages but represent a meaningful opportunity to offset high vehicle costs.

The challenge? Working with utilities takes time, and these programs aren’t yet widely advertised or standardized. But for large fleets, the potential savings make them worth exploring now.

4. Shifting incentives and regulations require fleet flexibility.
The regulatory landscape continues to evolve – sometimes daily, it seems.

Federal incentives are changing, U.S. Environmental Protection Agency standards for 2027 remain under review, and state mandates vary widely. In California, the Advanced Clean Fleets rule has been pulled back somewhat, and incentives that once made EVs pencil out for many fleets have dried up or disappeared.

“When incentives either dry up rapidly or are gone entirely, the business equation for fleets shifts, and you’ve got to be ready for that,” Dewey noted.

The implication for fleet managers is clear: stay informed and remain flexible. Build electrification strategies that can adapt to policy changes rather than betting everything on specific incentive programs that may not last.

5. Hybrids outpace pure EVs as bridge technology.
Perhaps the biggest surprise in the electrification landscape? Hybrids are back in a big way.

“Hybrids have taken off quite steeply relative to just battery electric over the past year,” Dewey said.

For fleets not ready to go fully electric, hybrids offer a practical bridge. They don’t require massive infrastructure investments, and they reduce grid demand and deliver immediate operational benefits.

But there’s a catch: to realize the full value of plug-in hybrids, drivers must actually plug them in and use them as intended. Too many fleets adopt hybrids only to watch drivers run on gas the entire time, negating the emissions and cost benefits.

The solution? Data and alerts.

“It’s a lot about what and where you can get data from to enforce proper behavior on the driver side,” Dewey said.

At Holman, they’ve built systems to monitor charging activity through telematics, alerting fleet managers when vehicles aren’t being used as expected.

Looking Ahead
If Dewey had to forecast one major headline that we’ll be discussing a year from now, it would be this: “Hybrids Leading the Charge as Fleets Pivot to Transitional Electrification.”

“They’re growing faster than BEVs and offering immediate operational benefits without the need to build out a large infrastructure project,” he explained.

How long will hybrids serve as that bridge? It’s hard to say. The answer depends on the political winds, state-led regulatory changes and advancements in alternative fuels like hydrogen. But for now, hybrids may have more staying power than many predicted a couple of years ago.