Technology investment in logistics ‘continues at pace’
The Logistics Report 2026, produced by Logistics UK, combines the latest official statistics with insight from industry experts and shows how development and adoption of technology throughout the logistics sector is on the rise.
LOGISTICS BUSINESSES are prioritising technology and innovation investment that support operational efficiency, cost control and the transition to lower-emission operations. 64.3% of respondents indicated an intention to invest in vehicle technologies, reflecting the adoption of cleaner vehicles. Investment plans also reflect the importance of data and digital transformation with significant proportions of respondents expecting to invest in fleet management data systems (57.4%); transport planning and route optimisation technologies (50.7%) and data systems for order processing, inventory management and overall supply chain control (52%).
Technology is also enabling the sector to transition to low carbon operations and investment in alternative fuels is led primarily by battery electric vehicles, with 66.4% of respondents reporting investment in electrification. The report also reflects the importance of hydrotreated vegetable oil (HVO) with 41.8% of respondents adopting the technology, with the report suggesting this is likely because the fuel reduces carbon emissions significantly and can often be used in existing diesel engines without major vehicle modifications.
Major charging hubs have opened in key strategic locations in the East Midlands and Tilbury. Electric HGVs have also travelled into continental Europe through the Channel Tunnel for the first time demonstrating that range anxiety will soon be a thing of the past for eHGVs.
Logistics UK chief executive Ben Fletcher said: “The industry is making significant investment in decarbonisation.Ensuring operational requirements can be met will always be the main consideration for logistics operators implementing their decarbonisation strategies, and Logistics UK has consistently been calling for a fair decarbonisation transition, supported by action to tackle grid connection delays, regulatory burdens and the high cost of low carbon fuels.
“The efficiency of logistics operators can often mean their work goes unseen, but the sector’s ability to thrive and continue powering the economy is by no means guaranteed. Yet with the right policy framework, sustained public and private investment and closer partnership between government and industry, logistics has the capacity to be a powerful catalyst for growth and resilience across the whole economy.
“With the sector increasing its annual GVA contribution to £175 billion, it is clear that logistics is the engine room of the UK economy. Nothing moves without logistics and it is our sector that works round the clock finding solutions to disruptions in the supply chain, however big or small, so businesses and consumers can get on with their lives as normal.”
A summary of The Logistics Report 2026 and details of how to obtain the full report can be found here: The Logistics Report 2026
