Only 38% of UK operators use alternative fuel vehicles, GXO finds

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Only 38% of UK transport operators surveyed are currently using alternative fuel vehicles, despite widespread efforts to reduce emissions, according to new research from GXO Logistics.

The company’s latest Future of Transport report, published on 14 October 2026, surveyed more than 1,000 supply chain, transport and logistics decision-makers across the United Kingdom.

The findings show that 87% of respondents consider emissions reduction a key priority. However, rising operating costs are increasingly influencing decisions about fleet investment.

Some 63% said higher fuel costs are accelerating their interest in alternative fuel vehicles, while 76% believe that demonstrating cost savings or operational efficiencies is essential before committing to new investments.


Operators focus on immediate cost savings

High vehicle purchase costs, limited infrastructure and uncertainty over future fuel technologies continue to slow the transition.

Instead, many businesses are focusing on improving the efficiency of their existing transport operations.

According to the survey, 43% of respondents are reducing partially loaded journeys, while 41% are working to cut empty vehicle movements. Another 41% are exploring fleet sharing, and 39% are optimising delivery routes.

All four measures have become more common since GXO’s previous survey in 2024.

Investment in supporting infrastructure also remains limited. Only 25% of businesses have started planning investments in charging or refuelling facilities, while 30% have begun procurement planning for future energy requirements.

Multiple fuel technologies expected to play a role

The research suggests that UK logistics businesses do not expect a single technology to replace diesel across all transport operations.

Around 70% of respondents believe gas-powered fleets using LNG or CNG could become a viable option by 2028. Electric heavy goods vehicles followed at 68%, with biofuels at 64% and hydrogen at 62%.

These figures reflect industry expectations rather than confirmed adoption plans.

“Decarbonisation and commercial performance cannot be treated as competing priorities,” said Carl Hanson, Managing Director, Transport, GXO UK & Ireland.

GXO is also participating in the UK’s Zero Emission HGV and Infrastructure Demonstrator programme, which supports the deployment of electric trucks and associated charging infrastructure.

The report highlights the gap between emissions targets and current fleet investment, with operators seeking more affordable and practical ways to reduce transport costs while preparing for lower-emission technologies.