£1m boost for HGV innovation technologies

Funding is being made available to explore ways to solve challenges within the freight and logistics industry. 

The UK government is provide £1.1 million in funding to help businesses trial technologies ranging from aerodynamic trailers to software that can identify stress in staff.

The funding is made available through the government’s Freight Innovation Fund, which aims to tackle challenges in the freight sector ranging from decarbonisation and wastage to efficiency and upskilling of staff.

Funding of up to £130,000 will be paid out to nine small and medium-sized firms. The money will go towards testing and trialling their new technologies, with support from key players in the sector.

See all the Freight Innovation Fund winning projects

Technology to be trialled includes lightweight trailers inspired by the aerodynamics of racing cars, sensors designed to improve the well-being of staff working at ports, as well as environmentally-friendly electric trailers, which can be pulled along by bikes rather than cars or vans.

All of these innovative projects will be tested in real-world environments, creating a pipeline of future technologies, which could prove vital to keeping the British economy moving.

Aviation, maritime and decarbonisation minister Keir Mather said: “We know how crucial the freight industry is to keep Britain moving, and how important it is that transport is equipped to face modern-day challenges. Our funding will allow businesses to start trialling their revolutionary technology on our roads, ports and railways, meaning they can make an immediate difference and help grow the economy.”

Alongside the Freight Innovation Fund, the government is providing additional funding for transport and freight through the Transport Research and Innovation Grants (TRIG) – supporting the development of new technologies to meet challenges within the wider transport sector. Successful TRIG projects could progress on to the Freight Innovation Fund, where they will be tested in realistic environments. This follows the development of a new freight plan to be published in 2026, which will set out ways to build a more efficient and resilient freight and logistics system.

Sameer Savani, managing director for transport at Connected Places Catapult, said: “The freight sector has enormous potential for innovation and that innovation drives economic growth. Since it began in 2023, the Freight Innovation Fund Accelerator has provided expert support and £3.9m of funding to 29 companies, with 27 of those conducting real-world technology trials. The companies supported have so far gone on to secure over £100m of investment and create 44 jobs.”

Cato Davies, co-founder and CEO of Ensemble Analytics – a previous beneficiary of the fund – said: “The Freight Innovation Fund enabled us to work side by side with the teams at Associated British Ports and The Bristol Port Company to refine Athena with real feedback from the people running day-to-day operations.

Cato Davies, co-founder and CEO of Ensemble Analytics – a previous beneficiary of the fund – said: “The Freight Innovation Fund enabled us to work side by side with the teams at Associated British Ports and The Bristol Port Company to refine Athena with real feedback from the people running day-to-day operations. That experience helped us build a flexible workforce management platform that genuinely supports accurate planning, safe staffing and operational confidence for ports. Both partners have since moved to commercial contracts, and the platform’s success has already resulted in new partnerships with further UK operators and with major global operators overseas.”

In response to the funding announcement business group Logistics UK’s deputy director Ben Garratt said: “Logistics businesses are constantly evolving and introducing new technologies, with the safety, sustainability and efficiency benefits of those developments supporting the whole country. The latest round of funding for the Freight Innovation Fund will play a key role in this, enabling innovators to test their solutions in real-world logistics environments, smoothing their introduction across our sector.”