Cyber security and AI are investment priorities for logistics firms, new report reveals

The Logistics Investment Insight Report 2026 reveals that almost eight out of ten businesses from the industry are spending more on technology compared to last year and seven out of ten expect further expenditure increases next year.

More than 77% of respondents reported a greater spend on technology in 2026 compared to last year, with cybersecurity, AI and software modernisation now the three biggest technology priorities.

Investment in the area is expected to continue, with 70% of respondents expecting further increases next year. 

Overall investment levels for more than nine out of ten businesses across the supply chain are also expected to be the same or higher next year, the research found.

However, this positive outlook is tempered by growing concerns about taxation and regulation, the report warns.

Drawing on insights from more than 100 senior executives within logistics companies in the UK, the report reveals a sector in which technology investment is considered “non-discretionary” as businesses respond to the need to increase efficiency while managing growing cyber threats.

Phil Roe, Logistics UK president, said: “Technology adoption in freight and logistics has long been a means of gaining competitive advantage and now technology investment is a means to provide operational resilience as well.

“Our research reflects that technology priorities are heavily skewed towards modernising and protecting core operations, with AI and cyber security now firmly mainstream.”

 When asked which technology applications they were currently prioritising, more than one in five respondents cited cyber security (20.9%), AI (20.5%) and software upgrades (20.5%).

According to the report, this signals an environment where operational disruption risk is rising owing to the threat of cyber-attacks, necessitating increased resilience, and firms believe competitive advantage is increasingly driven by data, automation and decision speed. 

The analysis also reveals a broad consensus among respondents for the need for improved transport infrastructure across road, rail, ports and airports.

Roe said: “Logistics is only as efficient as the network it runs on, and businesses are urging the government to invest in the national infrastructure that will allow them to increase their efficiency and help drive growth across the whole economy.

“This includes creating the environment that will facilitate decarbonisation across logistics: the report reiterates what our members continue to tell us, namely decarbonisation is now more of an infrastructure challenge than a vehicle challenge.

“The sector is prepared to invest in cleaner electric fleets but can only do so when there is a well-developed charging infrastructure that doesn’t restrict operations and compromise commercial viability.” 

Meanwhile, tax rises are seen as the biggest threat to logistics investment, according to the report, with more than half of respondents saying tax policy is making them less likely to invest with respondents highlighting concerns around operating costs, fuel duty and employment taxes. 

The report posits that investment is the lifeblood of both innovation and growth but notes that confidence, rather than capital availability, is the main barrier to investment.

According to the report, most respondents (70.4%) say securing financial support is straightforward or easy, yet 70.5% have delayed or deferred planned projects during the past 18 months.

Uncertainty over business growth (19.8%) and government policy (16.3%) are the key reasons cited why investment plans were shelved and only 2% said it was very difficult to secure finance and almost half (45%) believed their finance provider could add strategic value. 

Robert Brand, HSBC UK sector head of business services, said, “Logistics businesses are making technology investment a strategic priority, with AI, cyber security and software modernisation now central to how firms build resilience and drive productivity.

“Investment appetite across the sector remains strong, even against a backdrop of global volatility. The sector’s evolution is helping to modernise logistics and support growth across the UK economy.” 

“Logistics businesses are making technology investment a strategic priority, with AI, cybersecurity and software modernisation now central to how firms build resilience and drive productivity.

“The sector’s willingness to invest is clear, but confidence is being held back by uncertainty around taxation, regulation and future policy.

“With the right policy environment and infrastructure in place, logistics can continue to modernise, decarbonise and play a vital role in supporting growth across the whole UK economy.”

More information about the report can be found here.