Insights / 2024 key moments and what lies ahead for the HGV industry

2024 key moments and what lies ahead for the HGV industry

The UK’s automotive industry is at a pivotal moment, driven by the urgent need to decarbonise and a wave of technological advancements reshaping the logistics landscape. In 2024, the electric heavy goods vehicles (eHGVs) sector stood out as both a challenge and an opportunity, offering a pathway to dramatically reduce emissions in one of the hardest-to-decarbonise areas of transport.

With a few hundred eHGVs now on UK roads, we’ve seen some progress. However, the sector remains in its infancy compared to over 400,000 diesel-powered trucks (approximately) that dominate the landscape.

In Q3 2024, SMMT reported a 6% decline in diesel-powered HGV registrations compared to the same period in 2023. However, the market's zero-emission vehicle (ZEV) share remains at 0.5%. This starkly contrasts the car market, where ZEVs now represent 18.1%—nearly 40 times higher—despite HGVs having only ten more years to phase out diesel by 2040 (no update from Labour on this date).

However, the year was defined by significant strides in research, infrastructure development, and vehicle innovation. Barriers such as high costs, limited charging infrastructure, and operational challenges now highlight how far the industry still needs to go.

Here’s a recap of 2024’s key moments and what’s to come for the HGV sector:

2024 key moments and what lies ahead for the HGV industry - Hero Image

Driving innovation through research and development

Research and development (R&D) continues to play a critical role in decarbonising the HGV sector, with several groundbreaking projects and innovations emerging in 2024. Manufacturers and technology companies are investing heavily in battery technology, hydrogen fuel cells, and lightweight vehicle materials to overcome the inherent challenges of decarbonising heavy-duty vehicles.

Next-generation battery systems, including solid-state batteries, are among the most promising areas. These offer higher energy density, faster charging times, and longer lifespans than traditional lithium-ion batteries. In July, QuantumScape, a leading solid-state battery technology developer, announced its partnership with PowerCo, Volkswagen Group’s battery company. Together, they’ve begun testing QuantumScape’s prototypes with an end goal to mass-produce battery cells.

Meanwhile, advancements in thermal management systems are also helping to improve the efficiency and safety of battery-electric HGVs.

Hydrogen fuel cell technology has also gained traction as a viable alternative for long-haul operations. Companies like Volvo and Daimler continue to test hydrogen-powered trucks that offer extended range and faster refuelling capabilities. While Toyota announced in July that it joined Coca-Cola and Air Liquide in testing a new hydrogen-fuelled long-haul truck to help further R&D in the category.

A growing charging network and infrastructure

While still in its early stages, the infrastructure to support electric HGVs is developing. Back in 2023, £200 million was allocated by the UK government to further the development of national EV charging infrastructure, including HGV-compatible charging hubs.

Four freight-focused projects are being funded as part of the Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme. This includes GRIDSERVE’s Electric Freightway, which is taking strides to integrate freight-friendly charging solutions into the national EV infrastructure. GRIDSERVE and Hitachi ZeroCarbon published their second report in October, sharing notable advancements, including the adoption of electric HGVs by multiple major fleet operators like Samworth Brothers.

Similarly, the eFREIGHT 2030 consortium is deploying test fleets, establishing 1 MW charging hubs, and creating spaces explicitly designed for electric HGVs. These projects continue to support and build confidence in the future of electrification for businesses.

However, challenges remain in scaling this network fast enough to meet demand. To support the 300 eHGVs currently on UK roads, with more to join, significant investment in high-power, strategically located hubs is needed.

A growing charging network and infrastructure - image 2

Exploring alternative fuels for heavy-duty vehicles

While electric HGVs have taken centre stage in the decarbonisation effort, alternative fuels like hydrogen and biofuels are also gaining traction as potential solutions. Hydrogen fuel cell vehicles, for example, offer the advantage of faster refuelling and longer ranges compared to battery electric options currently available, making them particularly suited for long-haul operations.

Some major players have already invested in hydrogen-powered HGVs. Several pilot projects are also underway in the UK to test hydrogen refuelling stations. Biofuels and synthetic fuels, while not entirely zero-emission, could provide a transitional solution, helping fleets reduce emissions as infrastructure for electric and hydrogen vehicles scales up.

Hydrogen fuel cells are expected to see broader adoption starting as early as 2028, with scaling accelerating by 2035. Solid-state batteries are projected to achieve commercial viability for HGVs between 2030 and 2035. Integrating these technologies will require a dual-focus strategy, ensuring investment in both battery-electric and hydrogen infrastructure is made alongside incentivising research in next-gen fuels.

Prioritising driver wellbeing with smart charging infrastructure

The human element in electrification cannot be ignored, as it presents an opportunity to redesign the ecosystem in which truck drivers operate. Beyond addressing vehicle needs, electrification efforts should consider driver health, convenience, and overall job satisfaction.

Smart charging scheduling has the potential to transform driver wellbeing. By aligning vehicle charging times with mandated rest breaks, drivers can effectively maximise their downtime, without disruption. This integration ensures that drivers recharge their vehicles and their wellbeing.

Future charging hubs can take this a step further by incorporating features like rest areas, fitness zones, nutritious food catering, and relaxing spaces. These hubs could become not just technical refuelling stops but a chance to prioritise driver comfort and wellbeing.

Currently, charging times for eHGVs can range from 1 to 2 hours with a rapid DC charger, depending on battery size and infrastructure. But the reality is that it can take even longer. While we hope for further developments that reduce these wait times, reframing it as an opportunity for drivers to recharge physically and mentally could help improve job satisfaction and safety. By placing drivers at the centre of infrastructure development, the industry can enhance the sustainability of its workforce alongside the vehicles themselves.

Strengthening the sector with collaboration and transparency

The zero-emission transition is not just a technological or financial challenge; it’s also a systemic one. The need for greater transparency, communication, and collaboration among stakeholders in the HGV ecosystem has become increasingly evident. Comparatively, these are the same issues the EV market has struggled with and is still working to overcome. At Drax, we work to support organisations across the UK with electrification strategies. From this, we know communication’s key to reliable and future-proofed decisions.

Our 2024 Driving Change report found a significant knowledge gap within the industry regarding EV adoption and a perceived lack of support. Many prospective adopters said that a lack of information added to their fear of commitment. We want to encourage more conversations extending to the trucking sector to extinguish any anxieties.

Fleet operators, manufacturers, infrastructure developers, and policymakers must collaborate to ensure a smooth transition. Clear, transparent communication about challenges – like infrastructure readiness, vehicle availability, and operational costs – can help build trust and enable better decision-making at every level.

The Zero Emission Freight Taskforce in Scotland highlights the value of cross-sector dialogue, and the rest of the UK could benefit from bringing together key market players. These platforms build the collaboration needed to align infrastructure planning, funding allocation, and technology rollouts with the industry’s real-world needs.

Preparation for the road ahead is critical

The future of zero-emission HGVs represents an unparalleled opportunity to achieve both environmental goals and economic growth. Supported by progressive policies, technological innovation, and targeted infrastructure investment, the path to zero-emission logistics is becoming clearer.

Yet, the road ahead demands collaboration across the public and private sectors. Integrating alternative fuels, accelerating relevant charging network rollouts, and a concerted focus on driver wellbeing are all important factors for an innovative transition.

By 2040, the goal of a fully zero-emission HGV sector is ambitious, and we could see some further recognition of this by the government in the next few years. However, with the right strategies, the UK will continue to make strong strides in the transition and set examples for other markets to follow.

Related articles