The UK’s transport technology sector contributes £3.2bn in economic value to the national economy, more than double previous estimates, according to a new study commissioned by Intelligent Transport Systems UK and carried out by Capital Economics.
The report provides what the organisations describe as the most comprehensive assessment to date of the intelligent transport systems (ITS) industry’s economic footprint. It finds that the sector generates £3.2bn in gross value added (GVA), significantly higher than ITS UK’s earlier £1.5bn estimate.
In addition to its overall economic contribution, the study shows the sector supports around 45,000 jobs across the UK. Roles within the ITS industry are also found to be highly productive, with the average job contributing £73,600 in GVA per year, compared with a UK-wide average of £67,000. The sector is also responsible for £510m in annual tax revenues.
Beyond direct economic output, the report highlights the wider catalytic impacts of transport technology. It points to the role of ITS in improving road safety, increasing network efficiency and delivering environmental benefits, positioning the sector as an enabler of broader transport and sustainability objectives.
Max Sugarman, chief executive of ITS UK, said: “This new research provides robust, independent evidence of the scale, value and impact of the UK’s transport technology industry. It highlights a sector of clear strategic importance to the national economy, supporting £3.2bn in economic value, 45,000 jobs, and generating £500m in tax revenue.
“At a time when Government is focused on driving economic growth, boosting productivity, and harnessing technologies such as automation and AI, it is vital that ITS is recognised as a national priority sector. Beyond its economic contribution, our industry plays a critical role in delivering a smarter, safer and cleaner transport network for the UK,” Sugarman continued.
Andrew Evans, deputy chief economist at Capital Economics, added: “Economic output related to intelligent transport systems spans across different types of activity, organisation and industry, which means it has traditionally not been well defined by official statistics. We are delighted to address this through this report, which quantifies the significant impact of the ITS sector for the first time.”
