Survey suggests transport technology sector is double the size of previous estimates

by Kevin Borras

A new economic study has suggested that the transport technology sector is delivering £3.2 billion in economic value, more than double the size of previous estimates.

The report, commissioned by ITS UK and authored by leading consultancy Capital Economics, paints the picture of a highly productive and growing sector of strategic value to the UK.

The report reveals that the sector:

Delivers £3.2 billion in economic value (GVA), more than double ITS UK’s previous estimate of £1.5 billion;
Supports 45,000 jobs with roles being highly productive. The average ITS job contributes £73,600 in GVA, compared to the UK average of £67k per year.
Provides £510 million in in tax revenue

As well as estimating the economic contribution, the report highlights how the sector has wider catalytic impacts on transport including by improving safety, enhancing network efficiency and delivering environmental benefits.

Speaking on the findings of the study, 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 £3.2 billion in economic value, 45,000 jobs, and generating £500 million 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.”

Deputy Chief Economist at Capital Economics, Andrew Evans said:

“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.”

(Picture: Paul Hutton/Highways News)