A new economic study commissioned by Intelligent Transport Systems (ITS) UK has reported that the transport technology sector is delivering £3.2bn in economic value every year, over double the size of previous estimates.

The report 'estimated the size and contribution of the ITS sector based on revenues specifically linked to intelligent transport systems activities' and found that in total, 'a conservative estimate of revenues related to intelligent transport systems is £3.1 billion in 2024'.

This is almost double the figure of £1.5bn that ITS UK estimated the sector generated in 2019. This appears to be far above inflation, which the Bank of England's inflation calculator suggests would have increased the value only to £1.9bn.

Authored by consultancy Capital Economics, the report argues the industry is highly productive, growing and ‘of strategic value' to the UK.

It reveals that the sector:

  • Delivers £3.2bn in gross value added (GVA), over double ITS UK's previous estimate of £1.5bn
  • Supports 45,000 jobs with roles being highly productive, with an average ITS job contributing £73,600 in GVA, higher than the UK average of £67k per year
  • Provides £510m in tax revenue.

The report not only estimated the economic value of the sector, but also highlights how it has ‘wider catalytic impacts' on transport by improving safety, enhancing the efficiency of the network and delivering ‘environmental benefits'.

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.'

He concluded: 'If the UK is to maintain its leadership in transport innovation, we must improve how we define, support and champion sectors like ours.'

Deputy chief economist at Capital Economics, Andrew Evans, 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.'

The full report can be found here.