A new survey published by Intelligent Transport Systems UK (ITS UK) found that the transport technology sector is cautiously optimistic as we enter the new year, despite concerns about funding and the wider economic climate.

Taking the views of over 200 senior leaders, the survey found that confidence in the industry's growth ‘remains strong', with 62% of respondents either ‘really' or ‘quite' confident in growth in 2026.

ITS UK also noted that this confidence was stronger in respondents from the private sector (65%) compared to those from the public sector (58%).

Respondents identified access to funding and the general economic climate as the biggest barriers to growth - a picture that was consistent across public and private organisations and all business sizes.

Those working in the public sector identified integrating different modes of transport as the largest 'opportunity' for 2026 (33%). This was not the view of those in the private sector however: those respondents felt that the growth of artificial intelligence (AI) and automation (27%) and the digitisation of transport services (23%) held the most promise in the coming year.

Max Sugarman, chief executive of ITS UK, said: ‘As we begin the year, the results of our State of the Industry survey show that organisations across the transport technology sector are generally confident about future growth. That confidence is being driven by the opportunities created by digitalisation, AI and greater integration across transport networks.

'This is hugely positive and demonstrates a sector that is ready to support the Government's priorities on integration, safety and sustainability.

‘However, the survey also highlights a clear and shared concern around funding and the wider economic climate. With ongoing uncertainty in the economy, and particularly the pressures facing local authority budgets, it is critical that we continue to back our intelligent transport industry and that we treat transport technology as a critical sector of strategic importance to the UK.'

Full results of the ITS UK ‘State of the Industry' Survey can be found here.