The transport technology sector is entering 2026 with measured optimism. A new State of the Industry survey from Intelligent Transport Systems UK (ITS UK) highlights confidence in growth, while underlining funding constraints and economic uncertainty as significant risks to progress.
Drawing responses from more than 200 senior leaders across public and private organisations of varying sizes, the survey provides insight into how transport technology is expected to shape future infrastructure and construction programmes. Overall, 62% of respondents reported being either “really” or “quite” confident about sector growth over the next year. Confidence was stronger within the private sector, at 65%, compared with 58% in the public sector, reflecting differences in investment flexibility and market exposure.
Despite this confidence, access to funding and the wider economic climate were identified as the most significant barriers to growth. This concern was consistent across organisational types and sizes, reinforcing ongoing challenges for digital infrastructure, smart transport systems, and construction-led innovation projects that rely on long-term capital commitment.
Public sector respondents most frequently highlighted integrating different modes of transport as the key opportunity for the year ahead. This aligns closely with digital construction priorities such as interoperable data platforms, connected infrastructure, and whole-life asset management. Private sector respondents, meanwhile, pointed to artificial intelligence and automation, alongside the continued digitalisation of transport services, as major drivers of innovation and efficiency.
Confident about future growth
Max Sugarman, Chief Executive of Intelligent Transport Systems 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.”
He added: “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.”
For the digital construction sector, these findings underline the importance of sustained investment in transport technology as a foundation for integrated, data-led infrastructure delivery.
Overall, the survey indicates resilient growth potential, provided sustained investment, supportive policy, and recognition of transport technology as essential digital infrastructure for construction, mobility integration, and stability.
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