UK TRANSPORT INDUSTRY COULD GET £1.4BN BONANZA IF IT EMBRACES CHANGE – TSC
The UK needs to change its approach to transport investment to capture the economic and social benefits of emerging transport innovations in Connected and Autonomous Transport, New Mobility Services and Open Data, according to the Transport Systems Catapult.
New research from the TSC and Deloitte shows the “Intelligent Mobility” industry, which encompasses these technologies, could be worth £1.4 trillion globally by 2030.
Growth in the Intelligent Mobility industry is projected to be significantly higher than the transport sector as-a-whole, and promises faster journeys, smart ticketing and hassle-free journey planning – without building new roads and railways or adding more vehicles. This is because the new market builds on existing infrastructure, maximising the use of existing capacity and providing new benefits to customers, rather than being part of the established supply chain.
The TSC identified several areas where the UK has a strong opportunity to make an impact. The largest global opportunity lies in Connected and Autonomous Transport, rather than traditional cars. The fastest growth lies in New Mobility Services (such as ride hailing and smart ticketing) and the UK is currently strongest in using Open Data to improve transport.
Current investment into R&D in the UK is dominated by traditional products and infrastructure investment – only 24% of investment goes into new services. The TSC is recommending a shift in investment models, which allow innovation focused on services across transport types such as road, rail and private hire, alongside traditional up-front infrastructure expenditure.
Transport Systems Catapult CEO Paul Campion said, “Innovation in the transport sector is driving growth, encouraging a new breed of transport start-ups and changing the business model for large established multi-nationals. Autonomous vehicles might be the poster-child for this revolution, but it is data that is driving many of these developments, allowing rapid progress across the sector and new methods of delivering transport services. The UK is well placed to capitalise on the huge market potential this brings. But, we must invest now in the right areas to ensure we can compete in this market before other countries take the lead.”