The latest ITS Market Radar report from ERTICO offers a comprehensive overview of ITS across three sectors: suppliers, vehicle manufacturers and the connectivity industries.
The third edition builds upon the previous editions – 2024 and 2025 – to completes ERTICO’s panoramic assessment of the wider mobility and transport ecosystem. It brings together market insights, regulatory developments, technological trends and deployment perspectives to help guide public and private stakeholders in understanding the transformations of Europe’s mobility landscape.
ERTICO said the Radar Report is a snapshot of an industry in transition, driven by digitalisation, automation, electrification and sustainability imperatives. ITS technologies are rapidly redefining how vehicles, infrastructure and digital networks interact.
At the policy level, the report outlines major EU developments that are accelerating ITS deployment, ranging from the Industrial Action Plan and the Digital Decade initiatives to new automotive regulations, the AI Act and the European Mobility Data Space. Together, these frameworks aim to harmonise standards, strengthen digital sovereignty and enable safer, more sustainable mobility services across the continent.
“The third edition of the ITS Market Radar shows that Europe’s mobility transformation is no longer driven by individual technologies but by the convergence of software-defined vehicles, advanced connectivity and data-driven ecosystems,” said Joost Vantomme, ERTICO chief executive.
“What clearly emerges is that deployment will depend on stronger coordination between industry sectors, supportive EU frameworks and the ability to scale trusted digital infrastructure. By bringing together insights from suppliers, vehicle manufacturers and the connectivity industry, this report helps our community understand where the real momentum lies – and where collaboration is needed most to turn innovation into operational intelligent mobility across Europe,” said Vantomme.
Suppliers are transitioning from hardware manufacturers to software-driven system integrators, suppliers are increasingly central to advanced vehicle architectures, AI-based systems, and cybersecurity by design. Their role is expanding as vehicles evolve into high-performance, software-defined platforms.
Vehicle manufacturers – OEMs – are now full system orchestrators, integrating automation, connectivity, V2X capabilities and over-the-air updates into next-generation vehicles. The report notes rapid progress in Level 2+ automation, strategic moves toward Level 3 and targeted Level 4 deployments in freight and urban mobility.
Meanwhile, telecommunications and network providers – the connectivity industry – are becoming the backbone of ITS, enabling real-time vehicle-to-vehicle, vehicle-to-infrastructure and cloud services. The report highlights 5G/6G evolution, edge computing, digital twins, and the urgent need for EU-wide V2X mandates.
The ITS Market Radar identifies several transformative trends gaining momentum across the three analysed sectors. These trends reflect a collective move towards a seamlessly connected, intelligent mobility ecosystem:
– Cybersecurity by design and trusted data sharing;
– Software-defined vehicles (SDV) and centralised computing;
– Automation pathways (L2+, L3, targeted L4);
– Vehicle-to-everything (V2X) communication and interoperability;
– AI-enabled predictive systems and digital twins;
– Cloud/edge architecture for real-time mobility operations;
– EV charging, electrification scalability and sustainability-driven innovation;
– Human capital under pressure.
The report reveals that while ITS roles account for a small share of organisational workforces, they are strategically critical. Rising demand for software engineers, AI experts, cybersecurity specialists and data scientists is creating a significant skills gap. Vehicle manufacturers face the greatest employment pressure, balancing digital transformation with cost constraints, while suppliers and connectivity providers anticipate modest growth in ITS roles.
ERTICO said that the period from 2026 to 2028 is set to be a decisive phase for ITS deployment in Europe. This period will be marked by the expansion of cross-border CAV (connected and automated vehicle) corridors and sandbox environments, a rapid increase in urban autonomous shuttle pilots and the wider rollout of Level 3 automated driving across key markets.
Alongside this, large-scale investment in batteries, electrification and software-defined vehicle platforms is expected to accelerate technological maturity. This is in conjunction with the adoption of standardised OTA (over-the-air communications), cybersecurity and data access frameworks will provide the regulatory and operational support needed for safe, interoperable, and scalable intelligent mobility services across the continent.
But persistent challenges remain to be overcome. These range from fragmented standards and limited cross-sector cooperation to funding constraints, unclear business models in connectivity and regulatory frameworks that struggle to keep pace with rapidly evolving technologies. These challenges are further compounded by insufficient data quality and accessibility for testing and validation, a shortage of specialised technical skills and the absence of strong political mandates needed to accelerate V2X deployment.
To move forward, the report calls for a more coordinated approach built upon harmonised EU-level incentives, strengthened data governance and deeper public-private partnerships. There must be shared testbeds and collaborative platform frameworks that can align stakeholders, reduce fragmentation, and create the foundations for scalable, interoperable ITS deployment across Europe.
The report highlights strategic alliances with European and global partners, as well as flagship projects, such as IN2CCAM, CERTAIN, CHORUS, SMARTIN, PRIVATEER, PODIUM and DeployEMDS. All these contribute to advancing safety assurance, digital infrastructure, mobility data spaces and next-generation connectivity.
The report is available as a free download on the website of ERTICO.
