Technology must be channeled into "intelligent mobility" to help fight transport congestion costing the UK £12bn a year.
Existing and new technology, infrastructure and all forms of transport should be integrated to allow predictive travel, better routing of traffic and and easing of congestion, the report said.
The report has been produced by the Automotive Council, a joint industry/Government organisation co-chaired by Business Secretary Vince Cable and industrialist Richard Parry-Jones.
The report said a growing population, in which a key demographic is older people and their personal mobility needs, was also putting a strain on the UK's transport networks.
It was very costly to meet the continuous demands on infrastructure but if a solution was not found to congestion, economic activity would be seriously impaired.
The Automotive Council used the term "intelligent mobility" to describe the convergence between technologies and transport systems, which up to now have often been developed in isolation, to create a safer, intelligent, highly interlinked transport network.
The report said the key to intelligent mobility lay in connecting up a range of independent industries and technologies such as vehicle manufacturing, transport information systems, communications technologies, logistics and distribution and infrastructure management.
"I welcome new transport related technology developments which help to reduce congestion, pollution and improve road safety," said Cable.
"I am pleased to be working with the Automotive Council to take the first step towards promoting collaboration and innovation between industries in the area of intelligent mobility."