Global Statistics Representing Hyperloop Technology Market Scenario
Hyperloop technology is a new high-speed transportation system that was initially proposed by Elon Musk, the Chief Executive Officer of SpaceX and Tesla, in 2013. A Hyperloop is an ultra-high-speed ground transportation system wherein passengers and freight/cargo are loaded into a pod, which is gradually accelerated using electric propulsion. The pod itself is in a special vacuum tube under or over the ground, and once the pod gains pace, several features such as air bearings and electromagnetic motors are employed to lift it off the track and make it levitate; thus, essentially, the pod ‘levitates’ over long distances. Theoretically, the Hyperloop technology is a faster and cheaper alternative to other modes of transportation available at present.
Hyperloop technology can increase productivity by potentially connecting business hubs, ports, and capitals, thereby reducing travel time. The sealed vacuum tubes with reduced friction are expected to offer speeds of 600–760 mph, comparatively higher than those of other transportation methods such as rail, road, water, and air. Moreover, these pods are characterized to detect obstacles using an array of sensors offering speedy, safe, and secure transportation to passengers with convenient infrastructure. Real-time data with auto-braking sensors ensure system operations, maintenance, and stronger network topology.
The global Hyperloop technology market is expected to grow at a CAGR of 38% during the forecast period, 2019–2026.
Rising environmental concerns regarding the degradation and depletion of natural resources due to conventional transportation systems and increasing noise and traffic levels are expected to drive the Hyperloop technology market.
The rising need for a safer, faster, and cost-effective transportation mode is projected to drive market growth as Hyperloop requires less area as compared to the current transportation means and thus, helps with the problems of traffic congestion. Growing industrialization around the globe, coupled with the emphasis on energy-efficient & environment-friendly technology, is expected to bolster demand for Hyperloop technology. Additionally, Hyperloop infrastructure is easier to develop and unsusceptible to natural calamities such as earthquakes, which are other positive factors expected to contribute to market growth.
The Hyperloop technology market can be segmented by transportation type, carriage, and region.
On the basis of transportation type, the Hyperloop technology market can be segmented into tube, propulsion, and capsule. The tube segment is expected to witness significant growth as tubes are laid on pillars erected above land and thus, offer a certain level of protection from earthquakes and weather conditions; they also amount to cost savings as additional solar panels are installed above the tube. These solar panels, which are relatively better than propulsion and evacuating pumps, captivate energy and use it for operational purposes of the Hyperloop. Moreover, the energy generated from solar panels can be stored in battery packs to operate during night and cloudy or rainy conditions. For instance, in April 2018, Hyperloop Transportation Technologies (HTT) announced construction of the world’s third and Europe’s first hyperloop test track, which is a one-kilometer test track near the company’s R&D center in France.
By carriage type, the market can be segmented into passenger and cargo or freight. The passenger segment is projected to witness significant growth as Hyperloop is pegged to be the fastest transportation means at a relatively low price point as compared to the existing transportation modes, such as flights, trains, and others.
Geographically, the Hyperloop technology market can be segmented into North America, Europe, Asia Pacific, and Latin America, the Middle East & Africa (LAMEA).
North America is expected to witness dynamic growth in the Hyperloop technology market on account of the presence of major industry players such as SpaceX, Tesla, Hyperloop Transportation Technologies, and Hyperloop One in the region. Apart from this, North America is an early adopter of technology and embraces innovation, which positively influences the Hyperloop market in the region.
Europe is driven by high income and developed infrastructure; thus, the region represents a lucrative market for Hyperloop technology, especially with growing awareness regarding the same in countries across the region. Moreover, rising government initiatives towards exploring the potentials of deploying Hyperloop technology are further driving market growth in the region. The Science Advisory Council for the Department for Transport stated that the state-of-art transportation technology, Hyperloop, is just a couple of decades away. The department is committed to monitoring the development and delivery of Hyperloop, supporting the design and exploring the potential applications of Hyperloop as a mode of transport in the U.K.
Asia Pacific is also expected to observe significant market growth, owing to the government initiatives supporting the development of Hyperloop technology in transportation. Additionally, ongoing developments, expansions, and agreements for the implementation of the Hyperloop technology across various countries such as Indonesia, India, South Korea, and others are further fueling market growth in Asia Pacific. For instance, in November 2017, a U.S.-based company, Virgin Hyperloop One, signed a Memorandum of Understanding (MoU) with the Karnataka Urban Development Department to conduct a study to assess hyperloop feasibility and discern potential routes to improve mobility in Bengaluru, India and other emerging cities within the state.
The Hyperloop technology market is expected to witness healthy growth in the LAMEA region on account of the establishment of Hyperloop innovation centers and expansions and agreements in Hyperloop technology across various countries. The ongoing construction of the Hyperloop track in the Middle East is further expected to drive the growth of the Hyperloop technology market. In April 2018, Hyperloop Transportation Technologies (HTT) announced the construction of a 10-km Hyperloop route in a critical development area between Abu Dhabi and Dubai. Along with the construction of the Hyperloop commercial track, the company signed an MoU with Aldar Properties focusing on creating a commercial Hyperloop system, an XO Square Innovation Center and a Hyperloop Experience Center.
Some of the prominent players in the Hyperloop technology market are Hyperloop One (U.S.), Hyperloop Transportation Technologies (U.S.), SPACE EXPLORATION TECHNOLOGIES CORP. (U.S.), Tesla, Inc. (U.S.), TransPod Inc. (Canada), and AECOM (U.S.).
Hyperloop Technology Market Segmentation
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This report offers key insights pertaining to the Hyperloop technology market with an emphasis on recent developments across geographies and development strategies adopted by prominent market participants. The following sections have specifically been covered in the report.