Hyperloop Technology Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Global Hyperloop Technology Market is valued at USD 1.08 billion currently, and it is anticipated to reach USD 7.68 billion, with a CAGR of more than 40.45% over the forecast period.

The hyperloop has the potential to provide a sustainable solution to the growing demand for high-speed travel and alleviate the rising challenges in transportation. Hyperloop is a concept for very high-speed, fixed-guideway, intercity surface transportation, using capsule-like vehicles that operate in sealed partial-vacuum tubes. At this stage, the technology is unproven, but it has elicited a great deal of interest from journalists, investors, engineering firms, and government organizations.

With governments across the world implementing stringent emission norms, the hyperloop is expected to be adapted as an alternative solution to reduce pollution in developed countries across the world. Hyperloop is also expected to solve the problem of traffic congestion and the loss of time while commuting. Hyperloop can effectively reduce vehicle emissions as it uses solar energy.

The various hyperloop proponents make much of the idea that the hyperloop would be completely powered by solar technology. While that is certainly not true of air travel, both maglev and HSR are electrically powered and could be powered by solar, if desired. It is not clear how much energy would be needed to operate the hyperloop, but most routes would be two to three times more energy efficient than air travel per passenger mile.

Asia-Pacific region is expected to hold high potential for witnessing hyperloop integration over the longer term forecast period. This is attributed rising investment and inclination of government towards concept of hyperloop.

Hyperloop Technology Market Trends

Demand for Efficient Mode of Transportation

Across the globe, demand for high-speed railway networks is quickly taking up steps. This is attributed to increased passenger concerns regarding travel duration and increased comfort during the journey. In addition, with the inception of the hyperloop, several consumer segment challenges would become much easier during the longer-term perspective.

Hyperloop is a concept for very high-speed, fixed-guideway, intercity surface transportation, using capsule-like vehicles that operate in sealed partial-vacuum tubes. However, the hyperloop is at a nascent stage, but investors, technology-developing companies, and governments around the world are taking great interest in this technology. As Hyperloop’s proposed speeds (maximum 720-760 mph and average of 600 mph) would indeed be faster than any other mode of transportation with no carbon emissions, if feasible, it is anticipated that it would solve many problems associated with congestion and pollution across the world.

As a result, the governments of developed and developing countries are testing the hyperloop transport technology in their countries and also has started building the tracks.

Hyperloop Transportation Technologies (HTT), a company that is currently developing hyperloop technology, has started building its first full-scale transportation system in Toulouse, France. The company aims to develop a high-speed intercity transporter using a low-pressure tube train that travels in a vacuum at a speed of about 760 miles per hour.

Different European projects related to the hyperloop have received funding from the European Commission. For instance, the commission has funded Eureka Eurostars projects to deploy hyperloop side technologies in port applications.

The United Kingdom shows tremendous potential for the implementation of a hyperloop system, as the country’s current transportation systems are operating beyond capacity. This is because London is a congested city, with over one million people traveling across central London each working day, increasing its daytime population six times.

Hyperloop is an entirely new system that runs on neither roads nor rails, it may present novel issues related to the Federal role in ensuring safe operation. Due to this move, the companies are investing more time and money in safety features of transport. With increasing support from the government, companies are coming together to standardize the hyperloop. One such example is the European Hyperloop Program initiated by Hardt. Its objective is to collaborate with hyperloop companies and co-developing partners in a common standardization roadmap, to bring down the costs of hyperloop through R&D, and to test and display the developed technologies to allow its commercialization.

Considering these factors and rising concerns of energy efficient transportation, demand for hyperloop technology is expected to elevated during the forecast period.

Asia-Pacific is Expected to Lead the Hyperloop Technology Market

Asia-Pacific is likely to lead the hyperloop technology market globally. Hyperloop Technologies and Hyperloop Transportation Technologies say that the first hyperloop will be built outside the USA. Two competitors have chosen the United Kingdom, Singapore-Kuala Lumpur, or Middle-East as their possible sites for the hyperloop due to supportive government initiatives and minimal bureaucracy.

China is expanding its transportation network rapidly and trying to bring down the costs related to freight hauling. Being a developing country, China spends about 15% of its GDP on logistics, which makes it incompetent compared to the West, where the average stands at around 10%-12% of the GDP. Hyperloop technology can transport goods at a fraction of the time conventional road or rail transport takes. For instance,

• In October 2022, China successfully tested its first hyperloop project which is a full-scale and full-process integrated test. This came after China's maglev train which ran at the speed of 80 miles per hour. The test was carried out at the 2 km long Datong line which is specifically constructed testing in the Shanxi province of North China. After the preliminary test was successful, the laboratory will now start building a full-scale test track that will be 60 km long and will be finished in three sections. In addition, the full-scale track will be completely enabled for train testing at rates of 621 miles per hour.

Further, India has also portrayed its significant stance for the adoption of hyperloop in the country. Indian government is also taking significant steps to construct a hyperloop in the country to reduce travel time and provide traveling comfort to the citizens. For instance,

• In November 2022, NITI Ayog announced the closure of the finalized report which was made to run the thorough feasibility on technology and commercialization of hyperloop technology in India. Under this hyperloop technology, the government will construct a highspeed sealed tube with a pod that will experience minimal air resistance and can travel at a speed of 1,200 Km per hour.

Considering this development, demand for hyperloop technology in Asia-Pacific is expected to witness high growth rate over the forecast period.

Hyperloop Technology Market Competitor Analysis

Some of the potential key players in the global hyperloop technology market are Hyperloop Transportation Technologies, Hyperloop One, Space Exploration Technologies Corp., Transpod Inc., among others. The market is highly driven by factors like partnerships with start-ups, land availability, and governments' interest across the world.

• In March 2022, UK-based Broughton Capital Group, in cooperation with China-East Resources Import & Export Co., agreed in principle to provide a combined USD 550 million finance and Master EPC arrangement, respectively, to accelerate the development of a TransPod Line between Edmonton and Calgary.
• In September 2021, a feasibility study was conducted in Brazil's Rio Grande do Sul. The proposed design would connect the metropolitan regions of Porto Alegre, and Caxias do Sul. The 137km can be covered in less than 20 minutes (compared to two hours by car) with passengers and achieving maximum speeds of 835km/h. The total cost of this project is estimated to be USD 7.7 billion.

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