The global hyperloop technology market (henceforth referred to as the market studied) was valued at USD 1,870 million in 2022, and is anticipated to register a CAGR of about 23.25% during the forecast period (2020 – 2030).
- 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.
- Hyperloop will solve the problem of traffic congestion and loss of time while commuting. Hyperloop can be very effective in reducing the emissions from transportation vehicles because it will be powered by solar energy and 69 million gallons of fuel that is burned for local transportation of cargo.
- The various hyperloop proponents make much of the idea that 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 hyperloop, but most routes would be two to three times more energy efficient than air travel per passenger mile.
Key Market Trends
Tube Segment is anticipated to Lead the Market
The tube segment is anticipated to lead the market in the system type segmentation. Tube is a tunnel or an encapsulated pathway or track, where hyperloop pod travels. The tube is contained with near vacuum pressure to reduce the air drag on capsule motion. The near vacuum atmosphere in the tube is controlled by installing vacuum/pressure/evacuating pumps at regular intervals along the tube length and maintaining a pressure of around 5 to 6 pounds per square inch. Currently, these tubes are made of steel. Hyperloop tubes would be either constructed above or below the ground, occupying a smaller area than a traditional rail or road. Above the ground tubes are supported by pylons, and each tube is welded or bolted together in a side by side configuration, which allows the capsule/pod to travel in both directions. So far, the constructed hyperloop tubes are above the ground due to the following benefits:
· Tube erection on pillars above the ground provided benefits of saving money, provision of protection from earthquakes, snowfall, and rainfall, and allowed the installation of solar panels on top of the tube.
· The energy obtained from these solar panels is used to satisfy the operational need of the hyperloop, as power generated through the solar panels is much more than the power consumed by propulsion and evacuating pumps. Additionally, the solar energy can be stored in battery packs for operation during cloudy and rainy conditions, and during nights.
In 2018, the third hyperloop test track was noticed under construction. Hyperloop Transportation Technologies (HyperloopTT) has started assembling its tubes for constructing a 1-kilometer-long test track near its R&D center in France.
Hyperloop One has developed 500 meters long hyperloop test track in Nevada, US where hyperloop one achieved a speed of 200 miles per hour.
Asia-Pacific is leading the Hyperloop Technology Market
Asia-Pacific is likely to lead the hyperloop technology market, globally. Both Hyperloop Technologies and Hyperloop Transportation Technologies say that first hyperloop will be built outside USA. Two competitors have chosen UK, Singapore-Kuala Lumpur or Middle-East as their possible sites for 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 taken by conventional road or rail transport.
In India, Government of Maharashtra has conferred the status of public infrastructure project to Mumbai Pune hyperloop project executed by Pune Metropolitan Regional Development Authority. To clear any doubts and to speed up the USD 10 billion project, Richard Branson of Virgin Hyperloop One met Maharashtra Chief Minister Uddhav Thackeray.
The United Kingdom shows a tremendous potential for the implementation of hyperloop system, as the country’s current transportation systems are operating beyond the capacity. This is because of London being a congested city, with over one million people travelling across central London each working day, increasing its daytime population six times.
Some of the key players of the global hyperloop technology market are Hyperloop Transportation Technologies, Hyperloop One, Space Exploration Technologies Corp., Transpod Inc., and Tesla Inc., among others. The market is highly driven by factors, like partnerships with start-ups, land availability, and governments' interest across the world.
Virgin Hyperloop one captures majority of the market share, owing to the higher concentration of projects with multiple countries, followed by Hyperloop Transportation Technology. In addition, the company is working on the underground hyperloop system across cities like New York, Washington DC, etc. upon agreement in 2017, and is planning to capture significant market share by attracting higher number of investments.
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