Hyperloop Technology Market Outlook (2023 to 2033)
Global demand for hyperloop technology during the end of 2022 was US$ 1.5 billion. The hyperloop technology market is expected to reach US$ 71.3 billion by 2033, growing at a CAGR of 42.4% from 2023 to 2033. Several companies are working on a new ground transportation system known as the hyperloop, which is expected to go over 700 mph in underground or above-ground tubes. Hyperloop technology essentially involves building a system of underground tunnels for ultra-high-speed ground transportation.
Pods can travel at high speed inside vacuum tubes, such as those built over or underground in a hyperloop system, in which pods are housed and constructed. Various features of such systems can be used, such as air bearings and electromagnetic motors. The market is increasingly dominated by players who are investing heavily in research and development to strengthen their positions in this market. In the upcoming years, a number of positive conditions are expected in the hyperloop technology market. These include a positive response from the government, an increase in market players, and the increase in capital investments.
Earlier this month, the South China Morning Post reported that a hyperloop train had completed its first test run in China. It is expected that the train will be the fastest in the world if the project proceeds as planned. Defense contractor China Aerospace Science and Industry Corporation (CASIC) built and operates the facility where the train is being tested.
According to estimates, India's economy grows at a 7.5% annual pace, one of the fastest rates in the world. As a country with a growing population, it has been striving arduously over the past few decades to remodel its infrastructure. The issue of improving public transportation is at the forefront of the agenda. Even though private vehicles are becoming more prevalent in Asian nations, numerous plans are in place to overhaul bus systems and build railway lines to relieve traffic congestion.
Hyperloop technology isn't limited to India. Other countries are looking to pioneer the technology as well. Dubai and Abu Dhabi are planning to have a hyperloop link built to connect the two cities. The new technology is hoped to be displayed in Mexico City and Guadalajara. Furthermore, the initiative has been widely supported by the government and the political community. At a global investor meeting, HyperLoop One signed a framework agreement with the state. Similarly, to the role that mobile phones played earlier in technology adoption as well as economic growth, the adoption of hyperloop technology will help India leap-frog to a higher growth trajectory.
After publishing a white paper in 2013 and encouraging other businesses to seize the Hyperloop opportunity, Elon Musk made his idea public open source. It has been nearly a decade since several startups centered on the idea were founded, but commercial applications have not yet emerged.
A high-level panel has been formed by the government think tank NITI Aayog to look into Virgin Hyperloop technology's commercial and technical viability in India. As part of the process, the group examines the potential of new technology from a technological, economic, and financial perspective, and evaluates safety regulations and standards.
The Indian Institute of Technology (IIT) Madras proposes partnering with the Indian Institute of Railways, Communications, Electronics & Information Technology (IIRT) to explore the use of Hyperloop Technology, proposing to develop a high-speed transportation system through the use of the Hyperloop Tech Development Fund. IIT students working on Team Avishkar Hyperloop are experimenting with Hyperloop-based transportation solutions as part of their future commute research. Approximately 1,200 kilometers per hour is the top speed achieved by the model presented by Team Avishkar.
One of the big players in the industry in 2020 was a consortium of European and Canadian companies with expertise in hyperloop technology. In addition to investigating regulations, interoperability, and safety, this joint technical committee will work on international standardization. Among the participants in the group areHardt Hyperloop, TransPod, Hyper Poland, and Zeleros Hyperloop.
Data Points
Key Statistics
Estimated Base Year Value (2022)
US$ 1.5 billion
Expected Market Value (2023)
US$ 2.08 billion
Anticipated Forecast Value (2033)
US$ 71.3 billion
Projected Growth Rate (2023 to 2033)
42.4% CAGR
Hyperloop is one of the new form of ground transport and it is revolutionizing travel. The hyperloop technology helps passengers travel at 700 miles an hour in floating pod.
The pod races along inside gigantic low-pressure tubes, either below or above ground. Mainly, there are two differences between traditional rail and hyperloop.
Firstly, the floating pods carrying passengers travel through tunnels or tubes and it reduces friction for most of the air. This further allows floating pods travel at 700 miles an hour. Secondly, the floating pods are designed to float on air skis.
The technology uses the basic idea of an air hockey table or the magnetic levitation for reducing friction. Decreased transport costs and travel time are some of the major factors driving the growth of hyperloop technology globally.
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What is Driving Demand for Hyperloop Technology?
It has been predicted that they hyperloop could be faster and cheaper than car or train travel. The technology could be also less polluting and cheaper than air travel.
Companies are finding the technology cheaper and quicker to build than traditional rail. Hyperloop technology will take the pressure off gridlocked roads and make travel between places easier. As a result it is unlocking economic benefits.
Hyperloop technology is significantly better than traditional high-speed rail. At the same time, it is more energy efficient as floating pods does not power continuously by the track. It is like an on-demand service and two times faster than high-speed rail and, 10 times than regular speed rail services. Such benefits will contribute to the growth of hyperloop technology during the forecast period.
What are the Key Trends for Hyperloop Technology?
There is an increase in demand for efficient mode of transportation and as a result, the governments of developing and developed nations are testing the hyperloop technology in their states and also has started working on building the tracks. Technology developing companies and investors around the world are showing great interest in hyperloop as the technology is at a nascent stage.
For an instance in 2020, China announced to invest over $300 billion yearly on infrastructure to address rapidly growing urban populations. As the China is a world leader in investing the amount on high speed, it has started to test the technology as a low cost alternative to address problems of infrastructure and pollution. Such initiative will help the hyperloop technology to grow in upcoming years.
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North America Outlook for Hyperloop Technology
The global market of hyperloop technology will be dominated by North America as most of the key players located in the region have already started working on the technology. United States has always been an innovation leader and giving opportunity to company like Virgin Hyperloop and others to deploy hyperloop technology using innovative and transformative technologies.
Many key players in the United States are aiming for acquisition, collaboration and new strategies to expand their business presence in hyperloop market. The companies in United States and Canada are focusing on cost effectiveness as they have one of the advanced technologies or strong R and D capability.
South Asia & Pacific Demand Outlook for Hyperloop Technology
South Asia & Pacific is likely to lead the market of hyperloop technology, globally. There is an increase in demand for efficient mode of transportation at low cost in countries like India, Australia, New Zealand and others. This is impelling government of these countries to adopt hyperloop technology.
As millions of people in country like India travel across cities each working day, the government is willing to invest a good amount of money in hyperloop technology.
For an instance in 2019, the government of Maharashtra, a state in India, approved the project plans by Virgin Hyperloop for developing a high-speed line between Pune and Mumbai. The hyperloop line will connect the 2 cities in Maharashtra, which are around 100 miles apart, in 35 minutes.
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Who are the Key Hyperloop Technology Vendors?
Aecom
Dinclix GroundWorks (DGW Hyperloop)
Hyperloop India
Hyperloop One Inc.
Hyperloop Transportation Technologies
Space Exploration Technologies Corp.
Tesla Inc.
Transpord Inc.
Uwashington Hyperloop
Vichyper
and others are some of the key players in the hyperloop technology market.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
