Global Hyperloop Technology Market, By Component (Capsule, Tube, Propulsion System, Station), By Type (Passenger and Freight), Region (North America, Asia Pacific, Europe, RoW) - Forecast till 2027

Market Overview

Hyperloop technology refers to an ultra-high-speed mode of transportation for goods or passengers. It was proposed by Elon Musk, the CEO of Tesla and SpaceX, in 2013. It consists of pods and tubes that enable frictionless movement. This boosts the travel time for the passengers. The pods float within the tubes and are again pushed inside by electromagnets. Once these pods read 100 miles glide, they will start running without any external energy. 

Hyperloop technology has got several benefits which include safety, security, efficient infrastructure, and speedy transportation. Though airplanes are known to be the fastest mode of transportation, the advancements of rising technology will lead to even faster means of transportation. The global hyperloop technology market is estimated to reach USD 7.32 billion at a CAGR of 47.14% during the forecast period. 

COVID-19 Analysis

The sudden outbreak of the COVID-19 pandemic has affected several industries across the world which also includes the hyperloop technology industry. The COVID-19 has affected the market of hyperloop technology by reducing the demand and production of the products which in turn affected the supply chain. Governments of various countries imposed strict lockdown and social distancing norms due to this outbreak. Travelling was totally stopped. This led to a huge financial impact on the hyperloop technology business. However, the hyperloop technology market is expected to grow in the near future due to its major benefits that will force people to use such technologies.

Market Dynamics

• Drivers

Hyperloop technologies emerged to be the fastest mode of transportation which takes minimal time to travel from one place to another. The increasing concern for the demand for safety and security has made the hyperloop technology market boost its sales. Also, the rising demand for a faster and cheaper mode of transportation is expected to drive market growth. Another major driver of this market is that it requires less area as compared to other conventional transportation systems.

• Opportunities

Decongestion of traffic is expected to act as a huge opportunity for the expansion of the market because people do not prefer to get stuck in traffic. Reaching on time is their key objective and this hyperloop technology provides the fastest mode of transportation. Hence, this acts as a major opportunity for the market.

• Restraints

Hyperloop technologies are an electricity-efficient mode of transportation. Hence, there is a high possibility of technical glitches that may occur while the passengers are traveling. This can be a high restraining factor that may affect the market of hyperloop technology. Another major restraining factor of the market can be the shortage of power act in the hyperloop.

• Challenges

The hyperloop technology market has got several drivers that propel the market growth. But there are also a few challenges that the market needs to overcome in order to retain its position in the market. The implementation cost of the hyperloop technology is quite high which is a challenging factor for the market. Due to the high implementation cost of hyperloop technology, many developing countries are avoiding implementing this technology in their country. They are instead using a conventional mode of transportation that causes air pollution. Also, the lack of awareness has been the lead challenging factor in the market of hyperloop technology.

• Cumulative Growth Analysis

There are multiple factors that drive the market growth such as speedy transportation, growing urbanization, automation, and industrialization. Due to these reasons, the hyperloop technology market is expected to reach USD 7.32 billion if it grows at a CAGR of 47.14% during the forecast period. Though the outbreak of COVID-19 has decreased the growth rate of the market immensely, now the market is expected to grow at a faster level.

Value Chain Analysis

The rise in the environmental concerns of depletion and degradation of natural resources has led to the increase in the demand for various technologies that are being launched in the market to support the eco-friendly concept. Increased awareness for air pollution and noise pollution caused by conventional vehicles has increased the demand for hyperloop technology. The benefits offered by the hyperloop technology such as high speed, less cost, energy-efficient approaches, and environment-friendly nature are some reasons that are propelling the market growth. Also, the concerns for safety and security may take the market of hyperloop technology to another level.

 Segment Overview

The hyperloop technology market size is segmented based on three categories. They are by transportation type, by application, and by component type. Here is a list of the hyperloop technology market segments and their sub-segments.

By Transportation type,

• Cargo or Freight


• Passenger

By Component type,

• Station


• Capsule


• Tube


• Propulsion system

By Application,

• Soil monitoring


• Yield monitoring


• Scouting


• Others

Regional Analysis

According to the hyperloop technology market analysis, the market for hyperloop technology is expected to grow at a significant rate in the coming years. Geographically, the hyperloop technology market share is segmented into five main regions which include North America, Latin America, Asia Pacific (APAC), Europe, and the Middle East and Africa (MEA). The Asia Pacific, among these regions, is estimated to lead the hyperloop technology market in the coming years. China is one of the major countries that is leading the market of hyperloop technology due to its rapid expansion in its transportation network. They are also trying to take down the cost that is related to freight hauling. The UK also shows tremendous potential for implementing hyperloop systems as the current transportation system of the country. Due to this reason, UK is expected to take the second spot in leading the market of hyperloop technology in the forecast period.

 

 Competitive Landscape

 

Hyperloop One, Hyperloop Transportation Technologies, Space X, Transpod Inc., and Aecom are some of the major players that are responsible for adopting various organic as well as inorganic strategies such as launching a new product, partnerships, joint ventures, mergers and acquisitions, agreements, expansions, and other such strategies that can help them to strengthen and expand their market position. Recently, many new companies have joined the hyperloop technology market. Among these companies, Hyperloop Transportation Technologies has shown huge growth in the development since its inception. In 2015 and 2016, this company entered into an agreement with Kings Country in Quay Valley, California, and the Slovakian government respectively to construct a hyperloop. In 2017, the company started its construction of a hyperloop track of 5 miles. In 2018-2019, the first passenger commercial hyperloop system was expected to be tested. Currently, the company is focusing on accepting formal approvals to construct hyperloop tracks through agreements with various governments of different countries.

 List of Key Companies

• Dinclix GroundWorks Global Limited (India)


• Virgin Hyperloop One (US)


• Zeleros (Spain)


• Transpod, Inc. (Canada)


• Hyper Chariot (US)


• Space Exploration Technologies Corporation (US)


• AECOM (US)


• Arrivo (US)


• Hyperloop Transportation Technology (US)


• Hardt Global Mobility (Netherlands)

Recent Developments

• In order to augment the hyperloop cargo and passenger transportation development in Europe, Zerelos raised approximately USD 9.16 million in June 2020. This helped the people of Europe to travel to any place faster. Also, keeping in mind the safety and security of this mode of transportation, Zerelos planned this hyperloop.


• Hyperloop Transportation Technologies, a US-based company, is currently focusing on accepting approvals through agreements from different governments to build hyperloop tracks. Therefore, in 2018, this company signed an agreement with the Government of China to build a joint venture. The aim of this agreement was to build a 10 km long hyperloop track in the Tongren city of Guizhoufor the people of China.

Report Overview

This research report is based on the hyperloop technology market growth and the factors that are affecting the growth such as drivers, opportunities, restraints, and challenges. It is a detailed analysis of the impact of COVID-19 on the market, competition in the market, and the regions into which the market share has been segmented. This report also focuses on the constantly changing hyperloop technology market trends and the recent developments that have taken place in the market of hyperloop technology.

By Geographically,

• Europe


• North America


• Asia Pacific


• Latin America


• The Middle East and Africa

Report Scope:

Report Attribute/Metric	Details
Market Size	2027: Significant Value
CAGR	2027: Substantial CAGR
Base Year	2020
Forecast Period	2020-2027
Historical Data	2017-2019
Forecast Units	Value (USD Million)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	Component, Type
Geographies Covered	North America, Europe, Asia-Pacific, and Rest of the World (RoW)
Key Vendors	Space Exploration Technologies Corporation (U.S.), Virgin Hyperloop One (U.S.), Hyperloop Transportation Technologies (U.S.), TransPod (Canada), Dinclix GroundWorks Global Limited (India), Arrivo (U.S.), Hardt Global Mobility (The Netherlands), Hyper Chariot (U.S.), Zeleros (Spain)
Key Market Opportunities	lack of awareness issues related to security higher cost of implementation
Key Market Drivers	rising demand for a fast mode of transportation growing industrialization resistant towards natural calamities trust of more safety cheaper transportation time-saving

Frequently Asked Questions (FAQ) :

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