by Hyperloop technology is a promising transportation system that involves a sealed tube or system of tubes with low air pressure, through which a pod may travel free of air resistance or friction, conveying people or objects at high speed while using little energy. Hyperloop systems use magnetic levitation to allow near-silent travel at aircraft-level speeds for passenger and freight transport. As an alternative transportation system that could be much faster, cheaper and more energy efficient than existing modes of transportation, hyperloop technology has gained interest from the transportation industry.
The global hyperloop technology market is estimated to be valued at US$3 billion in 2023 and is expected to exhibit a CAGR of 12 % over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the hyperloop technology market is the rapid progress in building hyperloop test tracks around the world. Several companies such as HyperloopTT, Virgin Hyperloop, Transpod and Hardt Hyperloop have already started building full-scale test tracks to further test and validate hyperloop technology. For example, Virgin Hyperloop completed its 500 meter test track in Las Vegas in 2020 and has plans to build a 6.2 km long track in France by 2025. Test tracks allow hyperloop companies to test components of the system like passenger pods, magnetic levitation, vacuum sealing and control systems at real-world scale. This helps in gaining operational experience and addressing engineering challenges to make hyperloop technology commercially viable.
Porter’s Analysis
Threat of new entrants: The hyperloop technology market has high barriers to entry due to massive capital requirements and the need for advanced infrastructure. Bargaining power of buyers: Buyers have moderate bargaining power due to limited vendors in the emerging hyperloop ecosystem. Bargaining power of suppliers: A handful of key suppliers for specific hyperloop components possess some bargaining power. Threat of new substitutes: There is minimal threat from close substitutes to hyperloop for long-distance travel between urban areas. Competitive rivalry: Competition is expected to intensify as companies ramp up technology development efforts to be the first to launch commercial hyperloop networks.
Key Takeaways
Global Hyperloop Technology Market Size is expected to witness high growth over the forecast period driven by investments in R&D and feasibility studies.
Regional analysis: North America accounts for the largest share of ongoing feasibility studies and projects for hyperloop networks. Several states in the US are exploring the technology for both passenger and cargo transportation corridors. Companies in the region are also at the forefront of development with major testing facilities. Europe is a key regional market driven by feasibility studies for hyperloop projects in countries like France, the Netherlands, Switzerland and Germany.
Key players: Key players operating in the hyperloop technology market include Virgin Hyperloop, Hyperloop Transportation Technologies, TransPod Inc, Hardt Global Mobility, and Dgwhyperloop. Virgin Hyperloop recently conducted a successful passenger testing milestone. Hyperloop Transportation Technologies is collaborating with partners across countries on feasibility studies. TransPod is constructing a 5km test track in Canada.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
