Should you invest in Hyperloop ventures?
Ever since the Virgin Hyperloop tested human travel in a hyperloop pod for the first-time in November last year, there has been a growing interest in the market for this proposed high-speed transportation system, to be used both for passenger and freight transport. While visionaries such as Richard Branson and Elon Musk have been propagating the futuristic technology for years, there have been many other companies in the fray who have made considerable advancement in offering this agile and alternative means of transportation. However, the question remains, is it worth to invest in ventures offering such a technology?
Let’s understand hyperloop first.
Hyperloop system has partially evacuated and sealed tubes connecting mobility hubs between two locations. The pressurized vehicles that are called pods move at great speed. The technology used is contactless levitation as well as propulsion systems and low aerodynamic drag.
The pods accelerate gradually through electric propulsion with the help of a low-pressure tube. They float along with the track using magnetic levitation. It glides at airline speed and covers a larger area in a shorter period of time.
Although the technology gained buoyancy with Elon Musk endorsing it, and SpaceX making the concept “open-sourced”, hyperloop’s history could be traced back to 1799 with the concept being ascertained by inventor George Medhurst.
Should you invest in hyperloop?
On an overall basis, hyperloop system reduces a 12-hour train journey to just 35 minutes. This technology is stated to give fierce competition to air travel. As per experts, travelling through hyperloop would cost way less than other modes of transportation.
Hyperloop trains based on closed tunnels make it safer to travel in comparison to wildlife highway crossing. Also, noise pollution analysts opine that the hyperloop systems would be fairly silent. The tube operates autonomously in an enclosed environment and is not susceptible to weather. The system is less susceptible to human error and power outages, with an emphasis on solar power for energy consumption.
Despite COVID-19 impact, the technology is expected to reach USD 6.6 billion by 2026, from USD 1.2 billion in 2021, growing at a CAGR of 40.4 per cent. While the US, the UAE, France, Germany and Canada are seen as the forerunners for adopting the technology, there has been growing demand for faster and advanced transportation system in the APAC region, especially in countries such as India, Australia and South Korea.