Investment Fund

Transport Tech

Find out why you should be investing in Transport Tech and what it will look like in the near future

Why invest in Transport tech?

Transport technology refers to the technological improvement,  tools or techniques, for moving people, animals and goods around the world. 

Transport technology involves vehicles and infrastructure like railways and highways to support travel and can cover land, sea, air and even space travel.

The areas include autonomous cars, electric vehicles, flying taxis, hyperloops, drones, electric vertical take-off and landing (eVTOL) and space exploration.

The transport tech sector is transforming our roads and skies. It promises to make a great contribution to the future of the transportation industry. 

With advancements in artificial intelligence, data science, manufacturing and deep learning, vehicles will also become more sophisticated. 

What does the future of transport tech look like?

Investment bank Morgan Stanley, predicts that the global electric vertical take-off and landing (eVTOL)/urban air mobility market will be worth $1 trillion by 2040 and $9 trillion by 2050.

The U.S. Chamber of Commerce forecasts the commercial space market will be $1.5 trillion by 2040. That’s because the cost to launch is declining from $500 billion to about $60 million per flight and making us imagine life on the moon, mars and beyond. 

It’s also increasing technological advancement to its limit; the rising interest from the public in exploring space makes it the next trillion-dollar industry. 

As commercial space flights become an increasingly common practice, companies such as Blue Origin, Virgin Galactic, and SpaceX are competing for the lead.

In 2019, Uber Elevate estimated that fully electric air taxis would have near-term operating costs of around $700 per hour, at least 35 percent less than a comparably utilised single-engine helicopter. 

The cost per kilowatt-hour of batteries is also decreasing rapidly, with many potential breakthrough cell chemistries under development, as billions in investment have been spent on R&D largely because of the exploding market for ground electric vehicles.

Singapore and a number of major cities have already endorsed the concept of urban air mobility, including Dallas, Los Angeles, Miami in the United States and Melbourne in Australia.  

Innovation in transport tech example

Drones or flying taxis will deliver packages, food, and even people quicker and more conveniently than ever before. Autonomous air travel will become possible and affordable in the future.  For example, Amazon and FedEx are currently deploying robots to deliver packages to your door.

Hyperloop is also one of the most promising technologies that is expected to reduce the complexity of urban city transport.  The Boring Company, which was founded by Elon Musk,  is an infrastructure and tunnel construction company that builds underground pathways for cars to travel through at higher speeds and with less traffic congestion. 

So far, the company has built a tunnel in Las Vegas called the LVCC Loop system. The three-station tunnel system connects the LVCC New Exhibit Hall with the existing campus and is said to reduce a 45-minute walk time to approximately two driving minutes. Using a  hyperloop, you’ll travel twice as fast as a commercial airliner, it’s unlikely to crash and it will be powered by solar energy.

Autonomous cars are forecast to be safer than human-driven cars in the future, solving the most critical problems in our society such as green gas emissions, preventable deaths, road congestion, stress and cost.  Imagine a car driving to your destination without touching the steering wheel or getting stressed out navigating traffic. It’s almost becoming reality. 

Companies like Waymo which is backed by Google, Tesla and others, are developing machine learning, AI and deep learning platforms that enable the cars to make informed decisions in real-time.  Investing in transport technology is one of the fastest growing industries in the world and has enormous potential in the future.  As a result, we see numerous start-ups racing to create the next big thing in transport tech.

By radically transforming the transportation sector and creating significant economic growth, transport tech provides exposure to companies reducing pollution on our planet or helping humans create sustainable modes of transportation. For example, in the US transportation generates 28% of total greenhouse gas emissions. 

Therefore, Minerva Money Management sees a revolution in the future of the transport tech market which will make our daily travel easy and address our biggest concern of climate change and access to transport for everyone.

A key part of the YFS Intelligent Wealth Fund’s investment strategy is to identify opportunities in the transportation technology space, which are vital for commuters, transporting goods, and companies of all sizes to thrive. 

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