Cambridge Consultants, who brought the round teabag, believe they can take tea to the next level using pods filled with leaves which are spun at high speed.
The "Te" system brews tea in two minutes, rather than the traditional four that is recommended by tea companies but largely ignored by consumers.
It also allows users to select the strength of their tea, prices of capsules would vary depending on the quality of the tea, and the machines would likely be cheaper than some coffee machines.
A prototype machine which has been developed promises a quicker, better and cleaner brew, which could challenge the dominance of coffee makers such as the Nespresso, Cambridge said in a statement.
"Whilst coffee systems have seen a significant amount of innovation over the last decade nothing has changed in tea brewing, leaving the tea drinker almost forgotten about," Edward Brunner, group leader of the industrial and scientific group at Cambridge Consultants, said.
"We saw a real opportunity to use our experience in the beverage industry to level the playing field and make a step change in this category," Brunner said.
The "Te" machine promises to brew a cuppa in just two minutes