In a statement, SpaceX said it's committed to ensuring that its systems "meet rigorous safety standards".
The failure of the uncrewed test likely means that astronauts won't be heading back to space from U.S. soil for a while yet.
The world witnessed such a system in action in October a year ago, when the Soyuz MS-10 experienced a problem with the launch rocket's boosters and had to detach from the launch vehicle mid-flight.
The April 20th event is the first time in the known history of SpaceX's orbital spacecraft program that a vehicle - in this case, the first completed and flight-proven Crew Dragon capsule - has suffered a total failure.
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It's now unclear how the anomaly will affect future flights of the Crew Dragon, but it's reasonable to suggest such an incident will delay the launch of a crewed SpaceX flight by months. The nature of the incident was not immediately released but a cloud of orange smoke was reported rising over the SpaceX facilities at the Cape. We will learn, make the necessary adjustments and safely move forward with our commercial drew program.
But both of the company's inceptions have been encumbered with delays.
NASA is providing billions of dollars to support the development of the Crew Dragon - an upgraded version of the robotic cargo capsule that has been delivering supplies to the space station since 2012 - as well as Boeing's CST-100 Starliner space taxi.
But following an apparently catastrophic failure, SpaceX's in-flight abort test may be seen as even more important, if only politically.
NASA astronauts were supposed to take the first flight on the spacecraft sometime in July but, following this incident, the mission will most likely be postponed for a later date. The spacecraft successfully docked with the space station.
The video was posted on Twitter by the founder of the SpaceX aerospace manufacturer, Elon Musk, and received a lot of positive feedback from followers.