Low-Altitude Economy in China: Opportunities, Scenarios and Challenges Ahead

1. Why Is China Actively Developing the Low-Altitude Economy?

Alleviating Traffic Congestion

With the acceleration of urbanization, traffic congestion in major cities is becoming increasingly acute. Especially in economically developed regions and central cities, road congestion during peak hours not only reduces travel efficiency but also increases social operation costs. The concept of Urban Air Mobility (UAM) within the low-altitude economy has emerged, offering a potential innovative solution to urban traffic congestion through the use of small, vertical take-off and landing (VTOL) aircraft for low-altitude flight services. In addition, it is also applicable to intercity commuting. For instance, in the Guangdong-Hong Kong-Macao Greater Bay Area, the low-altitude commuter route from Zhuhai to Shenzhen has entered the pilot phase. Passengers taking electric Vertical Take-Off and Landing (eVTOL) aircraft can cross the Pearl River Estuary in only about 20 minutes, which is more than 70% shorter than the time taken by traditional ground transportation.

Enhancing Emergency Rescue Capabilities

In the event of emergencies such as natural disasters and accidents, every second counts. Low-altitude aircraft, such as helicopters and Unmanned aerial vehicle (UAV) can quickly reach the scene to carry out tasks such as delivering rescue supplies, searching and rescuing people, and medical transportation. For instance, during a catastrophic rainstorm, widespread flooding can paralyze urban road traffic, hindering the rapid deployment of conventional rescue forces to severely affected areas. Unmanned aerial vehicle (UAV) can be promptly dispatched to locate trapped people at night using thermal imaging equipment, while accurately delivering life jackets, compressed biscuits, and other supplies to the stranded areas. Helicopters, on the other hand, undertook the emergency transportation of critically injured patients, quickly sending multiple patients with life-threatening conditions to hospitals with superior medical facilities, thus gaining valuable time for saving lives.

Promoting Industrial Upgrading

The low-altitude economy involves multiple fields including aircraft manufacturing, avionics, new materials, and operational services, and is characterized by a long industrial chain, high technological content, and concentrated innovation factors. The development of the low-altitude economy can stimulate technological innovation and industrial upgrading in related industries, thereby promoting high-quality economic development. For example, in the aircraft manufacturing sector, the demand for research and development of high-performance materials and advanced power systems will foster continuous advancements in materials science, power engineering, and other disciplines, driving technological progress in related industries. The low-altitude economy possesses significant market potential, capable of generating new consumer demand and investment opportunities, thereby serving as a new engine for economic growth.

2. What Are the Application Scenarios?

Low-Altitude Tourism: A Novel Option for Unique Experiences

Low-altitude tourism initiatives, such as aerial sightseeing and skydiving, are gaining popularity among tourists. They not only enrich the supply of tourism products but also open up new growth points for the development of the tourism industry. During 2025 May Day holiday, Chongqing Liangjiang New Area launched its second Low-Altitude Flight Consumption Season event, distributing CNY 600,000 yuan worth of over 5,000 consumer coupons applicable to flight activities including helicopter tours, fixed-wing aircraft flights, and skydiving experiences. The event also featured performances like aerobatic and drone flight shows, as well as a series of activities such as static aircraft exhibitions, aviation science courses, and practical operation sessions.

Low-Altitude Logistics: A New Path for Efficient Delivery

Unmanned aerial vehicles (UAVs) are extensively employed in logistics and distribution, facilitating 'last mile' delivery. Particularly in remote areas or regions with inconvenient transportation, UAVs offer rapid and precise package delivery to customers. For instance, in March 2024, Hubei Province's inaugural low-altitude logistics delivery flight successfully commenced operations in Shiyan City, establishing a new aerial conduit for logistics distribution.

Low-Altitude Agriculture: A New Assistant for Smart Agriculture

The utilization of UAVs in agricultural and forestry plant protection enables precise application of pesticides and fertilizers, enhancing operational efficiency, minimizing labor expenses and resource depletion, while simultaneously mitigating environmental pollution caused by pesticides. A single drone can complete plant protection operations on hundreds of acres of farmland per day, which is dozens of times more efficient than manual spraying, and can accurately control the dosage of pesticides according to the actual conditions of the farmland.

Low-Altitude Inspection: A New Guardian for Safety Assurance

Traditional inspection methods for infrastructure such as power grids, petroleum pipelines, and telecommunications networks are inefficient and high-risk. However, Low-altitude aircraft equipped with various detection devices can rapidly inspect transmission lines, oil and gas pipelines, and communication base stations, promptly detecting potential faults and safety hazards. This improves inspection efficiency and accuracy, thereby ensuring the safe and stable operation of infrastructure. For example, in Zhejiang province, State Grid utilized drones equipped with infrared thermal imagers and LiDAR for power transmission line inspections in mountainous areas. Compared with manual inspection, the efficiency was increased by 8 times, the defect detection rate was raised to 98%, and 127 hidden dangers such as insulator aging and wire strand breakage were successfully identified.

3. What Difficulties Are Currently Faced in Its Development?

Imperfect Airspace Management Policies

Currently, China's low-altitude airspace management policies face certain limitations. The degree of airspace liberalization varies across provinces, and the efficiency of policy implementation requires enhancement. How to further optimize airspace management policies and improve the utilization efficiency of airspace resources has become an urgent problem to be solved.

Need for Advancement in Core Technology R&D

Although low-altitude aircraft such as eVTOL are developing rapidly, there are still technical bottlenecks in battery technology, flight control technology, and materials science. Specifically, battery energy density requires further improvement to enhance the aircraft's range and payload capacity; flight control systems must become more intelligent and reliable to effectively navigate complex flight environments.

Immature Business Models and Market Demand

Currently, market demand for the low-altitude economy remains underexplored, and business models for some application scenarios are still in the exploratory phase, lacking stable profit models. Fields such as urban air mobility and low-altitude tourism have not yet achieved large-scale commercial operation due to high operating costs and inadequate market cultivation.

Need for Acceleration in Infrastructure Construction

The development of the low-altitude economy relies on robust infrastructure, including vertiports, take-off and landing sites, charging facilities, and air traffic control systems. Currently, China's low-altitude infrastructure development relatively lags behind, hindering the potential for large-scale growth of the low-altitude economy. It is necessary to increase investment in infrastructure construction and rationally plan and layout the infrastructure network.

Summary

Looking ahead, the low-altitude market holds immense potential and opportunities. Sustained favorable policies provide a solid foundation for its development, while diverse application scenarios offer considerable investment prospects. However, existing challenges in airspace management, technology R&D, business model, and infrastructure require resolution for the industry's continued growth. We look forward to the low-altitude sector becoming an important driver of economic growth, leading technological innovation, and changing lifestyles in the future!