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Country Seeks Growth in Low-Altitude Economy

China Advances Ambitions in the Low-Altitude Economy
At the China International Supply Chain Expo held in Beijing this July, an electric vertical take-off and landing (eVTOL) air taxi was prominently displayed, underscoring the rapid transition of air taxis and drone-based delivery services from conceptual stages to operational reality within China. The country’s low-altitude economy, encompassing civil piloted and unpiloted aviation activities up to 3,000 meters, is emerging as a strategic sector poised for significant expansion. Experts anticipate robust growth fueled by commercial applications across passenger transport, tourism, agriculture, and logistics.
Market Growth and Industry Drivers
The Civil Aviation Administration of China projects the market value of the low-altitude economy to reach 1.5 trillion yuan (approximately $210 billion) by 2025, with expectations to more than double to 3.5 trillion yuan by 2035. This growth trajectory is supported by proactive government policies and a surge in innovation from domestic unmanned aerial vehicle (UAV) manufacturers. These companies are diversifying drone applications to include aerial tourism, mapping, agricultural monitoring, public security, logistics, and disaster relief operations.
Urban air mobility firms such as EHang Holdings are at the forefront of commercializing eVTOL aircraft, which offer vertical takeoff and landing capabilities without the need for traditional runways. These air taxis are designed to alleviate urban congestion and provide novel experiences in city travel and sightseeing. EHang recently achieved a regulatory milestone by securing one of the first air operator certificates for civil, human-carrying pilotless aerial vehicles in China. This certification paves the way for consumers in cities like Guangzhou and Hefei to purchase tickets for urban sightseeing and tourism flights in the near future.
Hu Huazhi, founder and CEO of EHang, characterized the low-altitude economy as a significant market opportunity and a new engine for China’s economic growth. The company is committed to delivering safe, autonomous, and environmentally friendly air mobility services, as evidenced by a recent order for 50 eVTOL units that signals increasing commercial demand.
Challenges and Global Context
Despite the promising outlook, the sector faces notable challenges. Industry experts stress the urgent need for clearer regulatory frameworks and stringent safety standards governing unmanned aerial vehicles and low-altitude operations. The development of essential ground infrastructure—including takeoff and landing sites as well as maintenance facilities—remains a critical priority to support the sector’s expansion.
China’s ambitions in the low-altitude economy also mirror broader global trends where regulatory changes and shifting market dynamics can introduce complexities. Competitive pressures, such as China’s leadership in uncrewed logistics, may alter market landscapes, while strategic recalibrations akin to ABB India’s portfolio adjustments could become necessary as the industry matures. Furthermore, sectors indirectly linked to the low-altitude economy, including renewable energy and digital infrastructure, may experience vulnerability to global market fluctuations, as recent regional economic analyses have indicated.
As China intensifies its focus on developing the low-altitude economy, the interplay between technological innovation, regulatory evolution, and competitive market forces will be pivotal in unlocking the sector’s full potential and establishing new drivers for sustained economic growth.

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