Low altitude economy
Low-altitude economy: the rise and prospects of emerging economic forms
In today's global economic rapid development and technological innovation, a new economic form - low-altitude economy, is gradually emerging. With its unique industrial model and huge development potential, low-altitude economy has become an important force in promoting economic growth and industrial upgrading.
1. Definition and scope of low-altitude economy
Low-altitude economy refers to low-altitude flight activities for manned and unmanned civil aircraft, relying on low-altitude airspace (usually within 1,000 meters or 3,000 meters above the ground, depending on the characteristics of the region and actual needs) to carry out multi-scenario low-altitude flight activities such as manned and unmanned aircraft and other operations, and is a comprehensive economic form that radiates and drives the integrated development of related fields. It not only covers the research and development, manufacturing and application of various low-altitude aircraft, but also involves the construction of infrastructure to provide support for low-altitude flight, the construction of service systems and the coordinated development of related supporting industries.
From the perspective of industrial composition, the low-altitude economy mainly includes low-altitude manufacturing industry, low-altitude flight industry, low-altitude support industry and comprehensive service industry. The low-altitude manufacturing industry focuses on the research and development and production of aircraft and related equipment, such as helicopters, drones, electric vertical take-off and landing aircraft (eVTOL), etc.; the low-altitude flight industry covers various low-altitude flight services, such as air tourism, low-altitude logistics distribution, aviation operations, etc.; the low-altitude support industry is responsible for providing low-altitude airspace management, navigation and communication, meteorological services, and airport and other infrastructure construction; the comprehensive service industry includes a series of supporting services such as flight training, maintenance, financial insurance, etc.
2. Development of low-altitude economy
1. International Development Trajectory
The origin of the world's low-altitude economy can be traced back to the field of agricultural services. As early as after 1920, business aviation began to enter the market, opening the curtain for the development of the low-altitude economy. During the Second World War, the rapid progress of science and technology injected a strong impetus into the low-altitude economy and promoted its rapid development. In 1950, helicopters officially entered the low-altitude economy market and gradually expanded to multiple business areas such as offshore oil services and mountain rescue. After long-term development, the low-altitude economy has become an important part of the national economy of countries such as the United States, Australia, Canada, and Brazil. These countries have built a relatively mature low-altitude economic system with their vast land area and high level of economic development.
Faced with a new round of scientific and technological revolution and industrial transformation, major countries and regions have laid out their plans in the low-altitude field. The United States took the lead in proposing the concept of "urban air traffic (UAM)", which further evolved into "advanced air traffic (AAM)"; Europe also proposed the concept of "innovative air traffic (IAM)". Although the names are different, they are essentially using green energy to drive aircraft, adopting intelligent operation modes, and expanding low-altitude application scenarios, which are consistent with the core concepts of "low-altitude economy" and "smart air traffic (SAM)" in my country. At the same time, developed countries in Europe and the United States have accelerated the formulation of rules and standards in the low-altitude field. The United States has issued a number of bills and policies, including the "Advanced Air Traffic (AAM) Coordination and Leadership Act" and the "Advanced Air Traffic Infrastructure Modernization (AAIM) Act"; Europe has gathered consensus for the development of a new generation of aviation technology by holding the European Drone Summit Forum and other means, and has issued strategic guidelines such as the "2022 Management Plan: Mobility and Transportation Strategy" and "Drone Strategy 2.0". In addition, more than 20 cities in Europe and the United States have actively participated in the layout of advanced air traffic (AAM), and have launched a series of policy guidelines for the airworthiness certification, production standards, flight management, etc. of various types of low-altitude drones and aircraft to adapt to the operation and use needs of new forms of aircraft.
2. China’s Development Process
In China, the term "low-altitude economy" first appeared in Anyang Daily on April 17, 2010, and then frequently appeared in local official media and various forums. In 2011, relevant literature defined the concept of low-altitude economy and used it as a broad economic form concept, deeply exploring its theoretical and practical basis and industrial composition.
In June 2020, the Office of the Central Air Traffic Control Committee established the "National Low-altitude Economy Integration and Innovation Research Center" based on the International Cooperation Center of the National Development and Reform Commission. As an economic research think tank and decision-making advisory agency, it provides intellectual support for the development of the low-altitude economy. In February 2021, the CPC Central Committee and the State Council issued the "National Comprehensive Three-dimensional Transportation Network Planning Outline", which for the first time included the low-altitude economy in the national plan, marking that the low-altitude economy has officially risen to a national strategy. In March of the same year, the National Air Traffic Control Committee was upgraded to the Central Air Traffic Control Committee. Since then, the "Strategic Planning Outline for Expanding Domestic Demand (2022-2035)" proposed to accelerate the cultivation of tourism formats such as islands, cruise ships, low altitude, and deserts to release the consumption potential of general aviation. In 2023, the National Development and Reform Commission and other departments promoted the experience of "innovating new mechanisms for the development of low-altitude economy"; in December, the Central Economic Work Conference included the low-altitude economy in the strategic emerging industries. On January 1, 2024, the "Interim Regulations on Flight Management of Unmanned Aerial Vehicles" was officially implemented, and my country's drone industry entered a new stage of standardized development. In the same year, the Fourth Session of the Central Finance and Economics Committee, the Government Work Report of the Second Session of the 14th National People's Congress, and the Third Plenary Session of the 20th CPC Central Committee all put forward clear requirements for the development of the low-altitude economy. In March 2025, the Government Work Report once again emphasized the promotion of the safe and healthy development of emerging industries such as the low-altitude economy. Driven by the continuous policy, the development of my country's low-altitude economy has continued to accelerate.
3. The industrial chain structure of low-altitude economy
1. Upstream of the industrial chain
The upstream of the industrial chain mainly covers ground infrastructure and management support software. As a key infrastructure for low-altitude flight, the number and layout of general airports directly affect the development scope and efficiency of the low-altitude economy. By the end of 2023, 449 general airports have been built and registered nationwide, but compared with low-altitude economic developed countries such as the United States, the number is still insufficient. Low-altitude communication equipment provides communication support for aircraft to ensure smooth information transmission during flight; the airspace management system is responsible for the reasonable planning and deployment of low-altitude airspace to ensure flight safety; the airport operation management system is used to improve the airport's operating efficiency and service quality. In addition, the upstream also includes a research and development system, involving computer-aided design (CAx), electronic design automation (EDA), product life cycle management (PLM) and other technologies to provide support for product research and development; basic raw materials, such as alloy materials, carbon fiber composite materials and other high-performance materials, as well as core components and parts, such as high-efficiency batteries, precision motors, flight control systems, etc., which are the basis for manufacturing low-altitude aircraft and play a decisive role in aircraft performance.
(2) Midstream of the industrial chain
The midstream mainly includes low-altitude product manufacturing, low-altitude flight support and low-altitude comprehensive services. In the field of low-altitude product manufacturing, it covers the research and development and manufacturing of various types of drones, helicopters, traditional fixed-wing aircraft from consumer to industrial grades, and electric vertical take-off and landing (eVTOL) aircraft with development potential. The innovation and development of these products have greatly enriched the application scenarios of low-altitude flight. In terms of low-altitude flight support, it involves the construction of ground control stations, planning and design of take-off and landing facilities, and the research and development and production of maintenance and support equipment to ensure the safe take-off and landing and efficient operation of aircraft. Low-altitude comprehensive services include flight support services, flight training, and repair and maintenance services, etc., providing all-round support for low-altitude flight activities.
(3) Downstream of the industrial chain
The downstream is mainly focused on industrial integration, and the products and services produced in the midstream are widely used in various fields. In the field of transportation, application scenarios such as urban air traffic (UAM) and short-distance transportation are gradually being explored and developed; in the field of logistics, cargo transportation and distribution through low-altitude transportation tools such as drones have been applied in many scenarios; in the agricultural field, low-altitude economy can be used for agricultural and forestry plant protection, agricultural monitoring, etc.; in the inspection field, power inspection, pipeline inspection and other work can be carried out; in addition, it also includes low-altitude sports scenarios such as flight training and aviation sports. As the core platform (operating system) that provides digital management and service capabilities for airspace and flight, the route network plays an important role in the integration of downstream industries.
4. Market size and growth trend of low-altitude economy
1. Global Market Overview
With the continuous advancement of technology and the increasing expansion of application scenarios, the scale of the global low-altitude economy market has shown a steady growth trend. Taking the civil drone market as an example, the global civil drone market size exceeded 160 billion yuan in 2021. In developed countries such as Europe and the United States, the low-altitude economy has been commercialized in many fields, and the market development is relatively mature. For example, low-altitude logistics distribution in the United States and air tourism in Europe have made significant progress.
2. China’s market size and forecast
In China, the low-altitude economy is developing rapidly and the market scale continues to expand. In 2023, the scale of my country's low-altitude economy will reach 505.95 billion yuan, with a growth rate of 33.8%. According to the forecast of the Civil Aviation Administration of China, by 2025, the market scale of China's low-altitude economy will reach 1.5 trillion yuan, and by 2035 it is expected to reach 3.5 trillion yuan. my country's huge market demand, constantly improving policy support and rapidly developing technological innovation have provided strong support for the rapid growth of the low-altitude economy. At present, my country has taken a leading position in the world in the fields of drone research and development, design, equipment manufacturing, etc. The number of registered civil drones has exceeded one million, and there are many companies, which has laid a solid foundation for the expansion of the market scale.
5. Application scenarios of low-altitude economy
1. Low-altitude logistics
Low-altitude logistics is one of the important application areas of the low-altitude economy. Low-altitude aircraft such as drones and eVTOLs can achieve rapid delivery of goods, especially in scenarios such as urban delivery and material transportation in remote areas. For example, in cities, drones can be used for express delivery, shortening delivery time and improving delivery efficiency; in remote mountainous areas or areas with inconvenient transportation, eVTOL can undertake emergency material transportation tasks and solve the problem of material transportation. In January 2025, the first "low-altitude + logistics" drone drug delivery application scenario route in Guizhou Province successfully completed its maiden flight, providing practical experience for the application of low-altitude logistics in the field of medical material distribution.
2. Low-altitude tourism
Low-altitude tourism is favored by more and more tourists for its unique perspective and experience. Tourists can take helicopters, hot air balloons and other aircraft to overlook the beautiful city and natural scenery. For example, in some tourist attractions, helicopter aerial tours have become popular tourist products. In August 2024, the low-altitude passenger helicopter route connecting Shanghai Pudong and Kunshan, Jiangsu was officially opened. This is the first inter-provincial fixed-point low-altitude passenger transport route in my country, which has opened up a new path for the development of low-altitude tourism. In addition, some regions have also launched aviation sports such as low-altitude skydiving and paragliding, further enriching the low-altitude tourism industry.
(3) Low-altitude operations
In the agricultural field, low-altitude economy can be used for agricultural and forestry plant protection. UAVs can carry pesticides or seeds for spraying and sowing, improve work efficiency and reduce labor costs. In the industrial field, it can be used for power inspections and oil pipeline inspections. UAVs can be equipped with high-definition cameras, infrared thermal imagers and other equipment to promptly detect equipment failures and safety hazards. For example, in power inspections, drones can quickly and accurately check the operating conditions of transmission lines, greatly improving inspection efficiency and safety.
(4) Emergency rescue
In emergency rescue scenarios such as natural disasters and emergencies, low-altitude economy plays an important role. Helicopters can be used for personnel search and rescue and material transportation, while drones can conduct on-site surveys and communication relays. After disasters such as earthquakes and floods, helicopters can quickly reach the disaster-stricken areas and transport rescue personnel and materials to the scene, while drones can conduct a full-scale survey of the disaster-stricken areas to provide a basis for rescue decisions.
6. Challenges faced by the development of low-altitude economy
1. Policy and supervision
Although the state and local governments have introduced a series of policies to support the development of the low-altitude economy, there are still some problems in the implementation of the policies. For example, the degree of airspace openness varies from province to province, and the airspace approval process in some areas is cumbersome, which affects the development of low-altitude flight activities. At the same time, the low-altitude operation management system is still imperfect, lacking unified national technical specifications and standards, and further breakthroughs are needed in the demarcation of low-altitude airspace, information construction, and coordinated management of manned and unmanned aircraft.
2. Infrastructure
There are relatively few general airports in my country, and their regional distribution is uneven. By the end of 2023, there will be only 449 registered general airports in China, which is only about 11% of the number of public general aviation airports in the United States. At the same time, ground service support facilities need to be further improved, such as navigation and communication equipment, maintenance and repair facilities, etc., which are difficult to meet the needs of the rapid development of the low-altitude economy. In addition, urban air traffic control information systems, airspace management auxiliary systems, etc. are scattered in different fields, and integration is difficult. There is a lack of effective network information infrastructure to support low-altitude perception detection and communication.
3. Technological innovation
In terms of key technologies and core equipment, my country's low-altitude industry still has a high degree of external dependence. Taking domestic aircraft as an example, they mainly rely on imports for core technologies such as aircraft engines and avionics systems, and their independent innovation capabilities are insufficient. In addition, aircraft such as eVTOL for urban air traffic still have a gap with actual demand in key performance indicators such as battery energy density, which restricts the application and promotion of products.
(4) Market cultivation
my country's low-altitude economic market is still in the early stages of exploration, and its business model and profit model are not yet mature. The product cost is high. For example, eVTOL has a small passenger capacity. In the initial stage of application, it mainly serves a small range of high-paying groups. There is still a long way to go before it can be popularized on a large scale throughout the society. At the same time, consumption potential has not yet been fully stimulated. Although some low-altitude aviation tourism projects have been carried out in various places, they still cannot fully meet the consumption needs of different levels in terms of product richness and service quality.
7. Suggestions for the development of low-altitude economy
1. Strengthening policy coordination and planning integration
Government departments should further strengthen policy coordination, formulate a unified and complete low-altitude economic development policy system, and incorporate it into the overall regional economic development plan. Clarify the responsibilities of each department, simplify the airspace approval process, and improve the efficiency of policy implementation. At the same time, strengthen cooperation with international organizations and other countries, participate in the formulation of international standards, and enhance the international competitiveness of my country's low-altitude economy.
2. Accelerate infrastructure construction
Increase investment in the construction of general airports, ground service support facilities, and network information infrastructure. Rationally plan the layout of general airports, increase airport density, and strengthen interconnection with traditional transportation networks. Improve navigation, communication, meteorological services and other facilities, build a low-altitude intelligent network, provide high-speed and stable communication services for low-altitude aircraft, and improve the safety and convenience of low-altitude flight.
3. Strengthening technological innovation and talent cultivation
We will increase support for the research and development of key technologies for the low-altitude economy, encourage enterprises, universities and scientific research institutions to carry out industry-university-research cooperation, and break through the bottlenecks of core technologies such as aircraft engines, avionics systems, and battery technology. We will strengthen talent training, and through various means such as university majors and vocational training, we will train a group of professionals with knowledge in aviation technology, management and operations, and provide talent guarantee for the development of the low-altitude economy.
(4) Promoting market cultivation and industrial integration
Actively explore diversified business models and profit models, reduce product and service costs, and improve market competitiveness. Increase market promotion efforts, and through publicity and demonstration projects, increase public awareness and acceptance of the low-altitude economy and stimulate consumption potential. Further promote the deep integration of the low-altitude economy with multiple industries such as transportation, logistics, tourism, and agriculture, expand application scenarios, and promote the coordinated development of the industry.
8. Conclusion
As an emerging economic form, the low-altitude economy has huge development potential and broad market prospects. It can not only inject new impetus into economic growth and promote industrial upgrading, but also profoundly change people's production and lifestyle. Although it is currently facing many challenges in the development process, with the continuous optimization of the policy environment, the continuous improvement of infrastructure, the accelerated promotion of technological innovation and the in-depth development of market cultivation, my country's low-altitude economy is expected to achieve rapid and healthy development and become an important engine for promoting high-quality economic development. We have reason to believe that in the near future, the low-altitude economy will paint a colorful picture of development in the sky.
