Governmental plan for low-altitude air-transport sector
What
- Importance: In 2024, the low-altitude economy (aircraft, drones, and eVTOL etc.) was included in the Government Work Report for the first time, elevating it to a national strategic emerging industry and positioning it as a key driver of high-quality economic growth. The 2025 report reinforced this commitment by emphasizing the need for “safe and healthy development,” signaling that alongside advancing emerging industries, China is placing greater focus on institutional frameworks and risk management.
- Action plan: As of April 2024, there are 26 provinces that have made action plans in the government work reports for the development of low-altitude economy. This includes launching implementation-level policies, determined expansion goals, and detailed development plans. All of it relates to accelerating the low-altitude economic industry.
- Market size: In 2023, China's low-altitude economic market size reached 505.95 billion RMB, with a year-on-year growth rate of 33.8%. It is expected that in 2026, the market size of China's low-altitude economy will further expand to one trillion RMB. This means that the compound annual growth rate will be 30% between 2023 to 2026.
- Business opportunity: This important measure not only promotes the vigorous development of low-altitude economy-related industries such as general aircraft, drones, and eVTOL (electric vertical take-off and landing), but also provides huge development opportunities for supporting infrastructure and operational services.
- eVTOL: Is the main urban air transportation method for personal travel and public travel. It is almost exclusively driven by electric power which creates opportunities for suppliers of batteries, fuel cells and related products and materials. Furthermore, tangible opportunities exists within aircraft power systems, aircraft control systems, navigation systems, autonomous driving systems, communication systems, airframe and seat material companies.
- Infrastructure: Building low-altitude, intelligent, and integrated infrastructure is the core and foundation for reaching Chinas ambitious goals within the industry. Low-altitude flight infrastructure includes not only the physical infrastructure of general airports and various take-off and landing points, but also low-altitude flight communications, navigation, surveillance, meteorological monitoring and other information infrastructure, as well as low-altitude flight digital management service system.
- Aircraft control system: The air traffic control system is vital for the entire process from aircraft takeoff to landing. It is a strategic infrastructure for implementing airspace management, ensuring flight safety, and achieving efficient and orderly operation of air transportation. Air traffic control system, namely communication, navigation, surveillance and air traffic management system, referred to as CNS/ATM system. Among them, the communication, navigation and surveillance part (CNS) belongs to the category of peripheral facilities. The air traffic management system (ATM) is an information processing system actually used by air traffic controllers to manage air traffic. It consists of air traffic services (ATS), air traffic flow management (AFTM) and airspace management (ASM).
Concrete project plan in provinces:
- Shanghai is positioning itself as a national hub for eVTOL innovation by leveraging its large aircraft industry foundation to attract nearly half of China’s leading enterprises. Aiming to create an integrated industrial chain spanning R&D, manufacturing, and application.
- Shenzhen capitalizes on its end-to-end industry chain advantage, from research to service delivery. Through the deployment of the Low-Altitude Intelligent Integration System (SILAS) and a dense network of 1,200 takeoff and landing points, Shenzhen is strengthening its operational ecosystem with the goal of becoming a benchmark in the drone industry.
- Chongqing focuses on its unique mountainous terrain, leveraging BeiDou navigation and 1,500 general aviation takeoff and landing points to expand applications such as low-altitude tourism and mountain logistics.
CONTACT US
For more information contact Axel Brangenfeldt at axel.brangenfeldt@business-sweden.se.