China's low-altitude sector listed as one of the strategic emerging industries

Futuristic drones delivering packages and takeaway food, work commutes using winged taxis, and sightseeing helicopters will soon become a reality in China with its low-altitude economy set for take off, according to industry insiders. In recent years, bolstered by supportive policies, China’s low-altitude economic sector had witnessed rapid growth and a sustained increase in both low-altitude aircraft and enterprises. The term refers to a comprehensive realm of industries centered around civil-manned and unmanned aerial vehicles (UAVs), including manufacturing, low-altitude flight operations and integrated services. Low-altitude flight activities could include passenger transport, cargo delivery and other operational tasks. During the recently Central Economic Work Conference (CEWC) in December, the low-altitude economy was listed as one of the strategic emerging industries to cultivate, along with bio-manufacturing and commercial aerospace.

“The low-altitude economy is a frontier fiercely contested among major global economies,” according to a low-altitude economy development white paper published by the International Digital Economy Academy in Shenzhen. The low-altitude economy could contribute between CNY3 trillion and CNY5 trillion to China’s economy by 2025, the white paper said. Due to the limited space at ground level, the development of big cities is increasingly and inevitably extending into airspace, said Harry Shum, a Chinese computer scientist and a foreign associate at the U.S. National Academy of Engineering. “The future prospects of the low-altitude economy are vast, potentially reaching trillion-dollar industry scales significantly sooner than that of autonomous vehicles,” he said during a seminar hosted by the Shenzhen Institute of the Artificial Intelligence and Robotics for Society in May. “Moreover, the future number of unmanned aerial vehicles is expected to be several times today’s figures, presenting enormous opportunities for both upstream and downstream industries.”

As of the end of August, the number of registered civilian unmanned aerial vehicles in China had surpassed 1.11 million, marking an 16% increase compared to the end of 2022, according to the Civil Aviation Administration of China (CAAC). The number of drone pilot licenses issued also reached 182,000, while the number of registered drone operating enterprises in China exceeded 17,000. Civilian drones, meanwhile, have accumulated over 16.8 million flight hours from January to August. The International Digital Economy Academy white paper added that with its innate digital economic DNA, the low-altitude economy is also poised to fully capitalize on the dividends brought about by the development of information technology, digitization and intelligent technologies. In February 2021, the concept was written into the national development plan for the first time, and this month, the Interim Regulations on the Management of Unmanned Aircraft Flights will be implemented, the South China Morning Post reports.

EHang Holdings, a Chinese urban air mobility (UAM) technology company, is ramping up efforts to bolster commercial operation of electric vertical takeoff and landing aircraft (eVTOL) in aerial sightseeing, tourism and logistics, as part of a broader push to expand its footprint in the emerging low-altitude economy sector. The company recently announced its certified EH216-S pilotless passenger-carrying aerial vehicles have successfully completed maiden commercial flight demonstrations in both Guangzhou, Guangdong province and Hefei, Anhui province. The move marks another major milestone toward normalizing EH216-S flights for airborne sightseeing at local scenic spots. The first EH216-S pilotless passenger-carrying aerial vehicle has been delivered to an intelligent aviation technology company in Guangzhou and was first deployed at an operating site in Jiulong Lake Park. More operating venues and flight routes for aerial sightseeing and logistics are under development in Huangpu district, Guangzhou, EHang said.

Meanwhile, the multipurpose AS700 civilian airship recently received a major certification from the government, moving it closer to mass production, according to State-owned conglomerate Aviation Industry Corp of China, the nation’s leading aircraft maker. The AS700 is the first manned airship to be domestically developed and certified in China. Designed and built by the Special Aircraft Research Institute, an AVIC subsidiary in Jingmen, Hubei province, the airship will be used for sightseeing air tours. Propelled by piston engines, the airship has a maximum takeoff weight of 4.15 metric tons and a maximum speed of 100 kilometers per hour. The craft is able to carry one pilot and nine tourists and is capable of flying 700 kilometers and staying in the air for up to 10 hours, the China Daily reports.