Low-altitude industry gains strategic importance

Low-altitude industry gains strategic importance

China plans to promote the formation of a CNY1 trillion market for the low-altitude economy by 2030, fueling business growth opportunities for a large number of upstream and downstream industry players in this burgeoning sector. A guideline proposed that China would establish more than 20 replicable and promotable low-altitude applications by 2027.

Guangdong province-based electric vertical take-off and landing (eVTOL) maker EHang Holdings said that with increasing policy support, the low-altitude economy in the country is entering a phase of high-speed growth. EHang, a Nasdaq-listed company, signed an agreement with A-share listed Zhejiang Sunriver Culture Tourism Co in mid-November to integrate the low-altitude economy with cultural tourism. Zhejiang Sunriver Culture will purchase 50 EH216-S or similar pilotless passenger-carrying aircraft from EHang for cultural and tourism projects such as sightseeing based on market demand.

The year 2024 is considered the inaugural year of China’s low-altitude economy, representing a new milestone for the booming sector. As a typical representative of the in-depth integration of new-generation information and aviation technology, developing the low-altitude industry has significant strategic importance, industry experts observed. The Ministry of Industry and Information Technology (MIIT) recently held a meeting on the development of the low-altitude industry. Guidelines issued by government departments indicated support for the research and development (R&D), product validation and exploration of commercial applications for low-altitude aircraft. So far, more than 30 provincial-level regions have included the low-altitude economy in their government work reports. A number of local governments have introduced policies to support the research and manufacturing of aircraft, the building of infrastructure, airspace management and flight standards, thus forming a relatively complete support system for the industrial chain. Several cities such as Chongqing; Suzhou, Jiangsu province; Guangzhou, Guangdong province; and Wuhan, Hubei province, have launched low-altitude economic industry funds to drive the growth of the sector, with the largest scale of the fund coming in at CNY20 billion.

As of now, there are over 17,000 unmanned aerial vehicle operating enterprises in China, and over 2 million UAVs have been registered nationwide, according to China Air Transport Association (CATA). “The next economic growth point will be the low-altitude sector, in my opinion. If the problem of traffic congestion is not solved, it would be difficult to develop the real economy,” Ni Mingxuan, Principal of the Hong Kong University of Science and Technology (Guangzhou), said during a recent forum in Guangzhou. “The technologies related to the low-altitude sector have been gradually maturing, and the advantage of three-dimensional space is obvious.”

A number of eye-catching eVTOL aircraft were on display at the just concluded 15th China International Aviation and Aerospace Exhibition, also known as Airshow China, in Zhuhai, Guangdong. As a key player in the low-altitude economy sector, Chinese electric vehicle maker Xpeng Motors’ flying car unit Xpeng Aeroht has taken a giant leap into the future of transportation. The company unveiled the first public autopilot flight of its modular flying car, the “Land Aircraft Carrier” during the airshow, and it is also the world’s only car capable of storing an “aircraft” in its trunk. During the airshow, Xpeng Aeroht received new orders for 2,008 units of its flying car.

Liu Xufeng, Senior Consultant at Frost & Sullivan, said Xpeng Aeroht’s latest order has driven the commercialization process of flying cars, and helped lay the foundation for its multi-field applications. “For tourism and sightseeing, flying cars are expected to create a new experience of sightseeing. For real estate projects, they will help provide air connections for high-net-worth clients. Besides, flying cars could quickly respond in case of emergency rescue in complex terrains and meet the demand for fast deliveries,” Liu said.

During the airshow, Xpeng Aeroht’s founder Zhao Deli showcased the fully automated separation and reconnection of the flying car between ground and air modules, demonstrating the country’s innovation and potential in low-altitude economic growth. “With just one touch on my smartphone, this ‘transformer’ releases the air module from the ground module,” said Zhao. The “Land Aircraft Carrier” offers manual and autonomous flight modes, including auto-route planning, autonomous cruising, one-touch return, 360-degree obstacle detection and descent vision assistance. The air module is an eVTOL, built with carbon fiber for lightweight durability, the company said. Such an aircraft can also be called an air taxi, and it is expected to become a main tool for sightseeing and intercity transportation in the future, the China Daily reports.