China is aiming to foster the growth of a trillion-yuan ($138 billion) market for the low-altitude economy by 2030, with a focus on expanding business opportunities for companies involved in the sector. This ambitious plan includes the creation of over 20 replicable low-altitude economy application demonstrations by 2027, as outlined in a new guideline released by four government departments, including the Ministry of Industry and Information Technology and the Civil Aviation Administration of China.
The low-altitude economy refers to the use of aerial vehicles, including electric vertical take-off and landing (eVTOL) aircraft, in a range of applications such as transportation, logistics, and tourism. EHang Holdings, an eVTOL maker based in Guangdong, is already capitalizing on this emerging market. The company, which is listed on Nasdaq, has signed an agreement with Zhejiang Sunriver Culture Tourism to explore the integration of eVTOLs into the cultural and tourism sectors. The partnership includes the sale of 50 pilotless passenger-carrying aircraft, the EH216-S, which will be used for sightseeing and other tourism-related activities.
EHang’s vice-president, He Tianxing, highlighted that with increased policy support, the low-altitude economy is entering a phase of rapid growth. The company plans to continue expanding eVTOL applications across various air traffic scenarios and develop the broader industrial ecosystem.
2024 is being regarded as the inaugural year for China’s low-altitude economy, marking a significant milestone in the sector’s development. The integration of new-generation information technology with aviation technology is seen as critical to the sector’s strategic importance, with experts emphasizing its potential to drive economic growth. The Ministry of Industry and Information Technology has also hosted meetings to highlight the low-altitude sector’s role in cultivating new productive forces and economic growth points.
The Chinese government has issued several guidelines to support the research, development, and commercial applications of low-altitude aircraft, paving the way for further advancements and opportunities in this innovative industry.