China witnesses rapid growth in low-altitude economy

Tests are underway for a larger-scale drone prototype before manned flights at Luogang Park in Hefei, east China's Anhui Province. By the end of this year, the drones are expected to offer commercial sightseeing flights. Simultaneously, a food-delivery drone designed to deliver food directly to specific locations with a controlled lowering mechanism is also undergoing testing.

The park is a testing ground for various unmanned applications, including scenarios involving unmanned delivery vehicles and rescue operations. 

"We can assess the drones' performance and presentation in real-world scenarios right from the outset," said Fan Hengwei, Deputy Director of the Advanced Technology Application and Promotion Centre in Hefei. "This is crucial in providing support for the city's development of low-altitude economy."

The low-altitude economy covers a wide range of industries focused on both manned and unmanned civil aerial vehicles. The sector includes aircraft manufacturing, low-altitude flight operations, and a suite of related services.

In 2021, Anhui received authorization to lead the way in low-altitude airspace management reforms, becoming the first province in the Yangtze River Delta to undertake such initiatives. Zhang Jie, director of the scenario innovation department at the Hefei Development and Reform Commission, noted that this development has reinforced Hefei's commitment to developing a robust low-altitude economy.

Behind the growth of the low-altitude economy

The low-altitude economy is intertwined with the artificial intelligence (AI) and power battery industries. In Hefei, the interconnection is evident, as the city has prioritized three key sectors – integrated circuits, new display and AI – as part of its national strategic emerging industry clusters.

This robust industrial base, particularly strong in cutting-edge technologies, has become a magnet for enterprises specializing in innovative aviation solutions like manned electric vertical take-off and landing (eVTOL) aircraft.

Within just a year, the city's high-tech zones have attracted over 20 companies specializing in low-altitude aviation. This influx has led to the formation of a comprehensive industrial chain encompassing drone research and development, production, manufacturing and sales.

"The sector encompasses various interconnected fields, including new energy aircraft sector, the vital power system sector and the entire spectrum of unmanned driving," said Li Yiheng, founder of ZeroG Aircraft Industry Co., Ltd, a Chinese eVTOL aircraft developer. "It also involves the unmanned system sector, the sensor sector, and what we call the smart cockpit sector."

The company has encountered challenges in managing production costs and advancing the overall performance of its parts and components. After recognizing the advantages offered by Hefei's new energy industry cluster, it decided to establish its operations there. 

"Leveraging the existing strengths in AI and intelligent manufacturing, coupled with the rapidly growing aerospace information industry, Hefei is now focusing on the low-altitude economy and accelerating the cultivation of this new sector," said Zhang.

Policy-driven progress

Anhui is among the Chinese provinces experiencing rapid growth in the low-altitude economy, a trend also evident in Shenzhen, a city in southern China renowned for its technological innovations.

From January to October this year, Shenzhen has launched 74 new drone routes, established 69 drone takeoff and landing points, and completed 421,000 cargo drone flights, data from the Shenzhen Municipal Transportation Bureau shows. It is also home to over 1,500 companies involved in the drone industry, catering to diverse applications like urban management and emergency response.

This December, Shenzhen introduced several intercity "air taxi" routes. The services, offering helicopter rides, have dramatically reduced travel times. For instance, a typical 40-kilometer journey that normally takes 40 minutes to an hour by road can now be completed in just 10 minutes.

In the same month, the city issued regulations to accelerate the industrialization of low-altitude aircraft such as manned eVTOL. The city will also promote the construction of low-altitude infrastructure and expand scenario applications of low-altitude commercial flights, such as low-altitude logistics and short-distance navigable transportation.

This development reflects a wider trend in China, where the low-altitude economy has been identified as a strategic emerging industry alongside bio-manufacturing and commercial aerospace, as highlighted in the recent central economic work conference.

In 2021, the concept of the low-altitude economy was formally integrated into China's development plan. Since then, China's low-altitude economic sector has experienced rapid growth. By the end of August, China had over 1.11 million registered civilian unmanned aerial vehicles, increasing nearly 16 percent from 2022, according to the Civil Aviation Administration of China. The number of issued drone pilot licenses has reached 182,000, and there are more than 17,000 registered drone operating enterprises.

Starting next month, the Interim Regulations on the Management of Unmanned Aircraft Flights will take effect, paving the way for a more structured approach to the management of unmanned aircraft. In alignment with the release and enforcement of these regulations, the Civil Aviation Administration of China is formulating supplementary regulations to oversee civilian drones. This move is part of a broader effort to address safety risks associated with drone operations and to encourage the sustainable growth of industries within the low-altitude economy sector.