Shenzhen's low-altitude economy soars as city leads global drone race

The 10th Drone World Congress opened in south China's Shenzhen on Thursday, drawing 1,220 companies from 17 countries and regions. A three-day event showcasing over 10,000 drones and low-altitude economy products, the congress is a fitting stage for a city that has quietly built the world's most dominant drone industry cluster.

A market carved out by one city

Shenzhen is home to roughly 1,900 companies in the low-altitude economy sector. Consumer drones manufactured here account for 70% of the global market, while industrial drones claim a 50% share. In 2023, the sector generated over 90 billion yuan (over $13 billion) in annual output, a 20% increase year-on-year.

Growth remains strong. In 2025, Shenzhen's civilian drone production rose 40.1% compared to the previous year. Exports surged 66.9% in the first two months of 2026, according to Guangzhou Customs.

Policies, infrastructure catch up with hardware

Shenzhen implemented China's first local legislation specifically targeting the low-altitude economy in February 2024. The city has since developed over 20 national and industry standards for manufacturing, applications and infrastructure.

Physical infrastructure is expanding rapidly. By March 2026, Shenzhen had built 1,284 takeoff and landing sites for low-altitude aircraft, surpassing its 2026 target of 1,200. The city has also deployed 80,000 5G base stations and upgraded over 23,000 to 5G-Advanced, providing continuous network coverage below 120 meters.

Beyond drones: the eVTOL frontier

This year's congress spotlights electric vertical takeoff and landing (eVTOL) aircraft. Several Chinese firms unveiled manned eVTOL prototypes, signaling ambitions to move beyond industrial and consumer drones into urban air mobility.

The supply chain advantage is hard to replicate. Shenzhen claims that all key materials and core components for drones can be sourced within a one-hour drive, a concentration of manufacturing capability that gives local firms speed and cost advantages over competitors elsewhere.

Challenges beneath the surface

Shenzhen's dominance carries challenges. DJI, the city's top drone maker, alsodominates the global commercial drone market. This heavy reliance on one company is a vulnerability for the city's low-altitude economy.

The eVTOL segment faces its own hurdles. No company has yet demonstrated a clear path to commercial profitability for passenger-carrying drones. Regulatory frameworks for urban air mobility remain immature in most markets, and questions about noise pollution, airspace management, and privacy are largely unresolved.

Shenzhen's low-altitude economy has soared. But staying on top will be harder as competition swoops in and new risks appear. The city's drone sector is yet to reduce its reliance on DJI and find its way through an increasingly tricky international environment.

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