The Civil Aviation Administration of China has recently held a meeting to discuss the strategic emerging industry of the “low-altitude economy”, according to a report by CITIC Securities. This industry is seen as an integrated economic form of “aviation +”, and the meeting aimed to promote the low-altitude economy from exploration to development.
The low-altitude economy is expected to give birth to a trillion-dollar industry with strong industrial radiation. It is set to improve infrastructure and operation construction, expand more advanced aircraft technology, and provide new application scenarios, which will create more opportunities for related industries.
In recent years, China has introduced relevant industrial policies and deepened airspace reform to pave the way for the development of the low-altitude economy. The meeting emphasized the need for in-depth research on the development laws of the low-altitude economy and the improvement of civil aviation-related policy and regulation systems.
With the gradual opening of China’s low-altitude airspace, the general aviation and drone industries are set to experience rapid growth. Urban air transportation, particularly eVTOL (electric vertical takeoff and landing), is expected to become a mainstream solution. The low-altitude economy is projected to exceed 500 billion yuan in 2023 and reach 2 trillion yuan by 2030.
However, there are also risk factors to consider, such as policies not meeting expectations, airworthiness certification issues, infrastructure challenges, intensified industry competition, and technological progress uncertainties.
Overall, the low-altitude economy presents opportunities for investment in areas such as infrastructure and operations, aircraft manufacturing, and aviation materials. As a global strategic emerging industry, the low-altitude economy is expected to play a significant role in shaping the future of aviation and related industries.