The concept of low-altitude economy has rapidly evolved in China, transitioning from mere theory to a promising emerging industry in just three yearsBy 2023, it was identified as a strategic emerging industry, and in 2024, it gained formal recognition in government work reportsThis recognition marked the beginning of a new chapter, as policies and regulations were implemented to promote the development of commercial products and services in this sectorThe low-altitude economy, leveraging activities conducted below 1,000 meters and reaching up to 3,000 meters in certain areas, has attracted attention for its potential to stimulate economic growth in innovative ways.

At the heart of low-altitude economy is general aviation, which constitutes its principal industryNotably, the unmanned aerial vehicle (UAV) sector is poised to become a dominant force in this space, synergizing with urban air mobility (UAM) initiatives where electric vertical take-off and landing (eVTOL) aircraft play a crucial roleThe combination of these sectors indicates a significant burgeoning interest and investment in urban aerial transport solutions.

Recently, the EH216-S, an autonomous passenger drone developed by EHang, debuted on the e-commerce platform Taobao, reflecting a growing trend among both established brands and startups like XPeng, Geely, and GACHere, the intersection of automotive technology, aviation, and renewable energy signifies a technological confluence necessary for the future of low-altitude transport

Public acceptance of the low-altitude economy has also surged, particularly in the wake of robust stock market performance in related sectors, with companies experiencing gains exceeding 300%. The confidence of investors is underscored by notable fluctuations in stock prices, as the industry sees both rapid growth and technological advancements.

The emergence of low-altitude economy has catalyzed substantial infrastructure overhaul to accommodate the increasing demand for aerial transport

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The government has proactively issued the "National Airspace Infrastructure Management Law" and various localities have rolled out supportive policies, including financial initiatives to establish low-altitude infrastructureThese efforts include industry-specific funds sized between 1 billion to 20 billion RMB, aiming to boost investments needed for this promising sector.

Building effective low-altitude infrastructure necessitates determining suitable locations for vertical take-off and landing sites, accompanied by comprehensive civil engineering works to establish flight zones, parking areas, terminals, navigation beacons, communication systems, charging stations, and maintenance facilitiesOne of the significant advancements that eVTOL technology offers is the reduced area requirements compared to traditional airports, eliminating the need for fixed runways and permitting greater efficiency.

Given the anticipated rapid growth in low-altitude activities, projections indicate that by 2026, China's low-altitude economy could surpass 10 trillion RMB and 20 trillion by 2030. Estimates suggest that internal infrastructure market demand could reach approximately 5 trillion RMB by 2030. This monumental growth marks a significant shift in how transportation and logistics might function in urban scenarios.

As the regulations governing take-off and landing sites were established in May 2024, a multitude of local governments implemented infrastructure development plans, anticipating robust demand for new low-altitude facilitiesWell-informed in modern construction techniques, design firms skilled in this niche will likely experience substantial opportunities for growthThe construction of vertical take-off and landing sites may open avenues for collaboration between engineering companies and infrastructure builders.

Upon completion of ground construction, the deployment of associated hardware such as communications, navigation, surveillance, weather, and computational technologies becomes paramount

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By digitizing airspace data, precise tracking and identification of low-altitude flights can be achieved, thus ensuring enhanced safety and streamlined operations.

Furthermore, existing communications networks may not suffice for low-altitude requirements, necessitating innovations that would provide continuous coverage and low latencyThe advent of 5G technology appears to be a game-changer in this regard, particularly concerning its synergetic compatibility with the needs of UAV infrastructure.

From a security perspective, monitoring and navigation technologies form the backbone of the low-altitude ecosystemTools such as ADS-B (Automatic Dependent Surveillance–Broadcast) are crucial for tracking flight paths with high accuracyFuture developments in satellite-based ADS-B systems promise increased oversight, enabling a shift toward comprehensive low-altitude monitoring free from blind spots.

The challenge of ensuring consistent and precise navigation can be addressed by China's BeiDou navigation system, showcasing domestic capability in meeting low-altitude operational needsFurther advancements in meteorology are essential, particularly given the demanding nature of low-altitude weather conditions, which could be mitigated through the application of advanced radar systems.

Moreover, developing sophisticated air traffic control software remains vital to preventing collisions in this increasingly crowded aerial domainDomestic firms such as Lisi Information, Sichuan Jiuzhou, and Xincheng Technology have begun making inroads into this essential area, aiming to refine systems able to manage low-altitude airspace efficiently.

Once the necessary infrastructure is properly established, the next major product is eVTOL, representing a culmination of advancements in vehicle manufacturing, aviation, and renewable energy sectorsChinese manufacturers possess unique advantages in the eVTOL market, particularly due to established expertise in renewable energy technologies.

The eVTOL market has emerged as a prominent field with significant potential, benefiting from varied designs including multirotor, hybrid-wing, and tilt-rotor configurations

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