“Low Altitude Economy Takes Flight: A New Era of Commercialization Approaches”
In Guangzhou, over 300 companies are currently engaged in the low-altitude economy, creating a robust and comprehensive industrial chain.
**In-depth Look**
From medical drone emergency deliveries and aerial food deliveries to high-rise buildings, to aerial spraying of fertilizers in orchards, and human-carrying aircraft taking off from high-speed rail stations or airports, the low-altitude economy is rapidly becoming a part of everyday life thanks to government policies, technological advancements, and substantial capital input.
On a national scale, nearly 30 provincial-level administrative regions have introduced policies to promote the development of the low-altitude economy within the past year, demonstrating a unified push for innovation and entrepreneurship. This emerging “low-altitude” industry is not only becoming the testing ground for growth and transformation among Chinese enterprises, but it is also witnessing both the rise of leading eVTOL (electric Vertical Take-Off and Landing) companies and the unfortunate declines of some drone delivery startups.
Globally, China has taken an early lead in the low-altitude economy, but industry experts emphasize the need for sustainable growth. The low-altitude economy is still in its infancy; truly opening up a trillion-yuan market will require widespread public consumption of eVTOL and related aviation products.
**Market Overview**
Guangzhou Leads the Race in the Low-Altitude Economy
In Guangzhou, the dream of “flying” is arriving sooner than anticipated. “If the price of flying cars can drop below two million yuan, they will definitely attract attention,” remarked Zhao Deli, founder of XPeng Huaitian, during the demonstration of the first manned test flight of their flying vehicle on October 21. Set to launch pre-sales by year-end, this vehicle, dubbed “Land Aircraft Carrier” and produced in Guangzhou, has already received nearly 3,500 orders. Structurally, the “Land Aircraft Carrier” combines an electric vehicle with a flying apparatus, meant to fit neatly into the car’s trunk for both storage and charging.
In just a few years, the concept of flying cars has transitioned to the verge of commercialization. By 2024, companies like XPeng Huaitian and GAC Group are ramping up their development, testing, and certification processes for flying vehicles. Following the successful flight verification of the GOVE model over Guangzhou’s CBD in March, GAC Group’s General Manager, Feng Xingya, disclosed that the company is developing a hybrid wing design capable of flying up to 150 kilometers to meet the transportation needs of the Guangdong-Hong Kong-Macao Greater Bay Area.
As low-altitude activities become increasingly feasible, Guangzhou is laying solid foundations to nurture the development of its “Sky City.” By formulating supportive policies and fostering new business sectors like drone delivery and flying cars, the city is positioning itself as a strong player in the low-altitude economy. Recent milestones include the establishment of China’s first low-altitude economic application demonstration zone, the world’s first fully certified eVTOL company in Guangzhou, and the formal agreements for mass production of flying cars to be held in the Huangpu district.
**Competition Nationwide**
With 2024 being heralded as the “Year of the Low Altitude Economy,” cities across the nation are also jumping on the bandwagon. Shanghai has nurtured its own “eVTOL Five Dragons,” leading the way in prototype testing, while Chengdu recently unveiled its first flying car prototype for public demonstrations. Cities like Beijing, Shanghai, Guangzhou, Changzhou, Hangzhou, and Hefei have announced plans to collaborate on creating a low-altitude economic ecosystem, targeting 100 demonstration projects by next year.
From a global perspective, flying cars have become hot topics in technology and investment, with over 700 proposed applications worldwide and projections from Roland Berger indicating a growth of 3,000 manned eVTOLs by 2025 and approximately 98,000 by 2050.
China’s engineering community is optimistic about the nation’s positioning in this competitive low-altitude transportation race. Xiang Changle, an academician at the Chinese Academy of Engineering and vice president of the China Society of Automotive Engineering, highlighted the enthusiasm and comprehensive strategies being deployed at national and ministerial levels to promote low-altitude economic development.
**Consumer Market**
Despite growing interest, the low-altitude economy may still take another 15 years to mature. The increased accessibility of low-altitude flying projects has shifted from niche to mainstream, with drone technology enabling a variety of applications.
As the technology evolves, the widespread acceptance and integration of low-altitude flight experiences—from scenic helicopter rides over the Great Wall to commuter services using eVTOLs—have begun to reshape expectations. However, flying cars remain a luxury item for many; for instance, a recent helicopter tour in Shanghai costs nearly 2,000 yuan per person, far out of reach for average consumers.
Many industry experts contend that the low-altitude economy is in its early stages, with societal acceptance and regulatory frameworks needing to align before commercial viability can be achieved.
**Challenges and Innovations**
While flying cars face significant challenges such as safety, energy efficiency, and smart management, experts believe that innovative solutions are actively being pursued. As the low-altitude economy continues to develop, establishing standards, safety regulations, and infrastructure will be critical for its success.
Recent initiatives and legislative efforts, such as the upcoming review of Guangzhou’s Low Altitude Economic Development Regulations, emphasize the need for a manageable and flexible airspace framework.
In conclusion, while challenges abound, the continued exploration and innovation in the low-altitude economy offer promising avenues for growth and commercialization, propelling us ever closer to a day when flying vehicles become part of daily life.
