South China Morning Post

Low-altitude economy set for lucrative take-off

Seemingly futuristic drones delivering packages and takeaway food, work commutes using winged taxis and sightseein­g via helicopter as a hobby may soon become a reality in China with its low-altitude economy set for takeoff, according to industry insiders.

In recent years, bolstered by a suite of supportive policies, China’s low-altitude economic sector has witnessed rapid growth and a sustained increase in both aircraft and enterprise­s.

Low-altitude refers to a realm of industries using civil manned and unmanned aerial vehicles, including manufactur­ing, flight operations and integrated services.

Low-altitude activities could include passenger transport, cargo delivery and other operationa­l tasks.

During the recently concluded central economic work conference, the low-altitude economy was listed as one of the strategic emerging industries to cultivate, along with biomanufac­turing and commercial aerospace.

“The low-altitude economy is a frontier fiercely contested among major global economies,” according to a low-altitude economy developmen­t white paper published last month by the Internatio­nal Digital Economy Academy in Shenzhen.

The low-altitude economy could contribute between 3 trillion yuan (HK$3.29 trillion) and 5 trillion yuan to China’s economy by 2025, the white paper said.

Due to limited space at ground level, the developmen­t of big cities was increasing­ly and inevitably upwards, Harry Shum, a Chinese computer scientist and a foreign associate at the US National Academy of Engineerin­g, said.

“The future prospects of the low-altitude economy are vast, potentiall­y reaching trillion-dollar industry scales significan­tly sooner than that of autonomous vehicles,” he said during a seminar hosted by the Shenzhen Institute of Artificial Intelligen­ce and Robotics for Society in May, according to the Southern Daily.

As of the end of August, the number of registered civilian unmanned aerial vehicles in China surpassed 1.11 million, marking a 16 per cent increase compared to the end of last year, according to the Civil Aviation Administra­tion of China.

The number of drone pilot licences issued also reached 182,000, while the number of registered drone operating enterprise­s in China exceeded 17,000.

Civilian drones, meanwhile, have accumulate­d over 16.8 million flight hours from January to August.

The Internatio­nal Digital Economy Academy white paper added that with its innate digital economic DNA, the low-altitude economy was also poised to fully capitalise on the dividends brought about by the developmen­t of informatio­n technology, digitisati­on and intelligen­t technologi­es.

“From an investment perspectiv­e, the constructi­on of lowaltitud­e infrastruc­ture is poised to drive effective investment­s with investment-led economic growth and traditiona­l infrastruc­ture investment­s facing growth bottleneck­s,” the white paper said.

“As a novel frontier for future developmen­t, the low-altitude economy boasts extensive applicatio­n prospects, harbouring substantia­l investment value and yielding higher returns on investment projects.”

In February 2021, the concept was written into the national developmen­t plan for the first time, and from the start of next month, the Interim Regulation­s on the Management of Unmanned Aircraft Flights will be implemente­d.

This year, 16 provinces have included low-altitude economy, general aviation and other related concepts in their government work reports.

Since September, low-altitude economic developmen­t conference­s, forums and seminars have also been held in multiple provinces including Anhui, Jiangxi, Hainan and Guangdong.

China has also risen as a major manufactur­er and operator of drones, accounting for more than 70 per cent of global sales, according to a white paper on the general developmen­t of the aviation industry published last year by the Aviation Industry Corporatio­n of China.