Key Points
- China’s low-altitude economy generated $70 billion in 2023 and is projected to reach $490 billion by 2035.
- Authorities in Guangdong and Shenzhen provide financial incentives and faster certifications to encourage drone and flying car development.
- Companies like EHang, DJI, and XPENG are leading the industry with innovations in delivery drones and passenger eVTOLs.
- The industry struggles with short battery life, safety accidents, and strict military control over airspace.
In southern China, the future is buzzing overhead. An oval craft from EHang hovers above Guangzhou, testing a flying taxi service that once seemed impossible. Just down the road in Shenzhen, tourists now order bubble tea and watch drones deliver it to a park 30 minutes later.
The government pushes this “low-altitude economy” hard. Activities in the airspace below 1,000 meters generated $70 billion in 2023. Experts predict that figure will balloon to $490 billion by 2035. Guangdong province leads this race, hosting drone giant DJI and new innovators like XPENG.
Authorities are spending big to support these companies. Shenzhen introduced a $2.1 million reward for firms that certify passenger flying vehicles.
China’s Civil Aviation Administration has already allowed EHang to run commercial services. EHang vice president He Tianxing plans to start with aerial sightseeing. He envisions a day when aircraft use mall and school rooftops as terminals, insisting these machines cannot remain just “engineers’ toys.”
However, the industry faces rough skies. Battery technology limits flight times to just 20 or 30 minutes for many models. Safety is also a concern; an XPENG prototype recently caught fire after a test-flight collision. Also, strict airspace controls hold back progress. The military controls most of China’s airspace, leaving less than one-third open to general aviation.
Despite the risks, companies continue to invest. XPENG boasts over 7,000 orders for its massive “Land Aircraft Carrier” and plans tourist flights over the Silk Road dunes. While some European competitors like Volocopter struggled financially, Chinese firms benefit from strong state backing.
Experts like Gary Ng believe true commercialization won’t arrive until 2030. The government is slowly simplifying approval rules to help, but regulators must balance innovation with safety. As Chen Wen-hua from Hong Kong Polytechnic University notes, the future looks bright, but the road to get there is treacherous.
