As a new form of productive power, regions across China have rolled out industrial policies to develop the low-altitude economy. It has become widely recognized as a new track for industrial development and an economic growth engine for governments, industries, and businesses alike.

The low-altitude economy refers to an integrated economic model driven primarily by civil manned and unmanned aerial vehicles, including various applications such as passenger, cargo, and other operations within low-altitude flight scenarios. The sector encompasses low-altitude manufacturing, low-altitude flight, low-altitude support, and integrated services.

In this context, "low-altitude" generally refers to airspace within 1,000 meters above the ground, which may extend to 3,000 meters in certain areas, depending on local characteristics and needs. Low-altitude flights include helicopters, drones, small aircraft, and flying cars, with applications in urban transportation, logistics, agriculture and forestry protection, emergency rescue, power line inspections, cultural tourism, and more.

The most talked-about concept in recent years, however, is eVTOL (electric vertical takeoff and landing) aircraft, a completely new track. eVTOL vehicles combine the safety of large airplanes, the convenience of helicopters, and the economy of electric vehicles. They are emission-free, require less space, and offer advantages such as low cost, safety, and quiet operation. eVTOLs are designed to serve urban and intercity commuting without the need for long flights.

In 2023, the global eVTOL market reached $12.53 billion, marking a 12.38% growth from the previous year. It is expected that by 2024, the market will grow to $14.08 billion, and by 2025, it will reach $15.82 billion.

The rapid development of the low-altitude economy is also driven by capital investment. According to incomplete statistics, by the end of October 2024, 23 drone and eVTOL companies had raised funds across 30 rounds, with 14 rounds involving investments of over 100 million yuan, accounting for nearly half of the total. Among the disclosed funding amounts, eVTOL company XPeng AeroTech secured the largest single round of $150 million (approximately 1.07 billion RMB).

In Shanghai, for example, nine companies in the low-altitude economy sector completed 14 financing rounds, with disclosed investments exceeding 3 billion yuan.

Regarding funding rounds, the majority have focused on A+ rounds and B rounds. For instance, Volant completed five A and A+ rounds this year, raising over 500 million yuan, while Shida Technology completed two rounds, raising $20 million and several hundred million yuan, respectively.

In terms of investors, the low-altitude economy sector has attracted a variety of investment institutions, including major names such as Sequoia China and Junlian Capital. Other funds, including Guoxin Fund and Qingsong Fund, have injected vitality into the low-altitude economy, with state-owned capital such as Guiyang Venture Capital, Shaanxi Investment Group, and Jinshan Capital Group also participating.

This diverse investment landscape not only provides companies with more funding but also offers broader policy and resource support for their future development.

According to the 2024 Hurun Rich List, four entrepreneurs in the low-altitude economy sector are highlighted, including DJI's founder Wang Tao in the drone sector, with a fortune of 35 billion yuan; XPeng AeroTech’s founder He Xiaopeng in the flying car sector, with a fortune of 32 billion yuan; Tianbing Technology’s founder Kang Yonglai in the aerospace sector, with a fortune of 6.7 billion yuan; and United Aircraft's Tian Gangyin, with a fortune of 5 billion yuan. Notably, Liu Baiqi, the founder of the aerospace unicorn company Xinghe Power, is also gaining attention, though he has not yet made the Hurun list.

In total, over 800 global companies are competing in the eVTOL sector. China’s market includes traditional automotive manufacturers like GAC, XPeng, and Geely, alongside innovative companies such as EHang and Feihang Aviation. On the international front, companies such as Boeing, Airbus, and Embraer, as well as startups like Joby, Archer, Alef Aeronautics, Lilium, Volocopter, Vertical Aerospace, Eve, AeroMobil, and PAL-Liberty, are also participating in the race.

Recently, low-altitude economy stocks saw significant surges in the U.S. stock market. Lilium, one of the earliest and most popular eVTOL companies, experienced a remarkable 116% intraday increase, ending the day with a gain of over 61%. Other eVTOL stocks, including Palladyne AI, Vertical Aerospace, Unusual Machines, and EHang, also saw significant increases in their share prices.

Lilium, often referred to as the "Tesla of flying cars," has attracted significant market attention since its founding in 2015. The company has raised substantial funds, including at least seven rounds from Tencent, Baillie Gifford (a major shareholder in Tesla), and venture capital firms like Atomico and Blackstone.

As of 2024, nearly 20 provinces and cities have included the development of low-altitude economy and general aviation in their government work reports. A total of 20 provinces and cities have established low-altitude economy industry funds, with fund sizes ranging from 1 billion to 20 billion yuan. Suzhou’s fund is the largest, with a total scale exceeding 20 billion yuan after signing agreements with 16 sub-funds this year. Beijing, Guangzhou, and Wuhan follow closely, each with funds of 10 billion yuan.

More than 100 cities have announced related policies to accelerate the development of the low-altitude economy. Fifteen cities, including Beijing, Shanghai, Shenzhen, Hangzhou, and Hefei, have partnered with enterprises to build low-altitude economic ecosystems, planning to launch hundreds of demonstration projects in low-altitude flight routes and application areas by 2025.

Additionally, China's "Green Aviation Plan" aims to launch eVTOL pilot operations by 2025. It is expected that from 2025 onwards, eVTOLs will gradually be deployed in tourist attractions, suburban areas, and other regions, with sales expected to grow rapidly.

According to the "2024 China Low-Altitude Economy Development Report" released by the China Electronic Information Industry Development Research Institute, the size of China’s low-altitude economy exceeded 500 billion yuan in 2023, with a growth rate of 33.8%. Based on data from the Civil Aviation Administration of China, it is projected that the low-altitude economy market will reach 1.5 trillion yuan by 2025 and could surpass 3.5 trillion yuan by 2035.

Looking ahead, as policies supporting the low-altitude economy continue to roll out, the competition in this sector is set to intensify. With tremendous growth potential, the future of low-altitude economic development is exciting. Who will lead the way in creating an internationally influential "Sky City"? We eagerly await the unfolding of this dynamic industry!