Recently, the Central Economic Work Conference in China has explicitly recognized the potential of the low-altitude economy, presenting an unprecedented opportunity for its developmentThis recognition not only signifies a pivotal moment for the industry but also highlights the strategic importance of emerging sectors within the broader economic landscapeThe concept of low-altitude economy, which integrates various industries into a cohesive framework, is primarily centered upon the use of unmanned aerial vehicles (UAVs) and their complementary manned counterpartsThese entities engage in diverse aerial activities that extend into the "three-dimensional" space, birthing innovative scenarios like drone delivery services and the use of aerial vehicles for agriculture and logistics.

The low-altitude economy is now entering a rapid phase of developmentHowever, it is essential to recognize that this sector remains in its infancy

Advertisements

The underlying framework of the low-altitude economy encompasses manufacturing, aerial operations, support services, and integrated service industriesThis ecosystem fuels the emergence of thousands of businesses and a myriad of new occupations, subsequently presenting numerous opportunities across various sectors.

The notion of low-altitude economy was first officially introduced in China back in 2010. Since then, relevant ministries have been establishing a structured policy system to regulate the industry in alignment with their specific administrative responsibilitiesThis ongoing work lays the groundwork for a standardized approach to managing the myriad aspects of low-altitude operationsNotably, in 2021, a significant milestone was reached when laws began to govern the operations within this nascent industry, ushering in a more regulated and systematic eraFurthermore, as of the beginning of 2024, local assemblies in regions such as Beijing, Guangdong, and Anhui have underscored the importance of advancing low-altitude economy initiatives, a move designed to bolster innovative productive forces.

Globally, more than fifty nations— including the United States, Germany, France, Japan, and South Korea—have actively engaged in deploying their resources to cultivate their low-altitude economies

Advertisements

By prioritizing the development of this sector, these countries aim to consolidate a comprehensive industrial cluster that will shape the pacing of future growth.

Despite the enthusiasm surrounding low-altitude economy, a pragmatic view must acknowledge that it remains in preliminary development stages in ChinaSeveral challenges must be tackled before the sector can reach its full potential.

From the perspective of policy, there is a notable lack of effective regulatory mechanisms and specific implementation guidelines, leading to difficulties in realizing strategies at the local levelOne significant challenge is the absence of intelligent regulatory tools tailored to accommodate the unique characteristics of the evolving low-altitude economyCurrently, approval procedures for low-altitude flights are tethered to traditional civil aviation supervision systems, which do not sufficiently cater to the anticipated massive and diverse applications of UAVs

Advertisements

Additionally, there remains ongoing exploration at various local government levels to transform national strategic designs into actionable policies, with only a select few regions—like Shanghai, Henan, and Shenzen—having published development plans for the low-altitude economy thus far.

From an industrial standpoint, the market scale of the low-altitude economy is relatively modest and the distribution across industry segments is disproportionately skewedPresently, approximately 90% of the value generation within the low-altitude sector is concentrated in the upstream manufacturing phase, with the remaining segments making up just over 10%. This imbalance results in an overall industry structure that is top-heavy and underdeveloped in downstream applications, lacking effective integration and coordination across its various components.

Moreover, in terms of practical applications, the ecological value of low-altitude operations has yet to be fully realized

• Calculating the Economics of Urban Renewal
• The Future of Oil Stocks and Currency Markets
• Decoding the 1% Risk Rule
• Urban Planning Adapts to New Economic Drivers
• The Strengthening Trend of the Dollar

In the business-to-business (B2B) and business-to-government (B2G) sectors, current usage remains limited to small-scale pilot scenarios within emergency communications, energy inspections, and urban governance—with a significant number of areas still untappedIn the business-to-customer (B2C) arena, applications have largely revolved around aerial photography, characterized by consumers’ muted commercial interest and insufficient demandThis, however, underscores the substantial latent value that low-altitude applications hold.

The rise of intelligent and interconnected low-altitude systems is seen as an essential requirement for the high-quality growth of this economic sectorThe integration of next-generation communication technologies, exemplified by 5G, and advanced data management techniques, involving cloud computing, big data analytics, the Internet of Things (IoT), artificial intelligence, blockchain, and security technologies, have collectively revolutionized operational methodologies within the low-altitude economy

This integration can significantly enhance the regulatory framework, improve industrial coordination, and facilitate smart application developments.

Intelligent networks in the low-altitude economy aim to leverage networking, digitization, and intelligent systems to seamlessly permeate all aspects of the industry, providing comprehensive services across the boardMarked by the establishment of three interconnected networks—a flight awareness network for drone and piloted aircraft regulation, a data communication network for sharing information across various platforms, and a computational application network that focuses on data storage and processing—these networks embody the sophisticated development model of the low-altitude economy.

Fundamentally, these intelligent networks represent a practical means to overcome existing bottlenecks within the sectorRegulatory challenges are particularly pressing, necessitating a robust framework for the identification and registration of aerial devices to support widespread and systematic applications

Insights from the communications sector, which has effectively managed mobile devices like smartphones, can serve as a valuable blueprint for the low-altitude industryEmploying similar techniques will facilitate effective management across the life cycle of aircraft, ensuring that operations are visible, manageable, and controllable.

Moreover, the pursuit of an advanced and modernized industrial system within the low-altitude economy is imperativeTo become a competitive global player, the sector must fully embrace the principles that underpin a contemporary industrial framework, emphasizing smart, green, and amalgamated processes that are seamless and advanced, while also promoting safetyThe harmonization of new-age technologies—including mobile communications, big data, artificial intelligence, and renewable energy—within the low-altitude economy is essential for achieving high-quality growth

The intrinsic attributes of interconnected networks closely align with the demands for an advanced industrial system, making it a natural fit for driving the future trajectory of low-altitude economy.

To construct an efficient governance framework, it is pivotal to focus on three core aspects: ensuring effective regulation, facilitating robust flight operations, and optimizing application useBy addressing these areas, the low-altitude economy can build a modernized industrial system that significantly contributes to its overall development.

The evolution of regulatory technology will be vital for establishing effective management of low-altitude airspaceEffective oversight serves as the linchpin for energizing the industrial growth of low-altitude applicationsLeveraging intelligent networks can obliterate the constraints of traditional regulatory frameworks, creating innovative management models

By mandating that all low-altitude craft are fitted with onboard communication devices, akin to mobile phones, operators can ensure that every aircraft is accounted for right from its entry into the system, thereby facilitating seamless operation and lowering the barriers to large-scale implementation.

Fostering resilient communications infrastructure will also be crucial to supporting aircraft operations effectivelyHigh efficiency in aerial operations is indispensable for the sector's functionalityBy maximizing the advantages offered by mobile networks—such as high speeds and low latency—the low-altitude economy can enhance spatial connectivity and seamlessly integrate navigation, sensing, computational, and meteorological functionsThis interconnected system will ensure smooth transmission of commands and data across diverse platforms, enabling users to exercise remote control over their aircraft, thereby enhancing operational efficiency.

Finally, leveraging comprehensive data technologies such as cloud computing and big data analytics will empower expansive and intelligent applications within the low-altitude economy