Imagine this: During the congested morning rush hour, you casually hop in a "flying taxi" to work, then enjoy a freshly brewed, drone-delivered coffee at the office, isn’t it like a scene in sci-fi movies? 

It may soon become a reality in China, with different types of seemingly futuristic drones delivering packages and takeaway food, work commutes using winged taxis and sightseeing helicopters as a hobby, bolstered by a suite of supportive policies.

Little known before, the low altitude sky is growing increasingly busy, setting the stage for the rise of the low altitude economy and a trillion-yuan market scale, which is gearing up for a "take-off."

China recently issued its first production license for electric vertical take-off and landing (eVTOL) aircraft, further solidifying its position in the global race to broaden commercial applications and win market share in the up-and-coming tech-driven sector.

The EH216-S, an unmanned eVTOL aircraft capable of transporting passengers, received a production certificate from the Civil Aviation Administration of China (CAAC) on April 10, according to the aircraft's Guangzhou-based manufacturer EHang. The craft obtained its type and standard airworthiness certificates - both required for commercial operations - from the CAAC last year.

The licensure marks a breakthrough in China's multi-pronged effort to bolster what it calls the “low altitude economy", a wide range of industries related to manned and unmanned vehicles operating below an altitude of 1,000 meters. 

The low altitude economy was included as a strategic emerging industry at the country's annual central economic work conference in 2023 and written into this year's government work report as a new growth engine. 

The newer and more open low altitude arena, driven by wide adoption of eVTOL aircraft and unmanned aerial vehicles, thus presents a clear path for China to become a world leader in the industry.

New growth engine

While still in its early stages, the low altitude economy has become a consensus among the government, industry, and enterprises as a new engine for economic growth.

The sector grew by 33.8 percent year on year in 2023 to 506 billion yuan (US$70 billion) and is expected to surpass 1 trillion yuan by 2026, according to a report released by a research institute under the Ministry of Industry and Information Technology (MIIT) earlier this month.

In particular, the scale of China's eVTOL industry reached 980 million yuan in 2023 - a year-on-year increase of 77.3 percent - and is projected to reach 9.5 billion yuan in value by 2026. China is expected to account for about 25 to 30 percent of the global eVTOL market in 2030.

A guideline for the general aviation industry released last month showed Beijing aimed to jump-start equipment supply and innovation by 2027, turning aviation into a trillion-yuan market and driving force for low altitude economic growth by 2030.

Han Jun, deputy head of the CAAC, said the low-altitude economy has a long industrial chain and wide applications in the industrial, agricultural, and service sectors. He said the CAAC seeks to simplify application and approval procedures for low altitude flight plans.

According to CAAC data, there were 689 general aviation firms in China as of the end of 2023, with 3,173 general aviation aircraft registered and 451 general aviation airports established.

"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 International Digital Economy Academy in Shenzhen.

The low altitude economy could contribute between 3 trillion yuan (US$422 billion) and 5 trillion yuan to China's economy by 2025, the white paper said.

It added that with its innate digital economic DNA, the low altitude economy is also poised to fully capitalize on the dividends brought about by the development of information technology, digitization and intelligent technologies.

"From an investment perspective, the construction of low altitude infrastructure is poised to drive effective investments with investment-led economic growth as traditional infrastructure investments face growth bottlenecks," the white paper said.

China is also keen for companies to continue making leaps in flying vehicle technology and last year announced a “green aviation” development plan, including for eVTOL. Important measures include setting up economic demonstration zones and test bases for low-flying aircraft. The plan includes the construction of infrastructure to integrate flying vehicles into urban transport and the daily commute.

Vertical mobility, a new-quality productive force in transportation, is building up in China thanks to multiple advantages. The homegrown C919 jetliner provided the local aviation chains with more knowledge about aircraft engineering, safety, and airworthiness. The Beidou navigation and 5G network revolutionized management in low altitude airspace. 

Furthermore, companies like JD.com, SF Express, Meituan, ZT Express, Cainiao, and China Post are increasing their efforts to develop large-scale logistics drones, thereby building an airway logistics network.

Plus, China's technical capacity accumulated in the hardware and telecom sectors has laid a foundation for the industry's fast growth. The country's prosperous electric vehicle manufacturing brought about rich know-how in high-density batteries, high-reliability motors, electronic control, and autonomous driving.

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