The proliferation of electric vertical take-off and landing (eVTOL) aircrafts is focusing attention on the low-altitude economy, attracting capital into businesses like passenger transport, delivery services, and sport competitions that normally take place within the airspace of 1,000 meters.
But before urban mobility can really take off, technological innovation and better infrastructure developments are still needed, leaving traditional helicopters as the practical airborne mode of transport for low-flying civilian uses, noted Joseph Baptiste, a senior business leader at Airbus Helicopters, speaking at the France Macao Chamber of Commerce (FMCC) breakfast event on Wednesday morning at the Sofitel.
[See more: Could Hengqin’s unmanned systems industry boost Macao’s economy?]
Baptiste explained that eVTOLs are constrained by their power source – in the way that electric vehicles (EVs) are heavier than autos with traditional internal combustion engines, in part because of the lithium-ion batteries that EVs depend on. Other hurdles come from a scarcity of appropriate landing sites, with Baptiste mentioning that helicopters are capable of stabilising on most terrain and awkward surfaces.
Search and rescue operations rely on those [helicopter] features due to the remote areas emergency teams are often called to, Baptiste shared, adding that many also carry bulky life-saving equipment as well. He commented that, “while it may only take five minutes to power a BYD car, without a nearby charging station, the range of an EV is quite limited in terms of where it can go and park,” underlining the logistical limitations for eVTOLs that employ on the same underlying technology.
High hopes for the low-altitude economy in China
Yet, despite those immediate hurdles, enthusiasm for eVTOLs remains at fever pitch. Alongside improvements in battery efficiency, the low-altitude economy is benefiting from a favourable policy backdrop in China, where country leaders are hoping that supportive regulations and a bevy of industry subsidies could incubate new types of consumer spending, such as low-altitude tourism and professional drone racing.
For the second consecutive year, the low-altitude economy was mentioned in the central government’s Work Report issued this past March, showcasing public support for extensive collaboration among policymakers and industry players to carry out large-scale applications and product developments. This follows the establishment of a new department in December by China’s top economic planner, dedicated to overseeing the industry’s progress and strengthening its regulatory supervision
Numerous Chinese provinces and major cities have introduced a litany of measures to support the low-altitude economy, with many realigning their existing supply chains to cater to eVTOL-related manufacturers. Back in December, Lei Wai Nong, Macao’s secretary for economy and finance, stated that Hengqin’s new unmanned systems industry could support the SARs effort to diversify its economy, while last week Hong Kong announced the first batch of 38 low-altitude economy regulatory sandbox pilot projects.
However, the industry growth trajectory relies heavily on clear policies, as the absence of specific legislation forces network operators to navigate airspace routes independently. Unlike on land, where road lines and traffic lights provide clear guiding systems, experts noted that there are fewer rules guiding how to utilise resources in low-altitude spaces.
[See more: Low-altitude tourism is taking off in China]
The nascent nature of unmanned aerial vehicle (UAV)-related regulations and the lack of relevant precedent was cited as a key business risk in the initial public offering of Chinese urban air mobility company Ehang, which was awarded the Production Certificate from the Civil Aviation Administration of China last year, allowing the company to start mass production of its pilotless eVTOL aircraft.
Positioning itself towards the industry’s future potential, Chinese car manufacturer XPeng Motors, has announced that it too is aiming to begin mass production of its flying car in 2026, with the company beginning construction of a factory in October, which will allow for the manufacturing of 10,000 flying car models per year.
While XPeng’s plans remain ambitious, its CEO acknowledged that the widespread acceptance of flying cars would take a “relatively long” time, pointing out that the lack of specific legislation and guidelines were proving to be an obstacle.
According to the Civil Aviation Administration of China, the market size of the low-altitude economy is expected to reach 1.5 trillion yuan ($207 billion) this year and is estimated to touch 3.5 trillion yuan by 2035, representing a compound annual growth rate of almost ten percent. To support the industry, officials will need to train and hire a million drone pilots, underscoring the potential employment opportunities, but also the necessary human capital required to keep unmanned vehicles airborne.
