Shanghai's Action Plan for the Low-Altitude Economy Industry 2024–2027
Shanghai has adopted a comprehensive strategy to develop its low-altitude economy through the Action Plan for the High-Quality Development of Shanghai’s Low-Altitude Economy Industry 2024–2027. The city is poised to become a global leader in advanced air mobility by building a robust ecosystem that spans research, manufacturing, and commercial applications of low-altitude aircraft. The initiative focuses on urban aerial services, eVTOL aircraft, drone logistics, and a modern regulatory framework that supports growth and innovation.
Market Context and Economic Potential
Shanghai’s plan emerges against rapid expansion in China’s aviation industry. The national low-altitude economy was valued at over 500 billion yuan (70 billion USD) in 2023 and is projected to reach 2 trillion yuan (280 billion USD) by 2030. By leveraging its role as a central economic hub and a dense urban center, the city aims to address logistical bottlenecks, reduce transit times, and enhance emergency services. The plan targets a core industrial value of around 50 billion yuan (7 billion USD) by 2027, reflecting strong growth potential and rising demand for innovative low-altitude transportation solutions.
Strategic Framework
Shanghai’s strategy encompasses industrial development, infrastructure enhancement, and technological integration. By 2027, the city intends to complete at least 400 low-altitude flight routes and build a comprehensive network that drives air mobility for passenger and cargo transportation. This framework supports national economic efficiency goals by optimizing logistics costs and advancing new energy aviation systems.
Industrial Development: Authorities plan to establish an end-to-end supply chain that includes design, manufacturing, testing, and operational services for low-altitude aircraft. The goal is to implement over 100 low-altitude flight service applications across urban passenger transport, logistics, and emergency services, positioning Shanghai at the forefront of next-generation urban air mobility.
Infrastructure Enhancement: Key to this effort is the creation of specialized innovation hubs and demonstration areas within the Yangtze River Delta region. The city will construct essential ground-service infrastructure, flight service centers, and air traffic command networks to ensure safety and efficiency as the number of routes expands.
Technological Integration: Advanced technologies, including artificial intelligence, big data analytics, 5G communications, and BeiDou navigation, will streamline flight operations, enhance route management, and bolster air traffic regulation. This holistic approach aims to safely integrate autonomous and piloted eVTOLs into Shanghai’s urban environment.
Implementation Timeline
Shanghai’s plan is divided into three phases, reflecting a structured approach to development and scale-up:
- Foundation Building (Through 2023): The city will initially be focused on establishing flight service centers, supervision protocols, and basic regulations to enable safe low-altitude operations.
- Development and Trials (2024–2025): In this phase, Shanghai will create at least 150 low-altitude flight routes, refine operational procedures, and develop a stable aviation organization management system.
- Optimization and Expansion (2026–2027): The route network will grow to 400 paths, and the entire low-altitude ecosystem will be optimized for reliability and service quality. By the end of 2027, large-scale commercial services will be offered across multiple application areas.
Support Mechanisms and Incentives
Shanghai’s government provides numerous incentives to encourage industry participation and technological breakthroughs. These include financial rewards of up to 2 million yuan (280,000 USD) for leading companies, research associations, and academic institutions and a regulatory framework to streamline flight approvals and certifications. Such support will accelerate innovations in battery efficiency, autonomous systems, and software-driven solutions.
Current Progress
Shanghai’s low-altitude economy has made significant strides in early 2025, with several key developments demonstrating concrete progress toward the city’s ambitious goals. Just days ago, EHang completed a groundbreaking demonstration flight of its autonomous EH216-S aircraft in downtown Shanghai. The company has begun operating regular sightseeing flights along the Huangpu River at Longhua Airport, marking a significant step toward commercial air taxi operations and achieving public trust and acceptance.
AutoFlight completed compliance verification testing of its 2-metric-ton V2000CG cargo eVTOL with the Civil Aviation Administration of China (CAAC). The testing involved 156 flights and covered over 10,000 kilometers at Shanghai Pudong International Airport. This demonstrated the potential for 10-minute airport-to-downtown transfers compared to the typical 60-90-minute ground journey.
Drone Services
The city has experienced substantial growth in drone operations, with over 300 drone companies now approved by CAAC’s East China Regional Administration. Notable achievements include:
- The establishment of eight approved logistics routes at the East China UAV Base in Jinshan
- Implementation of cross-river drone delivery services for pharmaceuticals
- Urban logistics services in Yangpu district
Infrastructure Development
In December 2024, Shanghai established the Low-Altitude Economy Industry Development Co., Ltd. with 900 million yuan (126 million US) in capital, bringing together key stakeholders from airport operations, urban transport, and communications sectors.
Global Perspectives Comparing Shanghai, United States, and European Low-Altitude Economic Initiatives
Shanghai’s strategic plan for low-altitude economic development aligns with the global emphasis on expanding eVTOL and drone applications. Still, it prioritizes extensive flight routes, a closely managed regulatory framework, and deep integration with regional economies in the Yangtze River Delta. Other countries similarly highlight advanced aircraft and policy incentives, yet each region’s approach varies in scale, timelines, and areas of specialization. The table below compares some key elements of Shanghai’s plan with those of the United States and Europe.
| Aspect | Shanghai (2024–2027) | United States | Europe |
|---|---|---|---|
| Core Targets | At least 400 low-altitude flight routes by 2027; industrial value of ~50 billion yuan | Multiple federal and state incentives drive commercial UAV and eVTOL deployment; NASA supports AAM tech. | “Digital Sky” initiative under SESAR to unify regulations, support drone integration, and advance eVTOL projects |
| Infrastructure | Focus on vertiports, supervision platforms, and air traffic command networks. | Emphasis on new vertiport prototypes and integrated test sites for cargo/passenger flight trials | Collaborative air traffic management and green corridors across member states |
| Policy and Regulation | Three-phase framework (preparation, trial, optimization) with detailed route milestones | FAA contributions and NASA’s AAM leads; each state also has varying laws on UAV and eVTOL | Harmonized rules via EASA; cross-border policy alignment among EU countries |
| Technology Focus | eVTOL, advanced UAVs, BeiDou navigation, AI-driven route management | Drone tech, eVTOL, UTM systems, and robust private investment in flight research | Emphasis on sustainable aviation and integrated air traffic, with a strong R&D focus |
| Commercial Applications | Logistics, aerial tourism, and passenger flights in urban cores, especially across the Yangtze Delta | Cargo delivery, passenger transport, and public services (disaster relief, medical supply) are prime targets. | Drone-based services for delivery, agriculture, and passenger trials, plus multi-modal solutions |
Shanghai’s plan reflects a structured government-driven approach with a clear roadmap of short-term and long-term targets. By comparison, the United States relies on diverse stakeholders (federal agencies, private companies, and local governments) to spur growth and innovation, while Europe emphasizes regulatory unity and sustainability across countries. These developments underscore a global shift toward building advanced air mobility solutions that can expand service coverage, reduce transit times, and spur new opportunities in manufacturing and services.
Challenges and future outlook
Shanghai’s low-altitude economy must navigate a crowded, controlled airspace environment and address technological limitations in battery and autonomous flight systems. Coordinating among civil aviation and military stakeholders demands rigorous safety protocols. Integrating new flight routes with existing city infrastructure requires in-depth planning.
By coupling public policy with private innovation, Shanghai aims to balance economic growth with environmental sustainability while setting new standards in advanced air mobility. The city’s action plan will provide valuable lessons in integrating aerial transport into urban environments and may serve as a blueprint for other global megacities. As Shanghai completes its transition to a full-fledged “City in the Sky,” its experiences will likely shape worldwide best practices and spark further developments in low-altitude aviation solutions.