The transformation of Shenzhen from a fishing village to China's technology capital has been well documented, but its latest shape shift into a significant force in the global low-altitude economy represents a major development in urban mobility. While cities across the globe work to understand and adapt China's integrated approach to three-dimensional urban mobility, Shenzhen's Qianhai special economic zone has established a leading position in demonstrating how strategic policy innovation, industrial clustering, and cross-border integration can accelerate the commercialization of low-altitude technologies.
Low Altitude Economy
On June 17, 2025, aviation regulators from five countries released a roadmap that could determine whether urban air mobility succeeds or fails. The National Aviation Authorities Network, comprising the US FAA, the UK CAA, Australia's CASA, Transport Canada, and New Zealand's CAA, has published its "Roadmap for Advanced Air Mobility Aircraft Type Certification." This matters because the low-altitude economy faces a critical bottleneck. Electric vertical takeoff and landing aircraft don't fit neatly into existing rules designed for helicopters and airplanes. The result? Every Western eVTOL company missed its 2024 certification targets.
The low altitude economy encompasses all commercial activities conducted in airspace typically below 1,000 meters, though operations can extend up to 3,000-4,000 meters depending on specific applications and regulatory frameworks. The Chinese government has positioned the low altitude economy as a national priority, recognizing its potential to address urban mobility challenges while creating unprecedented economic opportunities across multiple industries .
The low-altitude economy, encompassing economic activities within airspace below 1,000 meters, experienced remarkable growth in Q1 2025. This rapidly evolving sector, driven by advancements in cargo delivery, urban air taxi services, and medical transport, has gained momentum in China, where it has been officially designated as a strategic emerging industry with significant national investment. Over the past 45 days, China’s institutional reforms solidified its leadership position, Europe accelerated regulatory harmonization, and North America advanced urban air mobility integration. Concurrently, technological breakthroughs in battery technology and vertiport infrastructure have reached critical maturation points, enabling operational scalability across global markets. This report analyzes these key developments and their implications for the future of aerial mobility.
China dominates the unmanned aerial systems market in the United States with its cost-effective, high-performance drones. However, the entry of manned eVTOLs, passenger-carrying aircraft like EHang’s EH216-S, into the U.S. market is stymied by a complex array of regulatory recognition, high tariffs, geopolitical tensions, and concerns about national security.
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.
The skies above our cities are on the verge of a profound transformation. For centuries, the space between our buildings and the cruising altitude of commercial aircraft has mainly remained untapped—a vast aerial frontier awaiting human innovation. This is rapidly changing as the low-altitude economy emerges as one of the most dynamic and promising sectors of global technological development.
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