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As China accelerates its push to develop its low-altitude economy – which refers to airborne activities occurring less than 1,000 metres above ground – cities like Shenzhen are positioning themselves as global leaders in this emerging sector.
With supportive policies, technological innovation and increasing capital inflows, the low-altitude economy is poised to become a 1.5-trillion-yuan ( US$209 billion ) industry by 2025, according to the Civil Aviation Administration of China, with the potential to reach 3.5 trillion yuan by 2035.
This expansion unlocks potential investment opportunities for sectors like urban air mobility, drone logistics and smart infrastructure.
The low-altitude economy consists of four interconnected segments:
Among these, manufacturing, as well as operations and services, are expected to drive 55% of the sector’s value.
Within the low-altitude manufacturing sector, eVTOL aircraft have been gaining traction due to their zero-emission, quiet operation and efficiency in short-distance travel. These aircraft may redefine urban commuting and emergency logistics, particularly in densely populated megacities.
The industry is heavily concentrated in first-tier cities with robust innovation ecosystems. Shanghai hosts eight eVTOL aircraft companies, according to market data, Shenzhen seven, Beijing six and Guangzhou five.
Zooming out, there are almost 17,000 low-altitude economy enterprises in China, with Shenzhen, Beijing, Chengdu and Shanghai being the leaders in hosting such companies. Shenzhen, in particular, is making a strong bid to become the “global hub of the low-altitude economy”, leveraging policy incentives and heavy research and development investment.
The low-altitude sector has also been experiencing robust investment activities, with the rapid growth of new companies in the sector. There are 52 deals recorded in the first half of 2025, according to a research report from Chinese think-tank RimeData, a 48.6% year-on-year increase. Industrial drones, drone systems and eVTOL aircraft are the most active subsectors gaining high volumes of funding.
In general, early-stage funding still dominates, indicating the strong investment trend. However, the landscape is maturing, with more companies in the first half of this year securing Series C and D funding, signalling growing confidence in scalable business models.
Guangdong, Shanghai and Jiangsu are leading in investment volume due to their advanced manufacturing capabilities and deep technology-related talent pools.
The low-altitude economy has now transitioned from the conceptual phase to large-scale implementation. Funding has been deployed throughout the strategic investment phase to follow-on investments.
As well, venture capital and private equity investors are concentrating financial and technological resources to accelerate the expansion of industry leaders, supporting the whole industry’s technological upgrades.
