Where has the global low altitude economy developed? Growing through exploration, setting off again

1. The global low altitude industry remains relatively stable and upward, and positive changes are brewing

1.1 The curtain of new changes in the aviation industry has opened, and the development of low altitude economy has entered a new stage

The development of low altitude economy has gone through three stages, and a new round of digital and electrification revolution is slowly unfolding in the aviation industry. In the early days, due to the immaturity of low altitude technology, the main focus was on low altitude tourism and exploration applications in agriculture and industry; The second stage of development began with the commercialization and popularization of unmanned aerial technology in the early 21st century, and continued until 2020. With the maturity and diversification of low altitude flight technology, standardized supervision has become the main task for countries in this stage;

Facing the future green, digital, and intelligent transformation, starting with the exploration of urban air traffic UAM and eVTOL practice, it is expected that the technology driven new aircraft and digital operating environment will expand human production and life from the two-dimensional space on the ground to the three-dimensional space, thus enabling aviation products and services to enter various industries, with an industrial scale of trillions.

1.2 At present, China and the United States have a segmented leading foundation in developing low altitude economic industries

The global drone market is growing rapidly, while sales of general aircraft are relatively stable. Global drone investment scale chart: The regional distribution of global general aircraft ownership continues to increase in 2022, from $120 million in 2013 to $4.81 billion in 2022; In terms of general aviation, the overall delivery volume from 2013 to 2022 showed a fluctuating upward trend, with global general aviation aircraft sales of 22.9 billion US dollars in 2022, a year-on-year increase of 6%.

At present, the United States has advantages in the development of general aviation, while China has made good progress in the field of unmanned aerial vehicles. According to the Forward looking Industry Research Institute, from the perspective of the development pattern of global low altitude economic regions, the United States has established a first mover advantage due to its leading development in general aviation. In 2022, the global total number of general aviation aircraft is about 454000, with the United States accounting for nearly half and China accounting for less than 1%; China, on the other hand, has relative competitiveness in the field of drones, with a global leading number of registered drones.

1.3 There are significant differences in the low altitude development environment among major global economies, and China is actively creating favorable conditions

There are significant differences in the development environment of low altitude economy between regions, and relevant legislation still needs to be improved. The Chinese market has released positive signals. From the perspective of low altitude traffic management in major global markets, the airspace management policies in the United States are relatively relaxed, while those in China are relatively strict. However, in December 2023, the Civil Aviation Administration of China's "National Airspace Basic Classification Method" divided airspace into two categories: controlled airspace and uncontrolled airspace, moving closer to international standards; In addition, in May 2023, China announced the "Interim Regulations on the Management of Unmanned Aerial Vehicle Flights". We believe that the Chinese market is actively creating favorable conditions for the development of the low altitude economy. For more industry research and analysis, please refer to the official website of Sihan Industry Research Institute. At the same time, Sihan Industry Research Institute also provides consulting services such as industry research reports, feasibility studies, industrial planning, park planning, business plans, special research, architectural design, and overseas investment reports.

2. Global eVTOL Development Overview: European and American Layout Leads, Chinese Market Accelerates Commercialization Implementation

2.1 Europe and America take the lead in eVTOL development and actively promote commercial operation

Overseas eVTOL development is represented by Europe and America, with diverse types and actively promoting commercialization. EVTOL will be one of the important carriers of low altitude economy in the future. From the current development overseas, the United States, Germany, the United Kingdom and other countries have relatively advanced layouts, including Joby, Archer, Wisk from the United States and Lilium from Germany, which are actively promoting airworthiness certification and commercial operation.

2.2 Accelerate the eVTOL market in China and prepare for full commercialization of product airworthiness certification

The development of eVTOL in China is booming, and it may become one of the fastest commercialized markets in the world. China has a wide range of eVTOL products, including aircraft manufacturers, car companies, and enterprises that have accumulated years of experience in eVTOL. From the perspective of commercialization promotion, the Chinese market is accelerating. Taking the "certification management" of aircraft as an example, the prerequisite for aircraft manufacturers to legally sell related products is to obtain the model certificate TC, production license PC, and airworthiness certificate AC. In April 2024, EH216-S from Yihang Intelligent obtained the first PC in the global eVTOL industry, becoming the only product in the eVTOL industry to obtain TC, PC, and AC certificates. We believe that in the short to medium term, more domestically produced eVTOL products may receive corresponding recognition, and commercialization will be rapidly promoted.