China is rapidly advancing its electric Vertical Takeoff and Landing (eVTOL) policy framework to foster innovation and bolster the low-altitude economy. This strategic initiative is highlighted through a series of pivotal regulatory and policy documents issued by key governmental bodies. The State Council and Central Committee have underscored the importance of eVTOL within the broader low-altitude economic industry, emphasizing the integration of research, development, manufacturing, and services. The National Development and Reform Commission, alongside other ministries, has laid out ambitious plans to promote general aviation, including eVTOL applications, aiming for significant market growth and industry leadership by 2030. Additionally, the Ministry of Industry and Information Technology has set a commercialization target for eVTOL by 2025, marking a crucial step in establishing China as a global leader in green aviation manufacturing. These coordinated efforts reflect a comprehensive approach to developing a robust and innovative eVTOL ecosystem, positioning China at the forefront of next-generation aviation technology.
| Unit | Release Date | Document/Content | Significance |
| State Council/Central Committee | February 2024 | “Strengthen the construction of the low-altitude economic industry … Plan to build an industrial chain integrating research and development, manufacturing, and services, and explore new growth poles in the low-altitude economy” — Report on the Work of the Government 2024 | The low-altitude economy is included in the government work report and receives significant attention. |
| March 2023 | “Accelerate the development of the artificial intelligence industry, the intelligent equipment industry, and the low-altitude economy, and foster new growth poles in the low-altitude economy” — Central Economic Working Conference | The low-altitude economy is identified as an emerging industry. | |
| February 2021 | “Expand and strengthen the real economy, improve the industrial base, improve the industrial chain, and promote the deep integration of the digital economy, the real economy, and the low-altitude economy” — National Comprehensive Three-dimensional Transportation Network Planning Outline | The concept of “low-altitude economy” is included in the five-year plan for the first time. | |
| National Development and Reform Commission, Ministry of Commerce | January 2022 | “Deepen the pilot management of low-altitude airspace in the Greater Bay Area, strengthen the coordination of low-altitude air traffic control in Guangdong, Hong Kong, and Macau, and improve the low-altitude air traffic service support system” — (Opinions on Supporting the Construction of the Pilot Demonstration Zone of Socialism with Chinese Characteristics in Shenzhen) | Propose to strengthen the coordination of low-altitude airspace management in the Greater Bay Area. |
| National Development and Reform Commission, Ministry of Transport, Civil Aviation Administration, Ministry of Industry and Information Technology | March 2024 | “Guiding Opinions on the Development of General Aviation from 2024 to 2030” | By 2027, promote more than 20 typical application scenarios, cultivate more than 10 leading general aviation enterprises, and form a market scale of hundreds of billions of yuan by 2030. |
| State Council, Central Military Commission | June 2023 | “General Aviation Flight Control Regulations” | Introduce regulations related to the flight control of unmanned aerial vehicles (UAVs). |
| Ministry of Industry and Information Technology | October 2023 | “Green Aviation Manufacturing Industry Development Program (2023-2035)” | Propose the goal of achieving eVTOL commercialization by 2025. Establish safety requirements for civil unmanned aerial vehicles. |
| May 2023 | “Safety Requirements for Civil Unmanned Aerial Vehicles” | ||
| Civil Aviation Administration | March 2022 | “Technical Requirements for Urban Air Logistics Multi-Rotor Unmanned Aerial Vehicles (Light)” | The requirements for the application scenarios of UAV systems, cargo, reliability, and emergency management are proposed. This is the first domestic technical industry standard for the logistics UAV system applied within cities. |
| October 2021 | “Civilian Unmanned Aerial Vehicle System Continuous Flight and Management Procedures (Draft for Comment)” | Standardize and guide the activities of medium and large civilian UAV systems in design, production, and operation. |
Data sources: Chinese Government Network, Civil Aviation Administration, National Development and Reform Commission, Xinhua News Agency, China Aviation News, and Xindao Think Tank Research Center
On October 10, 2023, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, the Civil Aviation Administration of China, and other ministries jointly issued the “Green Aviation Manufacturing Industry Development Program (2023-2035).” The outline proposes accelerating the application of innovative products such as eVTOL (electric Vertical Take-Off and Landing) vehicles in urban air transportation, emergency rescue, and logistics transportation scenarios. It aims to develop the supply capability, operational support capacity, and industrialization of electric aircraft based on typical scenarios, creating new economic growth poles. The outline encourages the development of green aviation demonstration operations to promote the commercial operation of eVTOL. It also aims to integrate eVTOL into a comprehensive three-dimensional transportation network, establish a unified air-ground intelligent management platform, and create a low-altitude intelligent network, thus forming an initial safe, convenient, green, and economical urban air transportation system. Under these policy initiatives, the low-altitude economic industry, including eVTOL, has received unprecedented attention.
Meanwhile, on April 27th, the “2024 China eVTOL Industry Development Report,” jointly compiled by the China UAV Industry Innovation Alliance, Tencent Smart Transportation, Tencent Research Institute, and others, was officially released at the 2024 International Conference on UAV Application and Anti-UAV & UAV Industry Exposition.
Figure 1: Cover page of 2024 China eVTOL Industry Development Report
This report aims to deeply analyze the latest trends in China’s eVTOL industry in 2024, including its interrelationship with the low-altitude economy, policy direction, global policy support trends, market size forecasts, domestic and international development status, potential challenges, and future outlook. The content of the report aims to provide precise market analysis and forward-looking strategic advice for industry decision-makers.
1. eVTOL Leading a New Era of Low-Altitude Economy
eVTOL technology, as a representative of new productive forces, is gradually becoming the core driving force for the vigorous development of the low-altitude economy. Its unique vertical takeoff and landing capabilities and long range are bringing disruptive changes to urban air transportation and short-distance transport, heralding the advent of a new era in aerial mobility.
2. Policy Support Boosts the Development of China’s eVTOL Industry
The Chinese government has clearly identified the eVTOL industry as a strategic emerging industry for focused cultivation. Policies have been introduced in various aspects, from technical research and development, industry support to market access, aiming to create a favorable environment for the healthy and rapid development of China’s eVTOL industry.
3. Global Policy Trends Driving eVTOL Industry Development
Worldwide, governments are also introducing policies to support the development of the eVTOL industry. Comprehensive support measures, including financial assistance, tax incentives, and talent cultivation, are injecting strong momentum into the global eVTOL industry. The implementation of these policies will continue to influence the global development landscape of the eVTOL industry.
4. Market Size Outlook and Growth Potential
It is expected that by 2024, the global eVTOL market size will reach several billion dollars. With continuous technological advancements and market expansion, eVTOLs are poised to become a crucial pillar of future urban air transportation, showcasing significant growth potential.
5. Competitive Landscape of Domestic and International eVTOL Industries
Currently, the eVTOL industry is flourishing both domestically and internationally. Domestic companies are increasing their investment in research and development, launching competitive eVTOL products; international companies are also actively entering the Chinese market, seeking cooperation opportunities with Chinese enterprises. Under the joint efforts of domestic and international companies, the eVTOL industry is gradually maturing.
6. Challenges and Opportunities Facing China’s eVTOL Industry
Despite the strong development momentum of China’s eVTOL industry, it still faces challenges such as technical bottlenecks, market access, and talent shortages. Meanwhile, competition with leading global companies is becoming increasingly fierce. However, these challenges also present significant opportunities. By enhancing technological innovation, optimizing the market environment, and cultivating high-quality talent, China’s eVTOL industry is expected to stand out in global competition.
7. Future Integration of eVTOL and UAM
With continuous technological progress and market expansion, eVTOL and UAM (Urban Air Mobility) will achieve deep integration. In the future, eVTOL will become an important part of urban air transportation, providing more convenient and efficient travel options. Additionally, with the continuous development of autonomous driving technology, the level of automation in eVTOLs will keep increasing, further promoting their application in various fields.
Figure 2: XPeng X2 at Smart China Expo 2023
Seven Technical Trends
Technical wise, the report forecasts seven major trends for the future development of eVTOL and urban air transportation technologies domestically and internationally:
- Vector propulsion eVTOL will become the mainstream technical route
- The use of ducted fan designs will increase.
- Electric propulsion systems will develop towards higher efficiency, lighter weight, and greater safety.
- Battery technology will continue to break through and improve comprehensively.
- Situational awareness and airborne obstacle avoidance technologies will gradually be applied to urban air transportation.
- Intelligent driving technology achieving autonomous flight has a long way to go.
- The construction of digital systems for low-altitude traffic will accelerate.
The comprehensive policy framework and strategic initiatives outlined by China’s government bodies underscore the nation’s commitment to pioneering the eVTOL and low-altitude economic sectors. By integrating advanced technologies, fostering industry growth, and setting ambitious commercialization targets, China aims to establish itself as a global leader in next-generation aviation. The coordinated efforts across various ministries to enhance regulatory standards, promote innovation, and build a robust industrial chain are pivotal in driving sustainable economic growth and technological advancement. As these policies take effect, they are expected to catalyze significant developments in the eVTOL industry, creating new opportunities and solidifying China’s position at the forefront of the global aviation landscape.
References:
https://www.tjftz.gov.cn/tisip/upload/files/2023/10/1815395101.pdf
https://www.uav-expo.cn/News/Detail/194
https://www.sohu.com/a/776732872_121894198
https://www.ndctransportinitiativeforasia.org/resources-list/giz-china-integrated-transport-system
https://pdf.dfcfw.com/pdf/H3_AP202404261631373742_1.pdf?1714137861000.pdf
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