The low-altitude economy — encompassing civilian drones, eVTOL (electric vertical take-off and landing) aircraft, air taxis, and logistics drones operating typically below 1,000 meters — has emerged as one of China's most closely watched new industries. The Low-Altitude Economy Development Report (2025-2026), released by the China Information Industry Association's Low-Altitude Economy Branch, provides a comprehensive account of where the sector stands and where it is headed.
According to the report, 2025 was a landmark year described as the "institutional construction and system-building year." For the second consecutive year, the low-altitude economy was mentioned in the Government Work Report, and it was included for the first time in the recommendations for the 15th Five-Year Plan (2026-2030). These moves signal that the industry has moved beyond concept-stage hype and localized pilot projects into a phase of formal rule-making and capability building.
The report highlights eight dimensions of progress in 2025. On the regulatory front, the Civil Aviation Law was comprehensively revised, providing a national legal framework for unmanned aerial vehicle operations. The National Development and Reform Commission issued a statistical classification for low-altitude economy and its core industries, standardizing measurement for the first time. A phased approach — "cargo before passengers, isolated before integrated, suburbs before urban centers" — was adopted as the guiding principle for safe and orderly development.
On the industrial side, manufacturing, operations, infrastructure, and supporting services all developed in tandem. Application scenarios expanded rapidly: drone deliveries for logistics, agricultural spraying, aerial photography, emergency response, and power line inspection became routine. The report notes that commercial deployment is accelerating, with several cities launching trial air taxi routes and drone delivery networks.
However, the report also identifies significant challenges. Balancing safety with rapid development remains the central tension. Regional governments are pursuing similar strategies, risking homogenization. Cultivating genuine market demand — rather than relying on subsidies — is an ongoing concern. Coordination between central and local governments, sustained infrastructure investment, and integrated governance capabilities all need further work.
Looking ahead to the 15th Five-Year Plan period, the report positions 2026 as a critical transition point: from framework construction to project implementation. Key developments expected include: policies shifting from broad directives to detailed execution rules, safety governance upgrading from fragmented to coordinated systems, airspace allocation moving toward stable and efficient use, manufacturing achieving breakthroughs in engineering and delivery capacity, operations forming stable business models, and the intelligent networking of low-altitude infrastructure accelerating.
Knowledge takeaway: China's low-altitude economy completed its regulatory framework in 2025 and is entering operational deployment in 2026; the industry covers drones, air taxis, and logistics aircraft operating below 1,000 meters; key challenges include balancing safety with growth, avoiding regional homogenization, and cultivating genuine demand; the 15th Five-Year Plan period is expected to see rapid expansion of commercial applications and intelligent infrastructure.