Today, the low-altitude economic sector is active, with multiple individual stocks hitting their daily limit up.

Zhonglun new materials rose by the daily limit of 20%, Xingtu new materials and Piesat Information Technology surged over 11%, China Zhonghua Geotechnical Engineering, Zhejiang Jinggong Integration Technology, Beijing Starneto Technology, Shandong Mining Machinery Group, China Satellite Communications hit the daily limit, China Spacesat rose by over 9%, Hangzhou Freely Communication, Beijing Tongtech, and Lesinfo rose by over 6%.

By 2030, there will be 0.1 million eVTOL aircraft.

Entering households or becoming the sky taxi.

Recently, the low-altitude economy has received a series of major news, further accelerating the industry development.

Today, the China Low-Altitude Economy Alliance released the 'Low-Altitude Economic Development Trends Report', indicating that the price of eVTOLs is expected to gradually decrease. By 2030, it is possible that 0.1 million aircraft will enter households or become airborne taxis.

1. Drones will be everywhere, becoming the main tools for logistics and express delivery, agricultural and forestry protection, emergency rescue, urban management, power inspection, line inspection, and tourism.
2. With the improvement and maturity of new technologies such as artificial intelligence, human-computer interaction, and road network cloud, unmanned driving technology will also be widely popularized in aerial aircraft.
3. In about two to three years, the air traffic network and ground flight service facilities of major cities in China will be basically completed, and eVTOL will also be mass commercialized. The market price of eVTOL will also gradually decrease from millions to the range of two to three hundred thousand by 2030. It is expected that four to five-seater eVTOLs will be maintained in the price range of 200-300 thousand, and there may be 0.1 million eVTOLs entering homes or becoming aerial taxis.

The report also points out that in a few years, the competition in the low-altitude aircraft hardware industry will be very fierce, with faster product iteration.

Currently, the number of drone enterprises in China has exceeded tens of thousands, with over 2000 scale enterprises. A large proportion of drone companies will be eliminated in the competition.
At the same time, there are over a hundred domestic enterprises already or in the process of entering the eVTOL field, and globally over a thousand, but less than 10 eVTOL companies have certain foundation and strength.

Furthermore, 'Study Times' published an article stating that for the low-altitude economy in its early stages of development, it is essential to avoid capital 'short-sightedness,' create a sustainable and healthy investment environment, and urgently need the assistance and protection of 'patient capital.'

Previously, on November 18, Sun Weiguo, Director of the General Aviation Business Department of the China Air Transport Association, revealed that the Civil Aviation Administration will soon carry out eVTOL pilot projects in six cities. Part of the airspace below 600 meters will be authorized to local governments. The first batch of cities preliminarily determined are Hefei, Hangzhou, Shenzhen, Suzhou, Chengdu, and Chongqing.

Recently, the first county-level low-altitude economic franchise operation right transfer has officially emerged.

On November 26, the official website of the Jinan Public Resources Trading Center released the "Pingyin County Low Altitude Economic Franchise Operation Right Transfer Project Winning Announcement".

According to the bidding information, the winning unit is Shandong Jinyu General Aviation Co., Ltd., a local government-owned enterprise, which is a 30-year franchise operation right for Pingyin County's low-altitude economy. The franchisee is responsible for the operation and maintenance of the low-altitude economy during the franchise period, providing services such as flight license training, with a contract term of 30 years and a bid amount of 0.924 billion yuan.

Trillion-dollar market size

This year is known as the "First Year of China's Low-Altitude Economy".

In March, the low-altitude economy was incorporated into the government work report as a "new growth engine" and defined as one of the strategic emerging industries.

Subsequently, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the Civil Aviation Administration jointly released the "General Aviation Equipment Innovation and Application Implementation Plan (2024-2030)" at the end of March, proposing that by 2030, the low-altitude economy will reach a trillion-dollar market scale and formulated five key tasks and 20 specific work deployments.

Driven by the national government, regions across the country have issued documents in support of low-altitude economic policies, attracting companies and capital to enter the field of flying cars, eVTOL, and more.

According to data from the Civil Aviation Administration of China, it is estimated that by 2025, the market size of low-altitude economy in China will reach 1.5 trillion yuan, and by 2035, it is expected to reach 3.5 trillion yuan.

In terms of investment, Open Source Securities believes that the low-altitude economy has seen vertical implementation from macro (national industrial planning, airspace management) to meso (local subsidies across regions) and then to micro (infrastructure bidding, application scenario construction). It is recommended to pay attention to the subsequent sector trends.

1) Low-altitude Manufacturing: Zhejiang Wanfeng Auto Wheel, Chongqing Zonsen Power Machinery, Wolong Electric Group, Gresgying Digital Energy Technology, Shanghai Zijiang Enterprise Group, Shenzhen V&T Technologies, etc.;
2) Low-altitude Infrastructure: Fujian Rayshine Information Technology, Shenzhen Metro Operation Co., Ltd., Geovis Technology Co., Ltd., JSTI Group, China Design Group, etc.;
3) Low-altitude Operation: Citic Offshore Helicopter, Western Region Tourism, Lingnan Eco&Culture-Tourism, etc.