Low-Altitude Economy: Development Trajectory, Policy Frameworks, and Paths to Sustainable Growth

Abstract

The low-altitude economy (LAE) has emerged as a transformative economic sector globally, particularly in China where it has been elevated to a national strategic priority. This paper examines the low-altitude economy by reviewing its development trajectory, analyzing evolving policy and regulatory frameworks, and evaluating key technological enablers and application domains. Employing a literature review and policy analysis approach, this study addresses three research questions: (1) What is the current state and developmental trajectory of the low-altitude economy? (2) How have policy and regulatory frameworks evolved to support or constrain LAE development? and (3) What are the primary challenges and opportunities for sustainable LAE growth? The findings suggest that the low-altitude economy has evolved from an industry-specific term into a broader economic sector, with market size projected to reach 1.5 trillion yuan in 2025 and 3.5 trillion yuan by 2035 in China. Key challenges include technological maturity gaps, fragmented market demand, lagging regulatory environments, and incomplete industrial ecosystems. The paper concludes that coordinated advances in standards development, digital infrastructure, airspace management reform, and institutional innovation are essential to realizing the potential of the low-altitude economy.