Development Path of Nantong’s Low Altitude Economy under New Quality Productivity

In the context of new quality productivity, the low altitude economy represents a transformative force driven by innovation, high technology, efficiency, and quality, aligning with advanced productivity paradigms. This emerging sector, encompassing activities such as unmanned aerial vehicle (UAV) logistics, low-altitude tourism, and aerial photography, leverages technological advancements to foster economic growth and sustainable development. The low altitude economy is characterized by its ability to optimize traditional industries, enhance productivity, and generate new business models, making it a critical component of modern economic strategies. This article explores the development path of the low altitude economy in Nantong, analyzing its unique geographical, industrial, and market conditions, while integrating national policies and safety frameworks to propose tailored models. Furthermore, it aims to provide insights for other regions in China and beyond, emphasizing the strategic importance of the low altitude economy in driving regional and global economic transformation.

The concept of new quality productivity emphasizes innovation-led growth that diverges from traditional methods, focusing on high-tech, high-efficiency, and high-quality outcomes. The low altitude economy, as a key enabler, operates within vertical heights below 1,000 meters, extending up to 3,000 meters where necessary. It utilizes vertical take-off and landing aircraft and UAVs to facilitate various low-altitude flight activities, including transportation, logistics, and specialized operations. This sector not only stimulates economic diversification but also enhances social services and national defense capabilities. The low altitude economy’s产业链 is extensive, covering research and development, manufacturing, consumption operations, infrastructure, and comprehensive support services. Its applications span consumer uses like aerial sports and tourism, operational tasks such as agricultural plant protection and power inspection, transportation including UAV logistics, and long-range applications like emergency rescue and forest firefighting. The integration of digitalization, networking, and artificial intelligence into low-altitude technologies further propels the low altitude economy toward intelligent and green development, underscoring its high technological content and potential for widespread adoption.

Globally, the low altitude economy has evolved through early exploration, mid-term standardization, and recent普及应用 stages. Initially focused on low-altitude tourism and agricultural experiments using light aircraft, it has expanded with UAV technology, leading to applications in agriculture, industry, environmental monitoring, and logistics. Regulatory frameworks have been established to ensure safety and efficiency, with countries like the United States and European nations pioneering urban air mobility and diverse operational models. For instance, the U.S. Federal Aviation Administration has developed management systems for urban air mobility, emphasizing market-driven approaches with regulatory oversight. In Europe, countries like the UK prioritize多元化场景拓展, while Germany focuses on UAV technology R&D. The global market for the low altitude economy has seen substantial growth, with UAV investments rising from $121 million in 2013 to $88.9 billion in 2024, and general aircraft deliveries peaking at 3,050 units in 2023, reflecting a 7.6% year-on-year increase. By the end of 2024, global general aviation sales reached $31.92 billion, up 14.8% from the previous year. This growth trajectory highlights the low altitude economy’s role as a new economic growth point, driven by technological innovation and policy support.

Global UAV Investment and General Aircraft Deliveries (2013-2024)
Year UAV Investment (Billion USD) General Aircraft Deliveries (Units) Year-on-Year Growth (%)
2013 0.121 2,600
2014 0.66 2,800 46.44
2015 0.87 3,100 77.65
2016 1.17 3,400 31.57
2017 1.28 3,600 34.75
2018 1.18 3,500 8.81
2019 0.84 3,200 -7.95
2020 0.65 2,800 -28.67
2021 0.88 3,000 -22.98
2022 0.88 3,200 36.24
2023 0.77 3,050 37
2024 88.9 3,200 33.8

In China, the low altitude economy has progressed through conceptual proposal, initial development, and rapid growth phases, driven by national policies and market expansion. The State Council and Central Military Commission’s opinions on low-altitude airspace management reform in 2010 marked a significant milestone, leading to increased openness and regulation. By 2024, the low altitude economy was included in the national government work report, underscoring its strategic importance. Policies such as the “General Aviation Equipment Innovation Application Implementation Plan (2024-2030)” aim to achieve a market scale of trillion yuan by 2030. As of 2024, China has over 50,000 low altitude economy-related enterprises, with nearly 80% established in the last decade, primarily concentrated in central-south and eastern regions like Guangdong, Jiangsu, and Zhejiang. The market size reached 5.03 trillion yuan in 2024, a 33.8% increase from the previous year, and is projected to grow to 15 trillion yuan by 2025 and 35 trillion yuan by 2035. Infrastructure development includes 449 general airports by 2023, with applications expanding to urban logistics, emergency response, and agricultural services. Key players in the产业链 include upstream component suppliers like Desay Battery and Xinwangda, mid-stream manufacturers such as DJI and EHang, and downstream integrators focusing on industry convergence. This rapid growth positions the low altitude economy as a vital contributor to China’s economic modernization and technological advancement.

The development of the low altitude economy can be modeled using growth formulas to project market expansion. For instance, the compound annual growth rate (CAGR) for the low altitude economy market size can be expressed as: $$ CAGR = \left( \frac{P_t}{P_0} \right)^{\frac{1}{t}} – 1 $$ where \( P_t \) is the market size at time \( t \), and \( P_0 \) is the initial market size. Applying this to China’s low altitude economy, if \( P_0 = 2.6 \) trillion yuan in 2020 and \( P_t = 5.03 \) trillion yuan in 2024, the CAGR is approximately 18.1%. This indicates robust growth, driven by policy support and technological innovation. Furthermore, the economic impact of the low altitude economy can be assessed through its contribution to regional GDP, using formulas like: $$ \Delta GDP = \alpha \cdot I + \beta \cdot E $$ where \( \Delta GDP \) is the change in GDP, \( I \) represents investment in low altitude infrastructure, \( E \) denotes employment in the sector, and \( \alpha \) and \( \beta \) are coefficients reflecting productivity and multiplier effects. Such models highlight the low altitude economy’s potential to enhance economic resilience and sustainability.

In Nantong, the low altitude economy is gaining momentum through strategic initiatives and infrastructure development. The city has introduced the “Nantong Low Altitude Economy High-Quality Development Action Plan (2024-2027)”, targeting the establishment of low altitude industrial and facility systems, and diversified applications. Goals include adding 50 low-altitude manufacturing and 50 service enterprises by 2027, constructing 1-2 general airports, 2-3 UAV test bases, over 100 take-off and landing sites, and 50 low-altitude routes. Nantong has also deployed 5G-A low-altitude dedicated networks, achieving comprehensive coverage in urban areas, which enhances UAV communication reliability and flexibility. Companies like Aerospace Hongtu and Yamaguchi Seiko contribute to the产业链 by producing advanced UAVs and critical components like micro-bearings. Application scenarios in logistics, tourism, and emergency services are being explored, with collaborations such as short-distance routes to Suzhou and medical rescue services. Additionally, Nantong is positioning itself as a pioneer in the Yangtze River Delta low altitude economy, fostering innovation parks and industry-education alliances to cultivate talent and technological breakthroughs.

Despite progress, Nantong faces challenges in its low altitude economy development. The general aviation industry lags behind its economic status, with scale inferior to cities like Nanjing and Suzhou. Management mechanisms suffer from top-design deficiencies, multi-agency oversight, and complex approval processes, leading to inefficiencies. Infrastructure remains weak, with insufficient take-off sites, flight service bases, and digital airspace systems. Talent cultivation is inadequate, as local aviation vocational schools focus on theoretical training, resulting in low certification rates and practical skill gaps. Public awareness and acceptance of the low altitude economy are limited, hindering market expansion for applications like low-altitude tourism and UAV delivery. Addressing these issues requires coordinated efforts in policy, infrastructure, and education to unlock the full potential of the low altitude economy in Nantong.

To advance the low altitude economy in Nantong, a multi-faceted strategy is essential. Development objectives include deepening understanding of general aviation to identify suitable positioning, improving general airport management systems based on safety and deregulation principles, and establishing a robust policy保障体系 for low altitude resource allocation. Key tasks involve pioneering low-altitude airspace management reforms, enhancing public infrastructure like通用机场 and communication networks, fostering “school-government-enterprise” collaborations to create innovation parks, and promoting technology transfer in areas like eVTOL and UAVs. Recommendations focus on innovating management mechanisms by simplifying approvals and establishing协同运行中心, expanding application scenarios through高端无人机 and eVTOL products, and advancing core technology R&D to overcome bottlenecks in flight control and AI algorithms. These measures will strengthen Nantong’s competitiveness in the low altitude economy, driving regional economic growth and technological innovation.

Nantong Low Altitude Economy Development Targets and Measures
Objective Key Tasks Recommended Measures
Deepen general aviation awareness Reform management mechanisms Simplify approval processes, establish协同运行中心
Improve airport management Enhance infrastructure Build通用机场, deploy 5G-A networks
Establish policy保障体系 Create innovation parks Foster industry-education alliances
Advance technology R&D Promote technology transfer Focus on eVTOL and UAV innovations

The economic impact of these strategies can be quantified using formulas for market growth and efficiency. For example, the projected market size for Nantong’s low altitude economy can be estimated as: $$ M_t = M_0 \cdot e^{rt} $$ where \( M_t \) is the market size at time \( t \), \( M_0 \) is the initial size, \( r \) is the growth rate, and \( e \) is the base of natural logarithms. Assuming a growth rate of 20% annually from a base of 5 billion yuan, the market could reach over 12 billion yuan in five years. Additionally, the efficiency gains from low altitude applications in logistics can be modeled as: $$ E = \frac{S}{C} $$ where \( E \) is efficiency, \( S \) represents savings in time or cost, and \( C \) denotes operational costs. This underscores how the low altitude economy can enhance productivity and reduce expenses in sectors like transportation and agriculture.

In conclusion, the low altitude economy holds immense potential as a driver of new quality productivity, offering opportunities for economic diversification and technological advancement. For Nantong, addressing existing challenges through targeted policies, infrastructure investments, and talent development is crucial to harnessing this potential. By learning from global and domestic examples, Nantong can position itself as a leader in the low altitude economy, contributing to regional integration and sustainable development. The continued evolution of the low altitude economy will depend on innovation, collaboration, and adaptive governance, ensuring that it remains a cornerstone of future economic strategies. As the low altitude economy expands, it will not only boost local economies but also pave the way for smarter, greener, and more resilient urban and rural landscapes.

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