SSE Hosts Salon for New Quality Productive Forces Industries on the STAR Market to Accelerate Low-altitude Economy

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Executive editor: Zhou Ling

Low-altitude economy: the rise of a new market valued at RMB 1 trillion

The report on the work of the government of 2024 mentioned the "low-altitude economy" for the first time. This emerging sector is now officially central to the national strategy, unlocking a trillion-yuan market potential with its focus on "kilometer-high" opportunities. Recently, the Shanghai Stock Exchange (SSE) hosted the 14th New Quality Productive Forces Industry Salon focusing on the STAR Market. The event concentrated on the low-altitude economy and featured three leading companies from the industry chain: Chengdu Jouav Automation Tech Co., Ltd., ComNav Technology Ltd., and Piesat Information Technology Co., Ltd. Guests from China Securities Co., Ltd. also participated in the discussions.

Market Space: A Trillion-Yuan Blue Ocean Ready to Take Off

The vitality of the low-altitude economy lies in the innovation of application scenarios. Unmanned aerial vehicles (UAVs) and electric vertical takeoff and landing (eVTOL) aircraft have been successfully applied in multiple scenarios and are being explored for use in medical rescue and other fields. For example, Chengdu Jouav Automation Tech Co., Ltd.'s UAV plays a significant role in emergency rescue operations. In the event of a network disconnection, power failure, or open circuit, it can be immediately deployed for emergency mapping and line patrol inspections. CCID Consulting projects that China's low-altitude economy reached RMB 505.95 billion in 2023 and is anticipated to surpass RMB 1 trillion by 2026, with a compound annual growth rate of 28.1%. This sector is expected to become a new engine of economic growth.

International Competition: Ecologically Interconnected Development of the Entire Industrial Chain

Chinese companies are already competitive in the low-altitude economy, with DJI capturing 74.3% of the global consumer drone market. China has developed a comprehensive industrial ecosystem: with Contemporary Amperex Technology Co., Limited and ComNav Technology Ltd. operating upstream; DJI and EHang in the midstream; and SF Express and Shenzhen East General Aviation Co., Ltd. handling downstream activities. Currently, nearly 30 companies on the SSE STAR Market are involved in the low-altitude economic sector. Their activities span across various segments of the industrial chain, including complete machine manufacturing, component materials, air traffic control systems, and communication and navigation.

Definition Update: Digital Reconstruction of Airspace for a "Computable Economy"

The low-altitude economy continues to face challenges, such as limited access to low-altitude airspace and a shortage of airspace resources. The essence of this concept is to transform airspace resources into measurable and manageable components using digital technology, thereby facilitating the shift in airspace management from being merely "accessible" to becoming "computable" and "operable". Currently, the Yangtze River Delta, Pearl River Delta, Chengdu, and Chongqing are at the forefront of exploring low-altitude scenario implementations. For instance, Shenzhen has launched a test route for intercity commuting using eVTOL vehicles, while Chengdu's "low-altitude cultural tourism" project has attracted over 100,000 visitors.

Technological Breakthrough: Large AI Model Solves Airspace Coordination Issue

The explosive growth of the low-altitude economy has introduced management challenges, yet breakthroughs in AI technology have infused the industry with new momentum. Chengdu Jouav Automation Tech Co., Ltd. introduced DeepSeek for UAV image recognition, while Piesat Information Technology Co., Ltd. integrated DeepSeek into its "Tianquan" large model to enhance the intelligence of its large model product matrix. AI can enhance low-altitude aircraft by improving their autonomous decision-making, environmental awareness, and task execution capabilities. This advancement aids in driving the development of the low-altitude economy toward greater intelligence and scalability.

The above information is provided for reference purposes only and does not constitute investment advice.