CITIC Securities 2026 Low-Altitude Economy Outlook: Accelerated eVTOL Adoption with Broad Infrastructure and Market Prospects

Stock News12-05

China Securities Co., Ltd. (601066) released a research report indicating sustained growth in China's low-altitude economy, with policies targeting a trillion-yuan market by 2030. By 2027, China aims to enhance the supply capacity and industrial innovation of general aviation equipment. The development of the low-altitude economy is expected to drive growth in upstream and downstream infrastructure, including satellites, aircraft, air traffic management systems (hardware/software), infrastructure, and computing power.

In 2025, multiple eVTOL companies secured domestic and international intent orders, reflecting the vast potential of the low-altitude economy. Key insights from China Securities Co., Ltd. include:

- **2024 Marks the Beginning**: The low-altitude economy is poised for expansion, with China’s market exceeding 500 billion yuan in 2023. Continued growth is anticipated as downstream applications expand. Equipment value accounts for 5-15% of operating revenue, while infrastructure represents 20%.

- **Policy Targets**: The "General Aviation Equipment Innovation Application Implementation Plan (2024-2030)" outlines a trillion-yuan market goal by 2030. By 2027, efforts will focus on boosting supply capacity and industrial innovation, emphasizing 20 key tasks such as technological advancement, product diversification, and accelerated demonstration applications.

- **Three Core Networks**: 1. **Space Network**: Primarily satellites, with potential inclusion of airships for communication, navigation, and remote sensing support. 2. **Low-Altitude Network**: Aircraft (drones, eVTOLs, general aviation planes) offering safety, intelligence, cost-efficiency, and environmental benefits. 3. **Ground Network**: Provides air traffic management (hardware/software), infrastructure, and computing power.

- **Four Smart Infrastructure Networks**: - **Facility Network**: Physical infrastructure like landing pads and energy stations. - **Air-Internet Network**: Digital communication, navigation, and sensing systems. - **Route Network**: Core platform for digital airspace and flight management. - **Service Network**: Integrates digital management to empower stakeholders (governments, operators, etc.).

**Risks**: Defense budget shortfalls, market demand volatility, slower reforms, rising material costs, intensified competition, and product price declines.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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