1. Low-Altitude Economy Drones: Definition and Industrial Boundaries
Before discussing China’s global position in the low-altitude economy drone market, it is first necessary to clarify its core definition—low-altitude economy drones refer to unmanned aerial vehicles (UAVs) operating in low-altitude airspace below 1,000 meters above the ground. Integrating technologies such as navigation, communication, and AI, they serve as carriers to provide services for scenarios including logistics and distribution, agricultural plant protection, power inspection, and urban governance. Unlike traditional consumer drones (e.g., aerial photography drones), low-altitude economy drones emphasize "industrial attributes" and act as the core transportation tools and value carriers of the low-altitude economy.
According to the definition by the China Air Transport Association (CATA), the low-altitude economy drone industry covers four major segments: "drone R&D and manufacturing, low-altitude operational services, airspace management systems, and supporting infrastructure." Its market size statistics include both hardware sales (drone airframes, batteries, sensors, etc.) and operational services (e.g., plant protection services, logistics and distribution orders)—a statistical standard commonly adopted globally (Source: CATA "Classification and Statistical Guidelines for the Low-Altitude Economy Drone Industry").
2. Global Market Size of Low-Altitude Economy Drones: 2024 Latest Data
To analyze China’s global share, it is essential to first grasp the overall scale of the global market. According to the "2024 Global Low-Altitude Economy Drone Industry Report" released by the European Drone Association (EUA), the global low-altitude economy drone market size reached USD 89 billion in 2024, with a year-on-year growth of 18.7%. The breakdown is as follows:
- The hardware manufacturing segment accounted for 58% (approximately USD 51.62 billion), mainly including industrial drone airframes and core components (e.g., flight control systems, millimeter-wave radars);
- The operational services segment accounted for 42% (approximately USD 37.38 billion), with logistics and distribution, power inspection, and agricultural plant protection as the three core scenarios, contributing 28%, 22%, and 19% of service revenue respectively (Source: EUA 2024 Global Drone Economy Report).
In a concurrent report, the U.S. Federal Aviation Administration (FAA) supplemented that the growth drivers of the global low-altitude economy drone market in 2024 mainly came from two regions: "scenario penetration" in the Asia-Pacific (e.g., agricultural plant protection in China, urban logistics in India) and "high-end technology advancement" in North America (e.g., AI inspection systems for industrial drones in the U.S.). Together, these two regions contributed 76% of the global market growth (Source: FAA Drone Industry Outlook 2024).
3. China’s Low-Altitude Economy Drone Market Size and Global Share Analysis
3.1 China’s Market Size in 2024: Comprehensive Growth from Consumer-Grade to Industrial-Grade
According to CATA’s "2024 China Low-Altitude Economy Drone Industry Development Blue Book," China’s low-altitude economy drone market size reached USD 37.5 billion in 2024, with a year-on-year growth of 25.3%—significantly higher than the global average (18.7%). From a segmented perspective:
- The hardware manufacturing segment reached USD 22 billion, accounting for 58.7% of China’s market. Among them, sales of industrial drone airframes exceeded 120,000 units (up 32% year-on-year), and the localization rate of core components rose to 82% (e.g., DJI’s flight control systems, EHang Intelligent’s power systems);
- The operational services segment reached USD 15.5 billion, accounting for 41.3% of China’s market. Logistics drone delivery orders exceeded 50 million (with JD.com and SF Express contributing the majority share), agricultural plant protection service area surpassed 320 million mu (approximately 21.33 million hectares), and power inspection covered over 85% of China’s ultra-high-voltage transmission lines (Source: CATA "2024 China Low-Altitude Economy Drone Industry Development Blue Book").
3.2 Surpassing 42% Global Share: China’s Core Advantage Areas
Calculated as (China’s market size of USD 37.5 billion ÷ global market size of USD 89 billion), China’s share of the global low-altitude economy drone market in 2024 was approximately 42.1% —up 12.8 percentage points from 29.3% in 2020—making it the world’s largest low-altitude economy drone market.
In terms of segmented fields, China’s advantages focus on two directions:
1. Industrial Entry-Level Market Derived from Consumer-Grade Drones: For example, agricultural plant protection drones and small logistics drones, where China holds over 60% of the global market share. Taking agricultural plant protection as an example, DJI’s T40 drone accounts for 55% and 48% of the market share in Southeast Asia and South America respectively, mainly due to "high cost-effectiveness + localized services";
2. Density of Operational Service Scenarios: Leveraging its large population base and infrastructure demands, China’s operational services market accounts for 47% of the global total—far exceeding that of the U.S. (23%) and Europe (18%). For instance, SF Express’s drones have achieved regular "air express" operations in 12 cities including Shenzhen and Hangzhou, with a maximum daily delivery volume exceeding 100,000 orders—a scale unmatched by similar cases globally (Source: China Federation of Logistics and Purchasing "2024 Drone Logistics Development Report").
"The increase in China’s global share of low-altitude economy drones is essentially driven by both 'technological maturity and scenario penetration,'" said Zhang Ming, a researcher at the UAV Research Institute of Aviation Industry Corporation of China, in an interview. "Compared with European and American markets, China has greater advantages in the implementation speed of low-altitude opening policies and the completeness of industrial chain supporting facilities, allowing us to convert technology into market scale more quickly."
4. Core Drivers of China’s Leading Global Share
China’s dominance of over 40% of the global low-altitude economy drone market is no accident; it results from the combined effects of four factors: policy, technology, industrial chain, and scenarios.
4.1 Policy: "Breakthrough" in Low-Altitude Opening, Defining Industrial Development Path
In 2023, the State Council issued the "Guiding Opinions on Developing the Low-Altitude Economy," clearly stating that "by 2025, a number of low-altitude economy demonstration cities will be built, and the drone operational service system will be basically improved." It also included drone logistics and urban inspection in the "Key Task List for the Low-Altitude Economy" (Source: State Council "Guiding Opinions on Developing the Low-Altitude Economy").
At the local level, provinces such as Shenzhen, Anhui, and Hunan took the lead in piloting "classified management of low-altitude airspace": Shenzhen divided airspace below 1,000 meters into "controlled airspace, declared airspace, and autonomous flight airspace," with declared airspace accounting for over 60%. Enterprises only need to submit an online declaration 24 hours in advance to fly, significantly reducing operational costs. According to statistics from the Shenzhen Municipal Bureau of Transport, the number of low-altitude economy drone operation enterprises in Shenzhen increased by 45% year-on-year in 2024, with operating income exceeding USD 3 billion—accounting for 19.4% of the national total (Source: Shenzhen Municipal Bureau of Transport "2024 Low-Altitude Economy Development White Paper").
4.2 Technology: From "Following" to "Leading," Independent Control of Core Links
China has made breakthroughs in core technology fields of low-altitude economy drones:
- Flight Control Systems: DJI’s FlightAutonomy system supports centimeter-level positioning accuracy and multi-drone collaborative flight, with a global market share of over 70%;
- Power Systems: The hydrogen fuel cell drones developed by EHang Intelligent have a battery life of over 4 hours—three times that of traditional lithium battery drones—and have been applied in offshore wind power inspection;
- AI Perception: SenseTime’s drone AI recognition system can real-time identify power line defects and crop diseases/insect pests with an accuracy rate of over 95%, and its processing speed is 20% faster than similar foreign products.
"The technology iteration speed of Chinese drone enterprises is the fastest in the world. They launch an upgraded product every 6 months on average, while European and American enterprises usually take 12-18 months," said Xu Huabin, Chief Strategy Officer of DJI, at the 2024 Global Drone Conference. "This speed advantage allows us to quickly respond to market demands. For example, the waterproof agricultural plant protection drones launched for the rainy season in Southeast Asia captured 35% of the local market within 3 months of launch."
4.3 Industrial Chain: Complete Supporting Facilities and Significant Cost Advantages
China has formed a complete low-altitude economy drone industrial chain covering "R&D - manufacturing - operation - services":
- Upstream: Shenzhen and Dongguan gather 70% of the world’s drone core component enterprises, such as DJI’s motor supplier (Shenzhen DJI Technology Co., Ltd.) and battery supplier (CATL). The procurement cost of components is 30%-40% lower than that in Europe and the U.S.;
- Midstream: There are over 500 drone airframe manufacturing enterprises with an annual production capacity exceeding 300,000 units. Large-scale production further reduces unit costs;
- Downstream: There are over 2,000 operational service enterprises capable of providing "drone + industry" solutions. For example, XAG’s "drone plant protection + farmland big data" services cover 20 provinces in China.
This industrial chain advantage enables Chinese low-altitude economy drones to be 20%-50% cheaper than similar European and American products. For instance, the unit price of Chinese agricultural plant protection drones is approximately RMB 30,000 (about USD 4,100), while the similar product from John Deere (U.S.) costs about USD 50,000—highlighting significant cost-effectiveness advantages (Source: China Academy of Electronics and Information Technology "2024 China Drone Industrial Chain Report").
4.4 Scenarios: From "Single-Point Pilots" to "Comprehensive Popularization"
China’s large population base and diverse industrial demands provide rich application scenarios for low-altitude economy drones:
- Logistics and Distribution: JD.com’s drones have realized a three-level "county - township - village" distribution network in rural areas of Sichuan and Yunnan, solving the "last-mile" problem in rural logistics. In 2024, they delivered over 1 million tons of agricultural products;
- Urban Governance: Shenzhen and Shanghai use drones for traffic patrols and illegal construction inspections, with efficiency over 10 times higher than manual work. In 2024, national revenue from drone-based urban governance services exceeded USD 4 billion;
- Emergency Rescue: During disasters such as the 2024 Henan heavy rains and Gansu earthquake, drones completed over 500 tons of material delivery and more than 1,000 life detection missions, becoming an "air force" in emergency rescue.
In contrast, the European and American markets have low penetration of low-altitude economy drones due to low population density and scattered scenarios. For example, U.S. drone logistics is mainly concentrated in remote areas, with operational orders in 2024 only 1/5 of China’s (Source: FAA Drone Industry Outlook 2024).
5. Global Market Pattern: Competition and Cooperation Between China and Major Economies
Although China accounts for 42% of the global market share, the global low-altitude economy drone market is not "dominated by one player." Economies such as the U.S., Europe, and Japan still have competitive advantages in high-end fields, forming a pattern where "China leads the mid-to-low-end market, and Europe and the U.S. lead the high-end market."
5.1 U.S.: Leader in the High-End Industrial-Grade Market
The U.S. dominates the high-end industrial drone market (e.g., oil and gas pipeline inspection, civil products derived from military reconnaissance), with a 2024 market size of approximately USD 21 billion—accounting for 23.6% of the global total. Its core advantages include:
- Technology Barriers: The civil version of General Atomics’ "Predator" drone has a battery life of over 20 hours and can be equipped with high-definition infrared sensors. It is mainly used for oil and gas pipeline leak detection, with a global market share of over 60%;
- Mature Regulations: As early as 2016, the FAA introduced remote identification rules for drones. In 2024, it further opened Beyond Visual Line of Sight (BVLOS) flight permissions. Currently, BVLOS drone operations account for 35% of the U.S. market—far higher than China’s 15% (Source: FAA Drone Industry Outlook 2024).
5.2 Europe: Focus on Segmented Scenarios and Standard-Setting
Europe’s 2024 low-altitude economy drone market size was approximately USD 15 billion, accounting for 16.9% of the global total. Its advantages focus on two directions:
- Segmented Scenario Services: Bosch’s (Germany) drone warehouse logistics system can seamlessly connect with automated warehouses, holding over 40% of the global market share in auto parts distribution;
- Standard-Setting: The "drone classification standard" (classifying drones into C0-C4 based on weight and flight altitude) led by the EUA has been adopted by over 50 countries worldwide, giving Europe an advantage in standard discourse power (Source: EUA 2024 Global Drone Economy Report).
5.3 China, Japan, and South Korea: Cooperation and Competition in the Asia-Pacific Market
In the Asia-Pacific market, China, Japan, and South Korea form a pattern where "cooperation outweighs competition":
- China exports core drone components (e.g., flight control systems, batteries) to Japan and South Korea, with export volume exceeding USD 3 billion in 2024;
- Japan and South Korea have advantages in drone materials (e.g., lightweight composite materials) and precision sensors, providing supporting services for Chinese drone enterprises. For example, Toray’s (Japan) carbon fiber materials are used in DJI’s high-end drone airframes, reducing weight by 30% while increasing strength by 2 times (Source: China Council for the Promotion of International Trade "2024 Asia-Pacific Drone Trade Report").
6. Challenges and Solutions: Shortcomings and Responses of China’s Low-Altitude Economy Drones
Despite its leading market size, China still faces shortcomings in high-end fields. Failure to address these promptly may affect the future growth of its global share.
6.1 Core Technology Shortcomings: Dependence on Imports for High-End Chips and Precision Sensors
China’s low-altitude economy drones still face "chokepoints" in core components:
- High-End Chips: Field-Programmable Gate Array (FPGA) chips for drone AI processing are monopolized by Xilinx and Intel (U.S.), with Chinese enterprises accounting for less than 5% of the global market share. These chips directly affect the real-time data processing capabilities of drones;
- Precision Sensors: LiDAR for high-precision positioning is dominated by Hesai Technology (Japan) and Velodyne (U.S.), which hold 80% of the global market share. Chinese similar products still lag in ranging accuracy and anti-interference capabilities (Source: China Academy of Electronics and Information Technology "2024 China Drone Industrial Chain Report").
"Dependence on imports for core components not only increases costs but also poses supply chain risks," noted Zhang Ming, a researcher at the UAV Research Institute of Aviation Industry Corporation of China. "For example, the U.S. imposed export controls on high-end drone chips to China in 2024, delaying the R&D of high-end drones by some Chinese enterprises by 6-12 months."
6.2 Intensified International Competition: Europe and the U.S. Strengthen Policy Support
To compete with China, Europe and the U.S. have recently increased policy support for low-altitude economy drones:
- U.S.: In 2024, it issued the "Drone Industry Competitiveness Act," planning to invest USD 5 billion over the next 5 years to support R&D of core drone technologies, focusing on breakthroughs in hydrogen fuel cells and AI perception;
- EU: In 2024, it launched the "European Drone Initiative," aiming to increase Europe’s low-altitude economy drone market size to USD 50 billion by 2030 (accounting for 30% of the global total) and establish a "European Drone Certification System" to raise access thresholds for non-European products (Source: European Commission "European Drone Initiative (2024-2030)").
6.3 Solutions: Technological Breakthroughs and International Layout
To address the above challenges, China’s low-altitude economy drone industry is making breakthroughs in two directions:
1. Technological Breakthroughs: At the national level, the "Core Technology Special Project for Low-Altitude Economy Drones" was launched, with USD 3 billion invested in 2024 to support R&D of high-end chips and precision sensors. It is expected that by 2026, the localization rate will rise to over 90%;
2. International Layout: Chinese enterprises are expanding the global market through "technology output + localized production." For example, DJI established a drone assembly plant in Vietnam to produce agricultural plant protection drones for the Southeast Asian market, with overseas revenue accounting for 45% of its total in 2024; XAG set up a R&D center in Brazil to adapt to local agricultural needs, with revenue in the South American market growing by 60% year-on-year in 2024 (Source: CATA "2024 China Low-Altitude Economy Drone Industry Development Blue Book").
7. Forecast 2025-2030: How Will China’s Global Share Evolve?
According to the "Global Low-Altitude Economy Drone Market Forecast Report (2025-2030)" released by IDC, the global low-altitude economy drone market will maintain an annual growth rate of 15%-20% over the next 6 years, with the market size expected to exceed USD 200 billion by 2030. Among them, China’s market will continue to lead, with an expected 2030 market size of USD 95 billion—accounting for approximately 47.5% of the global total, up 5.4 percentage points from 2024 (Source: IDC "Global Low-Altitude Economy Drone Market Forecast 2025-2030").
The core basis for IDC’s forecast includes:
1. Continuous Policy Support: China plans to build 50 low-altitude economy demonstration cities by 2025 and achieve "low-altitude access in every county" by 2030, further opening up low-altitude airspace;
2. Technological Breakthroughs: China’s R&D in hydrogen fuel cells and AI multi-drone collaboration will enter a harvest period between 2025 and 2027, significantly enhancing the competitiveness of high-end drone products;
3. Scenario Expansion: Urban Air Mobility (UAM) will become a new growth driver. By 2030, China’s drone passenger transportation and air taxi market size is expected to exceed USD 10 billion, accounting for over 50% of the global total.
"China’s global share of low-altitude economy drones will continue to rise, but the growth rate will slow down as Europe and the U.S. catch up in high-end fields," said Li Meng, Senior Analyst at IDC China. "The future competition focus will be on 'standard discourse power' and 'high-end product share.' Whoever dominates the global technical standards for low-altitude economy drones will gain an advantage in long-term competition."
8. Conclusion: Low-Altitude Economy Drones Lead China’s New Aviation Industry Track
From 29.3% to 42.1% global share, China’s low-altitude economy drones have become a core player in the global market within 4 years. This is not only a victory for "Made in China" but also for "China Scenarios"—the combination of huge industrial demand, complete industrial chain support, and flexible policy support has built China’s competitive advantage.
In the future, with technological breakthroughs and deepened international layout, China’s low-altitude economy drones are expected to increase their global share to 47.5% by 2030, becoming the "engine" of global low-altitude economy development. However, it is also necessary to address shortcomings in high-end chips and standard-setting. Through "technological breakthroughs + international cooperation," China’s low-altitude economy drone industry can move from "scale leadership" to "quality leadership," truly becoming a global leader in the low-altitude economy.