China's Low-Altitude Economy Boom Draws Foreign Suppliers, Propels Chinese Firms Overseas
Cheng Cheng
DATE:  2 hours ago
/ SOURCE:  Yicai
China's Low-Altitude Economy Boom Draws Foreign Suppliers, Propels Chinese Firms Overseas China's Low-Altitude Economy Boom Draws Foreign Suppliers, Propels Chinese Firms Overseas

(Yicai) July 28 -- China’s rapidly expanding low-altitude economy is not only attracting global suppliers seeking new business opportunities, but is also helping domestic companies across the industry value chain expand into international markets.

"China's investment in the low-altitude economy is enormous. You only need to look at the number of new market entrants here to see the scale of growth," Fabio Ortalli, an executive at an European aerospace engineering software provider, told Yicai during the recent 2026 International Advanced Air Mobility Expo.

In addition to launching previously agreed partnerships with Chinese companies, Ortalli said he hopes to find more potential clients and partners at the expo, including electric-Vertical-Take Off-and-Landing aircraft manufacturers and display system suppliers, as well as universities and research institutions.

Many Chinese firms attending the exhibition are interested in overseas suppliers because of their advanced technologies, experience with US and European airworthiness certification and established international distribution networks.

Global Interest

Recognizing the growth potential of China's low-altitude aviation industrial chain, a growing number of overseas suppliers of low-altitude systems and components, like Ortalli’s company, are attending the expo to explore commercial opportunities and form new partnerships.

"China's strong commitment to hydrogen energy is like a magnet for us. We hope to identify practical applications for our products here," Martin Schaefer, operations director of UK hydrogen fuel cell manufacturer Intelligent Energy, told Yicai.

Intelligent Energy made its debut at the International Advanced Air Mobility Expo this year, showcasing its full range of IE-SOAR™ hydrogen fuel cell products for commercial drones. The systems are designed to power material handling equipment, commercial and industrial drones, data centers and aviation products.

The Loughborough-based firm’s products have traditionally been sold primarily in the United States and Europe, Schaefer said. However, it has now decided to enter the Chinese market, driven by the rapid expansion of China's low-altitude economy industry and the opportunity to integrate into the country's supply chain ecosystem to serve both the Chinese and global markets.

Going Global

As Chinese eVTOL aircraft manufacturers continue to secure international orders and preliminary purchase agreements, their upstream suppliers are also expanding abroad.

"The competition among Chinese eVTOL companies is gradually extending into overseas markets. Many manufacturers are establishing a presence in the Middle East, Southeast Asia, and even in Europe, the US and Africa. As suppliers, we must keep up," said Teng Fei, marketing director of the low-altitude economy division at AVIC Civil Aircraft Onboard Systems. Suppliers need to expand alongside aircraft manufacturers by building overseas after-sales services and technical support capabilities.

According to Teng, Chinese suppliers of low-altitude aviation components have two major advantages over their international peers. First, they offer a complete range of products, making them more resilient to market cycles. Second, their products and services provide better cost performance, enabling them to offer customized products and services tailored to the diverse requirements of start-ups in the low altitude economy sector.

Overseas aircraft manufacturers are showing increased interest in Chinese suppliers, said Mao Weiwei, marketing director at Aviage Systems and chief growth officer of AvioNova. They are attracted by not only the cost advantages created by China’s complete supply chain but also by the long-term growth potential of the country’s market.

China’s low-altitude economy reached a market size of CNY1.5 trillion (USD221.6 billion) in 2025, according to data from the Civil Aviation Administration of China. The country is home to nearly 20,000 drone operators, with annual eVTOL orders exceeding CNY30 billion (USD4.4 billion).

Editors: Tang Shihua, Kim Taylor

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Keywords:   Supply Chain Cooperation,Market Growth Potential,Overseas Suppliers,Chinese Suppliers,Low-altitude Aircraft,Components Supplier,Industrial Chain Ecosystem,2026 International Advanced Air Mobility Expo