In the era of technology rapidly transforming logistics and logistical efficiency becoming a key economic driver, drones are emerging as a game-changing transport technology. Faster than planes, trains and trucks between nearby cities, drone logistics is becoming one of the fastest-growing sectors of the low-altitude economy.

A vital aerial corridor now links Shenzhen and Zhongshan in Guangdong Province. These commercial low-altitude logistics routes, accessible through Weixin mini-programs, enable users to receive intercity items in an average of just three hours.

This route is part of a surge in new intercity routes over the past year in Guangdong, with a robust low-altitude logistics network now forming across the Guangdong-Hong Kong-Macao Greater Bay Area—a city cluster encompassing nine cities in Guangdong and the special administrative regions of Hong Kong and Macao. Phoenix Wings, the unmanned aerial vehicle arm of express delivery giant SF Group, operates over 1,000 delivery drones daily within the region, handling over 20,000 parcels.

Low-altitude logistics is proving its worth across express delivery, agricultural transport, medical supply delivery and numerous other sectors. Statistics from the China Federation of Logistics and Purchasing reveal that China launched over 140 new low-altitude logistics routes in 2024, with urban routes constituting 90 percent of the total.

The low-altitude logistics industry's market size grew from 27.18 billion yuan ($3.79 billion) in 2020 to 58.18 billion yuan ($8.2 billion) in 2023. Projections suggest this market could reach between 120 billion ($16.9 billion) and 150 billion yuan ($21.1 billion) by 2025, according to the China Low-Altitude Logistics Development Report released by the Linksum Institute of Digital Industry in December 2024.

A burgeoning industry 

Capitalizing on these immense opportunities, leading express delivery companies are accelerating their drone business development and pilot projects across many locations are demonstrating substantial progress.

For instance, YTO Express established Shanghai Yuanhang Drone Technology Co. Ltd. late last year. YTO's low-altitude initiatives primarily target last-mile delivery, with ongoing pilot programs in Zhejiang, Sichuan and Hainan provinces.

Another express courier, ZTO Express, has launched an integrated air-ground operations center in Shunde District of Foshan, Guangdong. This hub will manage the assembly of unmanned logistics equipment and intelligent low-altitude transportation scheduling, with ambitions to become a pivotal low-altitude logistics hub for south China.

Yunda Express is also making significant strides in low-altitude logistics. Currently, five Yunda drone routes operate regularly in Zhejiang, serving areas including Jiaxing and Hangzhou cities by delivering medical supplies and fresh produce, including fruit and seafood.

The burgeoning demand for rapid and personalized delivery, fueled by e-commerce and instant delivery, is a significant catalyst for low-altitude logistics, according to Yan Yan, public affairs director for food delivery platform Meituan's drone business.

Li Henggui, who heads the low-altitude economy division at YTO Express, told ThePaper.cn that low-altitude delivery is currently ideal for high-value, time-critical products and for unique circumstances such as hard-to-reach routes, hazardous terrain and remote mountains or islands.

"Drone delivery bypasses road traffic congestion, making it over twice as efficient as road delivery for time-sensitive goods like hot coffee," Yan explained to People's Daily.

Challenges 

Despite these advantages, industry experts acknowledge that China's low-altitude logistics sector is still in its nascent stages, facing several critical challenges.

Song Bingzheng, head of product research and development at ZTO Express, highlighted cost as a primary hurdle. The research, development and procurement of high-performance logistics drones are expensive, and the establishment of supporting ground stations, charging facilities and professional maintenance teams further increases operational cost. Song said while ZTO has optimized its cost per deployment to 86.2 yuan ($12), it remains less economical than traditional road transportation.

To address this, Song told ThePaper.cn that some remote areas, with government backing, are developing specialized drone take-off and landing platforms. These operations utilize 100 kg-capacity drones for fixed deliveries, such as to schools. In mountainous regions like Yunnan Province, accumulating package volumes allows drones to deliver within two to three days, greatly reducing the time and effort previously spent on foot. These high-volume scenarios represent some of the most mature applications for low-altitude logistics.

Beyond cost, current drone performance limitations hinder large-scale adoption. Song further elaborated that logistics drones generally struggle with low payload capacity, limited flight endurance and insufficient adaptability to challenging environments like strong winds or low temperatures. Drones with a 5-kg capacity typically have a flight range of only 20 to 30 km, making them ill-suited for cross-regional deliveries.

Incomplete regulations present another major obstacle. Song explained that cross-regional flights necessitate coordination with multi-level air traffic control departments. The intricate approval process for temporary flight routes, lengthy airworthiness certification cycles, and cumbersome procedures for obtaining relevant licenses and permits all constrain flexible scheduling and large-scale drone operations.

Enterprises are increasingly advocating for more open airspace resources. "The pace at which urban airspace is opened and the sophistication of its management directly influence corporate investment willingness," stated Yan. Policies have been piloted to ease airspace restrictions, enabling companies to establish new routes and achieve aerial delivery even within dense urban areas. Yan recommended that regions systematically promote airspace management and flight activity approvals and establish intelligent air traffic management systems to unlock the full potential of low-altitude airspace.

However, the crucial step of opening airspace resources hinges on ensuring an elevated level of safety. "Safety is the lifeline for the development of low-altitude logistics," Dong Zhiyi, chief expert of the low-altitude economy at the Chinese Society of Aeronautics and Astronautics, told People's Daily. He advocates for the accelerated development of a prudent and inclusive low-altitude safety governance system, championing innovation built upon a foundation of safety and stability. Many companies are actively enhancing their product designs, incorporating safety redundancy—the deployment of multiple protective measures against specific hazards—to navigate complex environments. On the hardware front, drones are equipped with parachutes for emergency situations, while software innovations include embedded automatic parachute deployment programs and autonomous alternate landing point search functions.

Dong further characterized the low-altitude economy as an industry demanding patient cultivation. He stressed the need for enterprises to adopt a long-term perspective, prioritizing technological innovation, continuous product upgrade and scenario expansion to foster more low-altitude consumption. Simultaneously, he urged relevant government departments to engage in scientific and rational planning and ensure the industry's sustainable, safe and orderly development.

Copyedited by G.P. Wilson 

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