Low-Altitude Economy Air Management System Market Report 2025

The low-altitude economy air management system market size has grown rapidly in recent years. It will grow from $2.84 billion in 2024 to $3.34 billion in 2025 at a compound annual growth rate (CAGR) of 17.9%. The growth observed during the historic period was driven by the rising demand for drone-based delivery solutions, expanded use of aerial surveillance in defense, increased deployment of unmanned aerial vehicles in agriculture, greater utilization of low-altitude airspace for mapping and surveying, and heightened interest in recreational and hobbyist drones.

The low-altitude economy air management system market size is expected to see rapid growth in the next few years. It will grow to $6.37 billion in 2029 at a compound annual growth rate (CAGR) of 17.5%. The projected growth during the forecast period is expected to be driven by the expansion of urban air mobility initiatives, growing investments in smart city air traffic management, increasing demand for sustainable aviation solutions, advancements in real-time data analytics for airspace control, and stronger regulatory support for commercial drone operations. Key trends anticipated in this period include the development of drone delivery networks, expansion of urban air mobility infrastructure, integration with smart city frameworks, innovations in noise reduction technologies, and improvements in payload management systems.

The growing use of autonomous aerial vehicles (AAVs) is expected to drive the expansion of the low-altitude economy air management system market in the coming years. AAVs are aircraft capable of navigating and operating independently through onboard systems without human intervention. Their adoption is increasing due to the rising demand for urban air mobility, which offers efficient, low-altitude transportation solutions in densely populated urban areas. Low-altitude economy air management systems support the safe and efficient operation of AAVs by providing real-time traffic coordination, obstacle avoidance, and optimized routing in crowded urban airspace. For example, in June 2025, the UK Ministry of Defense announced a record investment of $407.09 million (£350 million) to enhance Ukraine’s drone capabilities, aiming to raise the fleet from 10,000 in 2024 to 100,000. Consequently, the growing deployment of autonomous aerial vehicles is significantly contributing to the market growth of low-altitude economy air management systems.

Leading companies in the low-altitude economy air management system market are increasingly forming strategic partnerships to develop integrated air traffic management solutions that ensure safer and more efficient low-altitude operations. These collaborations drive market growth by facilitating technology sharing, joint research and development, and smoother regulatory compliance, thereby accelerating the deployment of advanced air traffic management systems. For example, in July 2025, EHang Holdings Limited, a China-based aircraft company, partnered with Minth Group Ltd., a Chinese auto parts manufacturer, to co-develop high-safety airframe systems for EHang’s eVTOL aircraft. This partnership focuses on improving the structural integrity and safety of eVTOL vehicles, which is critical for their broader adoption in urban areas. Additionally, the collaboration includes initiatives to demonstrate eVTOL aircraft in low-altitude cultural tourism applications, highlighting their practical potential. This effort reflects the industry’s commitment to advancing eVTOL technology and integrating it within the broader low-altitude economy.

In March 2024, Thales SA, a France-based aerospace firm, acquired UAE-based AstraUTM for an undisclosed sum. Through this acquisition, Thales SA intends to develop a scalable digital traffic management platform that utilizes artificial intelligence and big data to enhance the safety and efficiency of drone operations and airspace management in urban and regional environments. AstraUTM specializes in providing drone traffic management systems, complementing Thales’ efforts to advance intelligent airspace solutions.

Major players in the low-altitude economy air management system market are Collins Aerospace, Thales S.A., L3Harris Technologies Inc., Leonardo S.p.A., Mosaic ATM Inc., Indra Sistemas S.A., Diehl Aviation GmbH, Frequentis AG, Lilium GmbH, Skydio Inc., NSFOCUS Global Inc., Eve Air Mobility, Wisk Aero LLC, Aloft AI Inc., EHang Holdings Limited., Terra Drone Corporation, Altitude Angel Ltd., ANRA Technologies Inc., Joby Aviation Inc., XPeng Aerospace Technology.

North America was the largest region in the low-altitude economy air management system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in low-altitude economy air management system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the low-altitude economy air management system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the transport sector, particularly in fleet maintenance and logistics operations. Higher duties on imported commercial vehicles, tires, and engine components have increased operational costs for trucking and freight companies, forcing them to raise shipping rates or reduce margins. Airlines and maritime shippers face similar pressures, with tariffs on aircraft parts and shipbuilding materials driving up capital expenditures. Additionally, retaliatory tariffs in key export markets have reduced demand for U.S.-made transportation equipment, further straining revenue streams. The sector must now prioritize fuel efficiency, alternative sourcing, and automation to offset rising expenses while maintaining service reliability.

The low-altitude economy air management system is a technological framework designed to streamline and optimize operations, logistics, and air traffic for aircraft operating at low altitudes. By combining real-time data, automated routing, and safety measures, it aims to improve operational efficiency, reduce airspace congestion, and lower potential risks.

Key elements of the low-altitude economy air management system include hardware, software, and services. Hardware encompasses the physical devices and equipment used to monitor, control, and safely coordinate low-altitude air traffic. Product types under this system include urban air mobility platforms, drone delivery solutions, and environmental monitoring systems, which utilize technologies such as artificial intelligence, machine learning, advanced battery systems, and navigation tools. This system finds applications across tourism, logistics, medical services, inspection tasks, and more, serving a diverse range of end users, including commercial entities, government agencies, industrial sectors, and the military.

The low-altitude economy air management system market research report is one of a series of new reports that provides low-altitude economy air management system market statistics, including low-altitude economy air management system industry global market size, regional shares, competitors with a low-altitude economy air management system market share, detailed low-altitude economy air management system market segments, market trends and opportunities, and any further data you may need to thrive in the low-altitude economy air management system industry. This low-altitude economy air management system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The low-altitude economy air management system market consists of revenues earned by entities by providing services such as traffic monitoring, flight path planning, collision avoidance, communication and navigation support, and regulatory compliance assistance. The market value includes the value of related goods sold by the service provider or included within the service offering. The low-altitude economy air management system market also includes sales of surveillance and security systems, infrastructure inspection systems, agricultural monitoring systems, disaster management systems, and search and rescue systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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