China's low-altitude logistics sector takes flight, transforms delivery systems

HEFEI - Gao Chunmei, an islander from Chaohu Lake in East China's Anhui province, eagerly awaited her packages as usual.

Living on the small island of Laoshandao, nestled in the heart of the 780-square-kilometer Chaohu Lake, the 61-year-old knows delivery often takes time, even after the package reaches the area. But this time, Gao was pleasantly surprised as her packages arrived earlier than expected, via a white drone soaring across the vast waters, instead of the usual ferry-bound couriers.

This drone, capable of carrying up to 9 kilograms, completed the journey from a drone take-off site in the lakeside city of Chaohu to the island in just four minutes -- cutting delivery time by almost two hours compared to the ferry service.

"The traditional delivery method relied on ferry transport, which could be delayed by bad weather," said Meng Qi, a business manager of the Chaohu branch of China Post, the country's logistics giant. "The drone offers a more flexible, efficient and convenient solution, solving the island's delivery challenges."

Since officially launching in June 2024, this drone delivery route has seen the completion of over 1,000 deliveries, with plans to extend the service to mountainous areas during 2025, according to Meng.

Notably, 2024 is being hailed as "the first year of an era of low-altitude economy" in China, with drones playing a central role in this emerging sector.

Logistics is one of the biggest winners in China's "drone revolution," as low-altitude logistics proves increasingly beneficial for short-haul, cross-region and city deliveries.

Data from the Ministry of Transport reveals that around 2.7 million parcels were delivered by drones across the country in 2024.

According to the China low-altitude logistics development report, released by Linksum Institute of Digital Industry, the industry's market size grew from 27.18 billion yuan ($3.79 billion) in 2020 to 58.18 billion yuan in 2023. Projections suggest this market could reach 120 to 150 billion yuan in the course of 2025.

In many parts of the country, drones are now delivering goods to areas that traditional transport modes have struggled to reach.

Last August, Beijing launched its first unmanned aerial vehicle logistics delivery route in the Badaling section of the Great Wall, which enables tourists to receive summer relief items and emergency supplies within minutes.

In densely populated and traffic-heavy urban areas, the development of drone delivery services is palpable. From delivering takeout to emergency medical assistance, the use of drones is rapidly expanding, pushing the boundaries of low-altitude logistics.

In October 2024, a new blood delivery drone route was launched in Hefei, capital of Anhui, initiating a direct, high-efficiency flight from a blood donation center in Luyang District to the Anhui provincial blood center.

This flight route forms part of an urban "sky corridor" for medical supplies, and is operated by drone manufacturer Antwork Technology, which is based in the city of Hangzhou in East China's Zhejiang province. In 2024, the company expanded its drone blood delivery services to 40 cities, including Hefei, Hangzhou and Southwest China's Chengdu, completing over 2,500 emergency blood deliveries and saving valuable time for thousands of patients.

"Our business expanded rapidly in 2024," said Sun Xuannan, general manager of the company's Hefei branch. "In addition to transporting blood and medical specimens, we're also using drones to deliver takeout in cities. We hope to let more people experience firsthand the convenience of low-altitude logistics."

Looking to the future, business insiders believe clearer policy planning and continuous technological innovation will further propel this industry's growth.

The tech hub of Shenzhen in South China's Guangdong province, home to leading global drone manufacturer DJI, has introduced policies supporting the pilot development of logistics models integrating drone delivery and traditional methods. In 2024 alone, Shenzhen launched 94 new drone cargo routes -- bringing the total to more than 200, with over 600,000 flights completed.

In the neighboring economic powerhouse of Guangzhou, local authorities aim to grow the low-altitude economy to 150 billion yuan by 2027, while targeting the creation of a drone-based logistics network serving both the city and its surrounding areas.

At the national level, the Ministry of Transport, along with the National Development and Reform Commission, has rolled out several initiatives, including an action plan for logistics cost reduction and efficiency enhancement. The ministry proposed actively advancing the commercial use of drone-based logistics.

"Driven by multiple factors, such as policy support and market demand, low-altitude logistics is witnessing strong development opportunities," said Pan Haihong, with the China Federation of Logistics & Purchasing.