The rapid development of eVTOL and other low-altitude flying vehicles is boosting China's low-altitude economy, with the sector expected to surpass 3.5 trillion yuan ($516.8 billion) by 2035, according to a report released on Tuesday in Chengdu, Sichuan province.

Electric vertical takeoff and landing aircraft, or eVTOLs — also known as "air taxis" — are quieter, greener, and safer than helicopters. As urban air mobility advances, they are expected to become a new paradigm for urban transportation.

The China eVTOL Industry Development Research Report, released on Fortune China's WeChat account, pointed out that while Europe and the United States still dominate the market for traditional fixed-wing aircraft and helicopters, the low-altitude sector — especially eVTOLs — is evolving into a two-horse race between China and the US.

China's complete industrial and supply chains, breakthroughs in new energy technologies, engineering innovation, huge market with diverse application scenarios, robust policy support, and sound low-altitude infrastructure have granted its eVTOL industry a competitive edge, the report said.

The overall competitiveness of China's eVTOL industry ranks among the world's top, with the country's eVTOL developers, including EHang, Aerofugia, and AutoFlight, having made significant progress across multiple technological pathways, it said.

The report shows that global eVTOL designs have exceeded 1,100, and the industry's focus has shifted from prototyping to airworthiness certification, mass production, and commercial operations, with 2026 expected to be a breakthrough year.

China's confirmed and intended eVTOL orders have exceeded 5,000 units, valued at over 30 billion yuan, according to the report.

The report noted that Chengdu, a pilot city for low-altitude airspace management reform, boasts distinct strengths in aviation industry aggregation, low-altitude supply chains, and application scenarios, making it poised to become a future global eVTOL hub.

By the end of 2025, the city was home to over 500 low-altitude companies, with the industry chain valued at over 40 billion yuan. It had also launched 90 application scenarios and 130 passenger and cargo routes as of September last year.