Insights from the Asian Investment Conference 2026
Vertical economy: From exploration to industry
An industrial revolution is unfolding in the skies above us – not just to look out at space, but to influence lives here on Earth.
An industrial revolution is taking place right above our heads.
In the skies above us, a host of technologies and industries are newly booming, stretching the economic opportunity over Earth and up into space.
While they may feel far-flung, many of these innovations are designed to support human life down here on the ground.
- 50-100 meters up, courier drones are bypassing road traffic and tricky terrain to deliver goods
- 500-1000 meters up, electric vertical takeoff and landing aircraft (eVTOL) are air-taxiing heavier cargo and even people
- 160-35,000 kilometers up, satellites are being used to monitor crops and the weather, supply internet and broadcast TV
Meanwhile, growing interest in emerging technologies promises to push the vertical economy to even greater heights.
At the Asian Investment Conference (AIC), experts convened to explore the opportunities at every altitude.
Closer to home
Closer to home
The low-altitude economy refers to innovations taking place in the airspace below 1,000 meters – typically smaller-sized technologies that can be seen from the ground.
eVTOLs, akin to high-tech, electric helicopters, are of critical importance. These vehicles can transport not just heavier goods but also people, marking a shift from the largely non-passenger applications of drones. They are a major focus of the Chinese government, with the country’s Civil Aviation Administration forecasting the market will reach 500 billion USD by 2035.1
An increase in airworthiness certifications and developments in similar industries are also driving eVTOLs growth.
Zhang Ting, CEO of Santroll Aviation Power, a developer of aviation electric propulsion systems, noted: “The electric vehicle industry has given aviation electrification a strong foundation. The core foundational technical elements of batteries, electric motors, and control systems for electric vehicles share strong similarities with those in the eVTOL industry. With aviation-level upgrades, they can be used directly, saving time and cost.”
Many of these key enabling technologies “have largely reached commercial readiness”, according to UBS Head of China Leisure & Transport Xin Chen.
“While intra-city and inter-city passenger commuting may require further improvements in technologies – for example batteries – and stronger policy support, we believe non-passenger eVTOL applications are already at an inflection point and poised for take-off,” said Chen.
“While we acknowledge the eVTOL industry requires global cooperation, China is likely to benefit due to policy support and its leadership in electric vehicles, drones and infrastructure.”
Regarding emerging opportunities, Chen added: “We expect the industry value chain to expand, with investment migrating from original equipment manufacturers to both upstream components like battery and flight control and downstream services. Take the electric power system as an example: it can account for up to 40% of an eVTOL’s cost and determines core parameters such as flight speed, carrying capacity and endurance. We think policy dividends, rising adoption and exportation are the core growth drivers.”
Up in space
Up in space
Farther afield, the global space economy has transformed. Once the domain of governments, it is increasingly supported by companies providing commercial access to space.
The largest factor in this shift is that it has never been more affordable to launch into space. The cost of heavy launches into low-Earth orbit tumbled from 65,000 USD per kilogram in 1981 to just USD 1,500 in 2021 – a fall of more than 95%.
“To understand why the space industry is booming, we need to understand the cost of launch,” said space scientist Dame Maggie Aderin at AIC.
“We now have reusable launch systems, and with reusability comes a price drop. At the same time, satellites are becoming smaller and more agile, so we can get more satellites aboard each launch. These have been game-changers.”
Many interconnected layers make up the space economic stack. Supporting the satellites and launch systems is extensive ground infrastructure – the communication systems that connect with satellites and process their data. Then there is software launched into space, used not just for mission-specific applications but also commercial ones such as internet and streaming, insurance risk analysis and environmental management.
Dame Maggie also highlighted a host of emerging industries as the space economy expands. Space manufacturing aims to develop micro-gravity production methods, while space data centers could leverage immediate access to both solar energy and extremely cold temperatures. As the number of satellites grows, efforts are underway to manage space debris and prevent collisions, and AI is being considered to support autonomous navigation for spacecraft and rovers.
“Satellites are doing amazing things... With AI tagged onto that, we can find things we wouldn't have been able to see before,” Dame Maggie said.
The innovations unfolding above us are intertwined with our everyday lives. Whether it be eVTOLs transforming urban mobility or satellites and space-based software shaping industries from agriculture to entertainment, these advancements are felt not only overhead, but here on the ground.
