Hong Kong's Chief Executive announced in the 2024 Policy Address the formation of a Working Group dedicated to developing the low-altitude economy. The first meeting of this working group took place in early November and was headed by Deputy Financial Secretary Mr. Michael Wong and covered strategies and plans for advancing the low-altitude economy.
Key initiatives included launching pilot projects early next year, relaxing 'flying beyond a visual line of sight', amending civil aviation laws, conducting studies for infrastructure development, and (this part is especially exciting) promoting cross-boundary flying within the Greater Bay Area (GBA).
The Low Altitude Economy
Much like the 'gig' and 'sharing' economies, the low-altitude economy has long existed but has recently emerged as a collective descriptor and encompassing air operations such as crop dusting, firefighting, aerial photography, mapping, and search and rescue, all conducted below 1,000 meters.
With the advent of small drones and advancements in air mobility technologies, this term is now better suited to the applications and industries that exist.
The LAE sector includes unmanned aerial vehicles, vertical takeoff and landing vehicles, and other low altitude transportation with growth rocketing in China, where it's viewed as a critical area for innovation and economic expansion.
Key components of the low-altitude economy include Advanced Air Mobility (AAM) technologies, which enhance urban transport, logistics, and emergency services.
Diverse applications range from logistics and delivery drones for packages and food to public services like emergency response, urban planning, and infrastructure inspections.
AAM also facilitates short-distance travel, offering alternatives to traditional methods, such as crossing the harbour without the iconic Star Ferry.
To support this growth, infrastructure development is crucial, involving the establishment of vertical ports (vertiports) and charging stations, alongside regulatory frameworks that enable business operations while ensuring public safety.
Market Potential
The LAE sector has significant market potential and is there is increased collaboration among governments, private companies, and research institutions to develop the infrastructure and regulatory frameworks to promote technological innovation in the low-altitude economy.
The European drone sector alone is forecast to generate over €10 billion annually and employ more than 100,000 people in the next two decades. To support this growth, the European Union, just like Hong Kong, is implementing policies aimed at the safe integration of drones into the airspace.
China's LAE Leadership
The undisputed LAE leader is China, with a market projected to reach 2 trillion yuan by 2030. Major cities like Shenzhen are emerging as hubs for innovation in unmanned aerial vehicles (UAVs) and electric vertical take-off and landing (eVTOL) aircraft.
In 2023, there were 600,000 cargo drone flights recorded in Shenzhen, and there are plans for extensive route development. A year ago, it was possible to order a drink and have it delivered to you via drone, as this video shows.
All this means is that the LAE is expected to attract substantial public and private investment.
Hong Kong as an LAE World Centre
There are more than 9,000 high rise buildings with 44% (4,000) standing taller than 100 metres in Hong Kong and more skyscrapers (defined as being over 150 metres in height) than anywhere else on the planet with 558 - Shenzhen comes second with 414.
But it's not just high rise buildings, Hong Kong has an abundance of greenery, scenic trails, peaks, outlying islands, parks, beaches, and, crucially, acts as a gateway into China.
Plans are underway to establish customs procedures for goods transported via drones between Hong Kong and mainland China, making cross-border operations smoother.
Planned developments like the Northern Metropolis, including the San Tin Technopole, are expected to enhance low-altitude operations, offering new opportunities for growth.
Both Hong Kong and Shenzhen are exploring advanced technologies to improve safety and efficiency in low-altitude flying, ensuring that the sector can grow sustainably and effectively.
All this makes Hong Kong the perfect place to become a world centre for the low-altitude flying economy. If the technology and business work here, then Hong Kong will serve as the blueprint for other places around the world.
Elevate With Eight
Are you a company in the low-altitude economy aiming to establish a presence in Hong Kong and the wider region, or an outbound China company looking to expand globally?
Gaining media traction is essential, and Hong Kong offers unique advantages that distinguish it from other markets.
If you need expert public relations support to showcase your strengths and differentiate your brand, contact Eight PR.
Our team specialises in connecting businesses with the right audiences, ensuring your message resonates in this dynamic environment. With our established B2B network, clients gain easy access to senior executives for mutual business development.
Contact us at eight@eightpr.com so we can explore how we can work together to elevate your brand and achieve your communication goals.
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Eight Public Relations is a PR agency in Hong Kong, specialising in law firm, technology, and wealth management public relations. Utilising a power PR model and offering fractional PR services, we develop tailored, innovative strategies to enhance client reputations, drive growth opportunities, and establish brands. Our approach includes media relations, executive profiling, compelling content creation, and leveraging our global B2B network.
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