From stunning drone shows over Victoria Harbour to restaurants deploying drone deliveries to Ma On Shan, Hong Kong’s low-altitude economy is taking flight.
This emerging sector, which encompasses non-civil aviation airspace below 1,000 metres (approximately 3,300 feet), focuses on integrating unmanned drones and electric vertical take-off and landing (eVTOL) aircraft into daily life, transforming industries such as logistics, tourism, and agriculture.
Globally, LAE is gaining momentum, with multiple countries adopting regulatory frameworks to accelerate its development. According to Morgan Stanley, the global LAE market could soar to US$9 trillion within 25 years, reflecting its transformative potential.
In the European Union, a three-category operational framework for unmanned aircraft was introduced in July 2019, creating a structured environment for drones to operate safely and efficiently. Meanwhile, the United States launched the Low Altitude Authorisation and Notification Capability (LAANC) system in April 2018, streamlining airspace management for drone operations.
China has recognized LAE as a strategic emerging industry, sparking rapid development across the sector. At the forefront is Shenzhen, one of the Greater Bay Area’s tech hubs, where thousands of LAE-focused enterprises and a dominant position in the global drone market have cemented its leadership.
By 2026, the city plans to expand its low-altitude take-off and landing facilities fivefold while enhancing airspace connectivity with more than 8,000 new 5G-A base stations to support advanced LAE operations.
For Hong Kong, the LAE presents a golden opportunity to address urban challenges while driving economic growth and reshaping urban mobility. The city’s Working Group on Developing Low-altitude Economy, established last year, is already formulating plans, strategies and interdepartmental action plans.
These include 38 sandbox pilot projects in collaboration with private and public entities. Selected from 72 applications, they cover a wide range of fields, including emergency and rescue, logistics and distribution (such as the delivery of food, drugs, and medical supplies), infrastructure inspection and safety maintenance, environmental monitoring, surveillance, and low-altitude infrastructure.
The trial flights – some of which are already in the testing stage – will span multiple districts across Hong Kong, covering venue partners such as Hong Kong Science Park, Cyberport, university campuses, hospital areas and country parks.
Speaking at a Chamber seminar on the LAE in Hong Kong in June, Chun To Wong, Principal Assistant Secretary of the Transport and Logistics Bureau, noted that the LAE represents one of China’s strategic emerging industries and exemplifies the exploration of new quality productive forces.
“The LAE is set to strengthen city management and business efficiency and create a whole new experience of smart living for the public, making it an important growth engine for the economy,” Wong stated.
Wilson Kwong, Chairman of the Chamber’s Transport & Logistics Committee, echoed his views.
“The low-altitude economy (LAE) presents a transformative opportunity for Hong Kong, offering substantial benefits across various sectors. By deploying unmanned aircraft to uses such as logistics, emergency response and urban management, Hong Kong benefit from enhanced operational efficiency and service delivery.”
Kwong said he was delighted to see the first batch of sandbox pilot projects and hopeful that more cases would be introduced, reinforcing Hong Kong’s position as a smart city and a global leader in innovative transport solutions.

Hong Kong’s Urban Challenges
Hong Kong, where land is limited, boasts one of the highest population densities in the world, with approximately 6,900 people crammed into each square kilometre. This intricate urban fabric, accompanied by a forest of towering structures – with 563 buildings standing over 150m tall – poses unique challenges for low-altitude aviation.
In terms of land use planning, large-scale developments like the Northern Metropolis can provide ample land and flexible design to meet LAE-related infrastructure needs, said Wong. LAE facilities, such as vertiports and charging stations, can typically be accommodated within existing zoning rules as permitted or ancillary uses.
Hong Kong’s LAE regulatory landscape will also require frequent reviews to keep pace with the rapid advancements in low-altitude technology. To this end, the Government is adopting a three-pronged approach: expand the regulatory scope of the existing Small Unmanned Aircraft Order (SUA Order) to include those weighing up to 150kg; introduce new provisions in air navigation to facilitate trial operations of unconventional aircraft under specified conditions; and, in the longer term, study the introduction of dedicated legislation for various unconventional aircraft weighing over 150kg, including passenger-carrying eVTOL. Additionally, the authorities are working to promote an interface with the Mainland to facilitate cross-boundary low-altitude flying activities within the GBA.
Wong reiterated that the Government’s overall approach is reflective of a responsive and meticulous strategy, signalling a commitment to establishing a responsible framework for LAE development.
HKGCC’s Smart City Working Group, led by Convenor Patrick Lee, plans to promote the LAE within the business community by leveraging the Chamber’s role as a super-connector and its policy influence.
The Group has organized an engaging seminar series on LAE featuring renowned experts from both the public and private sectors. The two sessions, held in March and June, examined various aspects of embracing the “smart skies” era. These include navigating the dense urban landscape of our skyscraper city, implementing regulatory frameworks, advancements in drone delivery technology, as well as opportunities for businesses in the sector, from building facade maintenance to aerial photography and infrastructure monitoring.

Flying High Through Collaboration
Among the approved sandbox projects in Hong Kong is a study by Traffic Control Technology (Hong Kong) Company Limited and MTR Corporation on using drones as inspection solutions for areas such as railway stations, tracks and buildings, supported by AI and other technologies for effective data analysis.
During his presentation at the Chamber’s LAE seminar, Lawrence Poon, Head of Emerging Technology and Global Innovation at MTR, stated that the applications of low-altitude drone technology in the railway sector would enhance railway operations efficiency and maintenance efforts.
Poon added that innovation is critical, especially in supporting R&D in UAV technologies, improving battery life, AI navigation and payload capacity.
The Hong Kong Polytechnic University (PolyU) is also playing a pivotal role in advancing LAE development in Hong Kong and the GBA through research, education, thought leadership and policy recommendations. Besides hosting the Aerospace Innovation Research Summit (AIR Summit) in November 2024, which attracted nearly 1,000 political and business leaders, PolyU also established the Research Centre for Low Altitude Economy (RCLAE) last year.
Dr Weisong Wen, Assistant Professor, Department of Aeronautical and Aviation Engineering at PolyU, has spearheaded an innovative project that utilizes drones to clean building exteriors. Deploying LIDAR and GPS, the drones conduct detailed scans of target structures. He explained that the data collected is then transformed into accurate 3D models, enabling drones to plan the most effective cleaning routes automatically.
Dr Wen said the LAE presents substantial benefits for Hong Kong.
“In the city’s high-rise urban landscape, drones can revolutionize logistics, delivering medical supplies and e-commerce packages swiftly. They can enhance infrastructure inspection and emergency response, reducing operational costs. LAE also aligns with Hong Kong’s smart city goals, utilizing spatial data for safe air route planning.”

The Sky Is Not the Limit
For Hong Kong businesses, the “smart skies” era offers substantial opportunities across diverse industries.
“Drones can improve last-mile and cross-border cargo operations in logistics, while construction may utilise AI-driven inspections and site monitoring,” said Lee. “In tourism, aerial light shows and virtual reality tours can be leveraged, while healthcare can deploy drones for emergency medical supply deliveries. Technology companies can engage in R&D for drone and AI systems, as well as component production, while environmental uses could include pollution monitoring.”
However, Dr Wen pointed out there were still hurdles to overcome.
“Regulatory frameworks need to be further strengthened to ensure safety amid concerns of crowded skies. Infrastructure limitations, such as a lack of take-off/landing zones in densely built areas and electromagnetic interference from high-rises, must also be addressed,” he said. “Success in LAE requires policy innovation and infrastructure investment.”
As various stakeholders come together to tackle challenges and implement effective solutions, Hong Kong stands poised to become a beacon for LAE growth, inspiring other cities around the world to take to the skies.