Letters | Why Hong Kong must prepare ground for low-altitude economy to take flight
- Readers discuss the economic potential of the drone-related industry, the plan to increase the number of CCTV cameras in the city, and the abuse of a young inmate
A Chinese consulting firm estimated that China’s low-altitude economy was worth 2.5 trillion yuan (US$352 million) in 2022, and would reach up to 5 trillion yuan by 2025. Shenzhen has been leading this industry. The city flew 600,000 cargo drones in 2023, the most among Chinese cities.
Multinational giants such as Google’s parent company Alphabet, Amazon and UPS are also actively investing in related projects. In mid-2019, Wing, a subsidiary of Alphabet, launched a pilot drone service delivering groceries and food in Helsinki. The world’s largest drone superhighway in the United Kingdom is expected to be launched by May. Project Skyway, which was allotted over £12 million (US$15 million) by the government, will connect cities such as Cambridge and Rugby, servicing 1.2 million people.
According to consulting firm McKinsey, drones could be more cost-effective for package delivery than traditional transport modes. For example, for a five-mile delivery of a single 216-cubic inch package (six inches each side), the unit cost by drone could be US$1.50 to US$2 if one operator monitors 20 drones, compared to US$1.90 by internal combustion engine van, assuming each van carries 100 packages and delivers them in a single trip, which is not always possible. The cost estimate included energy, labour and insurance.
In Hong Kong, a drone manufacturer cooperated with a fast-food restaurant to test flights at the Science Park as early as 2017. While the process was reported to be smooth, there doesn’t seem to have been further development since.