Hong Kong’s journey to a smart city: Integrating innovative technology for a sustainable and connected tomorrow

By the Hong Kong Productivity Council

Hong Kong, renowned for its skyscrapers, vibrant culture, and bustling economy, stands as an emblem of urban dynamism in Asia. Over the years, the city has embarked on a journey towards becoming a smart city, utilising technology to enhance efficiency, sustainability, and the quality of life for its residents.

The emergence of the concept of “smart city” in Hong Kong was a response to the challenges posed by rapid urbanisation, population growth, and environmental concerns. Through collaborative efforts involving the government, industry stakeholders, academia, and the community, initiatives have been actively pursued to harness the power of technology and data in creating a more interconnected and sustainable urban environment.

Blueprinting tomorrow’s urban ecosystem

In 2017, the HKSAR Government unveiled its Smart City Blueprint for Hong Kong, outlining a strategic roadmap to transform Hong Kong into a world-leading smart city and a significant contributor within the Greater Bay Area (GBA). Subsequently, the government launched Smart City Blueprint for Hong Kong 2.0 in 2020, which focuses on key areas such as Smart Mobility, Smart Living, Smart Environment, Smart People, Smart Government, and Smart Economy, underscoring a holistic strategy for advancing smart city development.

In the Smart City Index 2024 survey published by the International Institute for Management Development (IMD) in April 2024, Hong Kong ranked 20th globally, sixth among Asian cities and the lowest among the Four Asian Tigers¹. This edition captured the perceptions of 120 residents in each city, with the structures pillar reflecting existing infrastructure, and the technology detailing technological services available to the residents. The ranking underscores the significance of Hong Kong citizens’ evaluations of the city’s smart city progress, emphasising the importance of initiatives that are both recognised and beneficial to enhancing citizens’ quality of life.

In the recently announced 2025-26 Budget, the HKSAR Government reaffirmed its commitment to advancing smart city initiatives by allocating funds to e-Government Services and optimise smart transportation and tourism systems, all aimed at delivering more efficient public services to citizens.

A new era for smart cities: focusing on people

The United Nations Human Settlements Programme (UN-Habitat) defines smart cities as an innovative city that uses information and communication technologies and other means to improve quality of life, the efficiency of urban operation and services, and competitiveness, while ensuring that it meets the needs of present and future generations with respect to economic, social, environmental as well as cultural aspects². Moreover, building on UN-Habitat’s Flagship Programme on People-Centred Smart Cities, “a smart city is ‘people-centred’ when it uses digital technologies in an ethical, inclusive and sustainable way to make sure that no one is left behind.”

In the realm of smart city development, the government has steered urban innovation and sustainability through the implementation of the Smart City Blueprint for Hong Kong 2.0. It is evident that continuous innovation and collaboration play pivotal roles in driving the city towards its smart city aspirations. Moreover, it is imperative to underscore that, beyond technological advancements and infrastructure enhancements, the essence of any smart city endeavour lies in its focus on people. By placing citizens at the forefront of urban planning and design, Hong Kong’s smart city vision is dedicated to enriching quality of life, promoting inclusivity, and addressing the diverse needs of its residents, both now and in the future.

Beyond technological advancements and infrastructure enhancements, the essence of any smart city endeavour lies in its focus on people.

Visioning tomorrow’s city today

Revolutionising urban infrastructure with innovation

Smart infrastructure is the bedrock of 21st-century urban development, melding advanced technologies to bolster cities’ efficiency, sustainability, and resilience. These digital solutions and data-driven insights not only optimise the performance of traditional systems but also pave the way for transformative changes in how cities are planned, built, and managed.

In the face of burgeoning urban populations and escalating environmental pressures, smart infrastructure proves pivotal. From optimising water networks to enhancing energy grids, these innovations are essential for crafting liveable, inclusive, and eco-friendly cities.

The government’s Smart City Blueprint has spurred a host of transformative initiatives, yielding notable outcomes. For instance, the Government Cloud Infrastructure Services (GCIS), launched in 2020, leverages on modern cloud technologies, and provides a secure, reliable and scalable IT infrastructure equipped with agile application development tools. These tools facilitate bureaux and departments in flexible development and delivery of digital government services.

In this landscape, the Hong Kong Productivity Council (HKPC) plays a vital role in propelling smart city endeavours. By delivering innovative solutions that boost resource efficiency and productivity, HKPC drives value creation through partnerships with industries, Research and Development (R&D) institutions, and technology transfer initiatives.

One standout innovation, the “InspecSpider” developed by HKPC, was honoured with the Silver Award in the category of “Innovative Robotics Solution” at the esteemed Edison Awards 2024. “InspecSpider” is an innovative robotic solution in Hong Kong for the inspection of rust in high mast lightings. It can be applied in high mast in different infrastructures, such as airports, and potentially bridges, stadiums, highways, and tunnels. Field-tested at the Hong Kong International Airport, “InspecSpider” has garnered interest from overseas airports seeking to adopt this cutting-edge technology. The core technologies underpinning this project are poised to find applications in diverse scenarios like water canals, bridges, and nuclear power plants, and so forth, replacing manual inspection and facilitating upgrades across multiple infrastructure sectors.

“InspecSpider” symbolises the convergence of robotics, wireless communication, and testing technology, revolutionising the inspection and maintenance of high-mast lightings. Capable of climbing vertically on 35-m high masts, this robotic system conducts meticulous inspections, recording infrastructure rusting conditions with precision. By utilising six sets of high-resolution camera, engineers can conduct ground-level inspections, eliminating the need for traditional hazardous manual inspections at heights and enhancing operational efficiency and safety protocols.

The “InspecSpider” showcases how smart infrastructure solutions can optimise inspection and maintenance practices, prolong infrastructure lifespan, and enhance overall infrastructure management in urban environments. Embracing innovative smart infrastructure solutions is pivotal for driving sustainable urban development and fostering intelligent transformation within the infrastructure industry. By embracing such advancements, cities can pave the way for a more resilient, connected, and future-ready urban landscape.

The “InspecSpider” is an innovative robotic solution in Hong Kong for the detection and maintenance of rust in high mast lightings

Tech marvels in concrete

Smart construction plays a pivotal role in the development of smart cities, revolutionising traditional practices and paving the way for enhanced efficiency, safety, and sustainability. The integration of innovative technologies such as artificial intelligence (AI), robotics, and advanced positioning techniques is reshaping the landscape of construction processes, particularly in critical infrastructure projects like tunnels.

The Smart Motorway Pilot Scheme, launched by the Transport Department in December 2024 at Ting Kau Bridge southbound, integrates AI technologies to efficiently detect and respond to traffic incidents. This initiative enhances incident handling efficiency and response capabilities, showcasing a significant step towards smart city planning through advanced construction practices.

Another groundbreaking example of smart construction is the collaboration between HKPC, the Civil Engineering and Development Department (CEDD) and Hyder-Meinhardt Joint Venture, to develop the “Autonomous Air-ground Cooperative Tunnel Inspector”. This cutting-edge system synergises AI, robotics, and advanced positioning techniques in GPS-denied environments to revolutionise tunnel inspections in Hong Kong.

Traditional tunnel inspections are labour-intensive, time-consuming, and often pose potential safety risks to workers who need to operate at heights. The AI-powered autonomous tunnel inspection system is currently deployed at the Trunk Road T2 and Cha Kwo Ling Tunnel project to address these challenges. By coordinating an Unmanned Aerial Vehicle (UAV) and an Unmanned Ground Vehicle (UGV), the system captures tunnel internal structures with high quality cameras and achieves 360° full coverage in the tunnel during inspection. An edge AI module is set up in the UGV to provide instant AI detection for millimetre-level defects on tunnel internal structures. The system utilises Simultaneous Localisation and Mapping (SLAM) and fiducial marker to achieve centimetre-level positioning accuracy, or alternatively using survey total station to achieve millimetre-level positioning accuracy, in GPS-denied tunnel environment, to realise precise autonomous tunnel inspection work. It delivers fully digitalised inspection reports and enables remote system control from off-site office.

This intelligent inspection platform not only eliminates manual work at height, thus enhancing safety on site, but also speeds up the inspection cycle by 23 times compared to traditional methods while reducing inspection costs by 50%. By incorporating cutting-edge techniques such as edge computing, multi-robot cooperation, and SLAM integration, this system sets a new standard for tunnel inspections, winning recognition in the prestigious 2024 Geneva Invention Awards Silver Accolade and becoming a finalist in the 2025 Edison Awards in the “Critical Human Infrastructure” category. The system’s capability to provide automatic and intelligent upgrades to tunnel inspections through digitalisation further underscores its significance in advancing smart asset management practices in the context of smart cities.

HKPC and the CEDD jointly developed the “Autonomous Air-ground Cooperative Tunnel Inspector”

Journeying beyond: Hong Kong’s smart mobility quest unfolds

The transport system of Hong Kong has been renowned for its efficiency. Every day, it handles over 11 million public transport passenger trips3. Smart mobility is a cornerstone in the evolution towards a smart city, with technologies such as smart connected vehicles, new energy transportation, and autonomous driving making profound impacts on urban transportation.

To address the city’s dynamic transportation needs, the government introduced a comprehensive Smart Mobility Roadmap for Hong Kong in 2019. This roadmap signifies a strategic move to harness advanced technologies and propel the city towards a future defined by smart mobility. It represents a critical component of smart city development, with the vision of establishing a fully integrated, efficient, reliable, sustainable, and safe multimodal transport system, elevating the overall transportation experience for residents.

As outlined in the 2025-26 Budget, the government aims to create a liveable, competitive, and sustainable Hong Kong through “infrastructure-led” and “capacity creating” planning principles, focusing on smart and green transportation. One notable initiative within Hong Kong’s smart mobility landscape is the “Autonomous Shuttle Light Buses,” launched by the Centre of Advanced Power and Autonomous Systems (APAS) in 2024. Supported by the government's Smart Traffic Fund, this programme demonstrates the potential of autonomous driving technology in public transportation, setting a precedent for future adoption.

Through meticulous planning and technological research for two years, including high-definition mapping and AI algorithm development, the programme prioritises safety testing and validation in deploying autonomous vehicles. Equipped with 5G receivers and AI technologies, the autonomous shuttle light buses offer residents a secure and eco-friendly transportation option within the Fairview Park, seamlessly integrating concepts of “green technology” and “smart city” through smart mobility applications.

These advancements underscore the city’s dedication to embracing technological innovation to create a seamless and sustainable urban mobility experience for its residents and visitors.

The “Autonomous Shuttle Light Buses,” launched by the APAS in 2024

Smart healthcare advancing public wellness

In the era of rapid IT advancement, the public’s expectations for the quality of healthcare are increasingly great. As we confront the dual challenges of an ageing population and a declining labour force, smart health emerges as the beacon guiding future healthcare development.

Hong Kong’s demographic shift towards an aging population presents a significant challenge and opportunity for the development of a smart city. In 2023, the elderly population aged 65 and above reached 1.7 million, making up 23% of the total population, and is projected to increase to 28% by 20284. This underscores the pressing need for tailored smart healthcare solutions to meet the evolving needs of seniors.

Recognising this imperative, the government introduced the Working Group on Promoting Silver Economy in the 2024 Policy Address. This initiative focuses on implementing measures in five areas of “silver consumption,” developing the “silver industry,” promoting “quality assurance of silver products,” enhancing “silver financial and security arrangements,” and unleashing “silver productivity” to meet the growing needs of the elderly. The emphasis on the silver economy initiatives was reiterated in the 2025-26 Budget by the Financial Secretary.

Innovative technology in health management provides comprehensive health protection for the elderly. For instance, the “Healing Horizon” project developed by HKPC employs Cognitive Stimulation Therapy through a hand-eye coordination floral arrangement mixed reality (MR) game to restore muscle and brain function in dementia patients. This system monitors recovery progress and offers personalised care through eye tracking, automatic dioptre adjustments, and hand tracking, making it accessible and effective for patients with cognitive difficulties.

The “Healing Horizon” project developed by HKPC employs Cognitive Stimulation Therapy through a hand-eye coordination floral arrangement MR game to restore muscle and brain function in dementia patients

HKPC has also advanced gerontechnology solutions tailored for elderly care facilities and healthcare systems. The “Smart Bedside Intelligence Management System for Elderly and Rehab Hostel Care” utilises technology to address staffing shortages and enhance efficiency in care facilities. This system, equipped with bedside sensors and web applications, enables real-time and personalised monitoring for elders, already in use in local care centres and elderly homes.

Additionally, the “Smart Wireless Nurse Call System” by HKPC addresses the surge in bed demand in healthcare systems during peak periods. Public hospitals have long experienced bed occupancy rates around 120-150% during peak periods, and due to spatial constraints, temporary beds lacked wired nurse call systems. This portable design system ensures stable long-range signal transmission in hospitals. It fulfils the stringent electromagnetic compatibility standard and the test requirements as stipulated by the Office of the Communications Authority, which can also be widely deployed in elderly homes.

The “Smart Wireless Nurse Call System” by HKPC addresses the surge in bed demand in healthcare systems during peak periods

These smart healthcare solutions address pain points of the current public healthcare system, reduce the dependence on physical therapy equipment, thereby enhancing the quality of life for elderly patients.

These smart healthcare solutions not only alleviate challenges in the current public healthcare system but also reduce reliance on physical therapy equipment, ultimately enhancing the quality of life for elderly patients. By aligning with the concept of a “people-centred” smart city, they play a crucial role in the city’s social impact and in ensuring that no one is left behind.

AI in smart medical

The World Health Organization (WHO) defines eHealth as the cost-effective and secure use of information and communications technologies in support of health and health-related fields, including health-care services, health surveillance, health literature, and health education, knowledge and research5. By integrating and applying advanced technologies such as information systems, data analytics, and AI, smart health enables the public to have more equitable access to quality healthcare services and enhances the efficiency of the healthcare system.

The rise of AI in healthcare is revolutionising medical practices. This development streamlines diagnostics, offers critical analyses, and ushers in a new era of medical care. The combination of AI, big data, and telemedicine has led to increased precision and efficiency in healthcare services, ultimately elevating overall healthcare quality.

For instance, a collaborative initiative between HKPC, The University of Hong Kong, and City University of Hong Kong has led to the development of an “AI Model Development for Eczema Image Classification.” Traditionally, eczema diagnoses rely on subjective assessments, potentially resulting in inconsistent diagnoses and treatment delays. By fusing traditional Chinese medicine (TCM), data science, and AI, this AI-driven solution efficiently categorises eczema images, aiding practitioners in identifying varied eczema types and offering reliable diagnostic references. This pioneering approach significantly boosts diagnostic efficiency and accuracy, thereby improving patient treatment outcomes. Meanwhile, in another ongoing collaborative effort, the “AI Assistant for Traditional Chinese Medical Diagnosis,” involving the same partners, is dedicated to revolutionising the TCM diagnosis through AI integration. The R&D methodology includes the development of new AI models for TCM diagnosis, establishing an expandable database to enhance the diagnostic capabilities of AI continually. By leveraging generative AI models, the project aims to standardise TCM practices and improve treatment effectiveness, ultimately benefiting registered TCM practitioners in Hong Kong along with their patients.

This fusion of traditional Chinese medicine principles with cutting-edge AI technology, epitomising a blend of ancient wisdom and modern innovation, underscores the transition towards people-centred smart cities. By integrating advanced technologies with time-honoured medical practices, cities can foster intelligent healthcare systems that prioritise the well-being of their residents. This integration offers citizens a diverse array of treatment options to choose from, ensuring personalised and effective healthcare solutions for all.

Smart solutions for sustainable futures

Green development is a defining feature of high-quality development. Hong Kong stands at a critical juncture in its sustainability journey, propelled by the imperative to combat climate change and achieve carbon neutrality by 2050, as outlined in the government’s Hong Kong Climate Action Plan 2050 announced in 2021. With just 25 years remaining to realise these ambitious objectives, the adoption of smart solutions has become not just a preference but a necessity for the city’s environmental future.

Amidst the backdrop of more than 10,000 tons of daily municipal waste⁶ and the pressing challenges posed by a densely populated urban landscape, limited land resources, and escalating labour costs, the urgency for smart waste reduction strategies in Hong Kong has never been more apparent.

One pioneering solution addressing Hong Kong’s waste management challenges is the Food TranSmarter®. Developed by HKPC, this innovative technology automates the conversion of food waste into slurry, significantly reducing transportation costs of food waste and promoting a circular economy approach to waste management.

Currently operational at 28 sites with an additional 11 sites in the design or fabrication stage across residential estates, campuses, shopping malls, hotels, wet markets, and more, the Food TranSmarter® showcases how smart waste reduction strategies can revolutionise environmental sustainability practices in urban landscapes like Hong Kong. This technology not only contributes significantly to achieving zero landfilling of food waste but also minimises the carbon footprint associated with transportation of food waste to centralised treatment facilities such as O · PARK1. Looking ahead, the development of additional smart technologies like smart bins and autonomous recycling bin transport vehicles can further propel smart green initiatives in the city.

As Hong Kong strives to enhance its green infrastructure and combat environmental challenges, smart green technologies not only address the immediate waste management concerns but also lay the foundation for a more eco-friendly and resilient future for the city and its residents.

Fostering a smarter future

Digital economy has emerged as a growing global trend with digital technologies as key levers for building a smarter city. As we navigate through the digital landscape, advanced technologies not only drive economic growth but also underpin innovative urban development strategies. Hong Kong’s future smart city planning relies on harnessing the transformative potential of the digital economy to create a more connected, efficient, and sustainable urban environment. By embracing digital innovations and fostering a culture of innovation, Hong Kong is poised to lead the way in the smart city movement, driving progress and improving residents’ quality of life.

Digital economy comprises two vital components: industry digitalisation and digital industrialisation, which work hand in hand. Industry digitalisation involves traditional sectors leveraging digital technologies to boost efficiency and drive transformation, while digital industrialisation, rooted in digital advancements, facilitates the emergence of new business models and industries.

Hong Kong, renowned as an international hub for innovation and technology (I&T), is strategically positioned to seize the opportunities presented by the digital wave through a dual strategy of advancing industry digitalisation and fostering digital industrialisation.

By embracing digital innovations and fostering a culture of innovation, Hong Kong is poised to lead the way in the smart city movement, driving progress and improving residents’ quality of life.

Food TranSmarter® deployed at a shopping mall; The slurry produced is stored onsite temporarily and then collected weekly by suction tankers, significantly reducing transportation costs and the associated carbon emissions

Industries digitalisation: Transforming traditional sectors

Industry digitalisation involves integrating digital technologies with tangible economic activities, enabling businesses to overhaul their models, workflows, and optimise resources. The HKSAR Government has initiated a series of funding programmes to expedite the transition of local industries towards advanced, intelligent, and sustainable practices, establishing a holistic ecosystem for smart manufacturing. The New Industrialisation Funding Scheme (NIFS) aids manufacturers in establishing cutting-edge smart production facilities. The recently launched New Industry Acceleration Scheme (NIAS) attracts emerging industries to Hong Kong, expanding smart manufacturing into strategic sectors. The latest initiative, the Pilot Manufacturing and Production Line Upgrade Support Scheme (Manufacturing+), proposed in the 2025-26 Budget, assists small and medium-sized enterprises (SMEs) in adopting smart production strategies and integrating innovation into their existing processes. These programmes collectively propel Hong Kong’s progress in smart manufacturing, catering to a variety of scales and sectors. In this process, HKPC facilitates collaboration among the government, industry, academia, and research, promoting the adoption of smart technologies in the manufacturing sector.

Digital industrialisation: Driving innovation and technological expansion

In recent years, the HKSAR Government has prioritised advancing AI as a critical industry, focusing on computing power, algorithms, and data. Initiatives like the Sandy Ridge Data Park and the promotion of data centre development in industrial settings support this vision. Institutions such as the Hong Kong Microelectronics Research and Development Institute (MRDI) and the newly announced Hong Kong AI Research and Development Institute in the 2025-26 Budget provide vital hardware and software support for research and application of computing technologies.

In the realm of algorithms, the Hong Kong Industrial Artificial Intelligence & Robotics Centre (FLAIR) introduced the “AIM – Artificial Intelligence in Manufacturing” in 2023. This platform leverages cutting-edge algorithms, data analytics, and computing power to create a universal and comprehensive AI-powered data management platform, making AI technology more accessible to small and medium-sized enterprises. Its applications include industrial visual inspection, equipment preventive maintenance, and digital twin technology. The platform utilises a deep learning model for visual applications, aiding in tasks such as parts defect detection and construction project quality inspection. Additionally, it employs a sequential signal deep learning model that accommodates sensor input for establishing preventive maintenance plans.

Regarding data, the collaboration between HKPC and the Shenzhen Data Exchange Centre (SDEC) aims to enhance data exchange between Hong Kong and Shenzhen, fostering data interconnection and the development of data element markets. This initiative empowers SMEs to leverage data assets for transformation and upgrading, fostering a Hong Kong-Shenzhen data ecosystem. HKPC’s potential role in facilitating cross-border data flow between Hong Kong and the Mainland, particularly in sectors like manufacturing and healthcare, holds promise for advancing the digital economy.

The future planning of Hong Kong’s smart city development revolves around leveraging the digital economy to foster collaboration among the government, industry, and society. With the backing of the Digital Policy Office, industries are urged to intensify investments in digital technologies, accelerate the pace of digital transformation, and advocate for the widespread adoption of digital solutions. By concurrently advancing industry digitalisation and digital industrialisation, Hong Kong is poised to seize the opportunities afforded by the digital economy, establishing itself as a leader in the digital era and paving the way for a smarter and more connected city built on innovation and technological excellence.

Future urban air mobility

Low-altitude economy (LAE) presents a significant opportunity for bolstering the development of smart cities by intertwining technological innovation with urban infrastructure. The integration of LAE into smart city initiatives can revolutionise various aspects of urban life, enhancing efficiency, sustainability, and connectivity.

The establishment of the Working Group on Developing Low-altitude Economy in the 2024 Policy Address marked a significant step. The Hong Kong LAE regulatory sandbox, initiated in November last year, supports industry stakeholders in testing projects. HKPC offers technical and venue support as one of the crucial partners.

A crucial challenge is how to convert urban low-altitude airspace resources into a public airway network to accommodate the substantial traffic volume of unmanned electric vertical take-off and landing aircrafts (eVTOLs). This forward-thinking strategy aligns with the advancement of urban air mobility, emphasising the necessity of a low-altitude public road network as vital infrastructure. Proactive planning and construction of these air routes are essential to prepare for future urban air mobility and the growth of the low-altitude economy, highlighting the significance of integrating LAE into smart city planning.

Transforming visions into reality: Engineers at the heart of smart city innovation

The path to a smart city in Hong Kong is paved with the contributions of engineers who harness new technologies and innovative processes to create a more efficient, healthier, and sustainable urban landscape.

Nurturing a talented workforce through dedicated talent incubation programmes guarantees that capable engineers lead the change in innovation and uphold the city’s progression towards smart solutions. These professionals play a crucial role in conceptualising and implementing state-of-the-art technologies that underpin various facets of a smart city, from sustainable infrastructure to advanced healthcare systems, and efficient mobility solutions. By investing in talent development and empowering engineers, Hong Kong can forge a sustainable, innovative, and resilient smart city model for the future.

References

1. International Institute for Management Development (2024). ‘Smart City Rankings’. Available at https://www.imd.org/smart-city-observatory/home/rankings/
2. UN-Habitat (2024), World Smart Cities Outlook 2024 . Available at: https://unhabitat.org/sites/default/files/2024/12/un_smart_city_outlook. pdf
3. Transport Department (2024). Fact Sheet on Transport . Available at: https://www.td.gov.hk/en/publications_and_press_releases/ publications/free_publications/fact_sheet_on_transport/index.html
4. HKSAR Government (2024). ‘Opening remarks by the Secretary for Labour and Welfare at the press conference on the Report on 2023 Manpower Projections’. Available at: https://www.info.gov.hk/gia/general/202411/14/P2024111400826.htm
5. World Health Organization. ‘eHealth’. Available at: https://www.emro.who.int/health-topics/ehealth/
6. Environmental Protection Department (2023). ‘Monitoring of Solid Waste in Hong Kong Waste Statistics for 2022’. Available at: https://www.wastereduction.gov.hk/sites/default/files/resources_ centre/waste_statistics/msw2022_eng.pdf