Passenger to Freighter Market: Global Industry Analysis and Forecast (2024-2030)

  • The Passenger to Freighter Market size was valued at USD 3.41 Bn. in 2023 and the total Global Passenger to Freighter revenue is expected to grow at a CAGR of 8.55 % from 2024 to 2030, reaching nearly USD 5.75 Bn. by 2030.

  • Format : PDF | Report ID : SMR_1982

Passenger to Freighter Market Overview

The passenger to freighter (P2F) market refers to the conversion of retired passenger aircraft into dedicated freighter aircraft for cargo operations. It involves the modification and retrofitting of passenger planes to remove seats, install a reinforced floor, and add large cargo door changes to transform them into freighters capable of carrying freight and cargo.

 

The Passenger to Freighter Market Research report 2023 presents an extensive analysis of market dynamics, competitive landscape, and emerging trends, by regional outlook and forecast, 2023 - 2030. The report aims to provide valuable insights encompassing critical elements such as market size, market share, CAGR status, PESTEL & SWOT analysis, Porter’s 5 Forces, growth prospects, industry drivers and constraints, opportunities, and challenges, market revenue, and segmentation. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others.

 

It allows for the evaluation of the overall competition within the market. Major players in Passenger to Freighter Market include General Dynamics Corporation, Commercial Aircraft Corporation of China Ltd, Airbus Group, General Electric, The Boeing Company, Lockheed Martin Corporation, Embraer S.A., Raytheon Technologies Corporation, Textron Inc., Dassault Aviation, and Other Key Vendors.

 

  •  As per the SMR report, In September 2022, Indian airline Indigo launched the first converter freighter aircraft A321 passenger to freighter. This conversion allowed the airline to expand its cargo services to include both domestic and international routes.

 

According to the SMR, the U.S. transportation system moved an average of 53 million tons of freight worth $36 billion per day in 2002 to serve 109 million households, 24.8 million business establishments, and almost 88,000 units of government. More than one-half of the tonnage moved within local areas, and less than 10 percent was an import from or export to another country. Trucks hauled close to 60 percent of the weight and two-thirds of the value of shipments. Goods transported by more than one mode accounted for only 1 percent of domestic tons but represented 60 percent of the weight of exports and almost 70 percent of imports.

Passenger to Freighter Market

 

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Passenger to Freighter Market Dynamics

Rising demand for air freight services Cost-effectiveness of conversions

The passenger to freighter market has been significantly driven by the rising demand for air freight services and the cost-effectiveness of aircraft conversions. Rising demand for a passenger to freighter conversion, the key players involved in the market are focused on the conversion of standard and smaller narrow-body aircraft. This aircraft is entering the conversion business for the first time and requires a dedicated facility for the conversion process. Increase in demand for conversion of passengers to freighters several key players are focused on developing new facilities and improving their capability of conversions.

 

For instance, In May 2021, Israerrrospace Industries (IAl) announced the opening of a new facility for the conversion of Boeing 777-ERSF from P2F with Sharp Technics at South Korea's Incheon Airport. IAl has signed a Memorandum of Agreement (MoA) with the Incheon International Airport and Sharp Technics to establish a passenger to freighter conversion site in South Korea.

 

Converting passenger aircraft into freighters is often a more economical option than buying brand-new freighter aircraft. P2F conversions help prolong the aircraft's lifespan, offering a more budget-friendly alternative to acquiring new planes. Converted freighters provide versatility in cargo arrangements and can carry various types of cargo, from bulk shipments to specialized goods. This adaptability enables airlines and cargo operators to adapt to changing market demands. The rise of e-commerce and online shopping has created a higher demand for fast and effective transportation of products, which boosted the need for air freight services.

 

The rise of globalization and international trade has been driven by increased demand for air cargo services. As passenger flights decrease because of various factors, airlines are repurposing aircraft into freighters to meet the rising demand for shipping goods quickly and efficiently. This shift from the passenger to freighter market is adapting to changing market dynamics and capitalizing on the lucrative opportunities presented by the growing demand for air cargo services. Airlines and freight carriers are increasingly acknowledging the benefits of P2F conversions, allowing them to take advantage of the growth in air cargo while streamlining their expenses and reducing their environmental impact.

Passenger to Freighter Market1

Challenges in Passenger to Freighter Market

The major challenges in the Passenger to Freighter Market are the age and condition of passenger aircraft available for conversion. Older aircraft require extensive refurbishment and upgrades to meet freighter standards, making the conversion process more complex and expensive. The availability of suitable retired passenger aircraft is critical for Passenger to Freighter conversions. As airlines modernize their fleets with newer models, the supply of older aircraft suitable for conversion becomes limited, so restraining the Passenger to Freighter market's growth potential.

 

Converting a passenger aircraft into a freighter includes technical challenges, such as structural modifications, installation of cargo loading systems, and optimization of weight distribution. These modifications must comply with stringent aviation regulations, adding complexity and cost to the conversion process. Advancements in aircraft design and technology, such as developing new freighter aircraft models or alternative transportation solutions (e.g., drones), could impact the demand for P2F conversions. Operators must stay abreast of technological developments and adapt their strategies thus to remain competitive.

 

Passenger to Freighter Market Segment Analysis

Based on the Build Type, the Refurbished segment held the largest market share in the Passenger to Freighter Market in 2023. According to the SMR analysis, the segment is expected to grow during the forecast period and maintain its dominance till 2030. Refurbished passenger aircraft are significantly cheaper to acquire than brand-new ones. Airlines have discovered good deals on retired passenger planes, making the initial investment in a conversion much more manageable. Refurbished options provide a faster solution for airlines looking to increase their cargo capacity compared to ordering a new freighter and awaiting its construction.

 

By opting for a converted freighter, airlines can meet the rising demand for cargo services in a shorter time. Refurbishment is a desirable alternative for operators wishing to replace aging aircraft or grow their fleet because these aircraft are purchased for a comparatively lower cost than new aircraft. Factors including the rise in e-commerce, the development of air cargo networks, and the growing need for accelerated and time-sensitive cargo transportation services are driving the market demand for reconditioned freighter aircraft. Refurbished freighters provide an affordable way to satisfy these changing market needs.

Passenger to Freighter Market2

Passenger to Freighter Market Regional Analysis

North America dominated the Passenger to Freighter Market, with a leading market share of 48.30 % in 2023. The region is expected to continue growing and maintain its dominance by 2030. North America region is dominating because North America is home to leading aerospace companies, aircraft manufacturers, and engineering firms with expertise in aircraft modification and conversion. These entities drive innovation in P2F conversion technologies, developing advanced solutions to overcome technical challenges and enhance the performance and capabilities of converted freighters. Airlines in North America, similar to their global counterparts, frequently upgrade their aircraft fleets to improve operational efficiency, decrease fuel usage, and adhere to environmental regulations. With the retirement of older passenger planes, there is a significant pool of viable options for conversion into cargo aircraft, which contributes to the development of the Passenger to Freighter market in the region.

 

In North America, the Passenger to Freighter market has grown because of increasing demand for air cargo services, shifting supply chain dynamics, and the development of e-commerce. The retail, automotive, pharmaceutical, and perishable industries are among the key drivers of the demand for freighter aircraft in North America. The region's dynamic economy, broad trade networks, and reliance on just-in-time inventory management also contribute to the high demand for efficient air freight transportation. North America has an extensive infrastructure of conversion facilities, maintenance, repair, and overhaul (MRO) centers, and support services, which supports the Passenger to Freighter market.

Passenger to Freighter Market3

Asia Pacific has the fastest-growing region in the Passenger to freighter market with a large market share in 2023 and maintain its dominance by 2030. The Asia-Pacific region serves as a major center for air cargo operations, requiring a significant amount of freighter aircraft owing to the region's extensive supply chains and commercial networks. The market for passenger to freighters in Asia-Pacific is growing quickly because of rising consumer demand, urbanization, and economic expansion. The region's growing e-commerce sector, particularly in countries like China and India. The Passenger to Freighter sector is supported by a robust infrastructure of shipping terminals, MRO centers, and conversion facilities throughout the Asia-Pacific region.

 

• According to SMR, In October 2022, Pradhan Air Express operated its first commercial cargo flight using its own aircraft. It also happens to be the World’s first A320 cargo diversion. The A320-200 passenger to freighters completed its first airline service flying Delhi International Airport- Mumbai International Airport- Delhi. Flights from Delhi to Hanoi, Vietnam began on 9 October 2022.

 

Passenger to Freighter Market Competitive Landscape

The global Passenger to Freighter market is highly competitive and fragmented, with several major players competing for market share. Several smaller companies and startups are operating in the Passenger to Freighter market. These companies are focused on developing innovations and technologies for Passengers to freighters and are often able to move more quickly and adapt more easily to changing market circumstances. Overall, the competitive landscape in the Passenger to Freighter market is rapidly evolving, with new players and technologies continually entering the market.

 

  1. In February 2022, a agreement was announced between ST Engineering and Vaayu Group (Vaayu) to lease up to five Airbus A320 P2F aircraft. The first two of the five A320P2F aircraft from Vaayu will be subleased to Astral Aviation, an all-cargo airline based in Nairobi, Kenya, which has one of the fastest growth rates in the world, to act as the launch operator.
  2. In April 2023, Raytheon Technologies launched RAIVEN, a revolutionary electro-optical intelligent-sensing capability, which enables pilots to have faster and more precise threat identification. RAIVEN can identify objects optically and spectrally simultaneously in real-time a single electro-optical/infrared, or EO/IR, system has never been able to do this before. The 'intelligent sensing' capability of RAIVEN uses AI, hyperspectral imaging, and light detection and ranging, or LiDAR, to enable operators to see up to five times farther and clearer than traditional optical imaging. This helps increase platform survivability and gives the warfighter decision advantage over peer threats.
  3. In February 2022, Boeing and ST Engineering announced that they intended to build a unique 767-300 Boeing Converted Freighter (BCF) line at the factory in Guangzhou.
  4. In November 2021, Emirates and IAI agreed to convert four 777-300 ER aircraft into freighters, citing the aircraft’s capacity to transport significant e-commerce as a deciding factor.

 

Passenger to Freighter Market Scope

Passenger to Freighter Market

Market Size in 2023

USD 3.41 Bn.

Market Size in 2030

USD 5.75  Bn.

CAGR (2024-2030)

8.55 %

Historic Data

2018-2022

Base Year

2023

Forecast Period

2024-2030

Segments

By Build Type

New Build

Refurbished

By Aircraft Model

Narrow Body

Wide Body

Regional Jets

By Fitment

Slot/Retro Fitment

Line Fitment

Regional Scope

North America(United States), Canada, and Mexico

Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe

Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC

Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa

South America – Brazil, Argentina, Rest of South America

 

Key Player in the Passenger to Freighter Market

  1. AerCap (Ireland)
  2. Aeronautical Engineers, Inc. (US)
  3. Airbus aircraft (Virginia)
  4. Boeing Company (US)
  5. Bombardier, Inc. (Canada)
  6. Elbe Flugzeuhwerke GmbH (Germany)
  7. Embraer SA (Brazil)
  8. HAECO Group (Hong Kong)
  9. Precision Aircraft Solutions (US)
  10. ST Engineering Aerospace(Singapore)
  11. Bedek Aviation Group (Israel)
  12. Israel Aerospace Industries (Israel)
  13. Max Aero Aviation (Australia)
  14. Air Transport Services Group (ATSG)(U.S.)
  15. VT Mobile Aerospace Engineering (Missouri)
  16. Pemco World Air Services (Florida)
  17. Airborne MX(Wilmington)
  18. Ascent Aviation Services (U.S.)
  19. Avianca Services (Colombia)
  20. Taikoo Xiamen Aircraft Engineering Co. Ltd. (China)
  21. Safair Operations (South Africa)
  22. Flightworks Inc. (U.S.)
  23. Lufthansa Technik (Germany)
  24. KF Aerospace (Canada)
  25. Ameco Beijing(China)
  26. Taikoo (Shandong) Aircraft Engineering Co. Ltd. (China)
  27. XX.Inc.


Frequently Asked Questions

The Passenger to Freighter Market is expected to grow at a CAGR of 8.55 % during the forecast period of 2023 to 2030.

1.    Passenger to Freighter Market: Research Methodology 
2.    Passenger to Freighter Market: Executive Summary
3.    Passenger to Freighter Market: Competitive Landscape
4.    Potential Areas for Investment

4.1. Stellar Competition Matrix
4.2. Competitive Landscape
4.3. Key Players Benchmarking
4.4. Market Structure
4.4.1.    Market Leaders 
4.4.2.    Market Followers
4.4.3.    Emerging Players

4.5. Consolidation of the Market
4.6. Global Import-Export Analysis
5.    Passenger to Freighter Market: Dynamics
5.1. Market Driver 
5.1.1.    Increased Focus on Sterility 
5.1.2.    Technological Advancements in single-use filters
5.1.3.    Regulatory Requirements on Product Quality & Safety

5.2. Market Trends by Region
5.2.1.    North America
5.2.2.    Europe
5.2.3.    Asia Pacific
5.2.4.    Middle East and Africa
5.2.5.    South America

5.3. Market Drivers 
5.4. Market Restraints
5.5. Market Opportunities
5.6. Market Challenges
5.7. PORTER’s Five Forces Analysis
5.8. PESTLE Analysis
5.9. Strategies for New Entrants to Penetrate the Market
5.10. Regulatory Landscape by Region
5.10.1.    North America
5.10.2.    Europe
5.10.3.    Asia Pacific
5.10.4.    Middle East and Africa
5.10.5.    South America

6.    Passenger to Freighter Market Size and Forecast by Segments (by Value in USD Billion)
6.1. Passenger to Freighter Market Size and Forecast, by Build Type  (2023-2030)
6.1.1.    New Build
6.1.2.    Refurbished

6.2. Passenger to Freighter Market Size and Forecast, by Aircraft Model (2023-2030)
6.2.1.    Narrow body
6.2.2.    Wide body
6.2.3.    Regional Jets

6.3. Passenger to Freighter Market Size and Forecast, by Fitment (2023-2030)
6.3.1.    Slot/Retro Fitment 
6.3.2.    Line Fitment   

6.4. Passenger to Freighter Market Size and Forecast, by Region (2023-2030)
6.4.1.    North America
6.4.2.    Europe
6.4.3.    Asia Pacific
6.4.4.    Middle East and Africa
6.4.5.    South America

7.    North America Passenger to Freighter Market Size and Forecast (by Value in USD Billion)
7.1. North America Passenger to Freighter Market Size and Forecast, by Build Type  (2023-2030)
7.1.1.    New Build
7.1.2.    Refurbished

7.2. North America Passenger to Freighter Market Size and Forecast, by Aircraft Model (2023-2030)
7.2.1.    Narrow body
7.2.2.    Wide body
7.2.3.    Regional Jets

7.3. Passenger to Freighter Market Size and Forecast, by Fitment (2023-2030)
7.3.1.    Slot/Retro Fitment 
7.3.2.    Line Fitment 

7.4. North America Passenger to Freighter Market Size and Forecast, by Country (2023-2030)
7.4.1.    United States
7.4.2.    Canada
7.4.3.    Mexico

8.    Europe Passenger to Freighter Market Size and Forecast (by Value in USD Billion)
8.1. Europe Passenger to Freighter Market Size and Forecast, by Build Type  (2023-2030)
8.1.1.    New Build
8.1.2.    Refurbished

8.2. Europe Passenger to Freighter Market Size and Forecast, by Aircraft Model (2023-2030)
8.2.1.    Narrow body
8.2.2.    Wide body
8.2.3.    Regional Jets

8.3. Passenger to Freighter Market Size and Forecast, by Fitment (2023-2030)
8.3.1.    Slot/Retro Fitment 
8.3.2.    Line Fitment 

8.4. Europe Passenger to Freighter Market Size and Forecast, by Country (2023-2030)
8.4.1.    UK
8.4.2.    France
8.4.3.    Germany
8.4.4.    Italy
8.4.5.    Spain
8.4.6.    Sweden
8.4.7.    Austria
8.4.8.    Rest of Europe

9.    Asia Pacific Passenger to Freighter Market Size and Forecast (by Value in USD Billion)
9.1. Asia Pacific Passenger to Freighter Market Size and Forecast, by Build Type  (2023-2030)
9.1.1.    New Build
9.1.2.    Refurbished

9.2. Asia Pacific Passenger to Freighter Market Size and Forecast, by Aircraft Model (2023-2030)
9.2.1.    Narrow body
9.2.2.    Wide body
9.2.3.    Regional Jets

9.3. Passenger to Freighter Market Size and Forecast, by Fitment (2023-2030)
9.3.1.    Slot/Retro Fitment 
9.3.2.    Line Fitment 

9.4. Asia Pacific Passenger to Freighter Market Size and Forecast, by Country (2023-2030)
9.4.1.    China
9.4.2.    S Korea
9.4.3.    Japan
9.4.4.    India
9.4.5.    Australia
9.4.6.    Indonesia 
9.4.7.    Malaysia
9.4.8.    Vietnam
9.4.9.    Taiwan
9.4.10.    Bangladesh 
9.4.11.    Pakistan
9.4.12.    Rest of Asia Pacific

10.    Middle East and Africa Passenger to Freighter Market Size and Forecast (by Value in USD Billion)
10.1. Middle East and Africa Passenger to Freighter Market Size and Forecast, by Build Type  (2023-2030)
10.1.1.    New Build
10.1.2.    Refurbished

10.2. Middle East and Africa Passenger to Freighter Market Size and Forecast, by Aircraft Model (2023-2030)
10.2.1.    Narrow body
10.2.2.    Wide body
10.2.3.    Regional Jets

10.3. Passenger to Freighter Market Size and Forecast, by Fitment (2023-2030)
10.3.1.    Slot/Retro Fitment 
10.3.2.    Line Fitment 

10.4. Middle East and Africa Passenger to Freighter Market Size and Forecast, by Country (2023-2030)
10.4.1.    South Africa
10.4.2.    GCC
10.4.3.    Egypt
10.4.4.    Nigeria
10.4.5.    Rest of ME&A

11.    South America Passenger to Freighter Market Size and Forecast (by Value in USD Billion)
11.1. South America Passenger to Freighter Market Size and Forecast, by Build Type  (2023-2030)
11.1.1.    New Build
11.1.2.    Refurbished

11.2. South America Passenger to Freighter Market Size and Forecast, by Aircraft Model (2023-2030)
11.2.1.    Narrow body
11.2.2.    Wide body
11.2.3.    Regional Jets

11.3. Passenger to Freighter Market Size and Forecast, by Fitment (2023-2030)
11.3.1.    Slot/Retro Fitment 
11.3.2.    Line Fitment 

11.4. South America Passenger to Freighter Market Size and Forecast, by Country (2023-2030)
11.4.1.    Brazil
11.4.2.    Argentina
11.4.3.    Rest of South America

12.    Company Profile: Key players
12.1. Airbus aircraft (Virginia)
12.1.1.    Company Overview
12.1.2.    Financial Overview
12.1.3.    Business Portfolio
12.1.4.    SWOT Analysis
12.1.5.    Business Strategy 
12.1.6.    Recent Developments

12.2. AerCap (Ireland)
12.3. Aeronautical Engineers, Inc. (US)
12.4. Boeing Company (US)
12.5. Bombardier, Inc. (Canada)
12.6. Elbe Flugzeuhwerke GmbH (Germany)
12.7. Embraer SA (Brazil)
12.8. HAECO Group (Hong Kong)
12.9. Precision Aircraft Solutions (US)
12.10. ST Engineering Aerospace(Singapore) 
12.11. Bedek Aviation Group (Israel)
12.12. Israel Aerospace Industries (Israel)
12.13. Max Aero Aviation (Australia)
12.14. Air Transport Services Group (ATSG)(U.S.)
12.15. VT Mobile Aerospace Engineering (Missouri)
12.16. Pemco World Air Services (Florida)
12.17. Airborne MX(Wilmington)
12.18. Ascent Aviation Services (U.S.)
12.19. Avianca Services (Colombia)
12.20. Taikoo Xiamen Aircraft Engineering Co. Ltd. (China)
12.21. Safair Operations (South Africa)
12.22. Flightworks Inc. (U.S.)
12.23. Lufthansa Technik (Germany)
12.24. KF Aerospace (Canada)
12.25. Ameco Beijing(China)
12.26. Taikoo (Shandong) Aircraft Engineering Co. Ltd. (China)
13.    Key Findings
14.    Industry Recommendations 

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