Passenger to Freighter Market

Passenger to Freighter Market Size Survey Report – In a Glance

As per the survey report on global Passenger to Freighter market, the market is projected to foresee a CAGR of CAGR value 6.2% between 2024-2033, and further generate a market size of USD 6.9 billion revenue by the end of 2033. In the year 2024, the market size was valued at USD 4.1 billion revenue.

• The global Passenger to Freighter market is projected to grow on account of the profitability of airplane conversions.
• In Japan, the Passenger to Freighter market growth can be attributed to the rising cargo activities.
• KDMI analyst’s growth analysis foresees limited availability of conversions slots to challenge the market growth.
• North America, having the highest market share in the Passenger to Freighter market, is projected to dominate the global market.

Passenger to Freighter Market Analysis

Passenger-to-freighter (P2F) conversion is the process of transforming a passenger airplane into a cargo aircraft by modifying its interior, fortifying the floor, upgrading its onboard systems, and adding cargo-specific features. Buying a brand new cargo plane is excessively costly. Moreover, aircraft conversions prolong an aircraft’s operational life. Nowadays, a large number of aircraft are being transformed into air freighters, contributing to global economic development. In general, the air cargo transports over US $8 trillion worth of goods, making up near about 33% of the global trade in monetary terms. Hence, the transformation provides a cost-effective option in order to fulfill the rising air cargo needs by avoiding the expense of new cargo production. This profitability of airplane conversions is contributing to the passenger-to-freighter market growth globally. Airbus Group, General Electric, The Boeing Company, are some of the significant parties in the global market for Passenger to Freighter.

Analyst’s Observation on Japan Passenger to Freighter Market Survey

The increasing global presence of e-commerce has led to a surge in demand for cargo activities. In Japan, the total logistics activities have grown by nearly twofold and the market growth for Passenger to Freighter can be attributed to the rising cargo activities. The number of parcel shipments in the e-commerce market has climbed by 23.1% over the course of 5 years touching roughly 5 billion parcels in 2022. Driven by the escalating graphs of e-commerce and global trade, an increasing fleet of passenger planes is undergoing conversion into freighter aircraft to fulfill the growing logistics demands, thereby, pushing the regional market forward.

Passenger to Freighter Market Growth Drivers and Challenges

Growth Drivers

Rise of global markets and digital trade:

The world is becoming more interwoven largely due to the globalization of financial markets. Digital trade simply means the sale in distribution of goods and services that are ordered or delivered through digital platforms. In today’s world, digital trade has progressed notably due to the increasing accessibility of the internet. It has been estimated that around 60 percent of the global population, summing up to around 5.4 billion people have internet access currently. However, the growth in e-commerce and global trade has amplified the need for fast and efficient air freight, eventually driving passengers to freighter markets around the world. In addition, the growing number of conversion facilities expands the potential to handle large quantities of aircraft conversions, meeting the industry’s rising demands.

Demand for efficient and flexible freight logistics:

In today’s fast-paced global market, there is a soaring demand for efficient and flexible freight logistics. This results from the growing e-commerce industry, global connectivity, and the push for faster deliveries. Businesses around the world look for fast, adaptable, and cost-conscious shipping methods. But limited capacity or bottlenecks are increasing the need for adaptable logistic solutions. Additionally, sustainability goals also further support the shift toward passenger-to-freight conversions, helping in the rapid evolution of the freight sector. In comparison to October 2023 figures (10.3% for international operations), the overall demand, measured in cargo tonne-kilometers (CTKs*) spiked by 9.8%, marking the 15th straight month of growth. This is how conversion technologies are contributing to the market’s evolution, thereby, stimulating the passenger-to-freighter market worldwide.

Restraints

Limited availability of conversion slots:

There is a huge variety of aircraft models and each of them is distinct and has its own characteristics. Hence, converting a passenger aircraft into a cargo carrier is a complex engineering process that involves intricate technical modifications. Besides, due to the surge in aircraft transformation rate, the conversion slots are fully booked, impeding the overall market.

Lack of knowledge and skills of freighter conversion:

Passenger-to-freighter conversion necessitates careful structural modifications and strict compliance with airline regulations. Without skilled and experienced professionals, there is a likelihood of defective conversions that fall short of safety and regulatory requirements. Such lack of compliance might harm the reputation of conversion firms, consequently constraining the passenger-to-freighter market worldwide.

Passenger to Freighter Market Segmentation

Our experts at KD Market Insights have segmented the global Passenger to Freighter market research report as:

Passenger to Freighter Market Regional Synopsis

North America is predicted to take the passenger-to-freighter market dominance during the mentioned timeframe. The region has a large number of passenger airplanes that have the potential to be repurposed as freighter aircraft. Various factors such as the growing e-commerce sector, evolving logistics trends, and the rising demand for air cargo services are playing key roles in the development of the passenger-to-freighter industry. Apart from this, the region’s fast-evolving economy and widespread trade links are further driving the market. According to reports, the U.S. economy increased 2.7 percent in the third quarter of 2024 and the Canada GDP growth is forecasted to rise from 1.1% in 2024 to 2.0% in 2025 and 2.0% in 2026.

Asia-Pacific (APAC) is encountering the quickest market surge during the forecasted period. The region functions as a central point for air logistics operations. This is mainly due to expansive distribution channels and trade connections. Furthermore, the market is also steered by increasing urban development, consumer demands, and economic expansion. China is upgrading the living standards of its people by reshaping its cities into sustainable and smart spaces. As directed by the ministry, the country is also continuously upgrading the underground piping systems, expanding urban green belts, and setting up mini parks. In addition to that, Japan’s economic progress is likely to expand at a rate beyond its expected growth capacity. India is also contributing a significant part to the regional market. It has implemented the world’s largest planned urban transformation program. Also, numerous policies have supported its economic and sustainable growth goals.

In Europe, the logistics sector is energetically engaging which ultimately enhances passenger-to-freighter operations. Findings show that countries like Germany and the UK are at the forefront of its adoption, fueled by economic gains. In the Middle East, the main objective is to upgrade cargo capabilities to support broader economic growth. To be specific, within the region, the African passenger-to-freighter market is gradually evolving. On the other hand, Latin American airlines show a strong inclination in converting narrow-body aircraft to serve cargo needs inside the region. Besides, favourable government policies and global conversion firms play a central part in pushing the market forward in this region.

As per our analysts at KD Market Insights, the following five players lead the North America Passenger to Freighter market growth:

• Aeronautical Engineers, Inc. (U.S.)
• Boeing Company (U.S.)
• Bombardier, Inc. (Canada)
• Precision Aircraft Solutions (U.S.)
• Cascade Aerospace (Canada)

Passenger to Freighter Market Competitive Landscape

Some of the key players who top the global Passenger to Freighter market share:

• AerCap (Ireland)
• Aeronautical Engineers, Inc. (U.S.)
• Airbus SE (Netherlands)
• Boeing Company (U.S.)
• Bombardier, Inc. (Canada)
• Elbe Flugzeugwerke GmbH (Germany)
• Embraer SA (Brazil)
• HAECO Group (Hong Kong)
• Precision Aircraft Solutions (U.S.)
• ST Engineering (Singapore)

1. Executive Summary
   1. Market Overview
   2. Key Findings
   3. Market Trends
   4. Market Outlook
2. Introduction
   1. Scope of the Report
   2. Research Methodology
   3. Definitions and Assumptions
   4. Acronyms and Abbreviations
3. Market Dynamics
   1. Drivers
   2. Restraints
   3. Opportunities
   4. Challenges
4. Global Passenger To Freighter Market
   1. Market Overview
   2. Market Size and Forecast
   3. Market Segmentation
      1. By Build type
      2. By Aircraft model
      3. By Fitment
      4. By Region
5. Market Segmentation by Build type
   1. 1. New Build
      2. Refurbished
      3. Others
6. Market Segmentation by Aircraft model
   1. 1. Narrow Body
      2. Wide Body
      3. Regional Jets
      4. Others
7. Market Segmentation by Fitment
   1. 1. Slot/Retro Fitment
      2. Line Fitment
      3. Others
8. Regional Analysis
   1. North America
      1. United States
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      2. Canada
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      3. Mexico
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
   2. Europe
      1. United Kingdom
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      2. Germany
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      3. France
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      4. Italy
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      5. Spain
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      6. Rest of Europe
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
   3. Asia Pacific
      1. China
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      2. Japan
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      3. India
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      4. Australia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
         4. South Korea
         5. Market Size and Forecast
         6. Key Trends and Developments
         7. Market Analysis by Build type, Aircraft model, and Fitment
      5. Rest of Asia Pacific
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
   4. Latin America
      1. Brazil
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      2. Argentina
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      3. Colombia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      4. Rest of Latin America
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
   5. Middle East & Africa
      1. South Africa
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      2. Saudi Arabia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      3. UAE
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
      4. Rest of Middle East & Africa
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Build type, Aircraft model, and Fitment
9. Competitive Landscape
   1. Market Share Analysis
   2. Company Profiles
      1. AerCap (Ireland)
      2. Aeronautical Engineers, Inc. (U.S.)
      3.  Airbus SE (Netherlands)
      4.  Boeing Company (U.S.)
      5. Bombardier, Inc. (Canada)
      6. Elbe Flugzeugwerke GmbH (Germany)
      7. Embraer SA (Brazil)
      8. HAECO Group (Hong Kong)
      9. Precision Aircraft Solutions (U.S.)
      10. Others
10. Strategic Recommendations
11. Appendix
    1. List of Tables
    2. List of Figures
12. References