Passenger to Freighter Market Size was valued at USD 2.3 Billion in 2022. The Passenger to Freighter market industry is projected to grow from USD 2.5 Billion in 2023 to USD 6.0 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.30% during the forecast period (2023 - 2032). Increased aircraft conversion facilities and rising adoption of converted aircraft are the key market drivers enhancing the market growth.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Growing aircraft conversion facilities are driving market growth
Market CAGR for passenger to freighter is driven by the rising demand for aircraft conversion facilities infrastructure due to rising conversion slots conversion of smaller narrow-body and standard aircraft by key players. This aircraft will require a new build conversion family because it will be a fresh conversion.
Additionally, the need for air freight services for the quick delivery of a variety of goods with a high level of security and little packaging to maintain weight restrictions is a driver of the market for aviation freight systems. In the long run, traffic should rise. Still, air freight will be more integrated into multimodal supply chains that provide superior cost-to-time ratios. Air freight will aid in expanding markets by providing prompt and dependable service for initial product delivery. Air freight will keep supporting the provision of necessary spare parts, high-value inputs, and sample exchange. In support of reverse logistics, such as warranty and repair services for electronics and other items, air freight will become more dependent on air freight.
Worldwide freighter operators are scrambling to find recently converted freighters and will stop at nothing to see recently converted freighters and will stop at nothing to find a P2F freighter that perfectly suits their requirements; these P2F freighters revolutionize the freight market and are an excellent option for freighter operators.
For instance, Embraer inked its first official deal with an undisclosed customer to convert 10 E-Jets into freighters. The freighter’s delivery is anticipated to start in 2024. The main deck front door will be reformed, the cabin door will be strengthened, a smoke detection system will be installed, and the interior air management system will undergo alternations. This conversion takes place at the manufacturing facility in Brazil. As a result, it is anticipated that throughout the projection period, demand for a passenger to freight will increase due to the rising demand for aircraft conversion facilities. Thus driving the Passenger to Freighter market revenue.
Passenger to Freighter Build Type Insights
The Passenger to Freighter market segmentation, based on build type, includes new build and refurbished. The refurbished segment dominated the market, accounting for the maximum market revenue. Rising demand for emergency air cargo transportation, growth in r-commerce, and supply of medicines surged to meet the need for the aviation industry. Due to this, there has been an increase in investment by the key OEMs and MRO service providers for expanding freighter conversion.
Passenger to Freighter Aircraft Model Insights
The Passenger Freighter market segmentation, based on aircraft models, includes narrow-body, wide-body, and regional jets. The narrow body category generated the most income in the e-commerce sector due to its varied range of applications in the e-commerce sector.
Whereas, the wide-body segment is anticipated to be the fastest growing due to an increase in contracts for wide-body conversion.
Passenger to Freighter Fitment Insights
The passenger-to-freight market segmentation, based on Fitment, includes slot/retro Fitment and line fitment. The slot/retrofitment generated the most income due to the rise in focus by MRO offers to enter into the freighter market. For instance, in April 2022, China’s first 767-300 Boeing Conversion Freighter (BCF) conversion line was opened on the campus of Guangzhou Aircraft Maintenance Engineering Company (GAMECO).
Figure 1: Passenger to Freighter Market, by Fitment, 2022 & 2032 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Passenger to Freighter Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Passenger Freighter market area will dominate this market, owing to an increase in e-commerce brought on by a lack of consumer mobility and an important infusion of government stimulus. In addition, the growing demand for hi-tech appliances will boost market growth in this region.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: PASSENGER TO FREIGHTER MARKET SHARE BY REGION 2022 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Freighter market accounts for the second-largest market share due to the rise in adoption of passenger-to-freighter conversion due to low cost, economic advantage, and rise in the economic life of aircraft. Further, the German Passenger Freighter market held the largest market share, and the UK Passenger Freighter market was the fastest growing market in the European region.
The Asia-Pacific Passenger Freighter Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the rise in cargo activities, expansion of international trade, and others. Moreover, China’s Passenger Freighter market held the largest market share, and the Indian Passenger Freighter market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Passenger-to-fighter market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Passenger Freighter industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Passenger Freighter industry to benefit clients and increase the market sector. In recent years, the Passenger to Freighter industry has offered some of the most significant advantages to passengers in freighter market. Major players in the Passenger Freighter market, including AerCap (Ireland), Aeronautical Engineers, Inc. (US), Airbus SE (Netherlands), Boeing Company (US), Bombardier, Inc. (Canada), Elbe Flugzeugwerke GmbH (Germany), Embraer SA (Brazil), HAECO Group (Hong Kong), Precision Aircrfat Solutions (US), ST Engineering (Singapore), and others, are attempting to increase market demand by investing in research and development operations.
Israel Aerospace Industries (IAI) is the primary aerospace and aviation manufacturer in Israel, which creates aerial and astronautics systems for both military and commercial applications. IAI Creates, develops, manufactures, and maintains fighter jets, drones, civil aircraft, avionics, and space-based technologies. In order to sustain the plane of the Israel Defense Forces, Shimon Peres, the then-director general of the Ministry of Defense, spearheaded the founding of Israel Aerospace Industries in 1953 as Bedek Aviation Company. Although engineering, aviation, and advanced electronics are IAI’s primary areas of focus, the company also produces military systems for land and sea troops/While some of these products are marketed to the international military as well, many of them are specifically designed for the Israel Defense Forces (IDF) requirements. In February 2022, IAI declared its intention to partner with Sharp Technics to build a new facility at Incheon Airport in South Korea for the conversion of Boeing 777s in 2024. To develop a Passenger 2 Cargo (P2F) conversion site in South Korea, IAI Aviation Group, Incheon International Airport, and Sharp Technics signed a Memorandum of Agreement (MOA).
Textron Aviation Inc. is the general aviation division of the conglomerate Textron. It was established in March 2014 as a result of the purchase of Beech Holdings, which included the Beechcraft and Hawker Aircraft businesses. Textron Aviation Inc., the Cessna, owned by Textron, is a part of the new business unit. Selling branded aircraft under the Beechcraft and Cessna, name is Textron Aviation. Textron Aviation continues to serve the current Hawker aircraft fleet through its service centers while no longer offering brand-new Hawker aircraft for sale. The corporation views the many lines of aircraft produced by Textron Aviation, such as the Cessna single-engine piston and turboprop aircraft and jets and the Beechcraft piston and turboprop aircraft, as complementary to one another rather than as rivals. In March 2022, Textron Aviation reported that FedEx Express received the first Cessna SkyCourier twin utility turboprop. Cessna SkyCourier is the first of 50 cargo planes that FedEx Express, a major worldwide logistics company, ordered as the Cessna SkyCourier’s first customer.
For Instance, January 2022 Elbe Flugzeugwerke keeps expanding its capabilities. From the 19 conversions, it anticipates performing this year, by 2024, it will have increased its existing capacity to the point where it can produce roughly 60 converted aircraft annually-roughly 30 conversions of each the A330 and the new A321 narrow body. Additionally, it anticipates establishing production facilities for the A330 reconfiguration in both China and the USA.
For Instance, 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.
For Instance, 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 Build Type Outlook
Passenger to Freighter Aircraft Model Outlook
Passenger to Freighter Fitment Outlook
Passenger to Freighter Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 2.3 Billion |
| Market Size 2023 | USD 2.5 Billion |
| Market Size 2032 | USD 6.0 Billion |
| Compound Annual Growth Rate (CAGR) | 11.30% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Build Type, Aircraft Model, Fitment, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | AerCap (Ireland), Aeronautical Engineers, Inc. (US), Airbus SE (Netherlands), Boeing Company (US), Bombardier, Inc. (Canada), Elbe Flugzeugwerke GmbH (Germany), Embraer SA (Brazil), HAECO Group (Hong Kong), Precision Aircraft Solutions (US), ST Engineering (Singapore) |
| Key Market Opportunities | Rising production capacity |
| Key Market Dynamics | Increase in aircraft conversion facilities Growing adoption of aircraft conversion |
Passenger to Freighter Market Highlights:
Frequently Asked Questions (FAQ) :
The Passenger to Freighter market size was valued at USD 2.3 Billion in 2022.
The market is projected to grow at a CAGR of 11.30% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are AerCap (Ireland), Aeronautical Engineers, Inc. (US), Airbus SE (Netherlands), Boeing Company (US), Bombardier, Inc. (Canada), Elbe Flugzeugwerke GmbH (Germany), Embraer SA (Brazil), HAECO Group (Hong Kong), Precision Aircraft Solutions (US), and ST Engineering (Singapore).
The refurbished category dominated the market in 2022.
The slot/retrofitment had the largest share in the market.
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