Market Insights
“The passenger-to-freighter (p2f) market size was US$ 1.16 billion in 2024 and is likely to grow at a decent CAGR of 3.6% in the long run to reach US$ 2.33 billion in 2034”.
Market Dynamics
Introduction
The passenger-to-freighter (P2F) market refers to the aviation industry's focus on converting passenger aircraft into cargo freighters. As global demand for air cargo continues to rise, especially driven by e-commerce growth and supply chain needs, converting older passenger planes into freighters has become a cost-effective and efficient solution.
P2F conversion involves removing passenger-related components such as seats, windows, and in-flight entertainment systems, and structurally modifying the aircraft to include cargo doors, reinforced floors, and smoke detection systems, making it suitable for transporting goods instead of passengers.
This market has gained momentum due to a combination of factors, including the retirement of older passenger aircraft, high costs of new freighters, and fluctuating passenger travel demand, especially during and after the COVID-19 pandemic.
Recent Product Developments: The companies are highly focused on developing sustainable, flame-retardant, and cost-effective PP compounds.
- Boeing partnered with GMR Aero Technic in 2023 to establish India's first passenger-to-freighter conversion facility in Hyderabad. This facility will convert Boeing 737 passenger aircraft into freighters, catering to the increasing demand in India and neighbouring regions.
- Embraer is progressing with its E-Jet P2F program in 2022, converting E190 and E195 passenger aircraft into freighters. These converted freighters are designed to fill the market gap between turboprops and larger narrowbody jets, offering over 50% more volume capacity and up to 30% lower operating costs compared to traditional narrowbodies.
Recent Market JVs and Acquisitions: ?Recent trends in joint ventures and acquisitions within the passenger-to-freighter (P2F) market reflect a strategic shift towards collaborative partnerships and consolidation. Industry stakeholders, including aircraft lessors, maintenance providers, and logistics companies, are increasingly forming joint ventures to combine resources, expertise, and market access, aiming to capitalize on the growing demand for cargo aircraft conversions. These alliances often involve entities with complementary strengths, such as technical know-how and financial backing, to enhance conversion capabilities and expand service offerings. Simultaneously, the market is witnessing a rise in acquisitions as companies seek to streamline operations, achieve economies of scale, and secure a competitive edge in a rapidly evolving landscape. This trend towards collaboration and consolidation underscores the industry's response to shifting market dynamics and the pursuit of sustainable growth in the P2F market.
A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
- In November 2024, Elbe Flugzeugwerke GmbH (EFW), a joint venture between ST Engineering and Airbus, signed a memorandum of understanding with HNA Aviation Group to collaborate on converting Airbus A330 passenger aircraft into freighters.
- In August 2023, Boeing partnered with Jordanian MRO provider Joramco to establish a passenger-to-freighter conversion line at Joramco's main base in Amman.
Segment Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Aircraft-Type Analysis
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Narrow-Body Aircraft, Wide-Body Aircraft, and Regional Aircraft
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Narrow-body aircraft is expected to remain dominant due to its short turnaround times, cost-effectiveness, and suitability for regional and e-commerce-driven routes.
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Converter-Type Analysis
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OEM and Independent
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Independent converter is expected to dominate in terms of both value and volume.
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Payload Capacity-Type Analysis
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Standard Body, Medium-Wide Body, and Large Freighters
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Standard body is anticipated to remain the dominant category, driven by the surge in e-commerce and regional cargo demand, favoring narrowbody aircraft for their cost-effectiveness and suitability for short to medium-haul routes.
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Regional Analysis
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North America, Europe, Asia-Pacific, and Rest of the World
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Europe is expected to remain the dominant region during the forecast period due to investments in airport and logistics infrastructure supporting the growth of air freight operations.
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By Aircraft Type
“The narrow-body aircraft is expected to be the preferred aircraft of the market during the forecast period.”
Based on the aircraft type, the market is segmented into narrow-body aircraft, wide-body aircraft, and regional aircraft. Among these, the narrow-body aircraft is expected to dominate due to their short turnaround times, cost-effectiveness, and suitability for regional and e-commerce-driven routes, especially using models such as the Boeing 737-800 and Airbus A321.
By Converter Type
“The independent converter is expected to maintain an unwavering share in terms of both value and volume, during the forecast period.”
Based on the converter type, the market is segmented into OEM and independent converters. Independent converter is expected to continue its dominance as well as exhibit the highest growth rate, driven by faster turnaround times and flexibility in customizing conversions for various aircraft models, including older variants. They also cater effectively to the rising demand from e-commerce and cargo operators, especially in emerging markets. Additionally, OEMs focus on newer models and slower production cycles, further boosting the independent converters' market share. Independent players also have a deeper presence in emerging markets, making them the fastest-growing category.
By Payload Capacity Type
“Standard body is anticipated to remain dominant and experience the highest CAGR during the forecast period.”
Based on the payload capacity type, the market is segmented into standard body, medium-wide body, and large freighters. The dominance and growth of standard body is driven by the surge in e-commerce and regional cargo demand, favoring narrowbody aircraft's cost-effectiveness and suitability for short to medium-haul routes.
Regional Analysis
“The Europe region is expected to remain the largest market during the forecast period.”
Europe is expected to remain the largest market for P2F by region during the forecast period due to investments in airport and logistics infrastructure supporting the growth of air freight operations in the region.?
Meanwhile, Asia-Pacific is expected to exhibit the highest growth rate, driven by the setting up of new P2F conversion centres in the region, which will support the growing demand for freighter aircraft.
Key Players
The market consists of a considerable number of players, featuring several key players renowned for their expertise and contributions. The following are the key players in the passenger-to-freighter (P2F) market.
Here is the list of the top players (Based on Dominance)
- Elbe Flugzeugwerke
- AerCap Holdings N.V.
- Israel Aerospace Industries Ltd.
- Boeing
- Aeronautical Engineers, Inc.
- Mammoth Freighters
- Precision Aircraft Solutions
- PEMCO World Air Services
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Please write to us at sales@stratviewresearch.com
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players and those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
- Market trend and forecast analysis
- Market segment trend and forecast
- Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities
- Emerging trends
- Strategic growth opportunities for existing and new players
- Key success factors
The passenger-to-freighter (p2f) market is segmented into the following categories.
Passenger-to-Freighter (P2F) Market, by Aircraft Type
- Narrow-Body Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Wide-Body Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Regional Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Passenger-to-Freighter (P2F) Market, by Converter Type
- OEM (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Independent (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Passenger-to-Freighter (P2F) Market, by Payload Capacity Type
- Standard Body (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Medium-Wide Body (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Large Freighters (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Passenger-to-Freighter (P2F) Market, by Region
- North America (Country Analysis: The USA and Rest of North America)
- Europe (Country Analysis: Germany, France, The UK, and the Rest of Europe )
- Asia-Pacific (Country Analysis: China and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil and Others)
Research Methodology
- This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s passenger-to-freighter (P2F) market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner to provide a panoramic view.
- The vital data/information provided in the report can play a crucial role in helping market participants and investors identify the low-hanging fruit available in the market and formulate growth strategies to expedite their growth process.
- This report offers high-quality insights and results from a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
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Company Profiling
- Detailed profiling of additional market players (up to three players)
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Competitive Benchmarking
- Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances
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