Freighter Aircraft Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 6.79 Billion |
| Market Size (2029) | USD 8.43 Billion |
| CAGR (2024 - 2029) | 5.31 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Freighter Aircraft Market Analysis
The Freighter Aircraft Market size is estimated at USD 6.79 billion in 2024, and is expected to reach USD 8.43 billion by 2029, growing at a CAGR of 5.31% during the forecast period (2024-2029).
The market demand is primarily driven by factors such as the rise in new trade relationships among different countries and rapid growth in e-commerce activities across the world. With the dramatic growth of e-commerce in recent decades, the pickup in demand for both consumer and industrial goods during this pandemic made cargo carriers and logistics companies turn to air freighters.
However, increasing regulations will hamper the market in the long run. There are various regulations or policies formed by governments worldwide to ensure smoother freighter operations. Although some freighter operators have adhered to the policies, many freighter operators still need to comply with the policies, and this can lead to hampering of freighter operations during the forecast period.
Latest trends such as increasing focus on digitization and sustainability, air freight as an omnichannel increasing freighter aircraft capacity, and the fall in the price of the consignment are also expected to add to the market growth.
Freighter Aircraft Market Trends
The Derivative of the Non-cargo Aircraft Segment is Anticipated to Register the Highest CAGR During the Forecast Period
The derivative of the non-cargo aircraft segment is anticipated to register the highest CAGR during the forecast period. This is mainly due to the increasing preference of airlines to modify their old and aging passenger aircraft with freighter aircraft to meet the growing volume of air cargo. The increase in passenger-to-freighter conversions will act as a solution for the air cargo capacity constraints due to the major demand driven by the e-commerce business. These converted passenger planes will carry lighter, more voluminous cargo such as e-commerce packages. During such conversions, aircraft are reinforced with floors that can handle the weight of the freight. In addition, changes are made to the aircraft's fire detection, ventilation, and temperature control systems. This is because freighter aircraft have different requirements than passenger aircraft and must comply with different standards.
Some of the available passenger-to-freighter (P2F) aircraft programs are Boeing B737, B757, Airbus A320, and A321. Due to the demand for new aircraft, Astral Aviation announced that it will operate the first-ever Airbus A320 passenger to freighter (P2F) converted aircraft. Another company, IAI, plans to open a new facility with Sharp Technics at South Korea's Incheon Airport for the conversion of Boeing B777s in 2024. Such developments across the world are anticipated to bolster the growth of this segment of the market during the forecast period.
Asia-Pacific is expected to lead the market with highest CAGR
The Asia-Pacific region is anticipated to grow with the highest CAGR. The increasing demand for air cargo is mainly due to the increasing demand for e-commerce from the region. The growing preference for online shopping and the presence of production facilities for electronics and other commercial goods in countries like China, India, Japan, Cambodia, and Vietnam are driving the air cargo market.
China is spearheading the region's air travel boom. China's domestic aviation market drives the demand for narrow-body aircraft and makes them more prevalent for freighter operations. Increasing passenger traffic and expected revival in international traffic have poised aircraft companies to procure aircraft in their fleet to meet the anticipated growing demand in coming years. For instance, in May 2023, Chengdu-based Sichuan Airlines took the delivery of its first Airbus A330-300 passenger-to-freighter (P2F) conversion, to expand its cargo fleet to four aircraft.
The e-commerce sector in Japan is going through significant transformational change as the Japanese are shifting from traditional brick-and-mortar stores to online businesses. E-commerce companies in the region are benefiting from high urban density, technically savvy customers, and a developed economy, further attracting the e-commerce market in the region. This is further creating a demand for hassle-free, and on-time cargo delivery, which is driving the growth of freighter aircraft market in the country. In 2022, around 1.55 million tons of air cargo were transported on international flights via Japanese air carriers.
The Japanese airport handling the most international freight was Narita International Airport. In May 2023, JAL announced that it will pluck three Boeing B767-300ER jets from its passenger fleet and send them to an airframe overhaul facility for conversion into pure freighters capable of carrying large containers on the main deck. These are scheduled to become operational at the end of fiscal 2023. Such developments are expected to drive the market in the region during the forecast period.
Freighter Aircraft Industry Overview
The freighter aircraft market is consolidated, with the presence of players including aircraft OEMs, third-party contractors or independent companies that enter cooperation agreements with OEMs, and third-party contractors that develop their conversion solutions independently. Some of the prominent players in the market are The Boeing Company, Airbus SE, ATR, Singapore Technologies Engineering Ltd., and Textron Inc.
In November 2021, Airbus launched the A350 Freighter program with a seven-aircraft order from Air Lease Corporation. Also, in December 2021, three airlines placed orders for the A350F, including CMA CGM Air Cargo, Air France, and Singapore Airlines. The deliveries of the aircraft are scheduled during the forecast period. In addition to this, companies like Boeing, Singapore Technologies Engineering Ltd, IAI, and Precision Aircraft Solution are additional players providing conversion services.
Freighter Aircraft Market Leaders
The Boeing Company
Airbus SE
Textron Inc.
ATR
Singapore Technologies Engineering Ltd.
*Disclaimer: Major Players sorted in no particular order
Freighter Aircraft Market News
- In June 2023, BBN Airlines introduced the first Airbus A321 Passenger-to-Freighter converted cargo aircraft to Turkey. With the addition of the converted freighter, BBN Airlines' Turkish subsidiary now has a total of five aircraft.
- In February 2022, IAI announced its plan to open a new facility with Sharp Technics at South Korea's Incheon Airport for the conversion of Boeing B777s in 2024. IAI Aviation Group signed a Memorandum of Agreement (MoA) with the Incheon International Airport and Sharp Technics to establish a Passenger 2 Cargo (P2F) conversion site in South Korea.
Freighter Aircraft Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Aircraft Type
5.1.1 Dedicated Cargo Aircraft
5.1.2 Derivative of Non-cargo Aircraft
5.2 Engine Type
5.2.1 Turboprop Aircraft
5.2.2 Turbofan Aircraft
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 Saudi Arabia
5.3.5.3 Turkey
5.3.5.4 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 The Boeing Company
6.2.2 Airbus SE
6.2.3 Textron Inc.
6.2.4 ATR
6.2.5 Air Transport Services Group, Inc.
6.2.6 KF Aerospace
6.2.7 Singapore Technologies Engineering Ltd.
6.2.8 Aeronautical Engineers, Inc.
6.2.9 Precision Aircraft Solutions
6.2.10 IAI
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Freighter Aircraft Industry Segmentation
A cargo aircraft or a freighter aircraft is a fixed-wing aircraft that is designed or converted for the carriage of cargo rather than passengers. Such aircraft usually do not incorporate passenger amenities and generally feature one or more large doors for loading cargo. Freighters may be operated by civil passenger or cargo airlines, by private individuals, or by the armed forces of individual countries.
The freighter aircraft market is segmented by aircraft type, engine type, and geography. By aircraft type, the market is segmented into dedicated cargo aircraft and derivative of non-cargo aircraft. By engine type, it is segmented into turboprop and turbofan. The report also offers the market size and forecasts for the freighter aircraft market in major countries across different regions. The market sizing and forecasts for all the segments have been provided in value (USD).
| Aircraft Type | |
| Dedicated Cargo Aircraft | |
| Derivative of Non-cargo Aircraft |
| Engine Type | |
| Turboprop Aircraft | |
| Turbofan Aircraft |
| Geography | |||||||
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Freighter Aircraft Market Research FAQs
How big is the Freighter Aircraft Market?
The Freighter Aircraft Market size is expected to reach USD 6.79 billion in 2024 and grow at a CAGR of 5.31% to reach USD 8.43 billion by 2029.
What is the current Freighter Aircraft Market size?
In 2024, the Freighter Aircraft Market size is expected to reach USD 6.79 billion.
Who are the key players in Freighter Aircraft Market?
The Boeing Company, Airbus SE, Textron Inc., ATR and Singapore Technologies Engineering Ltd. are the major companies operating in the Freighter Aircraft Market.
Which is the fastest growing region in Freighter Aircraft Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Freighter Aircraft Market?
In 2024, the North America accounts for the largest market share in Freighter Aircraft Market.
What years does this Freighter Aircraft Market cover, and what was the market size in 2023?
In 2023, the Freighter Aircraft Market size was estimated at USD 6.43 billion. The report covers the Freighter Aircraft Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Freighter Aircraft Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Freighter Aircraft Industry Report
Statistics for the 2024 Freighter Aircraft market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Freighter Aircraft analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
