Market Trends of Freighter Aircraft Industry
The Derivative of the Non-cargo Aircraft Segment is Anticipated to Register the Highest Growth during the Forecast Period
The derivative of the non-cargo aircraft segment is expected to showcase the highest growth during the forecast period. The growth is anticipated due to the rising preference of airlines to modify and update their old passenger aircraft with freighter aircraft to meet the rising volume of air cargo. Increasing passenger-to-freighter conversions is expected to act as a solution for the air cargo capacity constraints due to the increased demand driven by the e-commerce business. The converted passenger aircraft will carry lighter, more voluminous cargo like e-commerce packages. During such conversions, changes are made to the aircraft's ventilation, fire detection, and temperature control systems because the freighter aircraft have different requirements than passenger aircraft and must comply with other standards.
Some major passenger-to-freighter (P2F) aircraft programs are Boeing B757, B737, and Airbus A321 and A320. Due to the increased demand for new freighters, Astral Aviation announced it would operate the first-ever Airbus A320 passenger-to-freighter (P2F) converted aircraft. IAI also plans to open a new facility with Sharp Technics at South Korea's Incheon Airport in 2024 to convert Boeing B777s. Such developments worldwide are expected to drive the market's growth in the coming years.
Asia-Pacific is Expected to Showcase Remarkable Growth during the Forecast Period
Asia-Pacific is expected to record the highest CAGR in the coming years. The rising demand for air cargo is mainly due to the region's increasing e-commerce demand. The growing preference for online shopping and production facilities for electronics systems and other commercial goods in China, India, Japan, Cambodia, and Vietnam drives the market's growth.
The Chinese domestic aviation market drives the demand for narrow-body aircraft, making them more prevalent for freighter operations. Rising passenger traffic and the expected revival in global air traffic have poised aircraft original equipment manufacturers (OEMs) to procure aircraft in their fleet to meet the anticipated rising demand in coming years. For instance, in May 2023, Chengdu-based Sichuan Airlines received its first Airbus A330-300 passenger-to-freighter (P2F) conversion to increase its cargo fleet to four aircraft.
E-commerce companies in the region benefit from high urban density, a developed economy, and technically savvy customers, further attracting the e-commerce market across the region. Narita International Airport was the Japanese airport handling the most international freight. For instance, in May 2023, JAL announced that it would launch three Boeing B767-300ER aircraft from its passenger fleet and send them to an airframe overhaul facility for conversion into pure freighters that can carry large containers on the main deck. Thus, growing demand for freighters and rising air cargo transportation boost the market's growth across Asia-Pacific.
