Aerospace & Defense Chemical Distribution Market By Chemical Type (Lubricants, Adhesives and Sealants, Cleaners and Degreasers, Coatings and Paints, Corrosion Inhibitors, Specialty Chemicals, Others); By Application (Aircraft Manufacturing, Maintenance, Repair, and Overhaul (MRO), Defense Equipment Manufacturing, Satellite and Spacecraft Manufacturing, Others); By End User (Commercial Aviation, Military Aviation, Space, Defense and Homeland Security); By Distribution Channel (Direct Distribution, Third-Party Distributors); By Geography, Segment revenue estimation, Forecast, 2024–2032.

The aerospace & defense chemical distribution market was worth USD 5.1 billion in 2023 and will be worth USD 7.14 billion by 2030, growing at a CAGR of 4.3% during the forecast period.

 

Aerospace & Defense Chemical Distribution refers to the supply chain management and logistic services in which chemical products are delivered to the aerospace & defense companies. Such chemicals include lubricants, sealants, adhesives, cleaning agents, coatings, and corrosion inhibitors used in aircraft and defense equipment manufacture, maintenance, and repair. The distribution of chemicals through the aerospace and defense industry entails dealing with substances that are classified as hazardous that must be managed within accepted ecological processes of handling and disposal.  Chemical distribution in aerospace and defense involves handling regulated substances that require environmentally safe handling and disposal practices. They guarantee that the chemical it deals with meets some legal requirements like the Toxic Substances Control Act (TSCA) in the United States or The European Union regulation on Registration, evaluation, authorization, and Restriction of Chemicals (REACH).

 

In June 2024, Locatory.com, a top online procurement site for aviation products, has launched a marketplace for aviation chemicals and consumables. This platform simplifies the procurement process, offering easy access to essential chemicals for aircraft maintenance and operations.

 

Market Dynamics

The rising commercial aircraft demand and fleet expansion drive the Aerospace & Defense Chemical Distribution market. As commercial aviation rebounds from the COVID-19 pandemic, increasing traffic necessitates expanding airline capacity and fleets. By 2040, the major aviation companies predict strong growth and a doubling of fleets to 48,575 aircraft. According to IATA, there will be 7.2 billion passengers worldwide by 2035 and 10 billion by 2050, up from 4.5 billion in 2019. For instance, Boeing expects demand for over 41,000 aircraft around the globe by 2041, mainly for fleet development and changing mature aircraft of less efficiency for newer ones. These aircraft need constant supplies of maintenance chemicals such as lubricants, corrosion inhibitors and specialty cleaners to help in their safe operations and long life. As fleets expand, the demand for Maintenance, Repair, and Overhaul (MRO) activities increases. This growth in the Aerospace and Defense Chemical Distribution sector faces challenges in sourcing reliable chemicals from compliant providers for maintaining the expanding fleet.

 

Aerospace & Defense Chemical Distribution faces challenges with large investments due to high costs that hinder new market entrants. For example, strict environmental standards in the European Union with the REACH process or in the United States with TSCA involve high costs in dedicated storage and handling facilities and transportation.

 

The increasing demand for environmentally safe and sustainable chemical alternatives, driven by stricter environmental regulations, presents significant opportunities in the aerospace and defense chemical distribution market. Governments and regulatory agencies like the U.S. Environmental Protection Agency and the European Chemicals Agency (ECHA) are increasingly enforcing limits on hazardous chemicals, including hexavalent chromium and specific volatile organic compounds (VOCs). According to a 2022 ECHA report, about 70% of European manufacturers actively seek greener alternatives, with demand expected to rise as new compliance deadlines approach.  For their Maintenance, Repair, and Overhaul procedures, numerous airlines and defense companies are investigating water-based and biodegradable chemicals.

 

 

Market Segmentation

By Chemical Type

• Lubricants

• Adhesives and Sealants

• Cleaners and Degreasers

• Coatings and Paints

• Corrosion Inhibitors

• Specialty Chemicals

• Others

 

By Application

• Aircraft Manufacturing

• Maintenance, Repair, and Overhaul (MRO)

• Defense Equipment Manufacturing

• Satellite and Spacecraft Manufacturing

• Others

 

By End User

• Commercial Aviation

• Military Aviation

• Space

• Defense and Homeland Security

 

By Distribution Channel

• Direct Distribution

• Third-Party Distributors

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

Segment analysis of the Aerospace & Defense Chemical Distribution Market

By Chemical Type

Leading Segment: Lubricants

Lubricants form the backbone of many aerospace and defence operations, accounting for roughly 40–45% of the overall chemical distribution market share. These high-performance oils and greases are essential in maintaining the reliability and efficiency of critical machinery—from aircraft engines and gearboxes to hydraulic systems used in flight controls and defence equipment. Major suppliers such as ExxonMobil & Shell have established long-term relationships with leading Original Equipment Manufacturers (OEMs) like Boeing & Lockheed Martin, ensuring that their high-grade lubricants meet stringent operational requirements. The robust demand for lubricants is driven by the need for extended equipment life, enhanced performance, and improved fuel efficiency, making them the most widely distributed chemical type in the market.

Fastest-Growing Segment: Specialty Chemicals

Specialty chemicals are emerging as the fastest-growing segment within the aerospace & defence chemical distribution landscape, with projections indicating a CAGR of around 11–13% over the next several years. This segment encompasses advanced adhesives, surface treatments & customized formulations designed to withstand extreme operating conditions. As aerospace & defense industries aim for better performance, lighter weight & greater energy efficiency, companies like Henkel & 3M are leading the way with new chemical solutions. These special products not only improve the durability and safety of aircraft & defense equipment but also create new opportunities for innovation, driving fast market growth.

 

By Application

Leading Segment: Aircraft Manufacturing

Aircraft manufacturing represents the largest application segment in the aerospace and defence chemical distribution market. During the assembly of modern aircraft, manufacturers rely on a diverse array of chemicals—including lubricants, adhesives, coatings, and corrosion inhibitors—to meet rigorous quality and performance standards. The significant capital investments made by global giants such as Airbus & Boeing in next-generation aircraft ensure that the demand for these chemical solutions remains robust. Advancements in manufacturing processes & the integration of automation have further increased the efficiency of chemical usage, solidifying the role of aircraft manufacturing as a cornerstone of the market.

Fastest-Growing Segment: Satellite and Spacecraft Manufacturing

The satellite and spacecraft manufacturing sector is growing quickly due to the expanding commercial space industry & increased government investment in space exploration. Companies like SpaceX & Blue Origin are launching new missions, leading to a higher demand for advanced chemical formulations that can perform well in the harsh conditions of space. These specialized chemicals, such as high-performance adhesives & advanced coatings, are essential for the durability & functionality of satellites and spacecraft. As the space market continues to grow, this sector is expected to surpass traditional industries with a significant growth rate.

 

By End User

Leading Segment: Commercial Aviation

Commercial aviation is the dominant end-user segment in the aerospace & defence chemical distribution market, reflecting the industry's sheer scale & continuous need for high-quality chemical solutions. With a vast network of airlines operating a large fleet of aircraft, there is an ongoing requirement for products such as lubricants, coatings & adhesives that support both manufacturing and routine maintenance. The high volume of aircraft production and maintenance activities in commercial aviation drives steady demand for these chemical solutions, making it the largest end-user segment in the market.

Fastest-Growing Segment: Space

The space industry is growing quickly, mainly because more satellites are being launched & more commercial space exploration projects are happening. As private companies and government agencies invest more in space projects, the demand for specialized chemicals that work well in extreme conditions is increasing. New advanced formulations are being created to make sure satellites, spacecraft & other space equipment can handle tough environments & work reliably. This increase in space activities is making the space segment a major factor in future market growth.

 

By Distribution Channel

Leading Segment: Direct Distribution

Direct distribution remains the preferred channel for many chemical manufacturers operating within the aerospace & defence sectors. This approach enables companies such as Dow & BASF to maintain stringent quality control, adhere to regulatory requirements & provide customized chemical solutions directly to large OEMs & defence contractors. By building direct relationships, manufacturers can smoothly integrate their products into important aerospace and defense operations. This approach helps to strengthen the trust & reliability that are crucial in this high-stakes industry.

Fastest-Growing Segment: Third-Party Distributors

Third-party distributors are rapidly gaining ground as an effective channel for reaching a broader market, especially among emerging aerospace firms & regional players. With a projected CAGR of about 10%, this segment benefits from flexible supply chains and the ability to offer a diverse portfolio of chemical products from multiple manufacturers. Distributors like WESCO & Motion Industries are leveraging digital transformation & streamlined logistics to meet the growing demands of both established & emerging market players, driving significant growth in this channel.

 

By Region

Leading Region: North America

North America leads the aerospace & defense chemical distribution market, making up over 40% of the global share. This dominance is supported by the region's advanced aerospace manufacturing infrastructure, strong defense spending & a well-developed chemical supply chain. The United States, in particular, hosts many top aerospace & defense companies that consistently invest in research & development, creating a steady demand for high-quality chemical products.

Fastest-Growing Region: Asia Pacific

The APAC region is emerging as the fastest-growing market segment, with forecasts suggesting a CAGR of approximately 12–14% in the coming years. Rapid industrialization, expanding aerospace manufacturing capabilities & increased defence expenditures in countries such as China, India & South Korea are key factors propelling this growth. Additionally, supportive government policies & rising local production are enhancing the region’s attractiveness for international chemical suppliers. As these markets continue to modernize & expand, Asia Pacific is set to become a significant growth engine for the global aerospace & defence chemical distribution market.

 

Key Players

• PPG Industries

• BASF

• Henkel

• 3M

• Dow Chemical Company

• Sherwin-Williams

• Solvay

• Eastman Chemical Company

• ExxonMobil

• Royal Dutch Shell

• McGean

• Momentive

 

Aerospace & Defense Chemical Distribution Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 5.1 billion
Revenue Forecast in 2030	USD 7.14 billion
Overall Growth Rate	CAGR of 4.3%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Chemical Type, By Application, By End User, By Distribution Channel, By Region
By Chemical Type	Lubricants, Adhesives and Sealants, Cleaners and Degreasers, Coatings and Paints, Corrosion Inhibitors, Specialty Chemicals, Others
By Application	Aircraft Manufacturing, Maintenance, Repair, and Overhaul (MRO), Defense Equipment Manufacturing, Satellite and Spacecraft Manufacturing, Others
By End User	Commercial Aviation, Military Aviation, Space, Defense and Homeland Security
By Distribution Channel	Direct Distribution, Third-Party Distributors
By Region	North America, Europe, Asia Pacific, LAMEA
Country Scope	US, Mexico, Canada, Germany, UK, France, China, Japan, India, etc.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

 

Recent Development

• In July 2024, XTI Aerospace, Inc. completed a transaction with FC Imperial Limited, part of FinExic Concordia Group. This agreement involves a proposed strategic equity investment of up to $55 million for shares of convertible preferred stock, with a post-money valuation of $275 million.

 

• In June 2024, Aeromed, a defense and aerospace distribution company based in Charlotte, North Carolina, expanded its portfolio by adding two new businesses. Aeromed announced the addition of Aerospace Supplies International (API), a distributor of aviation supplies, including chemicals and MRO consumables, based in Memphis, Tennessee.

 

• In September 2024, Crawford United Corporation announced that it acquired Advanced Industrial Coatings of Stockton, California. Advanced Industrial Coatings' solutions benefit the aerospace, semiconductor, medical, and energy industries, among others. It provides customized solutions for applications requiring fluoropolymers and other high-performance coatings with exacting specifications, such as non-stick, heat resistance, chemical resistance, and anti-corrosion.