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

 

North America is expected to have the largest share of the aerospace and defense chemical distribution market due to the enhanced production of aerospace products and high defense expenditure observed in the United States. The US defense budget has exceeded $800 billion in recent years, with part allocated for military planes that drive demand for these chemicals. Manufacturers like Boeing and Lockheed Martin depend on consistently delivering performance chemical substances such as adhesives, lubricants, and corrosion inhibitors for aircraft mechanical reliability. The U.S. Department of Defense has also focused on environmental compliance, incorporating sustainable, low-VOC, and bio-based chemicals into its suppliers' offerings. This commitment to innovation and sustainability further solidifies North America's position as a market leader.

 

Key Players

• PPG Industries

• BASF

• Henkel

• 3M

• Dow Chemical Company

• Sherwin-Williams

• Solvay

• Eastman Chemical Company

• ExxonMobil

• Royal Dutch Shell

• McGean

• Momentive

 

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.