Aerospace & Defense Chemical Distribution Market Size

Aerospace & Defense Chemical Distribution Market Size

Aerospace & Defense Chemical Distribution Market size estimated at USD 4 billion in 2018 and will grow at a CAGR of more than 4.5% from 2019 to 2025.

Growing demand for air travel in Asia Pacific region would be a significant growth enabler in the aerospace & defense chemical distribution market. In China, the number of people traveled through air transport increased from around 290 million in 2006 to about 1 billion in 2016. The key reason behind the growth of the surging air travel demand in emerging nations is economical airfares, rising middle-class income, and economic growth of major countries. The presence of low-cost airlines, such as AirAsia and Cebu Pacific, are creating air travel more accessible to the people in Asian countries.

Increasing military expenditure is another growth driver in this market which would increase product demand. In 2017, the global military expenditure was valued over USD 1.7 trillion and is likely to grow significantly in the coming years. Such increase would open new opportunities for aerospace & defense chemical distribution all over the world. Fluctuations in the prices of raw materials could deter the market growth in the forecast timeframe. Aerospace chemicals like mineral-based lubricants, used in aircraft engines are derived from petroleum-based products. The crude oil price in 2012 reached as high as about USD 100 per barrel which later dipped in 2016 to USD 35 per barrel. Such constant fluctuations in the crude oil prices could directly impact the final price of the aviation chemicals.