The aviation chemicals global market registered a 5,739.9 million US dollars valuation in 2022. Europe and North America held the biggest share, approximately 50 percent in 2022. The market is poised to grow substantially, reaching USD 6,112.3 million by 2023 and approximately $10,741.4 million US dollars in 2033. The market is projected to exhibit a robust compound annual growth rate (CAGR) of 5.8 percent during the forecast period.
The aviation industry uses special chemicals for aircraft manufacturing, repair and maintenance. These include lubricants, paints, coatings, coolants, cleaning chemicals and adhesives and sealants. Though the aviation chemicals industry globally witnessed a massive dip in 2020 because of lockdowns and travel bans due to COVID-19, the market bounced back faster soon after the restrictions were lifted.
The impressive industry growth achieved in 2022 shows that the aviation chemicals market will reach its pre-pandemic levels by 2023 and foresee healthier growth in the coming years. The ongoing need for aircraft maintenance and safety are the key drivers for forecasted market growth.
However, lack of skilled force, high cost of aircraft maintenance, strict regulations, and lack of raw material availability are expected to limit industry growth. Therefore, they must be addressed to help industry players tap growth opportunities and generate higher revenues.
Key Report Findings
Increasing Awareness of the Benefits of Aircraft Maintenance
Aircraft surfaces and engine parts easily get contaminated with every flight. They need special chemicals, lubricants, and coolants to keep aircraft well-maintained. Lubricants lower friction and are crucial for proper functioning. Furthermore, aviation chemicals ensure the engine parts remain resistant to rust formation and corrosion. These chemicals remove contaminants from the exterior while keeping engine exhaust and parts oil residue dirt free. Rest assured; these aviation chemicals ensure the operational efficiency of the aircraft. Hence, the increased awareness regarding the benefits of aircraft maintenance is expected to be the key driver for the increasing demand for aviation chemicals for the forecasted period.
Needless to say, the industry players must repaint their aircrafts after every 4 to 5 years as the aviation coating service life is less than 5 years. So, as this is an ongoing requirement the demand for aviation chemicals will increase in the future.
Ensuring Passenger Safety
The demand for aviation chemicals is also expected to increase passenger safety during air travel. Statistics show that there are between 70 and 90 airplane crashes every year. However, these incidents can significantly be minimized if airlines take special passenger safety measures.
It’s crucial to understand that debris and dirt can easily accumulate on the aircraft’s windshield, making it dangerous for pilots to fly and operate the plane. They may be unable to spot traffic at a distance.
However, using aircraft chemicals on the windshield can provide better visibility and prevent the risk of crashes. And this might increase the sales of chemicals in the coming years as airline owners incorporate measures to ensure greater passenger safety.
Increasing Consumer Disposable Income
Another potential key driver for industry growth is the increasing disposable income of people. Air passenger traffic is also expected to increase because of the rapid growth in the population of the upper middle class. As their income increases, they will prefer to travel by airplane more than train. In other words, the rising/per capita income will make it more affordable for them to buy tickets and travel by airplane. This increase will directly impact the aviation sector, growing their need for quality aviation chemicals to keep their fleet well-maintained and ready before the next flight.
Surge in Tourism
The surge in tourism is owed to improved amenities and competitive air fare. It has led to the increase in international traveling worldwide with a growing number of consumers choosing airplane as their preferred choice of commute. Hence, as a result, it has increased the demand for new aircrafts. This presents a big opportunity for aviation chemicals industry as more chemicals will be required for maintenance of bigger fleet of aircrafts.
Supportive Initiatives by the Government
Increasing foreign direct investments and supportive initiatives from the government have created a suitable environment in the Asia Pacific for the aviation sector. And this is further expected to expedite the demand for aviation chemicals and cleaning tools.
Strict Industry Regulations
One of the biggest concerns is the strict industry regulations posed by bodies like REACH in Europe, OSHA, EPA, and others. These organizations have established rigorous regulations regard to the handling, shipping, and exposure of aviation chemicals.
When mishandled, these chemicals can have a dangerous impact on people’s health and the environment. Aviation chemicals can cause neurological, skin, respiratory and optical issues if they are present in the air in high concentration. Hence, this is definitely expected to pose a serious challenge for airline owners. They must adopt the best practices when using aviation chemicals to conform to industry standards.
Lack of a Skilled Force
Another challenge is the lack of a skilled workforce. The aviation industry needs qualified and certified individuals who are well-trained and knowledgeable in using aviation chemicals. This shortage of skilled experts can hamper industry growth.
The global aviation chemicals industry is segmented into Europe, North America, Middle East and Africa, Asia Pacific, and Latin America.
Company Recent Development
Major players operating in the aviation chemicals market that have made significant contributions in the recent developments are:
All these industry players are actively working to support industry growth and progression. For example, Exxon Mobil Corporation’s venture to provide sustainable fuel production for aviation will benefit the industry. ExxonMobil has a history of providing patent process technologies for making energy products. Now it is leveraging its core capabilities to create solutions to convert renewable methanol into SAF (sustainable aviation fuel). It can play a crucial role in helping the aviation industry transition to a net-zero future. Furthermore, it will lead to better profit margins helping airlines to allocate bigger budgets for aviation chemicals needed for maintaining their fleet and ensuring passenger safety.
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.View Methodology