Air Ambulance Services Market Analysis By Types (Rotary-Wing, Fixed-Wing), By Service Model (Community Based, Hospital Based) By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2018 - 2025

Industry Insights

The global air ambulance services market size was valued at USD 3.7 billion in 2016 and is expected to grow at a CAGR of 9.3% over the forecast period. Improving global economy; increasing per capita health expenditure; availability of reimbursement plans; rising prevalence of chronic diseases, such as cardiac disorders requiring emergency medical response; and improving medical infrastructure in sports and entertainment industry are anticipated to help air ambulance services industry grow at a sturdy rate over the forecasts period.

The global per capita healthcare expenditure is rising exponentially since the past two decades. As per statistics published by The World Bank Group, per capita health expenditure in 1996 was around USD 467.6, and in 2014, this number grew exponentially to USD 1,060.9. This exponential growth of around 55.0% in per capita healthcare expenditure can be attributed to improving economic environments, improved access to quality treatment, and increasing awareness in population, which translates into increased demand for these services since past five years.

U.S. air ambulance services market, by type, 2014 - 2025 (USD Million)

To complement this increasing demand, service providers, especially in developing economies, offer wide range of services in air medical transport. Furthermore, there has been constant increase in service providers resulting in increased competition. For instance, in the U.S. there are more than 300 service providers with more than 1,300 aircrafts, cumulatively.

There is an alarming increase in incidence of chronic disorders, such as cardiovascular conditions, which require emergency medical response. For instance, as per the World Health Organization’s reports, cardiovascular diseases dominated the total number of fatalities globally. In 2012, around 31.0%, that is 17.5 million, deaths were recorded due to cardiovascular disorders. These facilities are of great help in such life threatening situations, hence these services have maintained steady demand despite of being expensive.

Presence of reimbursement policies in developed economies, such as the U.S., helped these services grow at a lucrative rate by helping them overcome the challenges associated with high prices. As per statistics provided by the Government Accountability Office (GAO), the Medicare and Medicaid payments accounted for around 30.0% and 12.0% of market revenue, respectively, while private insurers accounted for approximately 50.0%; out-of-pocket payments are rare as service is expensive.

Type Insights

Rotary-wing services, which include helicopter-based medical transport services, dominated the market with over 68.0% share in 2016. Helicopter ambulances are used in transport for shorter distances. Moreover, easy landing on the ground, streets, and rooftops increases accessibility of these facilities.

Fixed-wing services refer to specialized aircraft equipped with medical facilities and a dedicated crew. These are primarily used when a patient needs to be transferred for longer distances. Fixed-wing generally are private jets or business jets that are designed in such a way that they can accommodate medical crew and equipment.

Global air ambulance services market, by type, 2016 (USD Million)

Service Model Insights

Hospital based air ambulance services dominated this space in 2015 and is also anticipated to gain hefty shares over the forecasts period. Most of the hospital in the developed countries run this program, wherein hospitals offer emergency response services with medical crew in air ambulance.

Community based services are from the public donations, or donated by business. These services are provided through partnerships with private players and community health organizations. For instance, Air Methods in the U.S. offers various community based programs such as Air Idaho Rescue in Wyoming, Montana and Idaho.

Regional Insights

North America held commanding share in global air ambulance services industry in 2016. Accessibility to supportive infrastructure for air medical transport, availability of reimbursement, and local presence of large number of service providers in this region compliments the lucrative growth of this market.

Asia Pacific, is projected to exhibit remunerative growth of over 11.0% in the forecasts period. The economic environment in this region is improving, and countries like India and China are on forefront of global investments. Multinational companies are investing in this region considering the cost-effectiveness and availability of large pool of labor. Many global business conglomerates avail these services as a part of safety protocol.

Competitive Outlook

Some of the key players in this industry include AMR; PHI Air Medical; Scandinavian Air Ambulance; IAS Medical; Express AirMed Transport; Native American Air Ambulance; Lifeguard Air Ambulance; REVA Air Ambulance; and Acadian.

Strategic initiatives undertaken by these players include collaborations, service portfolio expansion, and partnerships with business firms, sports, and entertainment events. For instance, in February 2017, AMR partnered with National Association for Stock Car Auto Racing (NASCAR) tournaments; this initiative is anticipated to help the company attain organic growth as well as gain publicity.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the air ambulance services market on the basis of types, service model and region:

• Type Outlook (Revenue, USD Million; 2014 - 2025)

  • Rotary-Wing

  • Fixed-Wing

• Service Model Outlook (Revenue, USD Million; 2014 - 2025)

  • Hospital Based

  • Community Based

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • Japan

  • Latin America

    • Mexico

    • Brazil

  • MEA

    • South Africa

    • Saudi Arabia