Kingdom of Saudi Arabia Air Ambulance Market Size, Share & Trends Analysis Report By Type (Rotary-Wing, Fixed-Wing), By Service Model (Community-based, Hospital-based), And Segment Forecasts, 2018 - 2025

Report Overview

The Kingdom of Saudi Arabia air ambulance market size was estimated at USD 60.2 million in 2016 and is estimated to expand at a CAGR of 10.4% over the forecast period. Increasing per capita healthcare expenditure and rising prevalence of chronic diseases are projected to boost the market growth.

In 2014, the per capita healthcare expenditure in the Kingdom of Saudi Arabia (KSA) was USD 1,147.45. This represents a more than 80.0% increase in per capita healthcare expenditure since 1995. This increase is expected to have a positive effect on the salaries of medical professionals, treatment facilities, and hospital administration, which is anticipated to help in reducing the cost of medical procedures and pharmaceutical products.

Number of healthcare settings in Saudi Arabia is rising exponentially, which is anticipated to assist in the growth of air ambulance services. For instance, in 2014, the Saudi Arabian government allocated USD 28.0 billion to increase the number of hospital chains. This grant has been allocated for the development of new hospitals and the expansion of primary health centers.

Rising sedentary lifestyle and increasing incidences of conditions such as obesity, asthma, Cardiovascular Diseases (CVD), and diabetes are anticipated to raise the demand for emergency interventions, which is further expected to boost the KSA market for air ambulance services.

It has been reported that around 30.0% of the Saudi population is overweight. An estimated 10-15% of children suffer from asthma. The prevalence of heart disease is increasing at an annual rate of 5.3%. It has been reported that 22.0% of the population smokes on a regular basis. Diabetes affects around 17.0% of the population. These alarming instances are likely to propel the market.

Type Insights

On the basis of type, the market can be segmented into rotary-wings and fixed-wing. Rotary held the largest market share in 2016 and is expected to grow at a lucrative rate during the forecast period. The fixed-wing market is likely to expand at a CAGR of 9.9% over the forecast period.

The rotary-wing market is more lucrative owing to advantages such as ease in evacuation and the fact that it does not need a tarmac for landing. Thus, this segment is expected to exhibit more growth prospects as compared to fixed-wing. The fixed-wing segment, on the other hand, is growing at a comparatively lower rate. This is attributed to the high procurement cost of aircraft. The cost of fuel is also a factor hampering the growth of the fixed-wing segment in the Kingdom of Saudi Arabia air ambulance market.

Service Model Insights

Hospital-based and community-based services are provided by air ambulances. Hospital-based services dominated the market in 2016. Community-based services, on the other hand, are anticipated to expand at a lucrative CAGR of 10.6% over the forecast period. Demand for healthcare access in rural areas, along with the closure of many rural hospitals, is anticipated to drive the growth of this segment.

Lack of medical specialists and quality care in some areas have lead to the need for rapid patient transfer to hospitals providing advanced patient care. Need for better medical care during emergency cases and collaborations of service providers with government and private hospitals are the primary market drivers for the hospital-based service sector.

In a community-based model, instead of a fixed payment structure, income is based on the number of patients transported. These services are usually dependent on public donations. Services are provided through contracts with private operators and community health care organizations. Air Evac Lifeteam is one of the biggest community-based operators.

Key Companies & Market Share Insights

The KSA market is highly competitive with the presence of large players such as Air Ambulance Worldwide and small-sized players such as Fakeeh International. In addition, companies are more focused on diversifying the service portfolio, which helps generate organic revenue. Entry of new players is posing a threat to existing market players.

Some of the key companies present in the industry are Saudi Air Ambulance; Fakeeh International; ALPHASTAR; Air Ambulance Worldwide, Inc.; Plures Air; and Global Air Rescue.

Kingdom Of Saudi Arabia Air Ambulance Market Report Scope

Segments Covered in the Report

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

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

  • Fixed-wing

  • Rotary-wing

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

  • Hospital-based

  • Community-based