Global Air Ambulance Services Market By Aircraft Type (Fixed-Wing, Rotary-Wing), By Service Operator (Hospital Based, Independent and Government), By Application (Inter-facility, Rescue Helicopter Service, Organ Transplant Logistics, and Other Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

Global Air Ambulance Market size is expected to be worth around USD 47.1 Billion by 2032 from USD 17.5 Billion in 2022, growing at a CAGR of 10.7% during the forecast period from 2023 to 2032.

The World Health Organization (WHO) states that chronic diseases are the leading cause of death, accounting for more than 60% of all deaths. Nearly 80% are caused by chronic diseases in low- and middle-income countries. By 2025, more than 49% of the U.S. will be suffering from chronic diseases. The leading cause of death worldwide is cardiovascular disease. 30% of deaths in the U.S. are due to stroke and cardiac diseases. The second leading cause of death is stroke. The WHO estimates that chronic diseases will account for 3/4th of all deaths worldwide by 2022. 71% of these deaths will be due to ischemic heart disease, and 75% will be from a stroke.

Emergency medical attention is required for chronic diseases such as stroke and cardiac disease. These emergency medical situations can be handled quickly by air ambulance services. Modern and innovative medical treatment for stroke, cardiac, and chronic obstructive lung disorders and trauma patients is provided by air ambulances.

Since 1980, there has been an increase in global healthcare expenditures. The global healthcare spending was USD 6.5 trillion per year in 2012. Global healthcare spending is expected to rise to USD 18.28 trillion in 2040. A WHO report (2012) found that the United States had the highest per-capita healthcare spending (USD 8,362), while Eritrea had the lowest. The Luxembourg government made the highest per capita health expenditure (USD 6,906), while the Myanmar government spends the least per person per year on health.

*Actual Numbers Might Vary In The Final Report

By 2040, more than 9% of the global GDP is expected to go to health. Projections show that USD 9,019. Is the per capita health expenditure in high-income countries. The other side is that the upper-middle income countries will spend USD 1,935.0 per person on their health. The projected USD 507.0 per capita health expenditures of the lower-middle-income countries will be higher than those of the high-income countries. However, low-income countries will spend USD 164.0 per head on health care.

A rise in per capita healthcare spending is expected to have positive effects on the salaries and treatment facilities of medical professionals as well as hospital administration. It will also help lower the cost of pharmaceutical products and medical procedures. A rise in per capita healthcare spending can help overcome the shortage of qualified medical personnel and facilities. The market for air ambulance services is expected to grow if these resources are more readily available.

Key Takeaways

• Air ambulance services have become increasingly popular since they allow critical patients to receive medical care urgently.
• Based on aircraft type, rotary wing segment of the air ambulance services market has managed to generate the largest revenue share.
• When segmented by service operator, the market share of the hospital based segment was the highest.
• When application is considered, the inter facility segment contributed the most in 2022.
• The north American market remained the largest contributor and managed to achieve a market share of 38.8%.
• The Asia-Pacific segment is expected to register the highestr CAGR, and is the fastest growing region.

Aircraft Type Analysis

A helicopter is commonly known as a rotary wing. In 2022, the largest market share was held by the rotary-wing model. Helicopter-based air ambulance services offer the most significant advantages in cost-effectiveness and quick response times. Helicopters can assist patients in emergencies, mainly when there is a need for a rapid response. Helicopters can substitute ground ambulances because they can land almost anywhere, including roads, parks, and fields. They have a limited operating range due to their low fuel capacity.

Helicopter-based air ambulances can be used in many situations, mainly for emergency response. Hospitals use rotary-wing helicopter services to transport medical personnel to patient locations and return them to the hospital. The most commonly used helicopters for air ambulances are the Bell 206, 429, &407; Eurocopter AS350 and EC135, EC145, EC145; Sikorsky, EC130, EC145; EC130; Augusta Westland 149 & 109. REVA Inc. and PHI are some of the major players in this market segment.

Fixed-wing air ambulances can travel longer distances because they are lighter than rotary-wing aircraft. Propeller-driven aircraft are mainly used for short distances. Turboprops, propeller-driven aircraft, are often used for long-distance or outstation travel. Business jets can carry more personnel and medical equipment than helicopters and are used for long-distance service models.

Fixed-wing aircraft are also able to operate in adverse weather conditions without compromising patient comfort or quality of care. Two main reasons for the rise in fixed-wing air ambulance service demand are their ability to operate in adverse conditions and medical tourism. Based on the transport parameters, a turboprop or jet can be used. Learjet 31, 35, and 36, King Air 200, 90, Pilatus PC-12, Piper Cheyenne, and King Air 200, 90 are some of the most commonly used fixed-wing aircraft ambulances. REVA Inc. and PHI Air Medical are key players in this market.

By Service Operator Analysis

Due to the improvement in hospitals’ business models, the hospital-based segment had the highest market revenue. A medical service model is where a hospital often provides a team of medical professionals and collaborates with an aircraft service provider for mechanics and pilots.

The hospital must obtain a Federal Aviation Administration (FAA) certificate and pay the aviation service provider for their service model. Air ambulances are being used more frequently to transport patients to specialist hospitals because there are not enough doctors and specialists in certain areas.

The hospital also supplies all medical personnel involved in the program. The hospital charges patients directly for the service (Medicare, Medicaid, and private insurance) at the rate they choose.

The hospital controls the branding and public image management of the program. By maintaining the rates charged to patients, a well-managed hospital-based program for medical transport can become a revenue-generating part of the hospital. Hospital-based programs are often in-network and available to private payers. This eliminates the patient’s financial burden.

By Application Analysis

By Application Analysis, the inter-facility segment holds the most share owing to immediate medical respond. Based on application, the market is classified into inter-facility ,rescue helicopter services, organ transplant logistics, overweight patient transport, infectious disease service, newborns and pediatric transport and other applications.

In 2022, the market share for inter-facility was the highest. This segment is expected to be the dominant one in the coming years. This growth can be attributed to an increase in cardiac disease patients and those needing immediate medical care.

Similar to rescue helicopter services, the rescue helicopter market is expected to be the most dominant. This is because of the increased demand for rescue helicopters to transport patients to remote locations from emergency situations. A coronavirus epidemic has led to a surge in rescue helicopter demand. This is due to the locking down of transport systems and countries.

The forecast period is expected to see an increase in the CAGR of organ transplant logistics. This is due to a rise in organ donors, which is expected to increase the rate of organ transplants.

Key Market Segments

By Aircraft Type

• Fixed-Wing
• Rotary-Wing

By Service Operator

• Hospital Based
• Independent
• Government

By Application

• Inter-facility
• Rescue Helicopter Service
• Organ Transplant Logistics
• Overweight Patient Transport
• Infectious Disease Service
• Newborns and Pediatric Transport
• Other Applications

Drivers

Geriatric Healthcare advances are expected to increase Air Ambulance Services uptake. The market’s growth is likely driven by many people over 60 with lower immunity levels and are more susceptible to neurological diseases, cancer, heart problems, and spinal injuries. According to the WHO, global 65-year-olds will increase from 524 million in 2010 to almost 1.5 billion by 2050.

Geriatrics are highly vulnerable to conditions such as arthritis and heart attacks, stroke, osteoporosis, and obesity. These diseases can make it necessary to have an ambulance service available for patients in urgent situations. The growing number of older adults is expected to increase the demand for air ambulance services.

Instantaneous Technological Advancements in Air Ambulance Services are also Boosting the Market Growth Heart monitors (ventilators), ventilators, defibrillators, and ventilators are some of the latest medical devices available to air ambulances to provide emergency medical care. The latest air ambulance communication technology allows for real-time data to be sent to hospital specialists, allowing doctors to plan ahead for an emergency. The medical equipment and aircraft developments allow proper medical treatment for the patient in minimal time.

Restraints

A lack of infrastructure in healthcare is slowing Market Growth. The high research costs to maintain high-quality standards (using high-grade, costly products) and comply with regulatory guidelines will likely limit the market growth. Budget constraints make it difficult for academic and research laboratories to purchase such expensive instruments. Lack of infrastructure for healthcare and insufficient aircraft from emerging countries are the main factors limiting growth in the global air ambulance market.

Opportunities

The air ambulance market would certainly benefit from technological innovation. The use of cutting edge technology to providepimary medical care within the air ambulance itself is sure to increase the demand for air ambulance services. Further, this would also improve the functionality of the service and underline its importance in healthcare. Implementing AI to optimize air ambulance services presents numerous unexplored opportunities, such as unmanned ambulances for organ transport and air ambulances equipped with personalized treatment plans.

Impact of Macroeconomic Factors

Ground ambulance charges are much lower than air ambulance service fees. While there is some coverage for air ambulance services in the U.S. under government and private insurance, reimbursement rates are much lower than those charged by air medical service providers. Medicare and Medicaid cover approximately 60% and 34% of the average cost of air medical transport, leaving patients with a high out-of-pocket cost. High costs and reimbursement issues restrict the market.

Latest Trends

Air ambulances have made significant improvements in the quality of patient care. A technologically advanced communication system allows the transmission of real-time information on the patient to hospital experts. This allows doctors to plan ahead for emergency situations. To provide emergency medical care, air ambulances can now be equipped with critical equipment such as a ventilator and a heart monitor. Here are some of the technological advances made in emergency medical service aircraft during the COVID-19 pandemic. EHang (a major manufacturer of Autonomous Aerial Vehicles, or AAV) successfully transferred medical personnel, staff, and supplies to its two-seated passenger drone in May 2020.

EHang and the International Civil Aviation Organization (ICAO) jointly developed Ambular, an ambulance drone that can respond quickly to healthcare emergencies. Kyathi and International Critical Air Transfer Team jointly launched India’s first-ever integrated air ambulance in September 2020. The fixed-wing ambulance has an isolation pod to ensure the safe transport of COVID-19-affected patients. The global market for air ambulance services is forecast to grow due to improvements in medical infrastructure supported by AAV development.

Regional Analysis

North America Holds The Largest Share Of The Air Ambulance Service Market

North America holds the largest share of the air ambulance service market. This market is expected to grow in the future. This is partly due to the country’s advanced infrastructure, favorable reimbursement policy, and regulatory framework. In the last few years, there has been an exponential rise in air ambulance service demand. According to the CDC, 1 in 7 Americans is affected by a heart attack yearly. The risk of a heart attack can be decreased if patients receive prompt treatment via air ambulance services. The market development is also affected by significant air ambulance service providers.

Asia-Pacific has the fastest-growing air ambulance market due to significant government investment in improving its health infrastructure. Due to the increasing number of people and socioeconomic changes, automobiles are in high demand. Road accidents have been on the rise. By the NDTV India in India, there are approximately 1,214 road accidents per day. This allows for an increase in demand for air ambulances for emergency medical treatment.

The government initiatives that are taking place in the region are also driving this market. For instance, the Japanese government has handed a bill for special efforts to secure helicopter emergency medical services to facilitate air ambulances. Additionally, growing investment from enterprises to cater to the growing need for air ambulance services also led to the evolution of the market. Airbus reported in 2018 that China was in high demand for more than 3,000 helicopter-emergency medical choppers.

Key Regions

North America

• US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Russia
• Netherland
• Rest of Europe

Asia Pacific

• China
• Japan
• South Korea
• India
• New Zealand
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Rest of MEA

Key Players Analysis

Global Air Ambulance Services Market is highly competitive in terms of production, price, revenue, and market share. Air Methods Corporation was the market leader in providing emergency air medical transport and transport services via the Air Ambulance Services Market. The corporation has a strong market position in the global market because it invests heavily in safety programs.

Market Key Players

With many local and regional players’ presence, the Air Ambulance Services market is fragmented. Market players are subject to intense competition from top market players, particularly those with strong brand recognition and high distribution networks. Companies have gained various expansion strategies such as partnerships and product launches to stay on top of the market.

The following are some of the major players in the Global Air Ambulance Services industry

• PHI Air Medical
• American Air Ambulance
• Babcock Scandinavian Air Ambulance
• Acadian Ambulance
• Express Aviation Services LLC
• Air Medical
• IAS Medical, Ltd.
• REVA Inc.
• Lifeguard Ambulance Service LLC
• Other Key Players

Recent Developments

• June 2023: Queensland Government announced plans to invest US$ 586.1 million in the air ambulance business LifeFlight. The business will receive the funding gradually over the next decade.
• October 2023: London Air Ambulance launched appeal for fundraising. The charity aims to raise over USD$ 1.8 billion by the year 2024 to replace two of the helicopters in its arsenal.

Report Scope