Air Ambulance Services Market Size, Share, Growth, Trends & Developments by 2027
The Global Air Ambulance Services Market is expected to witness a high single-digit growth rate by 2027. The air ambulance services market growth is driven by the increasing incidence of chronic illnesses, the rise in number of accidents, the growing elderly population, and technological advancements associated with air ambulance services.
The air ambulance services market is a vital component of the healthcare and emergency medical services industry. Air ambulance services are equipped with aircraft and helicopters that are fully equipped with medical facilities. It involves the transportation of critically ill or injured patients via aircraft to medical facilities for prompt medical attention. The primary function of an air ambulance service is to deliver a level of care that surpasses ground-based medical transportation. Additionally, air ambulances ensure patient comfort during short or long distance journeys.
Key Drivers Fueling the Growth of the Air Ambulance Services Market
The air ambulance services market is experiencing steady growth, primarily due to the growing demand for quick and efficient medical transport. This growth is propelled by factors such as increased accidents, technological advancements in air ambulance services, and the rising elderly population, especially in developed nations. The aging population has led to an upsurge in chronic diseases, driving the need for specialized medical care and the expansion of air ambulance services. The rising need for quick and effective emergency medical assistance, especially in remote and disaster-prone regions has resulted in an elevated dependence on air ambulance services to ensure rapid response. Numerous areas have seen the expansion of air ambulance offerings to guarantee faster reaction times and wider coverage in outlying or underserved areas. This expansion ensures that people in these locales receive timely medical care. Continuous improvements in aviation technology have led to enhanced safety, navigation, and patient care during air ambulance missions.
For instance,
- In April 2023, Air Methods, the United States' premier air medical service provider unveiled a new base at Fitchburg Municipal Airport to deliver essential emergency air medical services to Northern Worcester County and neighbouring areas.
- In March 2023, LifeNet 7, in partnership with Prisma Health Laurens County Hospital in Clinton, South Carolina, commenced its operations. This new base, situated in close proximity to the hospital, is set to provide residents with enhanced air medical services, ensuring faster response times during emergency and trauma cases.
Air ambulance services are increasingly integrated into regional healthcare systems, facilitating better coordination among emergency response teams, hospitals, and air ambulance providers for seamless patient transfers. Air ambulance services now often incorporate specialized medical teams, such as critical care nurses and paramedics, who can administer advanced medical interventions during transport. The adoption of telemedicine within air ambulances has become more prevalent. This allows onboard medical professionals to consult with ground-based specialists, providing real-time medical guidance. The industry maintains a strong focus on improving safety measures, including regular training and the utilization of advanced safety equipment to minimize risks during air ambulance missions.
Air ambulance services have become crucial due to various factors, including the demand arising from tourism and adventure activities in remote locations. Geographic challenges in countries with difficult terrains also underscore the need for these services. Improved insurance coverage, public awareness, and government support have made air ambulance services more accessible. The growth of medical tourism has increased the demand for air ambulance services for cross-border patient transportation. The private sector investments and increasing competition have also expanded services and contributed to the market's growth, making air ambulance services an essential component of modern healthcare systems.
Rising to the Challenge: Air Ambulance Providers Amid the Pandemic
The air ambulance services market underwent significant changes as a result of the COVID-19 pandemic, marked by several key factors. The early phases of the pandemic witnessed a surge in the demand for air ambulance services, primarily to transport COVID-19 patients to specialized medical facilities. This resulted in heightened business activity for air ambulance providers. Despite the increased demand, the air ambulance sector faced financial constraints. The cost of providing these services escalated due to the necessity for enhanced safety measures, including equipping the crew with personal protective equipment (PPE) and implementing stringent aircraft disinfection protocols.
The pandemic ushered in various travel restrictions, including lockdowns and border closures, complicating patient transport across borders or to other countries and impacting the international dimension of air ambulance services. Air ambulance providers had to swiftly adapt to evolving circumstances. They implemented stricter safety protocols and infection control measures to safeguard the well-being of both patients and medical staff. It's noteworthy that the long-term impact of COVID-19 on the air ambulance services market may continue to evolve. With increasing vaccination rates and decreasing pandemic severity, the industry is expected to transition toward a more typical state gradually.
For instance,
- In April 2021, Babcock Norway secured a contract to deliver a 24/7 fast jet air ambulance service to the rescEU scheme. Under this agreement, Babcock will serve as the provider of fast jet air ambulance services throughout the EU, encompassing aircraft maintenance, personnel provision, and training
- In August 2020, EHang Holdings Limited, a leading autonomous aerial vehicle technology company, was chosen to participate in the Ambular project. This international initiative, backed by the International Civil Aviation Organization (ICAO), aims to create a flying ambulance for medical emergencies using eVTOL (electric vertical takeoff and landing) aircraft. The project's goal is to inspire the global aviation community to harness the potential of eVTOL technology for medical emergency services.
Key Market Constraints/Challenges of Air Ambulance Services Market
The growth of the global air ambulance services market faces significant obstacles, including high operational costs, adherence to stringent regulations, the absence of adequate healthcare infrastructure, and insufficient aircraft availability in emerging economies. Air ambulance services must adhere to stringent regulations to ensure patient safety and care quality. However, these regulations, along with the substantial costs related to air medical services and challenges regarding reimbursement in emerging countries, pose barriers to the global expansion of the market.
North America Accounts for the Largest Share of the Global Air Ambulance Services Market
The air ambulance services market's size varies by region, with developed countries generally having more established services. North America and Europe are one of the largest air ambulance markets. North America dominates the global market, primarily due to the presence of established air medical service providers, advanced medical facilities, and a substantial helicopter fleet in the United States. Notably, North America benefits from the market presence of significant players like Air Methods, PHI Air Medical, Acadian Companies, and others.
Conversely, the Asia Pacific region is expected to exhibit the fastest growth during the forecast period. This is attributed to the rapid expansion of the medical tourism industry in emerging economies such as India and China, which significantly drives the demand for air ambulance services in the region. Furthermore, the growth of healthcare infrastructure and the flourishing aviation industry in the Asia Pacific collectively contribute to the market's expansion in this geographical area.
Competitive Landscape Analysis: Air Ambulance Services Market
Some of the major players operating in the global air ambulance services market are Acadian Ambulance, Air Methods, American Air Ambulance, Babcock Scandinavian Air Ambulance, Capital Air Ambulance, Express Air Medical Transport, IAS Medical, Ltd., REVA Inc., Lifeguard Ambulance Service LLC., MED FLIGHT, and PHI Air Medical among others.
Organic and Inorganic Growth Strategies Adopted by Players to Establish Their Foothold in the Air Ambulance Services Market
Players operating in this market are adopting both organic and inorganic growth strategies such as collaborations, and acquisitions to garner market share.
For instance,
- In October 2020, Air Methods, a prominent U.S. air medical service provider, announced an agreement with HealthPartners, a nonprofit healthcare organization, to offer discounted in-network critical air medical services to HealthPartners plan members across several states.
- In August 2019, Acadian Air Med collaborated with Metro Aviation to jointly manage the Life Air Rescue program in Shreveport, Louisiana. Acadian provided certified flight paramedics, certified flight RNs, dispatch personnel, operational, and managerial staff, while Metro Aviation supplied air transportation pilots and maintenance staff. Together, they collaborated to enhance air medical services in the Shreveport area.
The global air ambulance services market is expected to continue growing, especially in emerging economies, as access to healthcare improves, the rising need for quick medical transportation, technological innovations, and aggressive organic and inorganic growth strategies followed by the market players.
Key Strategic Questions Addressed in this Research Report:-
- What is the market size & forecast for the global air ambulance services market?
- What are the historical, present, and forecasted market shares and growth rates of various segments and sub-segments of the air ambulance services market?
- How has COVID-19 impacted the air ambulance services market?
- What are the major growth drivers, restraints/challenges impacting the air ambulance services market?
- What are the opportunities prevailing in the air ambulance services market?
- What is the investment landscape of the global air ambulance services market?
- Which region has the highest share in the global market? Which region is expected to witness the highest growth rate in the next 5 years?
- Who are the major players operating in the air ambulance services market? What is the competitive positioning of key players?
- Who are the new players entering the air ambulance services market?
- What are the key strategies adopted by players in global air ambulance services market?
The study has been compiled based on the extensive primary and secondary research.
Secondary Research (Indicative List)
Primary Research
To validate research findings (market size & forecasts, market segmentation, market dynamics, competitive landscape, key industry trends, etc.), extensive primary interviews were conducted with both supply and demand side stakeholders.
Supply Side Stakeholders:
- Senior Management Level: CEOs, Presidents, Vice-Presidents, Directors, Chief Technology Officers, Chief Commercial Officers
- Mid-Management Level: Product Managers, Sales Managers, Brand Managers, R&D Managers, Business Development Managers, Consultants
Demand Side Stakeholders:
- Stakeholders in Hospitals, Clinics, NGOs and other End Users.
Breakdown of Primary Interviews
Market Size Estimation
Both ‘Top-Down and Bottom-Up Approaches’ were used to derive market size estimates and forecasts.
Data Triangulation
Research findings derived through secondary sources & internal analysis was validated with Primary Interviews, Internal Knowledge Repository and Company’s Sales Data.
