San Francisco, 11 April 2024: The Report Air Ambulance Services Market Size, Share & Trends Analysis Report By Type (Rotary-wing, Fixed-wing), By Service Model (Hospital-based, Community-based), By Region, And Segment Forecasts, 2023 - 2030
The global air ambulance services market size is expected to reach USD 32.9 billion by 2030, registering a CAGR of 10.7% from 2023 to 2030, according to a new report by Grand View Research, Inc. The increasing number of accidents, the impact of COVID-19, and technological advancements are the key driving factors for the market.
Air ambulance services are used generally in case of medical emergencies. Patients or their family members have to bear high costs in case the services are availed in dire situations. Thus, reimbursement plans help patients recover costs and reduce this burden. Many companies offer reimbursement for these services, such as Medicare and Medicaid. Moreover, the majority of the medical insurance guidelines and employee benefit plans offer some type of air ambulance coverage. The United States Department of Health and Human Services has included an air medical reimbursement plan in the Affordable Care Act. In February 2017, lawmakers in Montana supported two air ambulance regulation bills with an aim to reduce the economic burden on patients.
It was estimated that around 49.0% of the U.S. population will be affected by chronic diseases by 2030. Cardiac diseases and stroke account for 30.0% of the deaths in the U.S. Cardiovascular diseases are the leading cause of death globally. Stroke is the second most common cause of death worldwide. According to the WHO, it is estimated that by 2020, chronic diseases will account for 3/4th of the total deaths globally, out of which, 71% will be caused by ischemic heart diseases and 75% of deaths will be caused by stroke. India and China have a high prevalence of cardiac diseases. Chronic diseases, such as cardiac diseases and stroke, usually require an emergency medical response. The services provide rapid response in case of such emergency medical situations. Air ambulances are equipped with advanced and innovative medical care for cardiac, stroke, chronic obstructive pulmonary disorders, and trauma patients.
According to the World Health Organization (WHO), chronic diseases are the leading cause of death worldwide and represent over 60% of total deaths. Nearly 80% of the deaths caused by chronic diseases occur in middle- and low-income countries. It is estimated that over 49% of the U.S. population will be affected by chronic diseases by 2030. As per the Centers for Disease Control and Prevention, more than 877,500 U.S. population die of stroke, heart disease, and cardiovascular disorders every year.
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In addition, cardiovascular diseases are the leading cause of death globally. Stroke is the second most common cause of death worldwide. According to the WHO, it is estimated that by 2022, chronic diseases will account for 3/4th of the total deaths globally, out of which 71% will be caused by ischemic heart diseases and 75% of deaths will be caused by stroke.
Air Ambulance Services Market Report Highlights
- In terms of revenue, the rotary-wing segment led the product segment in 2022 and accounted for 76.7% of the overall share. The rising number of cardiovascular diseases across the globe is the major factor propelling segment growth
- The hospital-based segment led the services segment in 2022 and accounted for 79.9% of the overall share. It is expected to witness considerable growth during the forecast period due to the increasing number of emergency cases
- In Asia Pacific, the market is expected to witness the fastest growth rate during the projected period owing to the rising prevalence of chronic diseases
India and China exhibit a high prevalence of cardiac diseases. Chronic diseases, such as cardiac diseases and stroke, usually require an emergency medical response. Air ambulance services provide rapid response in case of such emergency medical situations. Air ambulances are equipped with advanced and innovative medical care for cardiac, stroke, chronic obstructive pulmonary disorders, and trauma patients.
There has been a drastic increase in global health expenditure since 1980. In 2012, the total global healthcare expenditure was USD 6.5 trillion annually. The global healthcare expenditure is expected to reach USD 18.28 trillion by 2040. According to a WHO report (2012), the U.S. had the highest per capita healthcare expenditure (USD 8,362), and Eritrea had the lowest per capita healthcare expenditure. The Luxembourg government spent the highest amount per person annually on health (USD 6,906) and the Myanmar government spent the lowest amount per person annually on health.
It is projected that over 9% of the global GDP will be spent on health by 2040. The per capita expenditure on health in high-income countries is projected to be USD 9,019. On the other hand, upper-middle-income countries are expected to spend USD 1,935.0 per capita on health. The lower-middle-income countries are projected to spend USD 507.0 per capita on health, whereas the low-income countries are expected to spend USD 164.0 per capita on health.
An increase in per capita healthcare expenditure is expected to have a positive effect on the salaries of medical professionals, treatment facilities, & hospital administration and help reduce the cost of medical procedures & pharmaceutical products. An increase in per capita healthcare expenditure can aid in overcoming the problem of a shortage of medical professionals and facilities. An increase in the availability of these resources is expected to contribute to the growth of the air ambulance services industry.
A large population pool over 60 years, which typically has a lower immunity level and is prone to cardiac problems, neurological diseases, spinal injuries, and cancer is expected to be a high impact-rendering driver for the market growth during the forecast period. As per the WHO, globally, the number of people aged 65 or older is anticipated to grow from an estimated 524 million in 2010 to nearly 1.5 billion in 2050.
The geriatric population is highly susceptible to diseases such as arthritis, heart attacks, stroke, osteoporosis, and obesity. Patients suffering from such diseases may require an emergency as well as a non-emergency ambulance service model. Hence, the increasing geriatric population is likely to result in the growth of the air ambulance services demand.
The COVID-19 pandemic had a positive impact on the air ambulance market. This can be accredited to the increase in demand for air ambulances during the pandemic. For instance, the International Critical Care Air Transfer Team (ICATT), a Bengaluru-based air ambulance service firm, witnessed a 500% increase in demand during the pandemic period. Before the pandemic, ICATT used to transfer 15 to 20 critically ill patients in a month, which surged to around 300 patients a month.
List of Key Players of Air Ambulance Services Market
- Air Methods
- AMR
- PHI Air Medical
- Babcock Scandinavian Air Ambulance
- Express Air Medical Transport
- REVA, Inc.
- Lifeguard Ambulance Service LLC.
- Acadian Ambulance
- IAS Medical, Ltd.
- American Air Ambulance
- Global Medical Response
- AirMed International
