Air Ambulance Market

Industry Overview

The global air ambulance market size is valued at USD 6.5 billion in 2023 and is expected to grow to USD 7 billion in 2024 and eventually reach to USD 11.46 billion within the forecast period, registering an overall CAGR of 6.4%.

Air ambulance service refers to a specific aspect of medical service. It is an advanced and sophisticated service that uses air transportation such as helicopters and airplanes to move a patient from one location to another. Air ambulance service plays a crucial role in moving critical patents quickly from an accident site or even from homes or hospitals at the time of emergencies. It is also a useful mode of patient transportation from war-torn areas and those affected by a natural disaster.  

It saves a lot of time and hassles, such as maneuvering the traffic, associated with road transportation. It comprises trained medical staff. The mode of transportation is equipped with medical treatment facilities used in emergencies to provide immediate medical care and treat patients in the emergency. The size of the air ambulance market depends on the type of aircraft used and divides it into helicopter, airplane, and seaplane segments, where the demand for helicopter service is high due to its ease and wider reach. It is also divided by the type of services provided where the hospital-based service rules.

It is also divided according to the application including rescue service and infectious disease service, where inter-facility service and organ transplant logistics segments are expected to grow at a higher CAGR due to the growing need for advanced and specialized medical care.

In addition, it is also divided by the modes of operation where the public mode is more prevalent than the private mode of service due to several reasons.

Market Segmentation

Insight by Type of Aircraft

The types of aircraft used in the air ambulance market divides the market into helicopters, airplanes, and seaplanes services. Out of these three types, the helicopter ambulance service accounted for the larger share of the market. It is expected to grow even more during the forecast period due to the ease in landing and takeoff even from a smaller ground area. Such services can also reach remote areas thereby extending the service.

The aircraft segment is further divided into rotator-wing aircraft and fixed-wing aircraft. Out of these two segments, the fixed-wing air ambulance service is expected to grow faster during the analysis period due to higher safety and reliability. It also takes less time to transport patients. Thei specific segment is also expected to grow more due to the increased spending ability of people.

Insight by Service

The global air ambulance market is also divided by its service types into hospital-based, community-based and other segments. Out of all the segments, the hospital-based service accounted for the largest share in the market and is expected to grow more over the forecast period. This growth is mainly because it provides air transportation to multi-specialty hospitals and other healthcare centers.

Insight by Application

The types of applications also divide the global air ambulance market into inter-facility service, rescue service, organ transplant logistics, neonatal and pediatric transportation requirements, infectious disease service, and other segments.

Out of all these segments, it is the inter-facility service that refers to moving patients from one healthcare center to another that dominates the market and is expected to grow at a much higher rate during the forecast period due to the growing need for specialized care and advanced medical treatment.

On the other hand, the organ transplant logistics is also expected to grow at a higher rate during the analysis period due to the significant growth in the demand for moving an organ from the donor location to that of the intended recipient to hasten emergency organ transplantation. 

Insights by Mode of Operation

Typically, the global air ambulance market is divided into two major sections according to the mode of operation namely private mode and public mode.

Out of these two major categories, the public mode of operation will influence the air ambulance services market more than the other during the forecast period. This specific segment is usually operated by the publicly-funded organizations specializing in offering emergency medical services (EMS). The growth of this segment is attributed to its ability to provide a large variety of services such as air-land rescue, air-sea rescue, seaplane services, and aeromedical transport to large metropolitan areas and remote regions. Depending on the organization, such services can be regional, statewide, or national.

On the other hand, the private air ambulance services segment is typically run by companies or individuals who own and operate their own private aircraft for providing emergency medical services. These services are usually offered on a contractual basis which allows greater control over the service delivery and customization to meet the specific demands of the patients. This segment will continue to exist and grow at a reasonable rate during the forecast period due to the growing demand among people with higher affordability for specialized and customized air ambulance service.

Global Air Ambulance Market Report Coverage

Report Metric	Details
Historical Period	2018 - 2023
Base Year Considered	2024
Forecast Period	2025 - 2030
Market Size in 2023	U.S.D.  6.5 Billion
Revenue Forecast in 2030	U.S.D.  11.46 Billion
Growth Rate	6.4%
Segments Covered in the Report	By Type of Aircraft, By Service, By Application and By Mode Of Operation
Report Scope	Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
Regions Covered in the Report	North America, Europe, Asia-Pacific, Middle East, and Rest of the World

Industry Dynamics

Industry Trends

There is a notable increase in the extent of insurance coverage noticed. This allows people to avail of such services, thereby increasing the demand and the growth prospects of the global air ambulance market.

In addition, there are also significant advancements noticed which is improving the efficiency and utility of such services, making it more popular among the people. 

The stricter rules for air lifting and the regulations related to the safety aspect of such services are also being made favorable.

Apart from that, the reimbursement procedures of the costs related to air ambulance service by the insurance companies and governments are also improving, especially in developing economies such as India and China, thereby raising its demand.

The major players in the industry are trying hard to better their services and meet the growing demand by collaborating with smaller players. They are also investing more now on technologically advanced products.

The most significant growth factor of the air ambulance market is the significant rise in the number of air ambulance service providers. The higher spending capability of people on such services is also fueling the market growth.

There is also a notable rise in the number of instances of chronic and infectious diseases such as cardiac diseases. These are helping the global air ambulance market to grow at a rapid pace.

Another significant growth factor of the global air ambulance market is the rapid advancements in healthcare technology.

The growing inclination of patients and their families towards a faster and more efficient mode of transportation is also fueling the growth of the market.

Some other significant factors for the growth of the air ambulance market worldwide is the ability to access remote areas quickly, advanced medical treatment facilities onboard, and growing geriatric population.

Furthermore, the advanced communication systems allow the real-time transfer of patient data to hospitals. This helps the doctors to receive crucial information promptly and make informed decisions. This makes the air ambulance service more useful and effective, thereby raising its demand and facilitating its market growth.

The significant growth in the number of aging populations also facilitates the market growth for air ambulance service. This is because elder citizens are more susceptible to chronic diseases, accidental falls, and other incidents that needs immediate transportation from home to a healthcare center. This helps a great deal in fueling the growth of the air ambulance services market during the forecast period.

Challenges

The higher service charges, strict safety rules and regulations, and lack of proper communication poses significant challenges to the growth of the air ambulance market. In addition, there are also some restrictions in operations, lack of infrastructure, and an inadequate number of aircrafts in developing countries that are affecting the growth of the air ambulance market. Also, there is a rise in the occurrences of air ambulance accidents which is hindering the growth of the market.

Opportunities

The high cost of operation and service charges as well as the strict regulatory standards prevent new entrants into the market which offers an edge and better opportunities to the established players in the industry to beat competition and offer better service.

Moreover, the continual effort by the insurance companies and governments to make the reimbursement process faster and the advanced medical facilities available onboard due to technical developments are creating new opportunities and promises for growth.

The emergence of AI is also creating new opportunities for growth of the global air ambulance market. Remote controlling the vehicle in difficult urban terrains enhancing urban air mobility, safety, scheduling processes, and predictive maintenance of aircraft.

Geographic Overview

North America is the largest contributor to the air ambulance market. It is expected to grow at a significant rate during the forecast period as well in this region due to expanding the geriatric population, technological advancements, established infrastructure, mounting occurrence of chronic and infectious diseases, larger fleet, favorable reimbursement policies, and escalating patient inclination towards efficient and faster mode of delivery.

On the other hand, the Asia-Pacific air ambulancemarket is supposed to witness the fastest growth in the market due to the mounting occurrence of chronic diseases, mounting spending capability of people, expanding medical tourism, and strengthening the economy.

Competitive Insight

Key players in the air ambulance market are catering for the demand by collaborating with small players and investing in technologically advanced products across the globe. Air Medical Group Holdings, Inc. (AMGH), acquired Air Medical Resource Group (AMRG) of South Jordan to increase critical care aircraft and improve its presence in other geographies. Native American Air Ambulance, Air Medical Group Holdings (AMGH) Inc., Express AirMed Transport, PHI Air Medical, IAS Medical, and REVA Air Ambulance are the key players offering air ambulances.

Recent Developments by Key Players

Valley Health System (a healthcare provider based in the US state of Virginia) has collaborated with PHI Air Medical to provide air ambulance services to its region. Helicopter operations were launched under the arrangement, using a Eurocopter EC135. PHI will provide clinical, aviation, and maintenance personnel for the helicopter, while the aircraft itself has been updated with new clinical and communications equipment.