Global air ambulance services market is estimated to be valued at USD 6.90 Bn in 2024, exhibiting a CAGR of 9.4% over the forecast period 2024 - 2031. Growing cases of medical emergencies especially trauma cases and accidents cases is driving the market growth. Furthermore, increasing adoption of faster medevac services during medical emergencies or disasters is also contributing to the market growth.
Market Dynamics:
Global air ambulance services market growth is primarily driven by rising cases of medical emergencies across the globe. According to the World Health Organization (WHO) 2023 factsheet, road accidents account for nearly 1.19 million annual deaths worldwide. Rapid emergency response facilitated by air ambulances can aid in saving lives. Moreover, increasing aging population is susceptible to chronic diseases and medical conditions that require emergency hospitalization which is effectively addressed through air ambulance services. Technological advancements in the medical evacuation aircraft and growing investments by private operators are driving the market growth during the forecast period. However, high costs associated air ambulance services limits its extensive applications.
Rising Frequency of Medical Emergencies
One of the key market drivers include rising frequency of medical emergencies that require urgent transportation to specialized medical care facilities. As the population ages and lifestyle diseases such as heart disease and diabetes become more prevalent, more people are experiencing time-critical medical conditions like heart attacks, strokes and major trauma from accidents. Air ambulance services allow critically ill patients to be transported rapidly over long distances to hospitals with specialized emergency departments and intensive care units. This ability to get patients specialized treatment in the shortest time possible is a major factor boosting demand for air ambulance transport.
Increasing Focus on Reducing Hospital Readmission Rates
Another market driver include growing emphasis on reducing preventable hospital readmissions. The 30-day readmission rate is now a key metric of hospital quality, and readmissions are not reimbursed by Medicare. As a result, hospitals are seeking to expedite discharge for recovering patients requiring inter-facility transfers to lower level care or rehabilitation facilities. Air ambulance services enable patients to be transported safely in their continuing recovery while freeing up acute care beds more quickly. This dual benefit of improved patient outcomes and operational efficiency for hospitals boosts demand for these services.
High Operational and Infrastructure Costs
One major restraint for the global air ambulance services market growth is high fixed operational and infrastructure costs associated with this mode of medical transport. Maintaining a fleet of specialized medical aircraft, hiring highly trained medical flight crews and investing in advanced on-board equipment and navigation technologies requires significant capital expenditure. This large fixed cost base means air ambulance operations struggle to achieve economies of scale and profitability compared to other emergency medical services. The high costs also limit the geographic coverage many air ambulance providers can offer.
Lack of Consistent Insurance Coverage
Another restraint is the inconsistent and sometimes lack of insurance coverage for air ambulance services. While ground ambulance rides are typically covered, insurance approaches to covering expensive air medical flights vary widely between public and private plans. Many patients still face substantial out-of-pocket costs that act as a barrier to use of this life-saving transportation mode. Resolving inconsistent coverage policies across the fragmented U.S. healthcare system remains a challenge weighing on industry expansion potential.
Growth of Telemedicine Capabilities
One opportunity for the air ambulance services industry includes increasing capabilities of telemedicine. Advanced technologies now allow medical experts on the ground or in specialized hospitals to provide clinical guidance and treatment recommendations to air ambulance crews during transport. This integration of virtual consultation augments the pre-hospital and inter-facility care available. Further expansion of 5G network coverage will accelerate telemedicine's role in supporting air ambulance missions, improving clinical outcomes.
Rising Demand for Non-Emergency Medical Transport
Expansion of air ambulance services into less emergency, more scheduled medical transport between hospitals and specialized facilities is anticipated to create a lucrative opportunity for market growth over the forecasted period. As the population ages, demand is increasing for inter-facility transfers of patients undergoing elective procedures, long-term treatments or rehabilitation. Non-emergency air transport allows these patients continuity of care near family while accessing services over long distances.
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Key Developments
- In August 2023, Chorus Aviation Inc., a Canada-based holding firm, announced that its subsidiary, Voyageur Aviation Corp., is set to broaden its air ambulance operations in New Brunswick. This expansion follows an amendment to Voyageur's contract with Ambulance New Brunswick. Voyageur operates two King Air 200s on behalf of Ambulance New Brunswick. With the amendment, the secondary aircraft will now be utilized for air ambulance services covering Grand Manan Island. Both planes, maintained by Voyageur, are equipped with essential medical and life-saving gear.
- In April 2023, RED.Health introduced RED Air Guardian, an air ambulance service, equipped with over 25 aircraft stationed in more than 550 locations throughout India. Each air ambulance boasts cutting-edge medical technology, established clinical pathways, and a proficient team of critical care specialists. The aim of RED.Health is to unify the disjointed air ambulance industry, diminish operational expenses, and assemble a proficient team of clinical professionals capable of safely evacuating patients from diverse terrains and geographical locations.
- In September 2022, The Irish Community Air Ambulance, the sole provider of Ireland's charity Helicopter Emergency Medical Service (HEMS), initiated a fundraising drive at the National Ploughing Championships, an outdoor agricultural event featuring a ploughing competition. The aim is to equip its ground-based Volunteer Emergency Medical Responders with advanced life-saving tools. The charity has set a fundraising goal of USD 100,171.70 to procure portable ventilators.
- In September 2020, Kyathi, through its International Critical Air Transfer Team (ICATT), launched integrated air ambulance services tailored for the secure transport of COVID-19 patients. Leveraging ICATT Kyathi's fixed-wing aircraft designed for long-distance emergency medical transfers, offering last-mile connectivity, this initiative aims to meet the escalating demand for prompt and high-quality emergency medical assistance in India.
Key Players: Air Methods Corporation, Deccan Charters, Scandinavian Air Ambulance, Air Ambulance Specialists, Air Charter Service, Envision Healthcare Companies, Falck Danmark A/S, AMR Air Ambulance, AirMed International, and Express Aviation Services.
