Forecast From Million Insights Says Increase In Chronic Diseases Will Contribute To The Expansion
The market size for global air ambulance services was worth $3.7 billion in 2016 which is anticipated to grow at a CAGR (Compound Annual Growth Rate) of more than 9.3% during the forecast period. The factors contributing to the growth of the market are increasing the prevalence of chronic diseases, for instance, cardiac disorders which need an emergency medical response, accessibility of reimbursement policies, rising per capita healthcare expenditure and improvement of medical infrastructure in entertainment & sports industry.
An exponential rise in the per capita healthcare spending is observed worldwide in the past twenty years. According to the statistics given by The World Bank Group, in 1996, the per capita healthcare expenditure was approximately $468 and this figure raised exponentially to $1,061 in 2014. The 55.0% growth in per capita healthcare spending can be associated with better access to quality care, better economic conditions, and rising awareness amongst the population. These factors also contribute towards a rise in demand for air ambulance services in the last five years.
Developed economies, for instance, the U.S., provide reimbursement policies which enable the air ambulance service providers to overcome the issues related to high service prices and helped the market grow at a remunerative rate. The Government of Accountability Office (GAO) published statistics which say that Medicaid and Medicare payments contributed to approximately 12.0% and 30.0% of market revenue correspondingly whereas private insurers contributed to nearly 50.0% of market revenue. The air ambulance services are expensive, therefore, out of pocket payments are infrequent.
Based on the type, the global air ambulance market is segmented into fixed wing services and rotary wing services. The rotary wing services, involving helicopter based air medical transport, held more than 68.0% of market share in 2016. These services are used for medical transfer of patients for shorter distances. Additionally, helicopters can easily land on streets, rooftops, and ground thereby increasing the accessibility of these services.
Based on the service model, the global air ambulance market is segmented into hospital-based and community-based services. Hospital-based services held the largest share in 2016 and are projected to grow at a lucrative rate during the forecast period. A majority of hospitals in developed nations provide these services wherein the medical crew is supplied by hospitals in emergency response situations.
North America dominated global air ambulance market in 2016. Availability of the supportive air medical transport infrastructure, the presence of reimbursement plans, and the local existence of a large number of air ambulance operators has fueled the growth of the market in this region.
The global air ambulance market consists of many key players such as PHI Air Medical, Native American Air Ambulance, Acadian, Lifeguard Air Ambulance, Express AirMed Transport, REVA Air Ambulance, IAS Medical, AMR, and Scandinavian Air Ambulance.
(Source: Million Insights news release. Image from file)
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