Air ambulances play a vital role in offering emergency medical care to patients, and today, there are hardly any geographical areas that they cannot reach. The United States is one of the largest markets for air ambulance services, with an ever-increasing demand owing to the number of accidents, an aging population, and the rise in chronic diseases.
A Market Overview of the Air Ambulance Market
The air ambulance market in the United States is expected to grow significantly in the coming years, with a CAGR of 8.3% from 2021 to 2028. The market is fragmented with many players but there is a visible effort by the big players to acquire smaller ones. The fragmentation, therefore, is expected to reduce in the days to come. The risk of oligopoly seems real.
The Aging Population Presents an Opportunity
The US is home to an aging population today as is the case with most developed nations. Consequently, there is an increased prevalence of chronic diseases like diabetes and heart disease. Additionally, the integration of technology in the air ambulance industry, such as telemedicine and remote patient monitoring, presents new opportunities for players to improve the quality of care, which is what this population needs.
There are a Few Challenges as well
The air ambulance market in the United States also faces several challenges, such as high operational costs and regulatory barriers. The cost of providing air ambulance services is significantly high. Additionally, recent regulations such as the No Surprises Act have taken away the pricing autonomy of the air ambulance industry. This is also a reason why many air ambulance companies have sold themselves to the larger players or simply shut down. The trend presents a grave situation for rural United States as most air ambulance service providers consider them less profitable. With the hospital numbers already dwindling, this may be a cause for concern in the future.
