The air ambulance industry will see a growth of about 5.2 percent CAGR in the coming five years says a recent report published on Reuters. The sector is slated to reach a whopping USD 9500 million by the year 2024. The air ambulance industry currently stands at USD 7030 million in 2019 says the report. It has been seen that, in the past five years, the number of people that the air ambulance industry employs has gone up by about 2.3 percent. This number is inclusive of ground technicians, support staff, medical professionals, pilots, etc. In the same timeframe, the number of air ambulance service providers has gone up by 0.5%.
According to a report by IBIS, the number of air ambulance service providers stands at 1,077 in the US alone. The annual growth rate, which was at over 6 percent about five years ago, today stands at 1.8 percent. The air ambulance industry, in 2019, employs slightly more than 44 thousand people. The total revenue of the sector stands at about 4 billion says the same report. The market currently has been dominated by three major players – Air Methods, Global Medical Response Inc, and PHI Inc.
Factors Affecting the Air Ambulance Industry
It has been seen that the amount of revenue generated from patients with Medicare and Medicaid is markedly less. It is anticipated that the number of people holding private health insurance will go up in the year 2019 and beyond. This development, it is hoped, will bring an upward traction in terms of revenue for the industry. However, the biggest driver of growth is believed to be the aging population of the United States of America. This, along with the fact that rural hospitals are closing down at a breakneck pace, will fuel demand for air ambulances.