Fitness equipment are devices and machines that are used to perform physical exercises, to develop or maintain physical fitness and overall health. Popular fitness equipment include treadmills, stationary bikes, elliptical machines, free weights, weight machines, and more. The rising awareness about health issues such as obesity and the importance of maintaining fitness have increased the demand for such products. While commercial gyms have always been a preferred option for many, the pandemic and lockdowns resulted in people opting for home gyms instead.
The global Fitness Equipment Market is estimated to be valued at US$ 20.84 Bn in 2023 and is expected to exhibit a CAGR of 1.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The increased demand for home gyms during the pandemic has opened up an opportunity for fitness equipment manufacturers and retailers. While some people may return to gyms as restrictions ease, many have realized the convenience of a home workout setup. Manufacturers can capitalize on this trend by offering affordable bundles and packages for establishing an effective home gym. Emphasizing on multi-functional equipment that allow for different workouts using a single machine can help address space constraints at home. Partnering with popular fitness instructors for customized home workout plans and videos can make home gyms more attractive. Efforts must be made to highlight the long term health and cost benefits of investing in basic home fitness equipment.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as the fitness equipment industry requires large investments and established brands have economies of scale. However, scope remains for new players with innovative products.
Bargaining power of buyers: The bargaining power of buyers is high as fitness equipment is not considered an essential purchase and buyers have many options from global brands as well as local retailers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key components such as electronic parts have global suppliers. However, established fitness equipment brands can choose from multiple supplier options.
Threat of new substitutes: The threat of new substitutes is high with an increasing variety of connected home fitness options and popularity of boutique fitness studio memberships.
Competitive rivalry: The competitive rivalry in the fitness equipment industry is high among global giants as well as regional and private label equipment brands.
SWOT Analysis
Strength: The fitness equipment industry is driven by increasing health awareness and growing gym and home gym culture. Rising disposable incomes also support demand for high-end equipment.
Weakness: Fitness equipment has a relatively short replacement cycle due to fast innovation. Market also experiences slow growth during economic downturns when discretionary spending reduces.
Opportunity: Connected fitness equipment integrated with apps and virtual coaching expands the potential market. Demographic trends also support as preventive healthcare gains prominence.
Threats: Economic volatility and shifts to other exercise trends such as outdoor activities pose challenges. Strict regulatory norms for complex equipment further affect pricing.
Key Takeaways
The global fitness equipment market is expected to witness high growth over the forecast period supported by increasing health awareness globally. The market size for 2024 is expected to reach US$ 20.84 billion registering a CAGR of 1.3% between 2023 to 2030.
The North America region currently dominates the global fitness equipment market holding around 40% share in 2024. However, rising health and fitness consciousness as well as growing middle class in Asia Pacific presents lucrative opportunities. The APAC fitness equipment market is projected to grow at the fastest pace during the forecast period led by countries like China, India and Japan.
Key players operating in the fitness equipment market are Technogym, Precor, Johnson Health Tech, Cybex, and Nautilus. These brands continue to focus on product innovation as well as expansion into new regional markets. Technogym leads the connected fitness equipment space with its Technogym Skill line of products integrated with apps for personalized workouts.
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