In an era expounded by sedentary
lifestyles but increased consumer awareness subject to health, fitness
equipment market seems to have made its mark in more ways than one. Of
late, the global populace has been depicting signs of increased lethargy
subject to hectic professional lifestyles, which has gradually resulted
in a worldwide awareness epiphany, leading to people increasingly
pursuing fitness activities.
Fitness equipment industry giants have
dutifully acknowledged this dynamic shift, and have been working
continuously to bring about a plethora of innovative products for the
fitness conscious crowd. As is the case with major domains lately,
technology has heavily penetrated fitness equipment market.
The manufacture of IoT-equipped multi-functional fitness devices is on a
rise, pertaining to the fact that every end-use sector now demands a
hefty chunk of the technology space. A recent instance demonstrating the
infiltration of technology in fitness equipment industry is that of
Apple’s announcement to launch Apple Watch-compatible gym equipment by
September this year.
Apple, a renowned name in the tech
cosmos, recently declared at the Developers Conference WWDC 2017 that it
will be forming alliances with numerous fitness equipment market
behemoths including the likes of Matrix, Core Health and Fitness,
Technogym, and Life Fitness, who, between them, manufacture more than
80% of gym equipment globally. If sources are to be believed, the Apple
Watch will be equipped with an NFC chip, which, by means of a simple
tap, will open up the communication channels for the gym equipment. In
effect, the equipment in motion will be able to communicate with the
Watch and inform the device about all the fitness details of the person
using the equipment. The Watch enabled equipment may ready to be shipped
and commercialized by September. With this critical initiative, Apple
intends to mark its footprints in fitness equipment market, which is
anticipated to cross a valuation of USD 14 billion by 2024.
An insight into APAC fitness equipment industry: The latest hotbed for potential investors
The Asia Pacific region is surprisingly
touted to be one of the most opportunistic belts for the growth of
fitness equipment market. This change of dynamics since the last few
years may be attributed to a barrage of determinants, such as the
increasing disposable incomes, the subsequent lifestyle changes,
increasing purchasing power, and most importantly, the rising number of
cardiovascular and other disorders arising due to lack of fitness and a
lethargic lifestyle. In addition to growing health awareness due to
fitness drives, the rising spending capacity has also led to consumers
willing to expend on luxury goods such as home gym equipment.
Technological advancements in countries
such as India, Japan, and China have led to an increase in the sales of
wearables and connected devices. Fitness monitors, smartphone apps,
fitness trackers, etc., to track consumer vitals have depicted a robust
increase in demand, pertaining to rising health awareness levels. A
research study demonstrates that one in six consumers use wearable
technology, thereby stimulating wearable devices market,
eventually bring about a renewed traction in fitness equipment
industry. Recently, the Chinese consumer electronics giant Xiaomi
surpassed Apple and FitBit to become the number one wearable brand. The
contribution of tech giants in the development of APAC fitness equipment
market thus, cannot be ignored, and what’s more, these behemoths have
been constantly combating with one another to come up with upscaled
versions of smart fitness products, and have also been making efforts to
establish in-house gyms equipped with 24X7 trainer facility, thereby
stimulating fitness equipment industry share from office gyms.
Crucial developments demonstrating the grass-root progress in APAC fitness equipment market:
- Fitness First, a fairly reputed fitness
equipment industry participant, had announced a five-year investment
program in 2014, with a target investment of around USD 100 million. By
2018, the firm plans to launch 50 new clubs, and expand its footprints
by approx. 60%. - Virgin Active, another gym equipment
manufacturer, declared its expansion plans in South East Asia fitness
equipment market last year, with an initial investment of GBP 150
million. - By portraying an exemplary instance of
the innovation in APAC fitness equipment industry, UFC Gym launched a
novel, state-of-the-art gym in Hanoi, thereby working through its
expansion plans in Asia.
India has been touted as one of the most
lucrative investment destinations in APAC, for the development of
fitness equipment market. The Government of India, for instance, in
2015, had issued orders to establish fitness centers in every department
to promote a healthy workplace environment. As per industry analysts,
India fitness equipment industry will be extensively driven by the entry
of various foreign chains, reduction in import duties, and rising
health awareness among Indian consumers.
The scope of fitness equipment market is
extraordinarily colossal, say experts. This comes as no surprise, given
that more and more people are becoming extremely health conscious. In
addition, the rising disposable incomes of consumers have led to an
increase in their purchase parity as well as living standards, both of
which are inherent drivers of fitness equipment industry. It has been
observed that this business space has a rather fragmented value chain,
given its massive outlook. Invariably, fitness equipment market offers
quite a lucrative spectrum of opportunities for manufacturers, component
suppliers, distributers, wholesalers, retailers, and resellers, since
the business has been gaining renewed prominence pertaining to extensive
awareness programs.
For example, Xenios Fitness, a minority
player in fitness equipment industry, made it to the headlines recently
for its offering of effective fitness programs through the online
distribution channel, which will make it markedly convenient for its
clientele across the globe. This feature will instantly offer personal
training programs to clients through the company’s app, and allow them
to connect to trainers of their choice.
Companies have also been collaborating
with software vendors to provide AI-powered personal assistants to their
consumers, for a personalized feel. The number of gyms and fitness
centers have been on a consistent incline since the last few years and
are expected to depict an exponential graph in the ensuing years as
well, thereby providing an impetus to the overall fitness equipment
market.
Furthermore, it is noteworthy to mention
that one of the essential factors driving fitness equipment industry is
that of consumer awareness, which is continually being exploited by
fitness companies. Most of the fitness equipment market players and even
the regional governments have been collaborating with the local fitness
clubs and new entrants to launch fitness drives for generating a sense
of awareness regarding the importance of health maintenance. Ireland’s
2016 launch of a ten-year National Physical Activity Plan to promote a
healthy lifestyle via fitness training is an instance of the same.
Furthermore, these companies also have
intensive marketing and promotional tactics on the cards, which will
further augment product sale, indirectly spurring fitness equipment
industry. The increasing health consciousness among consumers is sure to
prompt companies to expand their product portfolios, which will
gradually propel fitness equipment market even further, leading this
business sphere to register a growth rate of 4% over 2018-2024.
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