Market Challenges And Opportunities

On the other hand, factors like expensive equipment prices and limited space in homes pose challenges for the industry. Privacy concerns and preference for outdoor activity is also restraining some consumers from purchasing expensive high-end equipment for home use. Tap water shortage in some regions also acts as a barrier for sales of equipment needing water. However, technology innovations introducing virtual and connected features in equipment are opening new opportunities. Design improvements are making equipment compact and multifunctional also help address challenges around space and portability.

Market Drivers:

Growing health awareness: Growing health awareness among people across the globe is a major driver propelling the market growth. This rising interest in fitness has persuaded equipment manufacturers to innovate and launch a wide variety of technologically advanced products suitable for customers of all ages and needs. The market offers a diverse portfolio of cardiovascular and strength training machines, free weights, desktop gyms, treadmills, elliptical machines, yoga mats and other flexible workout gear. Fitness apps compatible with smart equipment are also gaining popularity among new users. The choices allow people to incorporate physical exercise seamlessly into their daily routines and stick to a workout plan. The growing number of fitness centers/gyms and gyms along with convenient financing/subscription options has further boosted accessibility.

Growing obese and overweight population: Growing issues of obesity and lack of physical activity have become a major concern globally in recent years. Various statistics show alarming increases in overweight and obese populations worldwide. This is a serious health crisis as obesity is linked to several life-threatening diseases such as diabetes, heart diseases and cancers.

As people increasingly struggle with their weight due to sedentary lifestyles and junk food consumption, there is rising awareness about health and fitness. Many understand the need to engage in regular exercise to remain fit and lose weight in a healthy manner. This has significantly boosted the demand for various fitness equipment across both commercial and home settings. Gym memberships are at an all-time high as more join gyms and fitness studios to do workouts under trainer guidance using advanced equipment. Growing health concerns of obesity will continue pushing more people to adopt active and healthy lifestyles in the near future. As a result, the demand for high-quality fitness equipment suitable for both commercial and home settings is expected to steadily rise. Various equipment manufacturers are launching innovative products integrated with new technologies for interactive and efficient workouts.

Growing health club memberships: Increasing focus on health and fitness has become a major global trend over forecast period (2024-2031). More and more people are realizing the importance of physical activity and exercise in leading healthy and productive lives. This growing health consciousness has translated into rising memberships across gyms and fitness centers/gyms worldwide.

According to 2021 data provided by the International Health, Racquet, and Sportsclub Association; the global health club industry grew by 5.5% in 2021 alone to reach a total member count of 185 million. The industry is estimated to add over 10 million new members annually over the next few years. This rapid growth in health club membership is one of the key drivers propelling the market forward. As more people join gyms and exercise facilities, the demand for high-quality cardio and strength machines, free weights, functional training equipment, and others is experiencing significant growth.

Market Opportunities:

Increasing number of fitness centers and fitness centers/gyms: Increasing health awareness among people globally coupled with busy lifestyle is leading more individuals to join fitness centers and fitness centers/gyms. With rising income levels, people are willing to spend more on maintaining fitness and health. The need to tackle obesity and promote healthy living has resulted in proliferation of fitness centers worldwide. According to International Health, Racquet, and Sportsclub Association, the number of fitness centers/gyms globally grew over 4% yearly during the 2015-2020 period. This growth is expected to accelerate in coming years due to continued rising health consciousness.

Emergence of online fitness training platforms: The rapid spread of online connectivity through smartphones and easy access to internet around the world has opened up new avenues for businesses to reach customers in innovative ways. The fitness industry which has traditionally relied on gyms and workout centers is well placed to leverage the possibilities of the digital domain. Online fitness training platforms are emerging as a promising disruption bringing personalized training experiences to people's homes.

In 2021, according to a study by Zenoti, 81% of fitness facility operators started offering virtual or on-demand classes due to the pandemic, thereby indicating the demand for remote options.

Market Restraints:

High setup cost of commercial gyms: One of the major factors restraining the growth of the global fitness equipment market is the high setup costs that are associated with establishing commercial gyms and fitness centers. Setting up a fully-functional gym requires substantial capital expenditure on leasing an adequate space, installing necessary fitness equipment, hiring trained staff and specialists, as well as ongoing operational costs such as maintenance and utilities. According to data provided by the United Nations World Tourism Organization, a basic commercial gym setup incurs a minimum fixed cost of US$ 150,000 in developed economies. This significant financial barrier prevents many budding entrepreneurs and small business owners from venturing into the fitness industry. The high capital requirements also slow down the pace at which new gyms can open, thereby constraining the overall expansion of accessible fitness infrastructure.
Counter Balance: Commercial gym equipment packages can offer a comprehensive solution for fitness centers and commercial gyms, thus encompassing a variety of machines and gear that are tailored for different workout regimes. They can be a cost-effective option for gym owners, as they provide a broad spectrum of equipment at a lower cost per unit as compared to purchasing individual pieces of equipment.
Lack of user knowledge about equipment functionality: Lack of user knowledge about equipment functionality is certainly restraining the growth of the fitness equipment market. When people purchase expensive exercise machines for home use, they expect to be able to operate them easily and get the intended benefits. However, the reality is often different. Many modern fitness machines come with numerous customization options, special features, and settings that are rarely intuitively understandable, especially for beginners. Without proper guidelines or instructions, users may not be using the equipment correctly or optimally. This results in dissatisfaction and frustration, reducing repeat purchases and recommendations.
Counterbalance: To counterbalance this challenge, fitness equipment manufacturers can provide user manuals and instructional videos to educate users on how to use the equipment safely and effectively.

Figure 2. Global Fitness Equipment Market Share (%), By Equipment Type, 2023