Physical activity plays a vital role when it comes to the wellbeing of physical and mental health . Exercising reduces the risk of developing major illnesses and diseases such as diabetes, cancer and various cardiovascular diseases.
The global fitness and equipment industry plays a significant role in improving quality of life. It is projected that the market valuation for the equipment sector alone is said to garner over $15.58 billion by the end of 2027 with an annual growth rate of 4%.
The home user base equipment is said to pick up rapidly and garner revenue worth $7.25 billion by the end of 2027 and the cardiovascular training equipment is said to take the lead amongst the kind and type of equipment. This sub-segment is said to contribute at least $9.7 billion for the forecast period.
North America will be the market leader in the coming years and this region alone is expected to contribute a whopping $5.4 billion by 2027.
Major contributors to this growth will be the rise in heath consciousness amongst not only the obese and overweight population but also people of all shapes and sizes.
Another growth factor in the infrastructure development initiatives amongst various gyms, wellness and fitness clubs. Quality infrastructure is an absolute must in order to attract individuals for workouts and for trainers to garner profitable opportunities.
The unprecedented pandemic has also in a way triggered the importance of exercise. It has pushed people to maintain good personal health and fitness which would directly impact their immunity and ability to fight the virus.
COVID-19 POSITIVE IMPACT
The unprecedented pandemic has been a blessing in disguise for the health and fitness equipment industry. Since lockdowns and curfews were imposed by governments and authorities across cities and nations people did not have access to fitness equipment.
In response to these restrictions a lot of people in order to continue their regular physical exertion took to purchasing such items which shot up the demand for in this segment.
These turbulent times have even driven innovation. Many market players have come up with innovative equipment that simplify and make working out just as effective and interesting thus boosting demand and growth in the home user equipment sector.
THE NEGATIVE IMPACT ON FITNESS CENTERS
A lot of gyms saw a drastic fall in memberships. A Mindbody survey reported that since the beginning of the pandemic nearly 80% of fitness consumers took to live streamed workouts sessions. This was only 7% in 2019.
Trainers have taken to providing more remote fitness sessions. Work from home also means work-out from home in today’s day and age.
“A legacy of the pandemic is that people know how to juggle various things at home now. When the pandemic dies down, digital options will be a substitute they’re familiar with if they don’t have time to make it to the gym,” said Chris Rondeau, CEO of the gym chain Planet Fitness.
This transition has led to permanent shutdowns of fitness centers and layoffs.
Sports Club Association (IHRSA) reported that as of September 2020 approximately 15% of the gyms permanently shutdown and that the industry lost over $15 billion in revenue which resulted in over 480,000 jobs cuts. Many even took to renting, selling and leasing their equipment to negate losses.
“From the rise of commercial gyms and online personal training sessions, the virus outbreak has steadily transformed the fitness industry. The industry is increasingly leveraging digital opportunities for a connected experience with customers. Classes covering everything from Zumba and Hooping to Yoga and Crossfit are being live streamed through digital tools. Home workout apps are witnessing a tremendous upsurge among millions in self isolation, helping them ease anxiety and stress caused by the crisis,” said Prateek Sood, Director of Grand Slam Fitness.