Fitness Equipment Manufacturing
Description
Companies in this industry manufacture exercise equipment such as treadmills, exercise bicycles, resistance machinery, and weights and weightlifting equipment. Major companies include: Cybex International and Life Fitness, iFit, Nautilus, and Peloton Interactive (all based in the US); as well as Amer Sports (Finland); Dyaco International and Johnson Health Tech (both based in Taiwan); Nantong Yida Sports (China); and Schnell Trainingsgeräte (Germany).
Worldwide, the rise of obesity and incidence of weight-related health problems such as diabetes, hypertension, and heart disease increase the concern about health and drives use of fitness equipment. Global sales of at-home fitness equipment are expected to have a compound annual growth rate (CAGR) of 8.21% by 2034, according to Precedence Research. Besides North America, markets such as the Asia/Pacific region, Latin America, and the Middle East drive growth.
The US fitness equipment manufacturing industry, a subset of the sporting goods manufacturing industry, includes about 1,600 establishments (single-location companies or units of multi-location companies) with combined annual revenue of about $10 billion.
COMPETITIVE LANDSCAPE
Demand is driven by consumer income and demographic trends. The profitability of individual companies depends on unique product designs and effective marketing. Large companies have some advantages in brand recognition, but small companies can compete effectively by building unique products.
The US sporting and athletic goods manufacturing industry, which includes makers of fitness equipment, is concentrated: the top 50 companies account for about 70% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include athletic goods, which account for about 30% of the industry's revenue, followed by gymnasium and exercise equipment (20%). Other products include golf equipment (about 15%).
Products for home use are mainly treadmills and exercise bikes. Cost is a primary consideration, so home equipment is generally built with lighter materials, as it is rarely used more than one hour per day. Products sold to fitness clubs include a wide range of equipment, with treadmills, exercise bikes, and ellipticals being among the most popular. Weightlifting machines and free weights tend to appeal more to men. Since a typical club owns dozens of pieces of fitness equipment, initial cost is a major consideration, but since equipment in a club is used very intensively, durability is even more important. A club treadmill or exercise bike may be used more than 12 hours per day, seven days a week. Accordingly, equipment sold to clubs is more sturdily built and costs more than that sold to the home market. However, consumers are beginning to demand equipment that is similar in feel to the sturdier equipment in use at commercial gyms.
Most fitness equipment consists of a mechanical portion that provides resistance to a muscular activity, and an electronic portion that interfaces with the user that allows resistance adjustment and provides a wide variety of information about the amount of exercise the user gets. Treadmills consist basically of a motor and a wide belt stretched between two rollers and supported by a deck. Because they absorb greater force from individuals running on them, treadmills must be built more sturdily than bikes and stair steppers. Exercise bikes, ellipticals, and stair climbers use sprocket chains, pulleys, ratchets, and a variety of resistance mechanisms. Weightlifting machines consist mainly of levers, pulleys, and weights.
Although large companies may have more than one production facility, most manufacturers have a single production plant that includes metal fabrication, plastics molding, and welding and painting operations. Handling metals, plastics, and paints means that environmental issues have to be addressed. Manufacturers hold patents on various features of their equipment, and new fitness equipment is constantly being developed to build more efficient machines that produce better results or desirable features. Product innovation is important because users, especially in clubs, can become bored with equipment and want new workout metrics. Styling and various electronics allow users to customize their workouts by setting the time, pace, and resistance, and can also provide information on heart rate and calories burned. Such features are an important way for manufacturers to differentiate their products.
Worldwide, the rise of obesity and incidence of weight-related health problems such as diabetes, hypertension, and heart disease increase the concern about health and drives use of fitness equipment. Global sales of at-home fitness equipment are expected to have a compound annual growth rate (CAGR) of 8.21% by 2034, according to Precedence Research. Besides North America, markets such as the Asia/Pacific region, Latin America, and the Middle East drive growth.
The US fitness equipment manufacturing industry, a subset of the sporting goods manufacturing industry, includes about 1,600 establishments (single-location companies or units of multi-location companies) with combined annual revenue of about $10 billion.
COMPETITIVE LANDSCAPE
Demand is driven by consumer income and demographic trends. The profitability of individual companies depends on unique product designs and effective marketing. Large companies have some advantages in brand recognition, but small companies can compete effectively by building unique products.
The US sporting and athletic goods manufacturing industry, which includes makers of fitness equipment, is concentrated: the top 50 companies account for about 70% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include athletic goods, which account for about 30% of the industry's revenue, followed by gymnasium and exercise equipment (20%). Other products include golf equipment (about 15%).
Products for home use are mainly treadmills and exercise bikes. Cost is a primary consideration, so home equipment is generally built with lighter materials, as it is rarely used more than one hour per day. Products sold to fitness clubs include a wide range of equipment, with treadmills, exercise bikes, and ellipticals being among the most popular. Weightlifting machines and free weights tend to appeal more to men. Since a typical club owns dozens of pieces of fitness equipment, initial cost is a major consideration, but since equipment in a club is used very intensively, durability is even more important. A club treadmill or exercise bike may be used more than 12 hours per day, seven days a week. Accordingly, equipment sold to clubs is more sturdily built and costs more than that sold to the home market. However, consumers are beginning to demand equipment that is similar in feel to the sturdier equipment in use at commercial gyms.
Most fitness equipment consists of a mechanical portion that provides resistance to a muscular activity, and an electronic portion that interfaces with the user that allows resistance adjustment and provides a wide variety of information about the amount of exercise the user gets. Treadmills consist basically of a motor and a wide belt stretched between two rollers and supported by a deck. Because they absorb greater force from individuals running on them, treadmills must be built more sturdily than bikes and stair steppers. Exercise bikes, ellipticals, and stair climbers use sprocket chains, pulleys, ratchets, and a variety of resistance mechanisms. Weightlifting machines consist mainly of levers, pulleys, and weights.
Although large companies may have more than one production facility, most manufacturers have a single production plant that includes metal fabrication, plastics molding, and welding and painting operations. Handling metals, plastics, and paints means that environmental issues have to be addressed. Manufacturers hold patents on various features of their equipment, and new fitness equipment is constantly being developed to build more efficient machines that produce better results or desirable features. Product innovation is important because users, especially in clubs, can become bored with equipment and want new workout metrics. Styling and various electronics allow users to customize their workouts by setting the time, pace, and resistance, and can also provide information on heart rate and calories burned. Such features are an important way for manufacturers to differentiate their products.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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