Fitness Equipment
Buy This Industry Report
Get more in-depth industry information with a First Research industry report containing business challenges, trends, executive insight, call prep questions, and so much more!
Increase Appointments
Engage Prospects
Build Your Confidence
Industry Overview
The US fitness equipment manufacturing industry consists of about 100 companies with combined annual revenue of more than $3 billion. Major companies include Cybex International, ICON Health & Fitness, Life Fitness, Nautilus, and Precor. The industry is concentrated: the top five companies account for more than 50 percent of revenue.
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.
Products, Operations & Technology
Major products are motorized treadmills, stationary bikes, stair climbers, rowing machines, and elliptical "cross-trainers," collectively called aerobic exercisers; and weightlifting machines ("strength training"), and traditional weightlifting equipment ("free weights" and benches). In addition, there are a large number of ancillary products. This equipment allows individuals to exercise by themselves in a limited space. The two major market segments for fitness equipment are the home and the institutional exercise equipment market (including health clubs, corporations, apartments, and hotels). The home market is by far the largest and has grown significantly in the past decade. Products are made and marketed separately for the two segments.
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 stair climbers being among the most popular. Weightlifting machines and "free weights" appeal predominantly 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, 7 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, become bored with equipment. 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.
