Fitness equipment falls under the category of medium difficulty in the supply chain. It is a slow-moving consumer good (2C) with a moderate industry moat and intense competition. Both product strength and brand strength are equally important in this industry. In 2022, the global market value was $3.2 billion, and it is expected to reach $4.2 billion by 2028, with an estimated growth rate of 4.16% (2018-2022). Currently, treadmills remain the best-selling category. In 2022, Peloton had the highest global market share at 7.51%.

From a category perspective, treadmills still hold the top position, but their growth rate has significantly slowed. It is expected that ellipticals will surpass them by 2029. This trend is understandable as the popularization of fitness culture and related knowledge has made people more aware that running causes more knee damage compared to ellipticals and stationary bikes. Among current average training levels, ellipticals are relatively the easiest cardio equipment, while stationary bikes are favored by households and spin classes due to their small size and low cost. Rowing machines, ski machines, and stair climbers, although loved by many professional athletes and influencers, have characteristics such as being fun, having a short duration, and a high difficulty level. These characteristics mean they are unlikely to be among the top three because, regardless of how times change, the main fitness population will not be professional athletes and intense trainers. Being beginner-friendly will always be most important.

According to current data, the home market accounts for 42%, while the commercial market accounts for 58%. The pandemic has caused some abnormal fluctuations in category growth, and data will show significant volatility in the coming years. It is expected that the growth rate will be higher than the current CAGR, with an increase in the commercial market share and a decrease in the home market share. This forecast is based on the specificity of product usage scenarios and the summary of end-user experiences.

This is the market value divided into five regions. The reason for this division is that, although the economic levels of each continent vary, fitness culture is relatively balanced, providing a comparative variable for growth rates. Of course, breaking it down to each country would be a better choice.

From the chart, Europe has the highest total market value, mainly due to its relatively high overall economic level and a mid-term development of its fitness population. The lowest growth rate also makes logical sense. Although North America has the second highest base value, the United States alone surpasses the combined value of all other North American countries. In terms of market size, the U.S. can be directly compared to an entire region and is also the country with the most developed fitness culture. This is the macro-level data. To better understand the significance behind these numbers, a detailed analysis of specific segments is required.

We conducted a comprehensive survey combining questionnaires, interviews with professional athletes, gym owners, and ordinary users. Here, we only highlight some typical representatives, excluding similar types from the discussion. The ratings here are more international rather than focusing on a single country. For brand analysis, sales data and other metrics are not the primary research focus because such data is difficult to obtain and can be misleading. For instance, we can pull financial reports from public companies, but these reports do not clearly detail every expense and revenue. Additionally, different companies at different stages and industry positions have varying needs, and their R&D, production, supply, and sales ratios constantly change. It is more productive to analyze the reasons and results by focusing on significant strengths and weaknesses.

Technogym, as a unique luxury fitness equipment brand, offers excellent products but, like many luxury brands, comes with a significant price premium, though not exorbitant. The premium is usually four to five times higher. Its excellent brand concept and visibly expensive marketing efforts have left Technogym with no rivals in the short term. However, its products themselves are not easy to surpass. Brands like Life Fitness and Panatta have the potential to compete, though Life Fitness appears to be in a mature stage and is diversifying its offerings, while Panatta is not yet at that stage but has the potential.

Impulse, one of the few publicly listed Chinese companies with strong export performance, excels in product R&D speed and supply chain capabilities. However, it suffers from common issues found in Chinese factories. First, it struggles with branding, relying primarily on traditional secondary distribution channels. Given the company’s size, it invests too little in brand building and marketing, a strategy more suited to China a decade ago but inadequate in the current environment of significantly higher per capita GDP. Branding is essentially the only way forward; otherwise, the company will drown in a sea of price competition. Second, its in-house R&D capabilities are still weak, another common issue for domestic factories. Fitness equipment R&D is considerably more challenging than other industries, leading most manufacturers to continue “borrowing” designs. Learning from a major company in another industry that improved upon borrowed designs could help them catch up. Overall, Impulse is one of the best-positioned domestic manufacturers, and with the right direction, it could quickly make a mark on the global stage.

Panatta, although a sixty-year-old brand, has gained widespread recognition only in recent years, thanks to the launch of its New Power series. Currently, it offers the best overall user experience among all brands. This alone is enough to make it stand out. Interestingly, despite its excellent user experience, it is not favored by key customers (gym owners) due to its high price, large footprint, and somewhat rough appearance. This roughness is not in design but in craftsmanship, possibly because it is made in Italy. If Panatta could improve its supply chain, it could challenge many leading manufacturers.

Any brand that can achieve undisputed excellence in any of the aspects listed in the table is bound to capture a significant market share. Brand surveys are micro-level investigations, gathering data from various channels. We strive to eliminate subjectivity and extract useful information. This step is crucial for fitness equipment manufacturers/brands as it directly determines our strategic direction and the focus of our phased plans. Knowing oneself and the opponent is the key to winning every battle.