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07 April, 2021, New York, USA – The strong demand for socially distanced online fitness modules will likely be a new beginning for the online fitness market, which will likely reach USD5.87 billion in valuation by 2028 end. The market is expected to grow at 7.03% during the 2021-2028 period, as demand for both key channels like on-demand, and live fitness modules continues to skyrocket. The rising demand for online fitness to engage in fitness activities to shield from coronavirus, and increase health wellbeing is on display from rising revenues of major players in the industry. For example, Peloton, reported a 121% increase in the second quarter of 2021, from the previous year, thanks to growing demand for consumers. Peloton’s initial valuation of USD 8.1 billion was something analysts scoffed at in 2019, as the company’s products left some to desire more. However, contrary to their expectations, the company’s valuation in 2021 has reached record levels at $32 billion according to reports in the Financial Times.
Furthermore, Peloton’s success has inspired promising rivals in the online fitness market. For example, the former US national team rowing coach, Bruce Smith has founded Hydrow, a virtual experience company for home rowing machine. Similar ventures like Liteboxer, a virtual sparring platform have also cropped up in recent years. Some challenges like the growth prospect in post-covid era also continue to loom large on the market. However, according to industry analysts, these virtual experiences are not just selling products which are essential for growth for consumers, but are also selling social-contact, a much needed luxury during the coronavirus period, and happiness as a mantra, which is increasingly becoming a rare commodity in the global economy.
Credible Market’s new report states that the online fitness market will continue its astounding journey during the 2021-2028 period, as rising penetration of smartphones, laptops, and digitalization will attract a large consumer base to the online fitness market. Moreover, the e-commerce remains a major draw for the growth of the interactive fitness market. According to the US department, the covid-19 pandemic blues did not affect the growth of the e-commerce market, driving it ahead of the retail market in terms of growth rate, with even older populations shifting to online shopping in significant numbers. In countries like the US, the number of internet users has crossed the 300 million mark, with large number of the population driving growth for new avenues like fitness, online music apps, education, and more.
Smart TV to Fuel Growth as Content Dominates Revenues
Smart TVs are the becoming the new iconic phase in digitalization, as increasing subscription of online platforms like Netflix, among others are fueling the next-gen purchase of entertainment in the global economy. Despite the covid-19 blues, the smart TV connected devices sales have reached millions with top companies like Amazon gaining a larger share as compared to established players like Samsung. In the fourth quarter of 2020, Amazon sold 13.2 million smart TV connected devices, rising by 45% to reach 12.1% share of the market. This outlines three key trends. Primarily it denotes that demand for digital technology, and electronics remains robust, despite dip in disposable incomes across the world. Moreover, it also notes promising innovation in connected technology such as smart gear, TVs, and consoles. This will be a major positive for players in the interactive fitness market. For example, new apps that can provide new virtual experiences for users through gaming consoles can be a new arena for growth, as technologies like 5G, cloud technology bring costs of innovation down. Thirdly, the competition in supporting technologies like smart TV remains healthy, driving prices to a competitive low, benefitting players in the interactive fitness market with growing demand for devices like Smart TVs. The rising demand for smart TVs, the growing innovation in supporting technologies, and increased competition among manufacturers in supporting technology will promise major growth for players in the interactive fitness market.
Demand for Subscription-based Model to Remain High in the Interactive Fitness Market
The interactive fitness market report is segmented into three categories based on the revenue model. These include subscription-based model, advertisement-based model, and hybrid model. The advertisement-based model will likely register strong growth as many small players in the interactive fitness are well-established on platforms like YouTube, which are great gateways for newbies, and fitness enthusiasts. Moreover, the social nature of interaction on these platforms have maintained transparency and consumer trust, which are ideal for long-term growth. furthermore, the increasing transparency in models like YouTube promises tremendous growth for small players, who often run the operation with little technical resources, and require low-investments to entry in the interactive fitness market. However, despite the many positives of models like advertisement, core fitness enthusiasts are likely to turn towards subscription-based model in the long run. The demand for professional fitness training amidst a growing demand for fitness, and personal wellbeing are essential for many. Furthermore, the covid-19 crisis, and subsequent need for a holistic wellbeing, and growing need for professional experts to meet different goals, and demands of fitness training will drive further demand for subscription-based model. Due to its tremendous potential for revenue earnings, and past growth in 2018, the subscription-based model is expected to garner highest total revenues during the 2021-2028 period. The demand for premium content, and availability of large numbers of skilled professionals remains a promising sign for growth for players in the interactive fitness market.
Online/Virtual Fitness Market Report is Segmented as Follows
By Streaming Type
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