Companies that offer connected/interactive stationary exercise bikes, along with an attached display or mobile app offering live and on-demand classes and workouts.

Companies that offer connected/interactive treadmills, along with an attached display or mobile app offering live and on-demand classes and workouts.

Companies that offer connected/interactive stationary rowing equipment, along with an attached display or mobile app offering live and on-demand classes and workouts.

Companies that offer connected/interactive mirror devices with video playback and/or touchscreen features. Some devices include additional equipment and allow users to connect the smart mirror with existing equipment (ex: bikes and treadmills) to display live and on-demand workouts and other performance measures.

Companies that offer other types of connected/interactive equipment not classified above such as interactive punching bags, aerobic trainers, climbing machines etc. These devices come with an attached display or a mobile app offering live and on-demand classes and workouts.

New products and new technologies are bringing high-end gym workouts to the home.

Connected Fitness

Overview

<div>
  <h3>
    Connected fitness products enhance the home exercise experience
  </h3>
  <p>
    Connected fitness refers to apps, equipment, and other digital tools that monitor a user's heart rate and activity to provide personalized fitness programs and real-time guidance.
  </p>
  <p>
    Next-generation fitness equipment goes beyond exercise videos, stationary bikes, and treadmills. These tools simulate the experience of working out in person at boutique gyms with a personal trainer, or in group classes. Connected fitness products tap into the equipment’s built-in versatility, on-demand workout libraries, live streaming, personalization, and online communities. Due to the Covid-19 pandemic, social distancing practices have made exercising at home with connected equipment the preferred option—if not the only option—as  gyms are restricted or subject to reduced capacity. Furthermore, closer to three-fifths of Americans do not plan to renew their gym memberships even post-pandemic.
  </p>
</div>


The US connected fitness products market estimated at between USD 6.6–23.0 billion by 2025

Market Sizing

<div>
  <p>
    Disruptors experienced a surge in equipment sales:
  </p>
  <ul>
    <li>
      <p>
        <b>Peloton </b>
        reported a three-fold increase in sales and a 136.9% year-over-year (YoY) growth in connected fitness subscribers, reaching 1.3 million as of September 2020. Average workouts per connected fitness subscriber also increased to 20.7 times per month, up from 11.7 a year earlier.
      </p>
    </li>
  </ul>
  <ul>
    <li>
      <p>
        <b>Echelon</b>
         reported a tenfold growth in sales and a 40% increase in app-class attendance in March 2020 compared to pre Covid-19.
      </p>
    </li>
  </ul>
  <ul>
    <li>
      <p>
        <b>Tonal</b>
         announced sales had tripled since the nation-wide Covid-19 related lockdown.
      </p>
    </li>
  </ul>
  <ul>
    <li>
      <p>
        <b>Hydrow </b>
        announced a fivefold increase in growth in monthly orders during the Covid-19 related lockdown.
      </p>
    </li>
  </ul>
  <p>
    Detrimental effects from Covid-19 restrictions:
  </p>
  <ul>
    <li>
      <p>
        <b>Mirror</b>
        ,
        <b> FightCamp</b>
         and 
        <b>Peloton</b>
         had to suspend or limit home deliveries and equipment in March 2020.
      </p>
    </li>
  </ul>
  <ul>
    <li>
      <p>
        In November 2020, 
        <b>Peloton</b>
         announced supply constraints resulting in delayed deliveries for the foreseeable future despite an increase in factory capacity.
      </p>
    </li>
  </ul>
  <ul>
    <li>
      <p>
        <b>Tonal, FightCamp, Mirror </b>
        and
        <b> Peloton</b>
         temporarily halted production and broadcast of live classes during the March-April 2020 period.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


COVID19-IMPACT

Market Mapping

<div>
  <p>
    Most startups seem to understand the importance of having a variety of exercise equipment addressing different user needs. Peloton, which initially launched an exercise bike, later launched a treadmill. Similarly, other disruptors such as Volava and Echelon and incumbents such as iFIT Health & Fitness and Life Fitness have expanded their product range from their initial launches. Some startups in the industry have focused on producing smart mirrors that are powered by machine learning and motion tracking which are versatile in supporting multiple workout routines. These new products are yet to be developed by the incumbents in the industry.
  </p>
</div>


The Disruptors

<p>Peloton leads the new at-home exercise trend with Tonal featured as the next-highest funded disruptor. Both startups have capitalized on building mega libraries of on-demand workout videos, as well as on offering some form of live-streaming of classes. The leaderboard feature is available in most of the programs to motivate users to compete and stay invested in the equipment. Peloton led the industry in funding, having raised USD 1.9 billion, well ahead of Tonal—which is second highest with USD 450 million raised as of August 2021. The disruptor with the third highest level of funding is Fiture, a Chinese startup that has announced tentative plans to enter the US market.</p><p>Most of the disruptors identified have commercialized products and are now in either early or growth stages. Several prominent players such as Peloton, Echelon Fitness, and Volava cater to multiple product segments identified within the industry.</p> 

Disruptor Funding History

The Incumbents

<div>
  <h3>
    Traditional players re-innovate to compete
  </h3>
  <p>
    The at-home workout space has not seen partnerships between traditional players and new entrants so far. One reason could be the expertise traditional players have and the relatively low technology barriers against matching similar innovations. This has led to most traditional players choosing to develop their own products in-house.
  </p>
  <p>
  </p>
</div>


Connected Fitness

Connected Fitness

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