Fitness Industry Statistics 2021-2028 [Market Research]

market research fitness analysis

To better understand the current state of the fitness industry and the future of fitness, we researched and analyzed hundreds of studies on each individual segment and compiled them into an overview of 15+ fitness industry statistics.

Top Fitness Industry Statistics 2021

  • The fitness industry experienced a 32.45% decline in revenue during 2020 but is projected to rebound to 0.55% pre-pandemic levels by the end of 2021
  • Worth nearly 160 billion in 2021, the fitness industry is expected to grow 171.75% to 434.74 billion USD by 2028
  • The industries hit the hardest by the pandemic were the gym, health club, and boutique fitness studio industries
  • They declined up to 58.30% in the first year of the pandemic
  • In 2021, they are projected to still be down 22.5% from their pre-pandemic revenue levels in 2019
  • Meanwhile, online/digital fitness, fitness apps, fitness equipment, and fitness tracker markets all experienced significant growth due to the pandemic
  • Experiencing a revenue growth of 40.61% in 2020
  • Projected to be up 66.32% by the end of 2021, in comparison to their pre-pandemic levels
  • From 2021 to 2028, the online/digital fitness industry is projected to have the highest growth rate of 33.10% per year
  • The industry with the lowest compound annual growth rate (CAGR) is the gym industry, growing at a rate of 7.21% per year

The research and data provided come from hundreds of hours spent researching and analyzing data on the different segments within the fitness industry. Specifically, the data is referencing research from:

  • 77 Gym Membership Statistics, Facts, and Trends [2020/2021]
  • 200+ Gym Industry Statistics 2021 [Global Analysis]
  • 45+ Boutique Fitness Statistics 2021 [Research Review]
  • 90+ Fitness Equipment Statistics 2021/2022 [Research Review]
  • 40+ Online Fitness Statistics for 2021/2022 [Research Review]
  • 100+ Fitness App Statistics 2021/2022 [Research Review]
  • 50+ Wearable Fitness Tracker Statistics 2021

Fitness industry revenue: 2019 - 2028

As of 2019, the Fitness Industry was worth approximately 159.10 billion, hitting a peak before experiencing a 32.45% decline in 2020. 

It is projected that the industry will rebound to its pre-pandemic levels by the end of 2021, to an approximate revenue of 159.98 billion USD, and continue growing to 190.56 billion in 2022.

Fitness-Industry-Revenue-2019-to-2028

Projections estimate that the industry will reach a revenue of 434.74 billion by 2028, growing 171.75% from 2021. 

Fitness-Industry-Change-in-Revenue-From-the-Pandemic-To-2028

Pandemics impact on segments of the fitness industry market

With the gym industry’s greater than 50% decline in revenue in 2020, it was the first time that gyms didn’t make up more than half of the fitness industry’s revenue. That’s because the other segments combined for 54.03% of the total market revenue. 

Fitness-Industry-Total-Revenue-During-Pandemic-by-Segment

The fitness equipment industry saw the greatest growth during the first year of the pandemic - increasing 50.6% from 6.8 billion in 2019 to 10.2 billion in 2020. 

While the industry with the greatest growth over the course of the entire pandemic is the online/digital fitness industry. Supplying on-demand, live-streamed, and pre-recorded fitness content online exploded by 76.7% from 6.1 billion in 2019 to 10.7 billion by the end of 2021.

Fitness-Industry-Change-in-Revenue-During-Pandemic-by-Segment

The other segments experiencing growth were wearable fitness trackers (up 63.8% from 2019 - 2021) and fitness apps (up 65.2% from 2019 - 2021). 

Meanwhile, the boutique fitness industry has experienced the greatest decline, dropping 58.3% in 2020 and still down 51.2% by the end of 2021. 

Future of the fitness industry by segment 2019 - 2028

The gym industry has long been the major pillar of the fitness industry, accounting for 61% of the industry’s revenue as of 2019 (96.7 billion in revenue). 

With other segments in the industry experiencing growth, it is expected that the gym industry will only account for 30% of the fitness industry’s revenue by 2028 (131.9 billion in revenue).

Fitness-Industry-Market-Share-by-Segment-2019-to-2028

The two major segments taking up more of the market share are:

  • Fitness trackers - Expected to go from 16% market share in 2019 (25.6 billion in revenue) to 26% in 2028 (114.3 billion in revenue)
  • Online/digital fitness - Expected to go from 4% market share in 2019 (6.1 billion in revenue) to 18% market share in 2028 (79.3 billion in revenue)

The two segments with the lowest market shares in 2021 and 2028 are:

  • Fitness apps - Expected to go from 3% market share in 2021 (4.7 billion) to 5% in 2028 (20.8 billion)
  • Fitness equipment - Expected to go from 7% market share in 2021 (11.3 billion) to 7% in 2028 (31.9 billion)

Future of-Fitness-Industry-Revenue-by-Segment-2019-to-2028

Fitness industry growth 2021 to 2028

The fastest-growing segment in the fitness industry is the online/digital fitness industry. Revenue generated around delivering live-streamed, on-demand, and pre-recorded fitness content is expected to grow 33.1% each year, for a total growth of 640.1% from 2021 to 2028.

Fitness-Industry-Growth-by-Segment-2021-to-2028

Fitness apps have the second-highest CAGR (compound annual growth rate) at 23.5%, expecting to grow 338.2% over the 7 year period. 

Meanwhile, the segment expecting the second-highest overall growth over the 7 year period is boutique fitness, expecting to grow 450% from 2021 to 2028. 

The COVID-19 pandemic has directly affected the fitness industry in 2020 as many gyms and fitness centers were forced to shut down operations to reduce the spread of the virus. The fitness industry suffered a huge decline in revenue, but is expected to start to recover in 2021 and the succeeding years as people put more emphasis on their health and well-being.

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Use of content

  • If you want to know more about the fitness industry statistics, you are more than welcome to reach out to Nick Rizzo at [email protected]. He’s also available to do interviews.
  • Feel free to use data found in this article on any online publication. We only request that you link back to this original source.

Nicholas Rizzo

  • Sports & Recreation ›

Sports & Fitness

Fitness industry in the United States - statistics & facts

How many americans participate in sports and outdoor activities, the rise of efitness in the u.s., key insights.

Detailed statistics

Number of U.S. health clubs & fitness centers 2008-2022

Most used gyms in the U.S. as of April 2022

Fitness club employment in the United States 2012-2023

Editor’s Picks Current statistics on this topic

Gym, health & fitness club industry revenue in the United States 2010-2023

Health & fitness club companies by revenue in the United States 2021

Sports Participation

Further recommended statistics

  • Premium Statistic U.S. health club industry revenue 2000-2020
  • Premium Statistic Fitness club industry value added in the U.S. 2021
  • Premium Statistic Health & fitness club companies by revenue in the United States 2021
  • Premium Statistic Health clubs ranked by number of facilities in the U.S. 2021

U.S. health club industry revenue 2000-2020

Revenue of the health club industry in the United States from 2000 to 2020 (in billion U.S. dollars)

Fitness club industry value added in the U.S. 2021

Economic impact of the fitness industry in the United States in 2021 (in billion U.S. dollars)

Health & fitness club companies by revenue in the United States 2021

Leading health club industry companies in the United States in 2021, by revenue (in million U.S. dollars)

Health clubs ranked by number of facilities in the U.S. 2021

Leading health club industry companies in the United States in 2021, by number of facilities

  • Premium Statistic Number of U.S. health clubs & fitness centers 2008-2022
  • Premium Statistic U.S. states with the most fitness centers 2021
  • Premium Statistic Most used gyms in the U.S. as of April 2022
  • Premium Statistic Health club membership rate in metro areas in the U.S. as of April 2022
  • Premium Statistic Share of gym visits in the U.S. in Q1 2023, by chain
  • Premium Statistic Number of LA Fitness locations in the U.S. 2023, by state

Number of U.S. health clubs & fitness centers 2008-2022

Number of health clubs in the United States from 2008 to 2022

U.S. states with the most fitness centers 2021

Number of health clubs in the United States in 2021, by state

Most popular gyms in the United States as of April 2022

Health club membership rate in metro areas in the U.S. as of April 2022

Gym penetration rate in selected metro areas in the United States as of April 2022

Share of gym visits in the U.S. in Q1 2023, by chain

Share of visits to fitness chains in the United States in the 1st quarter of 2023, by chain

Number of LA Fitness locations in the U.S. 2023, by state

Number of LA Fitness gyms in the United States as of April 2023, by state

  • Premium Statistic Fitness industry enterprises in the United States 2023
  • Basic Statistic Fitness club employment in the United States 2012-2023
  • Premium Statistic Key figures on personal trainers in the U.S. 2023

Fitness industry enterprises in the United States 2023

Number of fitness industry businesses in the United States from 2012 to 2023

Number of employees in the gym, health and fitness club industry in the United States from 2012 to 2021, with a forecast for 2023

Key figures on personal trainers in the U.S. 2023

Key figures on the personal trainers industry in the United States in 2023

Fitness participation

  • Basic Statistic Percentage of U.S. population engaged in sports and exercise per day 2010-2022
  • Basic Statistic Hours per day spent on leisure and sports in the U.S. by employment status 2022
  • Premium Statistic Most popular sports activities in the U.S. 2024
  • Premium Statistic Most popular outdoor activities in the U.S. 2022
  • Basic Statistic Participation rate in outdoor sports 2021, by age group
  • Premium Statistic Types of sports / activities high-income household members participated in the U.S.

Percentage of U.S. population engaged in sports and exercise per day 2010-2022

Average percentage of the population engaged in sports, exercise, and recreation per day in the United States from 2010 to 2022

Hours per day spent on leisure and sports in the U.S. by employment status 2022

Average hours per day spent on leisure and sports in the United States from 2009 to 2022, by employment status

Most popular sports activities in the U.S. 2024

Most popular sports activities in the U.S. as of March 2024

Most popular outdoor activities in the U.S. 2022

Leading outdoor activities in the United States in 2022, by number of participants (in millions)

Participation rate in outdoor sports 2021, by age group

Participation rate in outdoor sports in the United States in 2021, by age group

Types of sports / activities high-income household members participated in the U.S.

Types of sports / activities rich Americans regularly participated in in the United States in 2022

Fitness equipment

  • Premium Statistic Revenue of the sports equipment industry in the U.S. 2018-2028
  • Premium Statistic Wholesale sales (consumer segment) of home gyms in the U.S. 2007-2023
  • Premium Statistic Sports equipment market revenue in the U.S. from 2018 to 2028, by product type
  • Premium Statistic Most common home fitness equipment in the U.S. as of April 2022
  • Premium Statistic Most common brand of treadmill in the United States as of April 2022
  • Premium Statistic Most common reasons for not owning fitness gear at home in the U.S. as of April 2022

Revenue of the sports equipment industry in the U.S. 2018-2028

Revenue of the sports equipment industry in the United States from 2018 to 2024, with a forecast to 2028 (in billion U.S. dollars)

Wholesale sales (consumer segment) of home gyms in the U.S. 2007-2023

Wholesale sales of home gyms for consumers in the United States from 2007 to 2023 (in million U.S. dollars)

Sports equipment market revenue in the U.S. from 2018 to 2028, by product type

Sports equipment market revenue in the United States from 2018 to 2028, by product type (in billion U.S. dollars)

Most common home fitness equipment in the U.S. as of April 2022

Most popular home exercise equipment among users in the United States as of April 2022

Most common brand of treadmill in the United States as of April 2022

Most common brand of treadmill owned in the United States as of April 2022

Most common reasons for not owning fitness gear at home in the U.S. as of April 2022

Most common reasons for not owning fitness equipment at home in the United States as of April 2022

Fitness apps & wearables

  • Premium Statistic Most downloaded health and fitness apps U.S. 2022
  • Premium Statistic U.S. download share of health and fitness apps 2022, by subcategory
  • Premium Statistic U.S. leading health and fitness apps search keywords 2022
  • Premium Statistic Health and fitness apps usage in the U.S. 2022
  • Premium Statistic Wearables and connected fitness equipment market size in the U.S. 2026
  • Premium Statistic U.S. digital health and fitness market revenues 2019-2026, by segment

Most downloaded health and fitness apps U.S. 2022

Leading health and fitness apps in the United States in 2022, by downloads (in millions)

U.S. download share of health and fitness apps 2022, by subcategory

Most downloaded health and fitness app subcategories in the United States from January to October 2022

U.S. leading health and fitness apps search keywords 2022

Most used health and fitness app keywords in the United States from January to October 2022

Health and fitness apps usage in the U.S. 2022

Usage reach of health and fitness apps in the United States in 2019 and 2022

Wearables and connected fitness equipment market size in the U.S. 2026

Wearables and connected fitness equipment market size in the United States in 2019, 2022, and 2026 (in billion U.S. dollars)

U.S. digital health and fitness market revenues 2019-2026, by segment

Revenues of digital health and fitness mobile apps, connected equipment, and wearable devices in the United States in 2019, 2022 and 2026 (in billion U.S. dollars)

  • Premium Statistic Revenue forecast for the eServices market by segment in United States until 2030
  • Premium Statistic Online revenue forecast for the eServices Fitness market in United States until 2024
  • Premium Statistic Number of users in the eServices Fitness market in United States until 2024
  • Premium Statistic Penetration rate for the eServices Fitness market in United States until 2024

Revenue forecast for the eServices market by segment in United States until 2030

Online revenue forecast for the eServices market by segment in United States from 2023 to 2030 (in million U.S. dollars)

Online revenue forecast for the eServices Fitness market in United States until 2024

Online revenue forecast for the eServices Fitness market in United States from 2017 to 2024 (in million U.S. dollars)

Number of users in the eServices Fitness market in United States until 2024

Forecast for the number of online users in the eServices Fitness market in United States from 2017 to 2024 (in million)

Penetration rate for the eServices Fitness market in United States until 2024

Online penetration rate forecast for the eServices Fitness market in United States from 2017 to 2024

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Gym, Health & Fitness Clubs in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

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Industry statistics and trends.

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Gym, Health & Fitness Clubs in the US

Industry Revenue

Total value and annual change from . Includes 5-year outlook.

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Trends and Insights

Market size is projected to over the next five years.

Market share concentration for the Gym, Health & Fitness Clubs industry in the US is , which means the top four companies generate of industry revenue.

The average concentration in the sector in the United States is .

Products & Services Segmentation

Industry revenue broken down by key product and services lines.

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Table of Contents

About this industry, industry definition, what's included in this industry, industry code, related industries, domestic industries, competitors, complementors, international industries, performance, key takeaways, revenue highlights, employment highlights, business highlights, profit highlights, current performance.

What's driving current industry performance in the Gym, Health & Fitness Clubs in the US industry?

What's driving the Gym, Health & Fitness Clubs in the US industry outlook?

What influences volatility in the Gym, Health & Fitness Clubs in the US industry?

  • Industry Volatility vs. Revenue Growth Matrix

What determines the industry life cycle stage in the Gym, Health & Fitness Clubs in the US industry?

  • Industry Life Cycle Matrix

Products and Markets

Products and services.

  • Products and Services Segmentation

How are the Gym, Health & Fitness Clubs in the US industry's products and services performing?

What are innovations in the Gym, Health & Fitness Clubs in the US industry's products and services?

Major Markets

  • Major Market Segmentation

What influences demand in the Gym, Health & Fitness Clubs in the US industry?

International Trade

  • Industry Concentration of Imports by Country
  • Industry Concentration of Exports by Country
  • Industry Trade Balance by Country

What are the import trends in the Gym, Health & Fitness Clubs in the US industry?

What are the export trends in the Gym, Health & Fitness Clubs in the US industry?

Geographic Breakdown

Business locations.

  • Share of Total Industry Establishments by Region ( )

Data Tables

  • Number of Establishments by Region ( )
  • Share of Establishments vs. Population of Each Region

What regions are businesses in the Gym, Health & Fitness Clubs in the US industry located?

Competitive Forces

Concentration.

  • Combined Market Share of the Four Largest Companies in This Industry ( )
  • Share of Total Enterprises by Employment Size

What impacts market share in the Gym, Health & Fitness Clubs in the US industry?

Barriers to Entry

What challenges do potential entrants in the Gym, Health & Fitness Clubs in the US industry?

Substitutes

What are substitutes in the Gym, Health & Fitness Clubs in the US industry?

Buyer and Supplier Power

  • Upstream Buyers and Downstream Suppliers in the Gym, Health & Fitness Clubs in the US industry

What power do buyers and suppliers have over the Gym, Health & Fitness Clubs industry in the US?

Market Share

Top companies by market share:

  • Market share
  • Profit Margin

Company Snapshots

Company details, summary, charts and analysis available for

Company Details

  • Total revenue
  • Total operating income
  • Total employees
  • Industry market share

Company Summary

  • Description
  • Brands and trading names
  • Other industries

What's influencing the company's performance?

External Environment

External drivers.

What demographic and macroeconomic factors impact the Gym, Health & Fitness Clubs in the US industry?

Regulation and Policy

What regulations impact the Gym, Health & Fitness Clubs in the US industry?

What assistance is available to the Gym, Health & Fitness Clubs in the US industry?

Financial Benchmarks

Cost structure.

  • Share of Economy vs. Investment Matrix
  • Depreciation

What trends impact cost in the Gym, Health & Fitness Clubs in the US industry?

Financial Ratios

  • 3-4 Industry Multiples (2018-2023)
  • 15-20 Income Statement Line Items (2018-2023)
  • 20-30 Balance Sheet Line Items (2018-2023)
  • 7-10 Liquidity Ratios (2018-2023)
  • 1-5 Coverage Ratios (2018-2023)
  • 3-4 Leverage Ratios (2018-2023)
  • 3-5 Operating Ratios (2018-2023)
  • 5 Cash Flow and Debt Service Ratios (2018-2023)
  • 1 Tax Structure Ratio (2018-2023)

Data tables

  • IVA/Revenue ( )
  • Imports/Demand ( )
  • Exports/Revenue ( )
  • Revenue per Employee ( )
  • Wages/Revenue ( )
  • Employees per Establishment ( )
  • Average Wage ( )

Key Statistics

Industry data.

Including values and annual change:

  • Revenue ( )
  • Establishments ( )
  • Enterprises ( )
  • Employment ( )
  • Exports ( )
  • Imports ( )

Frequently Asked Questions

What is the market size of the gym, health & fitness clubs industry in the us.

The market size of the Gym, Health & Fitness Clubs industry in the US is measured at in .

How fast is the Gym, Health & Fitness Clubs in the US market projected to grow in the future?

Over the next five years, the Gym, Health & Fitness Clubs in the US market is expected to . See purchase options to view the full report and get access to IBISWorld's forecast for the Gym, Health & Fitness Clubs in the US from up to .

What factors are influencing the Gym, Health & Fitness Clubs industry in the US market trends?

Key drivers of the Gym, Health & Fitness Clubs in the US market include .

What are the main product lines for the Gym, Health & Fitness Clubs in the US market?

The Gym, Health & Fitness Clubs in the US market offers products and services including .

Which companies are the largest players in the Gym, Health & Fitness Clubs industry in the US?

Top companies in the Gym, Health & Fitness Clubs industry in the US, based on the revenue generated within the industry, includes .

How many people are employed in the Gym, Health & Fitness Clubs industry in the US?

The Gym, Health & Fitness Clubs industry in the US has employees in United States in .

How concentrated is the Gym, Health & Fitness Clubs market in the United States?

Market share concentration is for the Gym, Health & Fitness Clubs industry in the US, with the top four companies generating of market revenue in United States in . The level of competition is overall, but is highest among smaller industry players.

Methodology

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Sweating for the fitness consumer

Fitness is a “Yes, and” industry. While other goods and services compete intensely for a finite number of consumer purchases, fitness consumers continue to use a widening array of services, tools, and solutions to help them look, feel, and function better. 1 McKinsey identified wellness as “the next trillion-dollar market” in 2012. For more, see Putney Cloos, Sherina Ebrahim, Tracey Griffin, and Warren Teichner, “ Healthy, wealthy and (maybe) wise: The emerging trillion-dollar market for health and wellness ,” May 1, 2012. Our research shows that the market for health and wellness products and services is growing by 5 to 10 percent per year, depending on the region. An even more fragmented market of complementary solutions is filling the white space around new movements, activity measurement, experiences, and more.

The COVID-19 pandemic, which forced large swaths of the global population to isolate with members of their households (and their devices), has spurred the shift toward personalized at-home workouts and made overall wellness even more salient. Indeed, 40 percent of the general population surveyed now consider wellness a top priority in daily life . The growing number of fitness choices—exact counts are difficult to find, but fitness-tech apps raised a record-breaking $2 billion from investors in 2020 2 Fitness Tech Report 2020 , SportsTechX, sportstechx.com. —now seek to serve this need in increasingly diverse ways. Prior to the pandemic, the same consumer may have complemented their health club membership with a smartwatch, a social-fitness app, an at-home workout solution, and occasional boutique studio sessions with friends. As vaccines roll out globally, the question is what will happen to the fitness consumer—if their use of at-home solutions and equipment will keep them away from the gym or if they will rush back.

The answer appears to be something in between. The fitness industry is shifting from surviving the COVID-19 crisis to looking for ways to thrive in the next normal, building consumer relationships that last and grow. Providers of solutions and services for fitness practices both inside and outside the home will need to reassess their value propositions, articulate their roles in consumers’ fitness routines, and commit to an approach that will win over the right consumers for them. Specifically, providers of on-site fitness solutions should consider a more hybrid approach that keeps consumers figuratively and digitally connected; makers of in-home tools and equipment should lean into the normalization of DIY fitness; and, of course, data security should be prioritized with such a high level of connectivity. Success will accrue to those that earn consumers’ trust and a place in their fitness routines.

Nowhere to go but looking to move

The COVID-19 crisis has elevated consumers’ awareness of the importance of health and wellness, with 68 percent of survey respondents reporting that they prioritized their health more after the onset of the pandemic. Exercise is also the most commonly reported tool for relieving stress: 65 percent of gymgoers surveyed reported using exercise as stress relief. 3 The COVID era fitness consumer , IHRSA, October 2020, ihrsa.org. The share of these consumers who reported using mobile apps to fulfill health and fitness goals accordingly increased from about 50 percent before the COVID-19 outbreak to 75 percent in June 2020. 4 Jonathan Harrop, “3 predictions for the health & fitness mobile app market,” Business of Apps, June 15, 2020, businessofapps.com. Our surveys throughout the pandemic consistently found consumers exercising at home and spending on technology solutions. For example, one McKinsey survey shows that monthly consumer spending on connected fitness equipment increased by 5 percent and spending for paid apps rose about 10 percent. A little more than 10 percent of the American general population have also set up home gyms or have accessed fitness resources online during the pandemic. Of the online exercisers, 70 percent intend to maintain or increase their use of online fitness  even after the pandemic abates.

Despite this experimentation, 50 percent of consumers from one survey were less happy with their pandemic-era routines than they were with what they had before. Of these consumers, about half said their at-home workouts were not intense enough, that their at-home fitness regimens were less consistent, and that they struggled to find motivation. Indeed, 95 percent of prepandemic fitness club members reported missing at least one element of working out at the gym, 5 The COVID era fitness consumer , IHRSA, October 2020, ihrsa.org. and more than 60 percent of Americans who exercise regularly say they will likely prefer a mix of working out at a gym or studio and at home in the future. 6 Rachel King, “Most Americans plan to continue at-home workouts even once gyms fully reopen,” Fortune , August 17, 2020, fortune.com.

As vaccines roll out and pandemic restrictions ease, we have observed consumers return to gyms and studios in those markets while continuing to use alternatives to the gym. In short, consumers are finding ways to continue to take part in fitness, and industry participants will need to figure out how best to serve consumers who now use a portfolio of options.

Attracting and retaining fitness consumers for the long term

The local gym is not dead, and at-home solutions are here to stay. This should be good news for the industry even though the breadth and quality of competitive offerings has increased; our experience with drivers of membership churn shows that nothing helps drive retention more than sustained visits and workouts. For example, someone may have left too late from work to go to the gym but can do 30 minutes on their spin bike that night (for our segmentation of fitness consumers, see infographic, “Fitness consumer archetypes”).

Sweating for the fitness consumer

On-site fitness: From in-person to hybrid

The pandemic has forced the $97 billion global health club industry to change its operations to limit person-to-person interaction. 7 For more on the state of the health club industry, see page 24 of 2020 IHRSA Global Report , IHRSA, June 2020, ihras.org. However, we believe that there is hope for traditional gyms and studios: 30 percent of US customers went to the gym or studio at least once in the first two weeks of February 2021, and 70 percent of fitness consumers report missing their gym as much as they miss family and friends. For fully vaccinated consumers, 35 percent went to the gym, 8 McKinsey US Consumer Sentiment Survey, May 2021. an improvement over gyms’ prepandemic market penetration of about 25 percent in the United States. As economies reopen, gyms and studios should reexamine their value propositions and place them in the context of consumers’ portfolio approach to fitness, particularly embracing their potential as third places—community hubs—where members can focus on themselves.

Reaching wellness enthusiasts, researcher-experimenters, and traditionalists can be important for gyms and studios. Wellness enthusiasts are likely to return; traditionalists who have not yet developed new habits may reincorporate gyms and studios into their routines once they feel safe. Similarly, researcher-experimenters are likely to be enticed by the variety of new options.

Crucially, gyms and studios should cultivate communities to help meet consumers’ psychological need for belonging and mutual support. Community types can vary, from ones built around leaders or experts—instructors—to supportive or competitive groups, but our research shows that they all make members feel that they are taking time for themselves. For instance, one UK gym started a virtual running club—with social media support—to foster a sense of togetherness and positive competition during the pandemic.

In addition to defining the optimal community type for the values of a club and its members, gyms and studios should clarify their value propositions for their target consumers—and, if necessary, adapt them. One opportunity area may be in reviewing floor-space utilization and productivity in a similar manner to a traditional retailer. For instance, if a gym’s members have shifted to doing independent cardiovascular exercise outside the gym, decision makers can change the gym’s layout and reallocate space accordingly. One large chain of gyms brought members outside the gym with outdoor-class experiences and launched its own streaming service for classes on demand, a reflection of the trend of many gyms’ reallocation of floor space.

To fit into consumers’ portfolios of fitness habits, gyms and studios could consider ways to partner with providers of complementary offerings. Depending on their value propositions and goals, a gym and a fitness tracker may be good partners. Even prepandemic, a fitness studio chain successfully partnered with an indoor-cycling chain using their shared value proposition of live performance tracking to motivate members. With the ongoing expansion of fit-tech capabilities, traditional on-site fitness players may have opportunities to offer data and performance tracking in innovative areas such as power measured by someone’s output in watts. To fulfill some members’ desire for connection and self-expression—consider wellness enthusiasts whose identities are built around fitness—gyms and studios can design spaces to facilitate community engagement or provide visually appealing spaces for social media posts. One cycle club has used a mural to fuel social media engagement.

Clubs can also redesign memberships and pricing to offer more flexibility for members who are now exercising in multiple ways and to optimize retention and average revenue per user. Not only did the pandemic force some competitors to close, reshaping demand and price tolerances, but it also pushed the remaining gyms and studios to offer hybrid memberships that opened the door to expanded models of price accessibility. Going forward, the fitness industry can adapt traditional pricing analysis to optimize their pricing—identifying value, matching offers to consumer segments, and timing discounts. Like many other industries, fitness businesses should commit the resources required to regularly pilot new pricing strategies and expand their offerings across the in-gym and at-home ecosystem. 9 For more on building new businesses, see “ Bringing the start-up in-house with Leap by McKinsey .”

Unfortunately, the economic shock of the pandemic resulted in more than a million lost jobs by the end of 2020. 10 Melissa Rodriguez, “U.S. fitness industry revenue dropped 58% in 2020,” IHRSA, February 25, 2021, ihrsa.org. Gyms and studios can reinforce the confidence of their staff by communicating their value propositions and staff’s roles in fulfilling those visions. Gyms and studios can also support staff in their work using technology to gather data and curate fitness resources for consumers in a fragmented market.

At the same time, gyms and studios can adjust the size of their geographic and real-estate footprint and consider opportunities to expand or contract in different areas based on their performance. Over time, M&A opportunities will emerge.

In-home and DIY fitness: From alternative to standard

Outside of gyms and studios, digital-enabled solutions have evolved from low-cost alternatives and add-ons to stand-alone offerings that are a regular part of consumers’ lives. These kinds of solutions offer convenience and personalization that can appeal to wellness enthusiasts and researcher-experimenters alike.

However, the market for in-home and DIY fitness solutions and equipment will be competitive. This is a sector that has attracted many entrepreneurs and investors, and the number of good and emerging solutions is rapidly expanding. Furthermore, with more consumers returning to the gym as economies reopen, the growth in new users for in-home equipment may slow. To prepare themselves, connected-equipment manufacturers should plan for a partial rebalancing of their customer base back toward commercial businesses and evaluate the potential returns of special equipment offerings targeted at specific consumer segments. For instance, researcher-experimenters may love connected equipment that integrates a wide variety of brand-new, high-quality content at reasonable prices, but traditionalists may seek simple analog equipment that is well made.

As with gyms and studios, solutions that have a community component can bring people together. Downloads and use of fitness and health apps grew during the pandemic, but the people seem to be the real draw. During the first few weeks of lockdown—March 9–24, 2020—overall downloads of health and fitness apps grew 27 percent, but apps that include a community component saw four times as many downloads. 11 Airnow Data Market Intelligence, Airnow Data, accessed March 17, 2021, airnowdata.com. One lesson for providers of health and fitness apps is to design and position their apps as facilitators and gateways to fitness-minded communities. Indeed, apps that enable digital streaming for live classes, sometimes involving sought-after instructors who acknowledge individual students by name, can replicate some of the sense of community people might get from an in-person group-exercise class. Large tech companies have already begun to provide their own offerings that are more like fitness ecosystems that include class curation and fitness tracking. To prepare for a time when more consumers return to gyms and studios, app providers should strengthen their user communities to keep users coming back.

An increasing need for data security

Connected-equipment manufacturers and digital fitness players need to remain vigilant in protecting themselves and their consumers. One large wearables company was compromised in a ransomware attack in July 2020 that shut down its ecosystem for users, requiring days to recover. More recently, another connected-fitness-solution provider was found to have an exposed API that would allow hackers to gain access to customer data. The potential for sensitive-information leaks or outright ransom attacks is proving a very real risk that can blindside an unprepared industry player, and data security should be a priority for companies that control consumer data. Indeed, a data breach is also a breach of trust and can jeopardize relationships with consumers.

The COVID-19 pandemic has scrambled fitness consumers’ habits, and the next phase in recovery is a prime opportunity for industry participants to reset. Selecting a target consumer segment and updating value propositions to better align with their wants and needs and responding to industry developments will help industry participants survive and thrive in the new normal.

Eric Falardeau is a partner in McKinsey’s Montréal office, John Glynn is a consultant in the Toronto office, and Olga Ostromecka is a consultant in the Wrocław office.

The authors wish to thank Sabine Becker, Tamara Charm, Anna Pione, Warren Teichner, and Alexander Thiel for their contributions to this article.

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Gyms and Fitness Centers – 2024 U.S. Market Research Report

Published: May 2024 Updated Recession Statistics & Forecasts

This 78-page industry market research report is an in-depth analysis of the $41.9 billion gyms and fitness centers industry in the United States. The market research report utilizes the most extensive set of business surveys as the foundation for over 100 market research data sets with extensive historical data (2015-2023), statistics, trend analysis, and forecasts for 2024 & the next 5 years.

The report includes market size, growth, sales & cost trends, industry dynamics, operating expenses for 26 categories, profitability, employee productivity, 10 financial ratios, 31 balance sheet metrics, extensive statistics by state and Metropolitan Statistical Area (MSAs), workforce composition statistics, market share for top 50 companies, inflation, payroll and pay range data on 46 jobs, product line breakdown, industry data sets segmented by business size, concentration, and business structure, and much more.

Gyms Fitness Centers Industry Market Research Report

Report Format

Gyms Fitness Centers Revenue

Industry Definition

Industry scope & services, select market research report statistics.

NUMBER OF COMPANIES In 2023, there were 31,268 companies in the industry Download for historicals and forecasts of companies & locations

MARKET GROWTH The 5-year annual growth rate averaged 4.1% Download the report for more historical, annual and forecasted growth rates

MARKET SHARE The top 4 companies have 19.1% market share The report has more market share statistics

REVENUE PER LOCATION In 2023, the avg. sales per location was $1.1 million Download now for historical and forecasted revenue per company

INFLATION & PRICING Over the past 5 years, inflation averaged 2% This report has historicals, 4 years of monthly data, and 2024 & 5-year forecasts

EMPLOYEE PRODUCTIVITY Revenue per employee is $55,983 Download now for more employee metrics

OPERATING EXPENSE BENCHMARKS 2.5% of expenses is spent on professional services Download this market research report for 24 other categories

PAY BENCHMARKS In 2023, avg. pay per employee was $16,079 The report has extensive pay statistics

ORGANIZATIONAL BENCHMARKS 0.8% of employees are in business ops & finance Download for 25 other organizational categories

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Data & Methodology

Key questions answered in this market research report.

How do professionals use this report? Professionals utilize this report for industry research, market sizing and evaluation, forecasting, strategic planning, sales & marketing strategy, due diligence, valuations, benchmarking, streamlining, and other analyses.

What is the market size of the gyms and fitness centers industry? This report covers the historical industry market size (2015-2023), and forecasts for 2024 and the next 5 years. This report also includes market share of the top 50 companies.

What is the outlook for the industry? This report has over a dozen market forecasts (2024 & 5 years) on total sales, companies, employees, productivity, inflation, compensation, operating expense, and others.

What industry analysis/data exists for the industry? This report covers over 100+ data sets on the gyms and fitness centers industry. Take a look at the table of contents below to see the breadth of analysis and data on the industry.

What segmentations are there on the gyms and fitness centers industry? This report segments the industry many ways including by business size, concentration (Top 50 companies), business structure, state, MSAs, and product lines.

What are the financial metrics for the industry? This report covers many financial metrics for the industry including profitability, growth, opex / revenue, 31 balance sheet items organized by liabilities, assets, and equity, and 10 financial metrics including return on sales, asset turnover, liability ratio, and net worth ratio.

What are important benchmarks for the gyms and fitness centers industry? Some of the most important benchmarks for the industry include market share, sales growth, employee productivity, operating expense breakdown, product line breakdown, span of control, and organizational composition. This report includes all of them and many more.

Report & Industry Details

NAICS Code: 713940

Number of Pages: 78

Format: PDF

Price: $295

Support Contact : Email us at [email protected] or call us at 1-800-613-3611

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Table of Contents

Page 1-2 – Report Overview & Table of Contents

Page 3 – Industry Overview – Methodology – Industry Definition & Examples

Page 4 – Industry Snapshot – Revenue & Growth

Page 5 – Industry Snapshot – Costs & Profitability

Section One REVENUE & GROWTH BENCHMARKS

Page 7 – Industry Growth Details – Industry Revenues – Companies – Locations – 2015-2023 Historical Figures – Forecasts for 2024 and the Next 5 Years

Page 8 – Growth Benchmarks – Revenues per Company – Revenues per Location – Locations per Company – 2015-2023 Historical Figures – Forecasts for 2024 and the Next 5 Years

Page 9 – Breakdown of Product Lines – Percentage of Revenue from Product Lines

Page 10 – BCG Income vs. Revenue Growth Matrix – Service Subsectors vs. Industry

Page 11 – Total Revenue by Industry Segments – Concentration (Top 4, next 4, next 12, next 30 largest companies) – Business Size (1-4 employees, 5-9 employees, 10-19, 20-49, 50-99, 100-249, 250+) – Business Structure (C-Corporations, S-Corporations, Partnerships, Sole Proprietorships) – Franchise Segments – Industry Average

Page 12 – Total Revenue per State – Revenue per State and State Rankings

Page 13 – Sales per Capita by State – Sales per Capita and State Rankings

Page 14-17 – Revenue per Metropolitan Statistical Area

Page 18-21 – Revenue per Capita per Metropolitan Statistical Area

Page – 22 Revenue per Company by Industry Segment – Concentration, Business Size, & Business Structure

Page – 23 Revenue per Location by Industry Segment – Concentration, Size, Structure, & Franchise

Page – 24 Revenue per Location by State – Revenue per Location and State Rankings

Page – 25-28 Revenue per Location per MSA

Page – 29 Industry Segmentation by Business Size – Segments include 1-4 employees, 5-9 employees, 10-19, 20-49, 50-99, 100-249, 250+ employees – Revenue, Companies, Locations, Employees & Payroll – Absolute Figures & % of Industry

Page – 30 Industry Consolidation Analysis – By Business Size Segments – Revenue, Companies, Locations & Employees – 2018 vs. 2023 by Business Size

Page – 31 Industry Consolidation Benchmarks – Revenue per Company, Location & Employee – 2018 vs. 2023 by Business Size

Page – 32 Industry Segmentation by Top 50 Companies – Segments include top 4, next 4, next 12, next 30, and top 50 companies by revenue – Revenue, Locations, Employees & Payroll – Absolute Figures & % of Industry

Page – 33 Sector Concentration Benchmarks – % of Sector Revenue from the Top 50 Companies – 12 Sectors

Page – 34 Industry Segmentation by Business Structure – Revenue, Companies, Locations, Employees & Payroll – Absolute Figures & % of Industry

Page – 35 Pricing & Inflation – Annual Inflation – Indexed to 2006 – 2015-2023 historicals, 2023 & 5-yr forecasts – Monthly Inflation Figures for the Past 4 Years

Page – 36 Service Subsector Growth – Revenue and 5-Year CAGR – 12 Subsectors

Page – 37 Service Subsector Analysis – Revenue per Company – Revenue per Location – 12 Subsectors

Page – 38 Service Subsector Analysis – Revenue per Employee – Payroll per Employee

SECTION TWO COST & FINANCIAL ANALYSIS

Page – 40 Profitability & Financial Ratio Analysis – Percent of Companies that are Profitable – Average Net Income as a Percent of Revenue – Financial Ratios – 10 ratios, such as Total Asset Turnover, Assets to Liabilities, Return on Net Worth, Solvency Ratio

Page – 41 Balance Sheet Benchmarks – Assets and Liabilities indexed to industry revenue at 100 – Current & Non-Current Assets: Cash, Notes & Accounts Receivable, Allowance for Bad Debts, Inventories, Treasuries & Securities, Other Current Assets, Loans to Shareholders / Mortgage, Other Investments, Depreciable Assets, Accumulated Depreciation, Land, Intangible Assets (Amortizable), Accumulated Amortization, Other Assets – Short-term, Long-term Liabilities, & Net Worth: Accounts Payable, Mortgages, Notes, Bonds due in less than 1 Yr., Other Current Liabilities, Loans from Shareholders, Mortgages, Notes, Bonds > 1 Yr., Other Liabilities, Capital Stock, Additional Paid-in Capital, Retained Earnings, Cost of Treasury Stock

Page – 42 Operating Expenses – Industry Operating Expenses – Industry Revenue vs. Operating Expense Growth – Operating Expense as a Percent of Revenue – 2015-2023 Historical Figures – Forecasts for 2024 and the Next 5 Years

Page 43 – Operating Expenses by Company & Location – Operating Expenses per Company – Operating Expenses per Location – Revenue vs. Expenses Growth per Location – 2015-2023 Historical Figures – Forecasts for 2024 and the Next 5 Years

Page – 44 Operating Expense Detail – Employee Expenses: Annual Payroll, Health Insurance, Defined Benefit Pension Plans, Defined Contribution Plans, Other Fringe Benefits, Contract Labor Costs, Incl. Temporary Help – Property Expenses: Lease and Rent for Buildings, Offices, Stores, Repairs and Maintenance to Buildings, Purchased Electricity, Purchased Fuels (except motor fuels), Water, Sewer, Refuse, Other Utility Payments – Equipment Expenses: Expensed Equipment: Lease and Rent for Machinery and Equip., Repairs, Maint. to Machinery and Equip., Depreciation and Amortization Charges, Other Materials, Parts, and Supplies – IT Expenses: Data Processing & Other Computer Services: Communication Services: Expensed Purchases of Software – Miscellaneous Expenses: Advertising and Promotional Services, Professional and Technical Services, Taxes and License Fees

Page 45 – Productivity & Industry Employment – Revenue per Employee – Total Industry Employees – Employees per Company – 2015-2023 Historical Figures – Forecasts for 2024 and the Next 5 Years

Page – 46 Employee Productivity by Segments – Revenue per Employee – Concentration, Business Size, Structure & Franchise

Page – 47 Employee Productivity by State – Revenue per Employee and State Rankings

Page – 48-51 Employee Productivity per MSA – Revenue per Employee

Page – 52 Industry Payroll – Payroll per Employee – Payroll per Company – Payroll per Location – 2015-2023 Historical Figures – Forecasts for 2024 and the Next 5 Years

Page – 53 Workforce Composition Benchmarks – 26 Job Categories – Management & Finance – Sales & Marketing – Technology, Engineering, Science – Service, Support & Training – Operations – Percent of Industry Employees

Page – 54 Job Categorization Pay Ranges – 26 Job Categories – Management & Finance – Sales, Service & Marketing – Operations – Pay Bands – Bottom 10% & 25%, Mean, Top 25% & 10% – Pay Bands (10%, 25%, Mean, 75%, 90%)

Page – 55 Top 20 Jobs Breakdown – Percent of Total Employees by Job – Rank Ordered by Top 20 Job Categories

Page – 56 Pay Ranges of Top 20 Jobs – Pay Bands (10%, 25%, Mean, 75%, 90%)

Page – 57 Payroll per Company by Segments – Concentration, Business Size, & Business Structure

Page – 58 Payroll per Location by Segments – Concentration, Business Size, Structure, & Franchise

Page – 59 Payroll per Employee by Segments – Concentration, Business Size, Structure, & Franchise

Page – 60 Payroll per Employee by State – Payroll per Employee – State Rankings

Page – 61-64 Payroll per Employee per MSA

Page – 65 Employees per Company by Segments – Concentration, Business Size, & Business Structure

Page – 66 Employees per Company by Segments – Concentration, Business Size, Structure, & Franchise

Page – 67 Total Employment by State – Number of Employees and State Rankings

Page – 68 Population to Every Employee by State – Number of Residents to Industry Employee – State Rankings

Page – 69-72 Total Employment per MSA

Page – 73 Locations per Company by Segments – Concentration, Business Size, & Business Structure

Page – 74-77 Locations per MSA

Product Lines Analyzed

Industry jobs analyzed, states covered, metropolitan statistical areas (msas) covered.

Abilene, TX Akron, OH Albany, GA Albany, OR Albany-Schenectady-Troy, NY Albuquerque, NM Alexandria, LA Allentown-Bethlehem-Easton, PA-NJ Altoona, PA Amarillo, TX Ames, IA Anchorage, AK Ann Arbor, MI Anniston-Oxford-Jacksonville, AL Appleton, WI Asheville, NC Athens-Clarke County, GA Atlanta-Sandy Springs-Roswell, GA Atlantic City-Hammonton, NJ Auburn-Opelika, AL Augusta-Richmond County, GA-SC Austin-Round Rock, TX Bakersfield, CA Baltimore-Columbia-Towson, MD Bangor, ME Barnstable Town, MA Baton Rouge, LA Battle Creek, MI Bay City, MI Beaumont-Port Arthur, TX Beckley, WV Bellingham, WA Bend-Redmond, OR Billings, MT Binghamton, NY Birmingham-Hoover, AL Bismarck, ND Blacksburg-Christiansburg-Radford, VA Bloomington, IL Bloomington, IN Bloomsburg-Berwick, PA Boise City, ID Boston-Cambridge-Newton, MA-NH Boulder, CO Bowling Green, KY Bremerton-Silverdale, WA Bridgeport-Stamford-Norwalk, CT Brownsville-Harlingen, TX Brunswick, GA Buffalo-Cheektowaga-Niagara Falls, NY Burlington, NC Burlington-South Burlington, VT California-Lexington Park, MD Canton-Massillon, OH Cape Coral-Fort Myers, FL Cape Girardeau, MO-IL Carbondale-Marion, IL Carson City, NV Casper, WY Cedar Rapids, IA Chambersburg-Waynesboro, PA Champaign-Urbana, IL Charleston, WV Charleston-North Charleston, SC Charlotte-Concord-Gastonia, NC-SC Charlottesville, VA Chattanooga, TN-GA Cheyenne, WY Chicago-Naperville-Elgin, IL-IN-WI Chico, CA Cincinnati, OH-KY-IN Clarksville, TN-KY Cleveland, TN Cleveland-Elyria, OH Coeur d’Alene, ID College Station-Bryan, TX Colorado Springs, CO Columbia, MO Columbia, SC Columbus, GA-AL Columbus, IN Columbus, OH Corpus Christi, TX Corvallis, OR Crestview-Fort Walton Beach-Destin, FL Cumberland, MD-WV Dallas-Fort Worth-Arlington, TX Dalton, GA Danville, IL Daphne-Fairhope-Foley, AL Davenport-Moline-Rock Island, IA-IL Dayton, OH Decatur, AL Decatur, IL Deltona-Daytona Beach-Ormond Beach, FL Denver-Aurora-Lakewood, CO

Des Moines-West Des Moines, IA Detroit-Warren-Dearborn, MI Dothan, AL Dover, DE Dubuque, IA Duluth, MN-WI Durham-Chapel Hill, NC East Stroudsburg, PA Eau Claire, WI El Centro, CA Elizabethtown-Fort Knox, KY Elkhart-Goshen, IN Elmira, NY El Paso, TX Enid, OK Erie, PA Eugene, OR Evansville, IN-KY Fairbanks, AK Fargo, ND-MN Farmington, NM Fayetteville, NC Fayetteville-Springdale-Rogers, AR-MO Flagstaff, AZ Flint, MI Florence, SC Florence-Muscle Shoals, AL Fond du Lac, WI Fort Collins, CO Fort Smith, AR-OK Fort Wayne, IN Fresno, CA Gadsden, AL Gainesville, FL Gainesville, GA Gettysburg, PA Glens Falls, NY Goldsboro, NC Grand Forks, ND-MN Grand Island, NE Grand Junction, CO Grand Rapids-Wyoming, MI Grants Pass, OR Great Falls, MT Greeley, CO Green Bay, WI Greensboro-High Point, NC Greenville, NC Greenville-Anderson-Mauldin, SC Gulfport-Biloxi-Pascagoula, MS Hagerstown-Martinsburg, MD-WV Hammond, LA Hanford-Corcoran, CA Harrisburg-Carlisle, PA Harrisonburg, VA Hartford-West Hartford-East Hartford, CT Hattiesburg, MS Hickory-Lenoir-Morganton, NC Hilton Head Island-Bluffton-Beaufort, SC Hinesville, GA Homosassa Springs, FL Hot Springs, AR Houma-Thibodaux, LA Houston-The Woodlands-Sugar Land, TX Huntington-Ashland, WV-KY-OH Huntsville, AL Idaho Falls, ID Indianapolis-Carmel-Anderson, IN Iowa City, IA Ithaca, NY Jackson, MI Jackson, MS Jackson, TN Jacksonville, FL Jacksonville, NC Janesville-Beloit, WI Jefferson City, MO Johnson City, TN Johnstown, PA Jonesboro, AR Joplin, MO Kahului-Wailuku-Lahaina, HI Kalamazoo-Portage, MI Kankakee, IL Kansas City, MO-KS Kennewick-Richland, WA Killeen-Temple, TX Kingsport-Bristol-Bristol, TN-VA Kingston, NY Knoxville, TN Kokomo, IN La Crosse-Onalaska, WI-MN Lafayette, LA Lafayette-West Lafayette, IN Lake Charles, LA Lake Havasu City-Kingman, AZ Lakeland-Winter Haven, FL Lancaster, PA Lansing-East Lansing, MI

Laredo, TX Las Cruces, NM Las Vegas-Henderson-Paradise, NV Lawrence, KS Lawton, OK Lebanon, PA Lewiston, ID-WA Lewiston-Auburn, ME Lexington-Fayette, KY Lima, OH Lincoln, NE Little Rock-North Little Rock-Conway, AR Logan, UT-ID Longview, TX Longview, WA Los Angeles-Long Beach-Anaheim, CA Louisville/Jefferson County, KY-IN Lubbock, TX Lynchburg, VA Macon-Bibb County, GA Madera, CA Madison, WI Manchester-Nashua, NH Manhattan, KS Mankato-North Mankato, MN Mansfield, OH McAllen-Edinburg-Mission, TX Medford, OR Memphis, TN-MS-AR Merced, CA Miami-Fort Lauderdale-West Palm Beach, FL Michigan City-La Porte, IN Midland, MI Midland, TX Milwaukee-Waukesha-West Allis, WI Minneapolis-St. Paul-Bloomington, MN-WI Missoula, MT Mobile, AL Modesto, CA Monroe, LA Monroe, MI Montgomery, AL Morgantown, WV Morristown, TN Mount Vernon-Anacortes, WA Muncie, IN Muskegon, MI Myrtle Beach-Conway-North Myrtle Beach, SC-NC Napa, CA Naples-Immokalee-Marco Island, FL Nashville-Davidson–Murfreesboro–Franklin, TN New Bern, NC New Haven-Milford, CT New Orleans-Metairie, LA New York-Newark-Jersey City, NY-NJ-PA Niles-Benton Harbor, MI North Port-Sarasota-Bradenton, FL Norwich-New London, CT Ocala, FL Ocean City, NJ Odessa, TX Ogden-Clearfield, UT Oklahoma City, OK Olympia-Tumwater, WA Omaha-Council Bluffs, NE-IA Orlando-Kissimmee-Sanford, FL Oshkosh-Neenah, WI Owensboro, KY Oxnard-Thousand Oaks-Ventura, CA Palm Bay-Melbourne-Titusville, FL Panama City, FL Parkersburg-Vienna, WV Pensacola-Ferry Pass-Brent, FL Peoria, IL Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Phoenix-Mesa-Scottsdale, AZ Pine Bluff, AR Pittsburgh, PA Pittsfield, MA Pocatello, ID Portland-South Portland, ME Portland-Vancouver-Hillsboro, OR-WA Port St. Lucie, FL Prescott, AZ Providence-Warwick, RI-MA Provo-Orem, UT Pueblo, CO Punta Gorda, FL Racine, WI Raleigh, NC Rapid City, SD Reading, PA Redding, CA Reno, NV

Richmond, VA Riverside-San Bernardino-Ontario, CA Roanoke, VA Rochester, MN Rochester, NY Rockford, IL Rocky Mount, NC Rome, GA Sacramento–Roseville–Arden-Arcade, CA Saginaw, MI St. Cloud, MN St. George, UT St. Joseph, MO-KS St. Louis, MO-IL Salem, OR Salinas, CA Salisbury, MD-DE Salt Lake City, UT San Angelo, TX San Antonio-New Braunfels, TX San Diego-Carlsbad, CA San Francisco-Oakland-Hayward, CA San Jose-Sunnyvale-Santa Clara, CA San Luis Obispo-Paso Robles-Arroyo Grande, CA Santa Cruz-Watsonville, CA Santa Fe, NM Santa Maria-Santa Barbara, CA Santa Rosa, CA Savannah, GA Scranton–Wilkes-Barre–Hazleton, PA Seattle-Tacoma-Bellevue, WA Sebastian-Vero Beach, FL Sebring, FL Sheboygan, WI Sherman-Denison, TX Shreveport-Bossier City, LA Sierra Vista-Douglas, AZ Sioux City, IA-NE-SD Sioux Falls, SD South Bend-Mishawaka, IN-MI Spartanburg, SC Spokane-Spokane Valley, WA Springfield, IL Springfield, MA Springfield, MO Springfield, OH State College, PA Staunton-Waynesboro, VA Stockton-Lodi, CA Sumter, SC Syracuse, NY Tallahassee, FL Tampa-St. Petersburg-Clearwater, FL Terre Haute, IN Texarkana, TX-AR The Villages, FL Toledo, OH Topeka, KS Trenton, NJ Tucson, AZ Tulsa, OK Tuscaloosa, AL Tyler, TX Urban Honolulu, HI Utica-Rome, NY Valdosta, GA Vallejo-Fairfield, CA Victoria, TX Vineland-Bridgeton, NJ Virginia Beach-Norfolk-Newport News, VA-NC Visalia-Porterville, CA Waco, TX Walla Walla, WA Warner Robins, GA Washington-Arlington-Alexandria, DC-VA-MD-WV Waterloo-Cedar Falls, IA Watertown-Fort Drum, NY Wausau, WI Weirton-Steubenville, WV-OH Wenatchee, WA Wheeling, WV-OH Wichita, KS Wichita Falls, TX Williamsport, PA Wilmington, NC Winchester, VA-WV Winston-Salem, NC Worcester, MA-CT Yakima, WA York-Hanover, PA Youngstown-Warren-Boardman, OH-PA Yuba City, CA Yuma, AZ

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Fitness Tracker Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Global Fitness Tracker Market Technology & Share by Brand and it is Segmented by Product Type (Fitness Band, Smart Watches, and Others), By Sales Channel (Offline and Online), By Wearing Type (Hand Wear, Leg Wear, Head Wear, and Others), By Application (Heart Rate Monitoring, Sleep Measurement, Glucose Measurement, and Others), and Geography (North America, Europe, Asia-Pacific, Middle East, and Africa, and South America).

  • Fitness Tracker Market Size

 Fitness Tracker Market Summary

Need a report that reflects how COVID-19 has impacted this market and its growth?

Fitness Tracker Market Analysis

The fitness tracker market is projected to register a CAGR of 15.7% during the forecast period (2022-2027).

During the COVID-19 pandemic, the demand for fitness tracker products has been seen increasing due to a lot of consumption and usage of these devices to monitor heart rate and oxygen levels in the body during the pandemic. This raise in adoption has resulted in increased research and development activities in the fitness tracker segment by the key players in this market. Furthermore, the demand for these fitness trackers has increased as these gadgets are also helpful in detecting COVID-19 cases in advance. For instance, according to a study conducted by Stanford University in California in 2021, smartwatches from Apple, Gramin, and Fitbit help detect Covid-19 cases before they show signs, among asymptomatic patients. Moreover, the Covid-19 pandemic has majorly increased awareness about these devices. The increased adoption has led to the rise in device development & innovation as more market players race in to deliver the growing demand and capture a higher market share. For instance, in August 2020, Fitbit Inc. launched Sense, an advanced smartwatch that features an ECG monitor, skin temperature sensor, stress management, sleep monitor, SpO2 levels monitor, built-in GPS, period tracker, and 20+ exercise modes. Thus, COVID-19 has a significant impact on the target market.

Certain factors which have contributed to the growth of the market include rising awareness among people on health, rising prevalence of cardiovascular diseases (CVD) and obesity, and growing penetration of the internet and smartphones among others. Many people are focusing on their health and are engaged in physical activities such as walking, running, cycling, and other recreational activities. Physical activity has been shown to aid in the prevention and management of non-communicable diseases such as heart disease, stroke, diabetes, and a variety of malignancies. It also aids in the prevention of hypertension, the maintenance of healthy body weight, and the enhancement of mental health, quality of life, and overall well-being.

The growing prevalence of obesity and other risk factors are expected to have a significant impact on the growth of the fitness tracker market as the awareness among the people is increasing with the advancement and easy availability of the tracking devices. For example, obesity is a major risk factor for various cardiovascular disease and as per the June 2021 update of the World Health Organization (WHO), the obesity prevalence have tripled since 1975, with about 39 million children of age below five years were obese in 2020 which is expected to increase over the years and that is expected to increase the demand of the fitness tracking devices as self-awareness and disease prevalence increases, therefore fueling growth in the fitness tracker market over forecast period.

Several studies have shown that obesity results in cardiovascular risk factors such as dyslipidemia, type 2 diabetes, hypertension, and sleep disturbances, thereby resulting in a higher prevalence of cardiovascular diseases and deaths across the globe. For instance, in December 2021, as per the International Diabetes Federation Atlas Tenth edition of 2021 report estimated that around 537 million adults (20-79 years) are living with diabetes. The total number of people living with diabetes is projected to rise to 643 million by 2030 and 783 million by 2045. Thus, for keeping track of heart rate the demand for fitness trackers is rising continuously. Additionally, the increasing product launches by major key players are further boosting the growth of the market. For instance, in June 2020, Xiaomi launched Mi Smart Band 5. Mi Smart Band 5 offers increased fitness tracking accuracy, women's health tracking, stress evaluation, and remote shutter control, among others.

Therefore, increasing health consciousness among people and the rising prevalence of cardiovascular diseases and obesity will result in higher adoption of fitness tracking gadgets among people, thereby propelling the market growth. While the Data security risks and the high cost of the product obstruct industry growth. During the COVID-19 pandemic, the supply chain got disrupted for months, which in turn has increased the prices of the products hampering the market growth. The strong price pressure on manufacturers and the high costs associated with high-quality fitness trackers pose a major challenge to market growth. Rising privacy and security concerns and fierce competition from other counterfeit products further obstructed the market growth. This coupled with the lack of a strong distribution network in lagging areas is expected to limit the industry growth over the forecast period.

  • Fitness Tracker Market Trends

This section covers the major market trends shaping the Fitness Tracker Market according to our research experts:

Smart Watches Segment is Expected to Witness Growth Over the Forecast Period

Wearable fitness tracking gadgets such as smartwatches have swiftly established themselves as an important part of consumer electronics. The most advantageous component of the smartwatch has been health monitoring. It helps the fitness enthusiast by providing important health parameters and provides information related to the diseases. As people are anxious about their health, it has thereby increased the shipments of fitness trackers. Because every smartwatch has a fitness tracker, its popularity is skyrocketing.

Moreover, there is a huge adoption of smartwatches among people these days and mobile chipset companies are also investing in these devices. For instance, Qualcomm, a mobile chipset company, is heavily investing in Smartwatches and powering smartwatches for children, seniors, and adults. This data also helps doctors by rendering some sophisticated and important information related to patients. This data assists medical experts in solving challenges such as determining the influence of a new drug or continuously monitoring the recovery state of an operated patient, among other things.

Smartwatch accelerometers could be used to detect convulsions and tremors, which could be useful for those with illnesses like epilepsy. When epileptic seizures occur, prompt and effective treatment is critical to reducing the risk of long-term physical harm. Smartwatches can be used to notify friends, family, and healthcare professionals about seizures that could result in hospitalization. Due to the versatile benefits of these smartwatches, there is a huge adoption of smartwatches. For instance, In July 2021, Garmin launched two health-focused smartwatches in India. These two smartwatches are Venu 2S and Venu 2 with features such as an AMOLED touchscreen with Gorilla Glass 3 protection, a health snapshot feature, and a boast of more than twenty-five built-in sports apps. Hence, such developments are expected to further accelerate the market growth in this segment.

 Fitness Tracker Market: Estimated Prevalence (in %) of Adults in United Kingdom with Obesity, 2019-2020

North America is Expected to Hold a Significant Share in the Market and Expected to do Same in the Forecast Period

Increased attention on developing new products with the latest technologies in branded companies and expanding device popularity through digital marketing is expected to be reasons for North America to hold a significant share.

The United States contributes a significant share due to increased awareness about health and higher adoption of fitness trackers in the United States. The market is also expected to be driven by rising cases of health disorders associated with sedentary lifestyles, an increase in disposable incomes, the introduction of novel products by leading industry players, and the growing prevalence of smartphones and the internet in the United States.

For instance, In January 2020, According to Pew Research Center, estimated that almost one-in-five adults (21%) in the United States utilize a smartwatch or wearable, fitness tracker on the daily basis. The same source also stated that around three-in-ten Americans (31%) have household earnings of USD 75,000 or more and they regularly use a smartwatch or fitness tracker daily, compared to only 12% of those whose yearly family income is less than USD 30,000. This indicates that an increase in disposable incomes is also contributing to the growth of the fitness trackers market in the United States.

Higher adoption of fitness trackers by the United States due to the health disorders associated with sedentary lifestyles and higher disposable incomes has contributed to a higher regional share of the fitness trackers market.

Regional Growth Rate of Fitness Tracker Market

Fitness Tracker Industry Overview

The fitness tracker market is fragmented and competitive and consists of several major players. In terms of market share, a few of the major players are currently dominating the market. Some of the companies which are currently dominating the market are Apple, Inc, Fitbit, Inc., Samsung Electronics Ltd., Fossil Inc., Huawei Technologies Ltd, Lenovo Group Limited, Sony Corporation, Jawbone Xiaomi, Nike, Inc, and Google, LLC.

Fitness Tracker Market Leaders

Apple, Inc.

Fitbit, Inc.

Samsung Electronics Co. Ltd

Fossil Group Inc.

Huawei Technologies Co. Ltd

*Disclaimer: Major Players sorted in no particular order

 Fitness Tracker Market Concentration

Fitness Tracker Market News

  • In June 2022, Xiaomi launched its Xiaomi Band 7 fitness tracking device in the global market. This tracker is water-resistant and features over 100 sports modes.
  • In January 2021, OnePlus launched a fitness band in India that features a 14-day battery life, 5ATM, and IP68 water resistance, and a dual-color band design.

Fitness Tracker Market Report - Table of Contents

1. INTRODUCTION

1.1 Study Assumptions & Market Definitions

1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

4.1 Market Overview

4.2 Market Drivers

4.2.1 Rising Awareness on Health

4.2.2 Rising Burden of Cardiovascular Diseases & Obesity

4.2.3 Growing Penetration of Internet and Smartphones

4.3 Market Restraints

4.3.1 High Cost

4.3.2 Risk of Data Theft by Tampering Connection

4.4 Porter's Five Force Analysis

4.4.1 Threat of New Entrants

4.4.2 Bargaining Power of Buyers/Consumers

4.4.3 Bargaining Power of Suppliers

4.4.4 Threat of Substitute Products

4.4.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION (Market Size by Value - USD million)

5.1 By Product Type

5.1.1 Fitness Band

5.1.2 Smart Watches

5.1.3 Others

5.2 By Sales Channel

5.2.1 Offline

5.2.2 Online

5.3 By Wearing Type

5.3.1 Hand Wear

5.3.2 Leg Wear

5.3.3 Head wear

5.3.4 Others

5.4 By Application

5.4.1 Heart Rate Monitoring

5.4.2 Sleep Measurement

5.4.3 Glucose Measurement

5.4.4 Women's Health

5.4.5 Others

5.5 Geography

5.5.1 North America

5.5.1.1 United States

5.5.1.2 Canada

5.5.1.3 Mexico

5.5.2 Europe

5.5.2.1 Germany

5.5.2.2 United Kingdom

5.5.2.3 France

5.5.2.4 Italy

5.5.2.5 Spain

5.5.2.6 Rest of Europe

5.5.3 Asia-Pacific

5.5.3.1 China

5.5.3.2 Japan

5.5.3.3 India

5.5.3.4 Australia

5.5.3.5 South Korea

5.5.3.6 Rest of Asia-Pacific

5.5.4 Middle East and Africa

5.5.4.1 GCC

5.5.4.2 South Africa

5.5.4.3 Rest of Middle East and Africa

5.5.5 South America

5.5.5.1 Brazil

5.5.5.2 Argentina

5.5.5.3 Rest of South America

6. COMPETITIVE LANDSCAPE

6.1 Company Profiles

6.1.1 Apple, Inc.

6.1.2 Google, LLC

6.1.3 Samsung Electronics Co. Ltd

6.1.4 Fossil Group Inc.

6.1.5 Huawei Technologies Co. Ltd

6.1.6 Lenovo Group Limited

6.1.7 Sony Corporation

6.1.8 Jawbone

6.1.9 Xiaomi

6.1.10 Nike, Inc.

  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

Fitness Tracker Industry Segmentation

As per the scope of this report, a fitness tracker is a wearable gadget or a computer application that records a person's daily physical activity as well as other fitness or health statistics such as calories burnt, heart rate, and oxygen level among others. The fitness tracker market is segmented by Product Type (Fitness Band, Smart Watches, and Others), By Sales Channel (Offline and Online), By Wearing Type (Hand Wear, Leg Wear, Head Wear, and Others), By Application (Heart Rate Monitoring, Sleep Measurement, Glucose Measurement, and Others), and Geography (North America, Europe, Asia-Pacific, Middle East, and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions, globally. The report offers the value (in USD million) for the above segments.

Fitness Tracker Market Research FAQs

What is the current global fitness tracker market size.

The Global Fitness Tracker Market is projected to register a CAGR of 15.70% during the forecast period (2024-2029)

Who are the key players in Global Fitness Tracker Market?

Apple, Inc., Fitbit, Inc., Samsung Electronics Co. Ltd, Fossil Group Inc. and Huawei Technologies Co. Ltd are the major companies operating in the Global Fitness Tracker Market.

Which is the fastest growing region in Global Fitness Tracker Market?

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

Which region has the biggest share in Global Fitness Tracker Market?

In 2024, the North America accounts for the largest market share in Global Fitness Tracker Market.

What years does this Global Fitness Tracker Market cover?

The report covers the Global Fitness Tracker Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Fitness Tracker Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

How will emerging technologies like AI impact the future of fitness trackers?

The emerging technologies like AI will impact the future of fitness trackers through a) Personalized workout plans b) Advanced sleep analysis c) Real-time coaching based on AI insights

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Fitness Tracker Industry Report

The global fitness tracker market is on a significant upswing, fueled by heightened health awareness and the increasing prevalence of chronic diseases. This growth is further propelled by the seamless integration of fitness trackers with smartphones and smartwatches, alongside technological advancements that make these devices more appealing to a broad spectrum of users. The market, segmented by device type, application, and distribution channel, sees smartwatches and fitness bands at the forefront, offering advanced features and affordability. With applications expanding to include comprehensive health monitoring, the online distribution channel is enhancing the market's global reach. North America leads in market share, but rapid growth is also seen in other regions, driven by a tech-savvy younger generation and rising disposable incomes. The fitness tracker market is set for substantial growth, with opportunities for both existing players and new entrants to capture a larger market share, backed by innovations and an increasing consumer focus on health. For detailed insights, Mordor Intelligence™ provides an in-depth analysis, including market share, size, and growth forecasts, available as a free report PDF download.

Fitness Tracker Market Report Snapshots

  • Fitness Tracker Market Share
  • Fitness Tracker Companies

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  • Healthcare IT
  • Digital Health Market

"Designing Growth Strategies is in our DNA"

Digital Health Market Size, Share & COVID-19 Impact Analysis, By Product Type (mHealth {Apps [Disease and Treatment Management Apps, Wellness Management, and Others], Wearables [Body & Temperature Monitors, Sleep Trackers, Fitness Trackers, Glucose Monitors & Others]}, Healthcare Analytics {Population Health Management, Clinical Management, & Others}, Digital Health Systems {EMR/HER, e-Prescribing Systems, and Others}, and Telehealthcare {Telehealth & Telecare}), By Component (Services, Software, and Hardware), By End-User (B2B and B2C), and Regional Forecast, 2023-2030

Last Updated: May 13, 2024 | Format: PDF | Report ID: FBI100227

  • Segmentation
  • Methodology
  • Infographics
  • Request Sample PDF

KEY MARKET INSIGHTS

The digital health market size was valued at USD 375.99 billion in 2022 and is projected to grow USD 452.79 billion in 2023 to USD 1,965.30 billion by 2030, exhibiting a CAGR of 23.3% during 2023-2030. North America dominated the global market with a share of 40.79% in 2022.

Digital health is an emerging field of study, which includes the use of digital technologies in healthcare. The U.S. Food and Drug Administration (FDA) considers a broad scope of technologies as digital health, including mobile health, telehealth, wearable devices, telemedicine , health information technologies, and personalized medicines. According to a World Bank report published in August 2023, evidence-based digital investments can help governments save up to 15.0% of health system costs across the globe.

Moreover, artificial intelligence and machine learning have a broad number of applications in the healthcare industry, such as image analysis, patient monitoring, and medical device automation, to support healthcare staff in managing the clinical workflow. In addition, the advances in telecommunications, with the introduction of 3G, 4G, and 5G networks, have begun to release high bandwidth, supporting the adoption of digital solutions in the healthcare industry globally and proliferating market growth.

Key Takeaways:

  • North America holds the largest market share, contributing USD 153.38 billion in 2022.
  • By Component, the services segment dominated the market with 54.4% share in 2022.

COVID-19 IMPACT

How has the COVID-19 Pandemic Impacted the Adoption of Digital Health Solutions? 

The COVID-19 pandemic had a positive impact on the market. This can be attributed to an increase in the adoption of digital technologies for the diagnosis and treatment of various diseases, an increase in the volume of teleconsultations, and others during the period.         

  • For instance, according to an article published by NCBI in May 2021, for the year 2020, a total of 19.0 million teleconsultations were performed in the U.S., which accounted for one-quarter of all consultations done that year.

Moreover, restrictions on travel and free movement, limitations on medical services for emergencies, and increased cases of COVID-19 infections led to the surge in teleconsultation platforms. According to data published by Centers for Disease Control and Prevention in October 2020, the volume of teleconsultations in the U.S. increased by 50% between the start of March 2020 and the second week of April 2020 as compared to same period in 2019.

Furthermore, market players witnessed significant growth in revenue in 2020. For instance, Garmin registered a growth of 25.8% in revenues from its fitness segment in 2020. Moreover, in 2021, the company reported an increase of 16.4% in revenue generated from its fitness segment.

The increased demand for digital solutions during the COVID-19 pandemic, the benefits of using teleconsultations and mHealth applications, and others support the adoption of healthcare technologies in the global market. Thus, the increased demand for teleconsultations, telemedicine, and mHealth in 2021 helped companies generate more revenues.

How Digitalization and Teleconsultation Solutions Will Transform the Healthcare Sector?

  • Technological Developments in Telecommunication to Augment the Demand for Digital Solutions in Healthcare

Advancements in the telecommunication sector, such as the introduction of the Internet of Things (IoT), 5G, network infrastructure, and artificial intelligence, provide various opportunities for market growth. For instance, in May 2023, a health tech company, January AI, introduced a new generative Artificial Intelligence (AI)-enabled app to estimate and predict the glucose response of individuals to more than 32 million food items. The introduction of such faster network capabilities has enabled the telehealth industry to provide a better experience to their patients and thereby boost product demand.

In addition, advancements in mobile technology and telecommunications have resulted in the development of easily accessible applications that can be used by patients. For instance, according to an article published by TM Forum in June 2021, Telco Systems, a pioneer in telecommunications, is now launching new telehealth partnerships and services globally as the healthcare sector ramps up digital transformation and the provision of remote care. Such partnerships with telecom service providers are expected to strengthen the healthcare infrastructure and favor the adoption of telehealth.

Moreover, telepresence robots are designed to autonomously move around rooms, being remote-controlled using a software interface connecting the user to the robot through a Wi-Fi connection. Thus, technological development in the telecommunication sector is expected to create lucrative opportunities for the market growth during the forecast period.

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What are the Prominent Factors Driving Market Growth?

  • Initiatives Taken by Governments of Various Countries to Promote Digital Health to Propel Market Growth

In both developing and developed countries, the adoption of digital tools is on the rise due to the widespread use of smartphones, tablets, and other mobile platforms. Additionally, various nations' governments are initiating efforts to promote digital solutions for managing different diseases. For instance, in April 2020, The Federal Communications Commission (FCC) developed and approved a USD 200 million program to fund telehealth services and devices for medical providers.

During the COVID-19 pandemic, governments of various countries launched mobile applications to manage the influence of the virus. For example, the government of India introduced the Arogya Setu mobile application in response to COVID-19. The application was developed for self-assessment, syndrome mapping, contact tracking, and educating the public regarding the infection.

Major market players are also focusing on R&D to develop and introduce new and advanced solutions. In March 2022, Google announced the launch of its new AI initiative for healthcare. Thus, the various initiatives taken by governments around the world are supporting the adoption of digital tools in both developed and developing countries.

  • Increasing Penetration of Smartphones, Tablets, and Other Mobile Platforms to Accelerate Digital Health Market Growth

The penetration of smartphones , tablets, and other mobile platforms is rapidly growing across the globe. This can be attributed to the widespread availability of the internet, accompanied by high internet bandwidth in developed countries. For instance, according to the International Telecommunication Union (ITU), there are more than 8.58 billion mobile subscription users worldwide in 2022, exceeding the global population of 7.95 billion. Furthermore, data from the Pew Research Center in April 2021 revealed that approximately 85% of the American population owns a smartphone, a significant increase from 35% in its first study conducted in 2011.

Due to the increasing penetration of smartphones and tablets, people are transitioning toward wearables and other healthcare applications. Consequently, companies are focusing on developing a multitude of health applications to meet this demand. For instance, according to the IQVIA Institute for Human Data Science's 2021 trends report, more than 90,000 digital health apps were released globally in 2020.

In recent times, individuals are becoming more health-conscious, primarily focusing on physical activities, mental health, and other aspects of their well-being. These factors have rapidly elevated the emphasis on healthcare monitoring and diagnosis in developing countries. According to cohort study results published by BioMed Central Ltd., two out of three Americans are willing to adopt health insurance wellness programs based on wearable devices, especially if they offer benefits related to health promotion and disease prevention, particularly with financial incentives.

Hence, the increasing internet penetration, coupled with the rising number of health-conscious individuals globally, is supporting the adoption of mobile health applications. Therefore, the growing development of new mobile applications and devices, as well as their increasing adoption among the population, are key elements projected to bolster market growth.

What are the Restraining Factors Limiting the Adoption of These Solutions? 

  • Privacy Concerns Regarding Patient Data May Hamper Market Growth

With the increasing adoption of these solutions in developed and developing countries, privacy issues have emerged as a major global challenge. Health data is being generated in large amounts and stored in diverse formats within different health information systems. Thus, safeguarding this data from cybercrimes has become a significant concern for healthcare providers worldwide. According to the Healthcare Cyber Attack Statistics 2022 report, healthcare data breaches in 2021 affected over 40.0 million patient records in the U.S. Moreover, the U.S. stands as one of the most targeted countries globally for cyber-attacks.

A significant challenge in health data privacy is finding ways to share health data among medical practitioners while protecting personally identifiable information. Additionally, hacking Personally Identifiable Health Information (PHI) by cybercriminals has become a growing trend. The hackers' objective is to exploit patients' personal information. According to statistics from the HIPAA Journal published in 2020, a majority of healthcare data breaches reported globally occurred in the year 2020.

Consequently, the increasing incidences of data breaches related to patients' personal health records are raising privacy concerns among healthcare providers and patients, which in turn hampers market growth.

SEGMENTATION

By product type analysis.

mHealth Segment to Dominate Owing to Rising Focus on Fitness and Well-being

On the basis of product type, the digital health market is segmented into mHealth,  healthcare analytics , digital health systems, and telehealthcare. The mHealth segment accounted for the largest market share in 2022. The increasing focus of people on well-being and fitness is driving the demand for mobile apps, consequently propelling the growth of this segment. Additionally, the growing emphasis on early diagnosis and routine monitoring has further fueled the adoption of health monitoring applications, thereby fostering growth within this segment. For example, in April 2021, Fitbit Inc. launched Fitbit Luxe, a fitness and wellness tracker designed for stress management and sleep tracking, aimed at promoting mental and physical wellness.

The telehealthcare segment is anticipated to experience significant growth during the forecast period, primarily due to the advantages of telemedicine, such as reduced waiting time, leading to faster disease diagnosis. Furthermore, the increased penetration and adoption of teleconsultations during the COVID-19 pandemic have also bolstered the growth of this segment during that period.

By Component Analysis

Services Segment to Hold Largest Market Share Attributed to Low Teleconsultation Charges

On the basis of component, the market is segmented into services, software, and hardware. The services segment dominated the market in 2022 due to the comparatively low cost of teleconsultation services. The expansion of companies providing teleconsultation services further supports the growth of this segment. For instance, in September 2020, Sesame, Inc. expanded its Direct-to-Patient Platform services into New York City and Houston, aiming to make healthcare more accessible, affordable, and transparent for patients.

The software segment is poised to experience the highest CAGR during the forecast period, owing to the increasing initiatives for the development of innovative technologies to enhance the solution. Additionally, the growing number of new product launches in the market is supporting the growth of this segment.

  • In June 2022, Bajaj Allianz launched a health insurance industry-first ‘Global Health Care’ plan in collaboration with Allianz Partners to provide health insurance coverage anywhere across the globe.

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By End-User Analysis

Business to Business Segment to Dominate Owing to Increasing Strategic Collaborations

On the basis of end-user, the market is segmented into business to business and business to consumer. The business-to-business segment dominated the market in 2022, holding a significant share owing to the growing collaborations between market players to integrate various digital technologies for better solutions. For instance, in October 2020, Takeda Pharmaceutical Company Limited, Accenture, and Amazon Web Services (AWS) entered into a five-year strategic agreement to accelerate Takeda’s digital transformation and fuel its cloud-driven business transformation by modernizing platforms, accelerating data services, and establishing an internal engine for innovation to benefit patients.

On the other hand, the business-to-consumer segment is expected to grow at a higher CAGR during the forecast period. The growth of this segment can be attributed to the increasing launch of various technologies, such as mHealth apps and software, due to the high demand from global consumers.

DIGITAL HEALTH MARKET REGIONAL INSIGHTS

North America Digital Health Market Size, 2022 (USD Billion)

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What are the Factors Responsible for the Dominance of North America in the Global Market? 

North America was valued at USD 153.38 billion in 2022. This dominance can be credited to factors such as adequate reimbursement policies in the U.S., high per capita expenditure on advanced technologies, and a rising demand for healthcare technologies in the region. For instance, in August 2020, Fitbit Inc. launched Fitbit Sense, an advanced health smartwatch designed to help manage stress. It incorporates advanced heart rate tracking technology, a new ECG app, and an on-wrist skin temperature sensor. The smartwatch tracks key trends in one’s health and well-being, such as Heart Rate Variability (HRV), breathing rate, and SpO2, and presents them through the new Health Metrics dashboard.

Europe accounted for a significant share in 2022. The growth is primarily driven by the availability of various telemedicine initiatives and solutions in the region. This growth, coupled with the proliferation of digital technologies, mainly wearables and mobile applications in Europe, is supporting the region's overall market growth. For instance, according to an article published by Healthcare Digital Magazine in January 2021, the U.K.'s National Health Service (NHS) website attracts around 360 billion visits a year. The NHS app was used by 1,951,640 people in December 2020, reflecting an increase of 912.0% compared to 2019. Moreover, the number of e-prescription requests made via the app increased by 25.0% in 2020 compared to 2019.

Asia Pacific is slated to grow at the highest CAGR during the forecast period, owing to technological and medical transformation and changing regulatory policies in the region. Additionally, initiatives taken by the governments of developing countries are promoting digital solutions in healthcare in the region. According to the Ministry of Health and Family Welfare, in July 2022, the National Health Authority (NHA) announced the expansion of the digital health ecosystem being built under its flagship scheme, Ayushman Bharat Digital Mission (ABDM), with the successful integration of 52 digital health applications in India.

Latin America is growing due to the increased adoption of digital technologies by various healthcare facilities during the COVID-19 pandemic. Furthermore, the launch of telemedicine apps and services in the region is supporting market growth.

The Middle East & Africa market is expected to continue to expand at a considerable CAGR during the forecast period, attributed to the strategic initiatives taken by the governments of various countries for new technological reforms in the healthcare industry.

KEY INDUSTRY PLAYERS

What Strategies Are Adopted by the Leading Market Players? 

The market is fragmented, with a large number of players holding a significant digital health market share in 2022. Moreover, industry leaders, including Cerner Corporation, Apple, Epic Systems Corporation, Huawei, Cisco, and Philips Healthcare, hold a dominating position with a strong portfolio of digital-health technologies. The increasing number of product launches by these companies supports their growth. In August 2021, Koninklijke Philips N.V. introduced two new HealthSuite solutions to provide cost-effective, cloud-based solutions to patients.

Furthermore, industry players such as Doctor on Demand, AthenaHealth, MIDITECH, American Well, MDLIVE, Boston Scientific Corporation, Babylon Health, Teladoc, Polycom, Allscripts, Zoom, Headspace, Livongo Health, Doctolib, Kry, Cure.fit, Noom, and others have a strong global presence. The increasing product approvals for the services and strategic decisions formulated by these players are supporting the growth of these companies.

  • In January 2023, Teladoc unveiled a new app integrating services for primary care and mental health.

LIST OF KEY COMPANIES PROFILED IN DIGITAL HEALTH MARKET:

  • General Electric Company (U.S.)
  • Koninklijke Philips N.V. (Netherlands)
  • Allscripts Healthcare, LLC (U.S.)
  • Cerner Corporation (U.S.)
  • Epic Systems Corporation (U.S.)
  • McKesson Corporation (U.S.)
  • Medical Information Technology, Inc. (U.S.)s
  • Siemens Healthcare GmbH (Germany)
  • Boston Scientific Corporation (U.S.)
  • FUJIFILM Holdings Corporation (Japan)
  • Medtronic (Ireland)
  • Validic (U.S.)

What are the Key Industry Developments in this Market?

  • July 2023 - The Peterson Center on Healthcare announced the launch of the Peterson Health Technology Institute (PHTI), a nonprofit organization that provides independent evaluations of innovative healthcare technologies to improve health and lower costs.
  • May 2022 - The Organization for the Review of Care and Health Applications (ORCHA) announced its involvement with a new U.S. framework for assessing health technologies, including mobile apps and web-based tools used by healthcare providers and consumers, led by the American College of Physicians (ACP) and the American Telemedicine Association (ATA) in collaboration with ORCHA.
  • May 2022 - FUJIFILM Holdings Corporation collaborated with the National Rural Health Association (NRHA) to provide rural areas with products and services, including digital radiography and in-vitro diagnostics solutions.
  • March 2022 - MEDITECH collaborated with Google Health to provide easy and quick access to patient information.
  • March 2022 - Validic announced the availability of its remote patient monitoring (RPM) platform, Validic Impact, on the Epic Systems 'App Orchard' platform. The App Orchard is a platform where developers can launch their apps for the Epic Systems community members.

REPORT COVERAGE

An Infographic Representation of Digital Health Market

Digital Health Market

To get information on various segments, share your queries with us

The market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, product types, components, and end-users. Moreover, it offers insights into the digital health market trends, impact of COVID-19, and other aspects. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation

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Jignesh Rawal ( Assistant Manager -Healthcare )

Frequently Asked Questions

Fortune Business Insights says that the global market stood at USD 375.99 billion in 2022 and is projected to reach USD 1,965.30 billion by 2030.

In 2022, the North America market value stood at USD 153.38 billion.

The market is expected to exhibit steady growth at a CAGR of 23.3% during the forecast period (2023-2030).

By product type, the mHealth segment is anticipated to dominate the market during the forecast period.

Increasing penetration of smartphones, tablets, and other mobile platforms, initiatives taken by governments of various countries to promote digital health technology, and technological advancements leading to increasing adoption of digital tools are the key factors driving market growth.

Cerner Corporation, Apple, Epic Systems Corporation, Huawei, Cisco, and Philips Healthcare are the major players in the market.

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  • STUDY PERIOD: 2019-2030
  • BASE YEAR: 2022
  • HISTORICAL DATA: 2019-2021
  • NO OF PAGES: 181

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Author

Jignesh Rawal

Assistant manager - healthcare.

Jignesh is a skilled practitioner with over 8 years of extensive experience in market analysis and advisory services within the medical devices, pharmaceuticals, and life sciences & biotechnology sectors. His career journey has equipped him with a deep understanding of market dynamics and strategic insights that drive business growth. He specializes in research within various domains, including cardiology, cosmetics, neurology, and wound care, among others.

In addition to his experience in market analysis, Jignesh brings valuable experience in procurement and supply chain logistics management, gained during his 3 years with a pharmaceutical distribution company. This background enhances his strategic perspective, allowing him to offer comprehensive solutions that address both market trends and operational efficiencies. He has assisted numerous clients in product introduction and analysis of market scenarios.

Jignesh has also been instrumental in projects for leading companies such as Koninklijke Philips N.V., Novartis AG, Pfizer, and Siemens AG, among others. His ability to distill complex data into actionable insights has earned him a reputation as a trusted advisor among his peers and clients alike. Jignesh’s analytical acumen and strategic mindset position him as a valuable asset to any organization seeking to navigate the evolving landscape of the medical devices and life-science sectors.

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The global digital health market size was valued USD 375.99 billion in 2022 and is projected to grow at a CAGR of 23.3% during forecast 2023-2030.

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Gym Market 2024 Insights: Size, Growth & Membership Stats

Published by caroline @ wellness creative co on 3 january 2024 3 january 2024.

Gym market statistics are useful for business planning, competitor analysis, expansion strategy, and startups. If you operate a fitness centre, health club, or personal training studio, industry insights can help you identify trends, growth segments, and new opportunities . For companies that want to sell to the gym industry, understanding the number of gyms by region or country allows you to assess the market size.

In this article – we share the latest gym market stats including revenue, size, growth, and memberships, plus insightful industry analysis.

Gym Market Size, Growth & Trends

  • Market Analysis

Club Market Share – Global, USA & UK

Gym membership statistics, 2024 gym market research report.

We’ve spent 15+ years working in the fitness industry , from leading gym chains to global equipment manufacturers, so know the market inside-out. We proactively study the ever-changing landscape, highlight new trends, and analyse the big players . For the last 5 years, we’ve shared this expertise with the wider industry through our articles and Research Reports which are available to purchase.

You’ll find links to all the data sources at the bottom of this article. We check for updated statistics regularly but it’s always worth doing your own due diligence.

Here are the latest gym industry statistics that demonstrate its market size, growth, and trends…

  • The gym market is estimated to be worth $88.5bn in 2024 [Wellness Creative Co. 2024].
  • The gym and health club industry is growing at a rate of 7.5% per year [Wellness Creative Co. 2024].
  • Boutique fitness studios and budget clubs (high volume low cost) are continuing to perform well, although some are predicting a resurgence of mid-market clubs [Wellness Creative Co. 2024].
  • Gym trends predicted for 2024 include programs for older adults, exercise for mental health, and lifestyle medicine [ACSM 2024].
  • The health club market was worth $96.7bn globally at its peak in 2019 and grew every year 2008-2019 [IHRSA 2023].
  • The U.S. gym industry lost $20.4bn in 2020 and 25% of clubs closed as a result [IHRSA 2022].
  • In the UK there are over 4880 gyms and the market value is just over £1.8bn [Leisure Database & Statista 2023].
  • Boutique studios recovered faster than traditional health clubs from the global closures of 2020 [Wellness Creative Co. 2024].

Gym Market 2024 Overview

Gym Market Analysis

These health club industry statistics are mixed news – they show a healthy (excuse the pun) demand which suggests growth in the future. But there’s no denying that the events of 2020 have had a lasting impact on the industry.

However, things are looking up for the gym sector. It’s now predicted to recover fully in 2024 and exceed its previous revenue peak in 2025. This is really exciting news and signals a new era for the fitness club industry.

Gym Industry 2024 Report Data

At the macro level, interest in health and fitness is growing. Cardiovascular disease and obesity levels are increasing so demand for gym services and fitness training is rising too. An aging global population and interest in fitness trends like longevity are also creating opportunities for gyms to serve the active aging market.

But no gym market analysis would be complete without a worst-case scenario … The risk of a global recession continues to loom which could significantly impact health clubs and fitness centres. During the recession of 2008, the gym industry did not fare well . As people’s disposable income decreased, gym memberships were one of the first things to get cut from household budgets.

Increase Gym Revenue Tile

This led to an overall decrease in market revenue – contraction instead of growth. So, it’s important to identify how your business could withstand a similar situation given the potential of this occurring in 2024.

You might also like… Effective Marketing Strategies For Gyms & Health Clubs , or the Latest Gym Equipment Industry Insights .

The leading health club chains account for the majority of facilities globally. Here are some gym statistics on market share and the biggest operators in the industry…

  • By revenue, the three largest gym chains globally are LA Fitness, 24 Hour Fitness, and Life Time Fitness.
  • Market share in the US is dominated by these three brands along with Invited (formerly Club Corp), Anytime Fitness, and Planet Fitness.
  • In terms of franchise chains , Anytime Fitness ($1.5 billion) and Planet Fitness ($936 million) are the largest globally.
  • According to Ibis World research, gym market share in the UK is lead by Pure Gym, Virgin, and David Lloyd.
You might also like… Our Fitness Insights & Data Hub or Top Fitness Industry Trends (& What They Mean For The Market) .

Here are some useful gym membership stats that can provide a benchmark for membership retention and help to inform your business planning …

  • One gym member is worth an average of $517 to a facility each year [Wellness Creative Co. 2024].
  • Over 1 in 5 Americans belong to at least one U.S. health club or studio [IHRSA 2019].
  • There were 64.2 US million gym members in 2019, up 2.7% from 62.5 million in 2018 [IHRSA 2019].
  • Gym attendance statistics show that these 62.5 million health club members use a club or studio for an average of 104 days a year [IHRSA 2019].
  • There are also 9 million non-members who attend a club or studio for an average of 24 days a year [IHRSA 2019].
  • Between 2008 and 2018, membership grew by 37.1% , while the total number of club-goers increased by 34% [IHRSA 2019].
  • UK gym membership statistics reveal that there are more than 10 million gym members nationwide [Leisure Database 2023].
  • The average price of a UK gym membership is £44.92 and US membership is $55 [Leisure Database 2023].
  • The UK penetration rate is 15.1% which equates to 1 in every 7 people being a member of a gym [Leisure Database 2023].

These stats on gym membership show that there’s plenty of potential for further growth . Exercise statistics from the World Health Organisation show that 28% of the world’s adults (1.4 billion people) are insufficiently active. Gyms need to work on convincing more of the population to begin attending their facilities.

Fitness Industry Statistics Tile

If the UK increased its gym attendees from 15% to 20% (in line with US penetration rates), then this would equate to 3.3 million more people exercising on a regular basis. The beneficial implications for public health, vast reductions in NHS costs, and increases in gym revenue are huge.

The chart below shows gym membership statistics by month and annual trends…

Online Searches For Gym Memberships 2020-2023

Typically, interest in gym memberships peaks during January (no surprise there!) but there are significant dips in May, July, and throughout the fourth quarter. These could be ideal times to run gym promotions that boost membership numbers or encourage loyalty.

This is the most  comprehensive and up-to-date gym market research report available. It covers the topic in much more depth and includes gym industry analysis for health clubs, fitness studios, and product manufacturers too.

Unlike other reports, you get extended access to the 2024 edition , including any updates that are made as new industry data becomes available . Ideal for business planning, the 90-page report includes;

  • Gym industry revenue, growth & future outlook
  • Number of gyms, members & retention statistics
  • Broader fitness industry revenue & growth by market segment
  • Online & virtual fitness market developments
  • Financial information for the largest club operators globally
  • Biggest & fastest growing fitness franchises
  • Insights into the boutique fitness studio & personal training segments
  • Latest industry trends & how to capitalise on them
  • Growth markets, segments & audiences including Millennials
  • Data on fitness tracker, app & equipment segments
  • Outlook & evidence-based predictions for the future of the industry
  • 14-day money-back guarantee, no questions or hassle.

Fitness Report Clients

Note: Data is correct at the time of publishing, but it’s important to do your own local research when making business decisions. Sources include:

  • IHRSA Media Centre – August 2023
  • Fitness Market Size, Demographics & Revenue – December 2022
  • Leisure Database Press Release – August 2023
  • Ibis World Market Research – July 2023
  • Statista – December 2022
  • ACSM – January 2024

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Caroline @ Wellness Creative Co

Qualified personal trainer (BSc Sports Science) & nutritionist (MSc Human Nutrition) with 15+ years of fitness & wellness marketing experience working with global brands.

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2024 fitness conferences, expos & industry conventions.

Did you know that over 2000 fitness expos, conferences, and trade shows take place every year? With so much choice, it can be hard to know which ones are worth attending. So, we’ve listed the Read more…

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Fitness Industry Statistics 2024: Market Size & Growth Trends

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Realtor.com Economic Research

  • Data library

2024 Housing Market Forecast and Predictions: Housing Affordability Finally Begins to Turnaround

Danielle Hale

As we look ahead to 2024 , we see a mix of continuity and change in both the housing market and economy. Against a backdrop of modest economic growth, slightly higher unemployment, and easing inflation longer term interest rates including mortgage rates begin a slow retreat. The shift from climbing to falling mortgage rates improves housing affordability, but saps some of the urgency home shoppers had previously sensed. Less frenzied housing demand and plenty of rental home options keep home sales relatively stable at low levels in 2024, helping home prices to adjust slightly lower even as the number of for-sale homes continues to dwindle. 

Realtor.com ® 2024 Forecast for Key Housing Indicators

market research fitness analysis

Home Prices Dip, Improving Affordability

Home prices grew at a double-digit annual clip for the better part of two years spanning the second half of 2020 through 2022, a notable burst following a growing streak that spanned back to 2012. As mortgage rates climbed, home price growth flatlined, actually declining on an annual basis in early 2023 before an early-year dip in mortgage rates spurred enough buyer demand to reignite competition for still-limited inventory. Home prices began to climb again, and while they did not reach a new monthly peak, on average for the year we expect that the 2023 median home price will slightly exceed the 2022 annual median.

Nevertheless, even during the brief period when prices eased, using a mortgage to buy a home remained expensive. Since May 2022, purchasing the typical for-sale home listing at the prevailing rate for a 30-year fixed-rate mortgage with a 20% down payment meant forking over a quarter or more of the typical household paycheck. In fact, in October 2023, it required 39% of the typical household income and this share is expected to average 36.7% for the full calendar year in 2023. This figure has typically ranged around 21%, so it is well above historical average. We expect that the return to pricing in line with financing costs will begin in 2024, and home prices, mortgage rates, and income growth will each contribute to the improvement. Home prices are expected to ease slightly, dropping less than 2% for the year on average. Combined with lower mortgage rates and income growth this will improve the home purchase mortgage payment share relative to median income to an average 34.9% in 2024, with the share slipping under 30% by the end of the year.

market research fitness analysis

Home Sales Barely Budge Above 2023’s Likely Record Low

After soaring during the pandemic, existing home sales were weighed down in the latter half of 2022 as mortgage rates took off, climbing from just over 3% at the start of the year to a peak of more than 7% in the fourth quarter. The reprieve in mortgage rates in early 2023, when they dipped to around 6%, brought some life to home sales, but the renewed climb of mortgage rates has again exerted significant pressure on home sales that is exacerbated by the fact that a greater than usual number of households bought homes over the past few years, and despite stories of pandemic purchase regret , for the most part, these homeowners continue to be happy in their homes. 

This is consistent with what visitors to Realtor.com report when asked why they are not planning to sell their homes. The number one reason homeowners aren’t trying to sell is that they just don’t need to; concern about losing an existing low-rate mortgage is the top financial concern cited. Our current projection is for 2023 home sales to tally just over 4 million, a dip of 19% over the 2022 5 million total. 

existing_sales_yearly

With many of the same forces at play heading into 2024, the housing chill will continue, with sales expected to remain essentially unchanged at just over 4 million. Although mortgage rates are expected to ease throughout the course of the year, the continuation of high costs will mean that existing homeowners will have a very high threshold for deciding to move, with many likely choosing to stay in place.  Moves of necessity–for job changes, family situation changes, and downsizing to a more affordable market–are likely to drive home sales in 2024. 

market research fitness analysis

Shoppers Find Even Fewer Existing Homes For Sale

Even before the pandemic, housing inventory was on a long, slow downward trajectory. Insufficient building meant that the supply of houses did not keep up with household formation and left little slack in the housing market. Both homeowner and rental vacancy remain below historic averages . In contrast with the existing home market, which remains sluggish, builders have been catching up, with construction remaining near pre-pandemic highs for single-family and hitting record levels for multi-family . 

market research fitness analysis

Despite this, the lack of excess capacity in housing has been painfully obvious in the for-sale home market. The number of existing homes on the market has dwindled. With home sales activity to continue at a relatively low pace, the number of unsold homes on the market is also expected to remain low.  Although mortgage rates are expected to begin to ease, they are expected to exceed 6.5% for the calendar year. This means that the lock-in effect, in which the gap between market mortgage rates and the mortgage rates existing homeowners enjoy on their outstanding mortgage, will remain a factor. Roughly two-thirds of outstanding mortgages have a rate under 4% and more than 90% have a rate less than 6%.

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Rental Supply Outpaces Demand to Drive Mild Further Decline in Rents

After almost a full year of double-digit rent growth between mid-2021 and mid-2022, the rental market has finally cooled down, as evidenced by the year-over-year decline that started in May 2023 . In 2024, we expect the rental market will closely resemble the dynamics witnessed in 2023, as the tug of war between supply and demand results in a mild annual decline of -0.2% in the median asking rent.

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New multi-family supply will continue to be a key element shaping the 2024 rental market.  In the third quarter of 2023, the annual pace of newly completed multi-family homes stood at 385,000 units. Although absorption rates remained elevated in the second quarter, especially at lower price points, the rental vacancy rate ticked up to 6.6% in the third quarter. This uptick in rental vacancy suggests the recent supply has outpaced demand, but context is important. After recent gains, the rental vacancy rate is on par with its level right before the onset of the pandemic in early 2020, still below its 7.2% average from the 2013 to 2019 period.  Looking ahead, the strong construction pipeline– which hit a record high for units under construction this summer –is expected to continue fueling rental supply growth in 2024 pushing rental vacancy back toward its long-run average. 

While the surge in new multi-family supply gives renters options, the sheer number of renters will minimize the potential price impact. The median asking rent in 2024 is expected to drop only slightly below its 2023 level. Renting is expected to continue to be a more budget friendly option than buying in the vast majority of markets, even though home prices and mortgage rates are both expected to dip, helping pull the purchase market down slightly from record unaffordability. 

Young adult renters who lack the benefit of historically high home equity to tap into for a home purchase will continue to find the housing market challenging. Specifically, as many Millennials age past first-time home buying age and more Gen Z approach these years, the current housing landscape is likely to keep these households in the rental market for a longer period as they work to save up more money for the growing down payment needed to buy a first home. This trend is expected to sustain robust demand for rental properties. Consequently, we anticipate that rental markets favored by young adults , a list which includes a mix of affordable areas and tech-heavy job markets in the South, Midwest, and West, will be rental markets to watch in 2024.

Key Wildcards:

  • Wildcard 1: Mortgage Rates With both mortgage rates and home prices expected to turn the corner in 2024, record high unaffordability will become a thing of the past, though as noted above, the return to normal won’t be accomplished within the year. This prediction hinges on the expectation that inflation will continue to subside, enabling the recent declines in longer-term interest rates to continue. If inflation were to instead see a surprise resurgence, this aspect of the forecast would change, and home sales could slip lower instead of steadying.
  • Wildcard 2: Geopolitics In our forecast for 2023 , we cited the risk of geopolitical instability on trade and energy costs as something to watch. In addition to Russia’s ongoing war in Ukraine, instability in the Middle East has not only had a catastrophic human toll, both conflicts have the potential to impact the economic outlook in ways that cannot be fully anticipated. 
  • Wildcard 3: Domestic Politics: 2024 Elections In 2020, amid the upheaval of pandemic-era adaptations, many Americans were on the move. We noted that Realtor.com traffic patterns indicated that home shoppers in very traditionally ‘blue’ or Democratic areas were tending to look for homes in markets where voters have more typically voted ‘red’ or Republican. While consumers also reported preferring to live in locations where their political views align with the majority , few actually reported wanting to move for this reason alone. 

Housing Perspectives:

What will the market be like for homebuyers, especially first-time homebuyers.

First-time homebuyers will continue to face a challenging housing market in 2024, but there are some green shoots. The record-high share of income required to purchase the median priced home is expected to begin to decline as mortgage rates ease, home prices soften, and incomes grow. In 2023 we expect that for the year as a whole, the monthly cost of financing the typical for-sale home will average more than $2,240, a nearly 20% increase over the mortgage payment in 2022, and roughly double the typical payment for buyers in 2020. This amounted to a whopping nearly 37% of the typical household income. In 2024 as modest price declines take hold and mortgage rates dip, the typical purchase cost is expected to slip just under $2,200 which would amount to nearly 35% of income. While far higher than historically average, this is a significant first step in a buyer-friendly direction.

How can homebuyers prepare? 

Homebuyers can prepare for this year’s housing market by getting financially ready. Buyers can use a home affordability calculator , like this one at Realtor.com to translate their income and savings into a home price range. And shoppers can pressure test the results by using a mortgage calculator to consider different down payment, price, and loan scenarios to see how their monthly costs would be impacted. Working with a lender can help potential buyers explore different loan products such as FHA or VA loans that may offer lower mortgage interest rates or more flexible credit criteria. 

Although prices are anticipated to fall in 2024, housing costs remain high, and a down payment can be a big obstacle for buyers. Recent research shows that the typical down payment on a home reached a record high of $30,000 .  To make it easier to cobble together a down payment, shoppers can access information about down payment assistance options at Realtor.com/fairhousing and in the monthly payment section of home listing pages. Furthermore, home shoppers can explore loan products geared toward helping families access homeownership by enabling down payments as low as 3.5% in the case of FHA loans and 0% in the case of VA loans .

What will the market be like for home sellers?

Home sellers are likely to face more competition from builders than from other sellers in 2024. Because builders are continuing to maintain supply and increasingly adapting to market conditions, they are increasingly focused on lower-priced homes and willing to make price adjustments when needed. As a result, potential sellers will want to consider the landscape for new construction housing in their markets and any implications for pricing and marketing before listing their home for sale.

What will the market be like for renters?

In 2024, renting is expected to continue to be a more cost-effective option than buying in the short term even though we anticipate the advantage for renting to diminish as home prices and mortgage rates decline. 

However, for those considering the pursuit of long-term equity through homeownership, it’s essential to not only stay alert about market trends but also to carefully consider the intended duration of residence in their next home. When home prices rise rapidly, like they did during the pandemic, the higher cost of purchasing a home may break even with the cost of renting in as little as 3 years. Generally, it takes longer to reach the breakeven point, typically within a 5 to 7-year timeframe. Importantly, when home prices are falling and rents are also declining, as is expected to be the case in 2024, it can take longer to recoup some of the higher costs of buying a home. Individuals using Realtor.com’s Rent vs. Buy Calculator can thoroughly evaluate the costs and benefits associated with renting versus buying over time and how many years current market trends suggest it will take before buying is the better financial decision. This comprehensive tool can provide insights tailored to a household’s specific rent versus buying decision and empowers consumers to consider not only the optimal choice for the current month but also how the trade-offs evolve over several years.

Local Market Predictions:

All real estate is local and while the national trends are instructive, what matters most is what’s expected in your local market. 

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Analysis of real estate market in Moscow Oblast, Russia:

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Elektrostal

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IMAGES

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  2. Fitness Market Size, Revenue & Growth 2023 [+ Research Report]

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  3. Fitness Market 2024: Size, Revenue & Growth (+ Research Report)

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