Fewer than 100 manufacturers of fitness equipment operate in the US, with combined annual sales of about $3 billion. Large companies include ICON Health & Fitness, Nautilus, Life Fitness, Precor, and Cybex.
COMPETITIVE LANDSCAPE
Demand is driven partly by consumer income and partly by demographic trends. The profitability of individual companies depends on unique product designs and effective marketing. Large companies have some advantages in brand-name recognition, but small companies can compete effectively by making a unique product.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are motorized treadmills, stationary bikes, stair climbers, rowing machines, and elliptical "cross-trainers," collectively called aerobic exercisers; and weightlifting machines ("strength training"), and traditional weightlifting equipment ("free weights" and benches). In addition, there are a large number of ancillary products. This equipment allows individuals to exercise by themselves in a limited space. The two major market segments for fitness equipment are the home and the institutional exercise equipment market (including health clubs, corporations, apartments, and hotels). The home market is by far the largest and has grown significantly in the past decade. Products are made and marketed separately for the two segments; many manufacturers produce for only one.
Products for home use are mainly treadmills and exercise bikes. Cost is a primary consideration, so home equipment is generally built with lighter materials and comes in a wider range of prices, especially toward the lower end. Home exercise equipment is rarely used more ...
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