Fitness & Medtech in the AI era

In today's diverse consumer landscape, there is a noticeable shift towards prioritizing experiences over material possessions. This shift is influencing trends in the health and wellness sectors, with consumers seeking increased variety and innovation from fitness, health, and MedTech brands. Today's newsletter will provide insights into their key product innovations and marketing strategies.

Following the challenges of the pandemic, advancements in health, medical, and fitness products are increasingly characterized by digitalization and intelligent features. This is evident in the rise of smart wearable devices, home fitness equipment, fitness apps with AI-powered personal trainers, mental health apps, and the emerging concept of the fitness metaverse. A closer examination of these developments will be presented in the following discussion.

Smart wearables represent the initial and most convenient electronic devices available for consumer experimentation. These devices encompass a variety of electronic gadgets that can be worn on the body, such as smartwatches, smart wristbands, smart clothing, and smart glasses, which are particularly popular in the realm of fitness and wellbeing. Recent data on global shipments of wearable devices during the period of 2020-2021 indicate a notable increase of 27.2%. Projections for the wearable fitness tracking market anticipate an 18% surge by 2026, amounting to 265.4 billion units. Noteworthy brands dominating the wearable smart device market in 2021 include Apple, Samsung, Xiaomi, HUAWEI, and boAt.

Wearable smart devices also hold considerable promise for applications within the medical device industry. Forecasts suggest a steady 7.1% annual growth rate for global medical technology through 2027. The rising popularity of wearables is profoundly influencing the prevention and management of chronic illnesses. The integration of smart, connected technologies into medical devices enables healthcare professionals to enhance patient care by facilitating remote health monitoring and personalized treatment recommendations. The global market for smart wearable healthcare devices is expected to experience a 13.1% growth by 2030, with North America currently holding a dominant 38.6% market share in revenue. The Asia Pacific region stands out as the fastest-growing market, reflecting a parallel increase in consumer adoption of Internet of Things (IoT) smart devices. Of note, India emerged as the sole country among the top 20 to achieve triple-digit growth in wearables in 2020, with China securing its position as the world's largest smartwatch market and expanding its reach to target children specifically.

Next, let us consider a different perspective by shifting our attention from electronic devices to the gym setting at home. During the pandemic, gyms were considered potential high-risk environments for rapid COVID-19 transmission. This perception has led many consumers to turn to outdoor or home fitness. Even as the pandemic recedes, this trend endures as individuals continue to avoid crowded fitness facilities and prefer exercising at home. Projections indicate a 4.6% increase in the home fitness equipment market by 2028, driven by factors such as a rising obese population, escalating healthcare expenses, and a heightened emphasis on preventive healthcare, well-being, and weight management in North America, the primary market for such products.

The Asia Pacific region stands out as the fastest-growing market, with a growing number of younger consumers investing in home fitness equipment. As this demographic group reaches their peak years, the popularity of home fitness rooms is expected to grow further, possibly leading to the emergence of smart workout spaces in modern residences. While at-home fitness equipment offers convenience and flexibility, the challenge lies in the bulkiness of such equipment and the space it requires. How can a balance be struck between working out at home and maintaining a gym studio or class membership? The key lies in leveraging core marketing strategies centered around content and community through an equipment-plus subscription model. Emphasis should be placed on product innovation, high-quality service, and the incorporation of customer feedback. Launching targeted campaigns within user communities and offering personalized workout experiences are essential components of this approach. Additionally, offering installment payment options can help secure user commitment over an extended period, thereby enhancing user retention rates.

As previously mentioned, fitness content serves as a fundamental strategy for immediate expansion. The utilization of fitness apps & AI-powered personal trainers is essential for the dissemination and reproduction of this content. These apps offer users personalized workout routines through the use of Artificial Intelligence (AI) and machine learning. The onset of the lockdown necessitated a shift from traditional gyms and fitness studios to virtual fitness classes, resulting in a significant increase in app downloads and a boost to the fitness app market. The rising incidence of chronic diseases such as diabetes and obstructive pulmonary disease is fueling the demand for fitness and nutrition apps. In 2020, a total of 71,000 health and fitness apps were launched worldwide (24,000 on the Apple App Store and 47,000 on the Google Play Store).

Mental health should not be underestimated. Mental health applications are readily available to meet the demand digitally and on-the-go. Global consumer expenditure on mental wellness applications nearly reached USD 270 million in 2020, marking a 32.5% increase compared to the previous year. Many of these applications focus on mindfulness and meditation, going beyond traditional therapist support. Additionally, mental health apps offer professional online therapy sessions on-the-go. It is projected that the global market for mental health apps may experience a 16.5% growth by the year 2030.

Virtual Reality is transforming numerous aspects of our lives, including the fitness industry. Immersing oneself in the fitness metaverse is akin to embarking on an innovative immersive experience, facilitating trainers and coaches to interact with their clients and other professionals worldwide. Companies are encouraged to develop immersive fitness experiences by collaborating with top-tier gaming and fitness brands. As fitness brands explore new avenues to provide a blend of in-person and virtual workouts, the metaverse is poised to enhance online and physical gym interactions. Furthermore, it will allow fitness brands to reach broader audiences and markets by enabling physical gyms and fitness studios to attract younger Gen Z demographics. The global VR gaming market is projected to exhibit substantial growth of 31.4% by 2028. Firms aspiring to make headway in this domain can leverage blockchain technology to incentivize users for their exercise routines, thereby enhancing engagement and establishing a revenue stream for brands and participants within the metaverse.

Lastly, while these monitoring devices furnish a wealth of information that can promote better health, safeguarding data poses a significant challenge. Brands retailing wearable gadgets must prioritize data security and privacy to cultivate consumer confidence.

The widespread utilization of the internet and smartphones, coupled with a growing inclination towards healthier lifestyles and enhanced well-being, has triggered substantial expansion in the worldwide fitness and medical device technologies market. If you are interested in expanding your market presence in Asia and among the younger international student demographic, please do not hesitate to connect. ??

Reference

Home Gym, the 2nd Most Popular Specialty Room for Homeowners.

Mobile App Success Story: How Sweat: Kayla Itsines Fitness Did It.

Peloton Marketing Strategy: Uncovering Key Lessons For Rapid Growth.

FEELING GOOD Powering the Next Generation of Fitness and Medtech.