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    Fitness App Report

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    Kartik Dhiman
    The fitness app industry is growing due to increasing health awareness and smartphone usage. Fitness apps allow for convenient access to fitness resources at low cost. Combat sports are a rising niche in fitness as martial arts programs grow in popularity. Millennials are a key target market for fitness apps and combat sports due to their technology usage and interest in classes like martial arts. Younger consumers under 35 are more likely to use fitness apps and classes while older age groups over 55 represent a smaller but growing market.

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    Fitness App Report

    Uploaded by

    Kartik Dhiman
    648 views8 pages
    The fitness app industry is growing due to increasing health awareness and smartphone usage. Fitness apps allow for convenient access to fitness resources at low cost. Combat sports are a rising niche in fitness as martial arts programs grow in popularity. Millennials are a key target market for fitness apps and combat sports due to their technology usage and interest in classes like martial arts. Younger consumers under 35 are more likely to use fitness apps and classes while older age groups over 55 represent a smaller but growing market.

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    Fitness Report

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    The fitness app industry is growing due to increasing health awareness and smartphone usage. Fitness apps allow for convenient access to fitness resources at low cost. Combat sports are a rising niche in fitness as martial arts programs grow in popularity. Millennials are a key target market for fitness apps and combat sports due to their technology usage and interest in classes like martial arts. Younger consumers under 35 are more likely to use fitness apps and classes while older age groups over 55 represent a smaller but growing market.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    648 views8 pages

    Fitness App Report

    Uploaded by

    Kartik Dhiman
    The fitness app industry is growing due to increasing health awareness and smartphone usage. Fitness apps allow for convenient access to fitness resources at low cost. Combat sports are a rising niche in fitness as martial arts programs grow in popularity. Millennials are a key target market for fitness apps and combat sports due to their technology usage and interest in classes like martial arts. Younger consumers under 35 are more likely to use fitness apps and classes while older age groups over 55 represent a smaller but growing market.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8
    At a glance
    Powered by AI
    The key takeaways are that interest in fitness apps is growing due to increasing smartphone usage and focus on health and wellness. The document also discusses the state of the fitness app industry and different market segments.

    The different revenue sources for fitness apps discussed are service revenue, device revenue, paid downloads revenue, and advertising revenue.

    The document discusses segmenting fitness app customers by age into those aged 34 and younger, 35 to 54, and 55+. It also describes segmenting by activity level as everyday users, active users, and performance users.

    Contents

    1.0 State of Fitness APP Industry ...................................................................................................................2


    2.0 Interest in fitness apps is growing .........................................................................................................4
    3.0 Combat Sports are the Rising Niche of Fitness industry .............................................................5
    4.0 Customer Segmentation..............................................................................................................................7
    1.0 State of Fitness APP Industry
    Fitness industry has benefited from recent trends & marketing campaigns aimed at
    fighting obesity, as well as consumer trends toward improved health. The desire of
    consumers to lead healthier, more active lifestyles is fuelling fitness industry growth,
    with fitness niches such as fitness apps & online fitness exhibiting robust growth.

    The growth of online fitness industry is also driven by the popularity of smart phones
    and technological advancements. The digital technology especially fitness apps allows
    for easy, time-effective coverage of fitness resources at low cost, offering significant
    opportunities to improve access to fitness services and contain costs. According to a
    report from CBS News fitness app downloads have increased 87% faster than all other
    apps and video streaming increased by 60% in year 2015.

    Global - Mobile Health Apps Industry 2016

    3.2 Billion Downloads for Mobile - Health Apps


    (2016)

    Health & Fitness Medical category


    App - 56% of total –44% of the total

    Fitness App

    Fitness App or Personal Trainer app captures all the basic data like distance,
    average speed, speed between mile markers, elevation, pace, pace between mile
    markers, exercise, duration, calories burned, and route as plotted on a map using
    GPS, which you can optionally disable to conserve battery power.

    Consumers are increasingly turning to technology to track their fitness and


    increase motivation. And research shows that millennials, especially women, are
    driving the demand for fitness apps.

    According to statista research, Revenue for fitness apps in the US in 2015 was $357
    million, with the average revenue per user being $19.51. This is projected to increase to
    $754 million in 2021, with the average revenue per use increasing to $21.47
    US – Fitness App Industry Revenue (in Million US$), 2015 & 2021

    754

    357

    2015 2021

    Source: Statista Research

    Broadly fitness apps revenue is generated through different revenue sources

    A) Service revenue: Revenue which derives from additional Fitness or health related
    services. These services typically involve backend structures of servers, teams of trainer
    or medical staff that monitor and consult with individuals interested in personalized
    training services. Services also include simple digital content that can be unlocked by
    the app user, such as training plans. Training plans are typically subscription-based, but
    can also be structured as pay-per-use.

    B) Device revenue: Revenue generated through hardware sales linked to an


    application. These may include sensors for a specific wearable device designed to be
    used compatibly with the application. E.g. Fitbit wearable devices

    C) Paid downloads revenue: Revenue from the initial app download.

    D) Advertising revenue: Revenue which derives from selling ad space within the app
    to advertisers

    Global – Mobile health App download (in Billion), 2013- 2015

    Fitness App market size – 1.68 Billion


    Down loads
    3

    2.3
    1.7

    2013 2014 2015

    Source: research2guidance 2015


    2.0 Interest in fitness apps is growing
    Fitness Apps are transforming the way millions of people around the world achieve
    their health and fitness goals. Fitness apps offer personalized insights, and virtual
    coaching through customized fitness plans and interactive workouts which appeals to a
    large, mainstream health and fitness market by addressing these key needs with
    advanced technology embedded in simple-to-use products and services.

    The increasing number of smart phone users in the global market has led to a
    tremendous increase in use of fitness apps. According to Furry Analytics, in year 2016,
    overall app usage grew by 11% and time spent in apps grew by 69%. Fitness app uses
    grow by more than 18% which is above overall app uses growth

    Source: Flurry Jan 12, 2017 - Report (To generate its analysis, Flurry looks at the
    apps on its analytics platform. Flurry’s footprint now includes the ability to track
    more than 940,000 apps across 2.1 billion devices in 3.2 billion sessions, offering
    deep insight to the state of the app ecosystem today.)

    Health & Fitness App Usage growth rate


    3.0 Combat Sports are the Rising Niche of Fitness industry
    According to IBIS research, the interest for combat sports as fitness is growing in US.
    Most of the combat fitness training is offered by the martial arts studio and demand for
    such type of fitness program is growing steadily. Widely popular Ultimate Fighting
    Championships have increased awareness of martial arts programs; the growth in the
    martial arts category is really driven by its recreational and fitness value. Martial art
    industry serves a diverse customer base, According to the National Sporting Goods
    Association, 73.0% of those who practice martial arts do it so solely for physical fitness.

    Younger population remains the target market for martial arts studios due to nature of
    services offered by them. Consumers aged 35 and younger are expected to account for
    49.0% of total revenue. According to data from Nielsen, this demographic is more likely
    than others to participate in numerous fitness class activities, including Kick boxing
    group training, yoga, Pilates and dance, as well as free weights and weight machines.

    US – Martial Art Studio – Statistics

    US Martial Art Studios $4 Billion


    (Combat Sports)
    Annual Growth Rate (2011- 5.3%
    2016
    Number of Business 67503
    Major Market Players Share There is no dominant market players in US Martial Art
    Studio
    Source: IBIS

    US - Rising Number of participants in Martial Arts

    3.9
    3.69
    3.29 3.23

    2.16

    2011 2012 2013 2014 2015

    Source: Statista Research


    Combat Sports – Market Share in Type in US Fitness Industry

    Jiu Jitusu, 6.30%


    Judo, 10.20%

    Takewondo, Mixed Martial


    12.80% Arts, 34.90%

    Others, 13.60%

    Karate, 22.20%

    Source: IBIS

    Rising popularity or subscription of combat sports as fitness program indicates there is


    potential for app to attract fighters, and non fighters alike. Millennials are the largest
    target market for fitness industry especially for the combat Fitness sports such as mix
    martial art. Millennials are digital natives, do pretty much everything from mobile
    devices — from consuming content, shopping and communicating with their friends on
    social media. Moreover, Combat Sport Training is

    - Great cardio workout Fitness Industry


    For Target Market
    For Millennials
    -Great strength workout
    4.0 Customer Segmentation
    As discussed in earlier chapter, the Fitness industry has experienced substantial growth
    in demand and, as a result, the breakdown of the industry’s markets has also changed.
    For determining the target market for fitness industry let’s look at the consumer
    preferences.

    Customer Segmentation – Fitness Industry

    Consumers aged 35 and Consumers 35 to 54 55+


    younger
    According to data from According to data from the Although this market
    Nielsen, this demographic is Physical Activity Council, segment is considered to be
    more likely than others to this demographic is the the most inactive, but the
    participate in numerous most likely to participate in burgeoning elderly
    fitness class activities, sports such as swimming, population has become
    including group training, running and weight lifting increasingly health
    yoga, Pilates and dance, as appeal to this demographic. conscious, contributing to
    well as free weights and demand for industry
    weight machines services.

    34 & Younger Age Group Share of Fitness DVD Customer by Age


    Less patient, more tech-savvy
    exercisers, who often are
    younger, now expect to find
    55+, 20%
    their workout videos instantly
    is preferring online fitness 18-34 Age ,
    35%
    video & App.

    35 to 50
    35 to 54 Age Group Age, 33%
    Online fitness niche is gaining
    popularity in this due to low
    cost, inflexible work schedule
    & some time due accessibility
    of gym at their Source: IBIS Research

    Both these group are the major customer for the DVD fitness industry which has been be
    disrupted by online fitness by attracting major end customers

    Moreover, target market for online fitness industry or Apps is not limited to the Fitness
    DVD customers. According to Nielson Consumer fitness trend report, 82% of Gym
    members & casual gym members also exercise at home and while exercising at home
    52% of all gym members are doing either App or online workout program.

    From user perspective, Fitness App customer can be segmented in to four categories
    Serious/Every day User

    Active User

    Performace Users

    Mass Consumer

    Everyday users are looking to incorporate more activity into their daily routines as the
    primary means to improve their overall fitness through everyday activities, such as
    exercising walking more or taking the stairs instead of the elevator.

    Active users exercise regularly to reach their fitness goals through activities such as
    running, using cardio equipment, and playing sports recreationally.

    Performance users train regularly to improve their performance and achieve their
    personal bests. These users participate in endurance sports and fitness activities with
    higher intensity and longer duration, such as interval or distance running and cycling,
    and thrive on personal improvement and competition.

    Mass Consumer sees fitness either as a healthy habit, an enjoying activity or a fat-loss
    method.

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