Ranking Overview:
1. FORME Studio – Insider Monkey’s Score: 3 – (NASDAQ: TRNR)
2. Lululemon Studio Mirror – Insider Monkey’s Score: 3 – (NASDAQ:LULU)
3. Peloton Bike – Insider Monkey’s Score: 2 – (NASDAQ:PTON)
4. Nordic Track Commercial 2450 – Insider Monkey’s Score: 2 – (PRIVATE)
5. Tempo Studio – Insider Monkey’s Score: 2 – (PRIVATE)
Advances in manufacturing technology and personal computing have shaped up modern day human living to be quite different from what people living a century ago would be used to. Most work today is done either in front of a computer or in front of store counters or assembly lines, and the traveling convenience offered by cars also means that overall, humans get less exercise and physical activity.
At the same time, while it was possible to work out or exercise at home in the past, these days, the internet and new exercise equipment enable people to choose what kind of exercises they want to blend into their daily schedule. For cardio enthusiasts, treadmills and other machines enable them to simulate a running environment at home. Additionally, those who want to target muscle groups for growth have a variety of other home gyms available that offer a packaged solution for specific muscle segments.
However, one key motivator that some people require on their fitness journey is a sense of community and belonging. Before the internet allowed for easy communication, this particular aspect of working out or exercising was often unavailable unless you joined a gym. But this has rapidly changed over the past couple of years, especially with the outbreak of the coronavirus. Just like the virus forced employers to shift to remote working as much as possible, and made it necessary for the general consumer to shift needs such as entertainment to their living room, it also ended up increasing the trend of home gyms.
The strongest evidence of this trend lies in the share price of Peloton Interactive, Inc. (NASDAQ:PTON). Peloton is nearly a household name these days as its home gyms and classes are known for their ability to transport a gym environment right inside a user’s home. The firm’s shares have also moved in tune with the growth or reduction in the demand for its products and services. They were trading at roughly $30 at the start of 2020 when no lockdowns were in place and people lived their lives normally. Then, as the severity of the COVID-19 crisis became clear and lock downs were enforced all over the world, particularly in America, Peloton Interactive, Inc. (NASDAQ:PTON)’s shares started to soar. The stock grew by more than 5x in a year and was trading to touch $160 in January 2021 as the worst of the pandemic was still in play and people continued to rely on remote workouts.
Yet, as COVID became a thing of the past, the share price also returned to Earth and the stock is currently trading around $5 and during this time, Peloton has faced several setbacks including one where tens of thousands of members simply canceled their subscription rather than wait for the firm to recall a faulty seat on its exercise bike. As if this turmoil wasn’t enough, Wall Street isn’t singing any laurels for the company either. While Peloton Interactive, Inc. (NASDAQ:PTON)’s shares are still rated Buy on average, investment bank UBS was out with a rather bearish note for the firm in September 2023. It rated the stock as a Sell and slashed the share price target to $4 from $8, with analyst Arpine Kocharyan explaining that the decision was primarily based on an uncertain subscriber growth outlook for the company. Peloton Interactive, Inc. (NASDAQ:PTON)’s average share price target is $7.86, which still prices in a hefty upside over the currently low market share price.
But even though Peloton’s subscriber growth outlook might be uncertain, overall, the global home fitness equipment market is still expected to grow over the coming years. According to a market research report from KBV Research, the market is expected to be worth $11.8 billion by 2030 end after growing at a compounded annual growth rate (CAGR) of 7.9%. The research firm believes that within this $11.8 billion market, treadmills will capture roughly 20% of the share as they remain the most popular kind of home exercise equipment. The popularity of treadmills is also reflected in the growth regions of the home fitness equipment market, as cardiovascular and strength training machines are among the fastest growing equipment kinds. KBV Research adds that some tailwinds to the market include a growing fitness consciousness among consumers, the cost savings over the long term over gym memberships and plans, and newer machines that are able to offer people with heart diseases and other ailments a comfortable and safe avenue to maintain their health. However, it also outlines that alternative exercise trends such as yoga which do not require any machines might take the shine out of the home fitness sector.
Finally, 2023 is marked for lower inflation but tighter budgets, which can impact both the consumer of home fitness machines and their manufacturers. On this front, here’s what the management of Peloton Interactive, Inc. (NASDAQ:PTON) had to say during the firm’s latest earnings call:
Let me start with — I can take the question about the revenue seasonality. So we’re not going to offer full year guidance for our revenue. But in the past, we’ve shared sort of what the revenue phasing we expect for the year and I’m going to show that again with you. So we expect our fiscal ’24 revenue seasonality to be most closely resemble our fiscal ’23, but we do expect it to be more heavily weighted to the back half of the year this year, as Barry mentioned. Not quite as heavy as fiscal ’21, but heavier than it was weighted in fiscal ’23. Now the second half of — the second part of the question was will our seasonality change with pricing changes? I think that is a tougher question to answer because we’ll know as we go along.
But the business, — it also affects — there’s also factors related to the macro economy and some of that and also some of the things that we’re going to do to drive improvements in our app, which will improve our app experience, which should improve the growth in that part of the business as well. So I think the answer is, we’ll kind of know when we know. But for now, our expectation is that the seasonality will be the way I described it.
With this backdrop, let’s take a look at the five best home connected fitness equipment products.
A group of people in a fitness class with connected fitness products in a studio or gym. Editorial photo for a financial news article. 8k. –ar 16:9
Our Methodology
To compile our list of the best home connected fitness equipment products, we used data from Shape, Mashable, PCMag, and CNET to see which products appear on more than one list. Each time a product appeared on a list, it was assigned a single point. The final list of the best home connected fitness equipment products is as follows.
5 Best Home Connected Fitness Equipment
5. Tempo Studio
Insider Monkey’s Score: 2
The Tempo Studio is a home fitness connected studio offered by Tempo. The studio is available in three variants, with a base price of $1,695. The Studio’s high end variant is available for a sizeable $3,195 – a price tag that is common with such equipment. The studio has a large 42 inch screen and it is an interesting machine that enables users to get real time feedback about their form. Form during training is one of the most important determinants of muscle growth since targeting the right muscle is necessary for the wear and tear needed for development. The Tempo Studio also works with a subscription service that enables users to take live classes for different kinds of exercises such as strength, cardio, boxing, and yoga. The form guidance technology uses Microsoft’s 3D Azure cameras, and the Studio comes with a wide variety of add on accessories.
4. Nordic Track Commercial 2450
Insider Monkey’s Score: 2
The Nordic Track Commercial 2450 is one of the most expensive treadmills out there since it has a $2,999 price tag. Given the amount of features that this running machine has, its price tag is understandable. The machine has a massive 22 inch screen that aims to provide users with a real time experience of jogging. The machine also comes with a 30 day free iFit subscription, with its 22 inch screen providing a great medium to live stream outdoor classes. It has a maximum speed of 12 miles per hour, a maximum incline of 12%, and can support 300 pounds of weight. Nordic Track also offers a monthly payment option with a 4.99% APR for the Nordic Track Commercial 2450.
3. Peloton Bike
Insider Monkey’s Score: 2
The Peloton Bike is one of the more popular exercise bikes in the industry. Offered by Peloton Interactive Inc. (NASDAQ:PTON), the machine has a price tag of $1,445. The bike comes with a 30 day free membership of Peloton’s class subscriptions, and its price tag can touch $1,940 depending on the number of accessories bought. It has a 21.5 inch screen and connects to WiFi to offer the full features of home exercise equipment. Additionally, the Peloton Bike also enables users to compete with each other virtually by measuring the energy that has been spent per competition. However, since subscription based recurring revenue is Peloton’s bread and butter, the connectivity of the bike and its features become limited on the free versions.
4. Lulemon Studio Mirror
Insider Monkey’s Score: 3
The Lulemon Studio Mirror is sold by Lululemon Athletica Inc. (NASDAQ:LULU). It is one of the more affordable studio mirrors that you are likely to come across since the starting price tag is $995 and the high end variant is available for $1,450. The Studio Mirror boasts a large 43 inch HD 1080p display and has other features suitable for a home connected fitness machine such as stereo speakers, a five megapixel front facing camera, dual band WiFi support, Bluetooth connectivity, and support for heart rate measurement devices. However, if you’re interested in the Lulemon Studio Mirror, then be warned. Lululemon Athletica Inc. (NASDAQ:LULU) aims to stop selling the hardware by the end of this year, and it also plans to stop recording its excercise videos next year. Instead, the firm has partnered up with Peloton to bring content to its users.
5. FORME Studio
Insider Monkey’s Score: 3
FORME Studio is the highest end fitness mirror on our list. It is sold by Interactive Strength Inc. (NASDAQ:TRNR), and is offered in several flavors and variants. The base variant of the machine is simply called the FORME Studio and it has a $2,495 price tag. However, if you want to splurge and add lifts to your mirror, then the FORME Studio with lifts is available for $5,995. The price gets you a massive 43 inch 4K Ultra HD display which is among the sharpest displays in the industry. The FORME Studio also comes with two 12 megapixel, front facing cameras, a hard port to connect to the Internet, WiFi support, and a variety of accessories such as heart rate monitors, yoga mats, and camera covers. Interactive Strength Inc. (NASDAQ:TRNR) also provides virtual coaches for a wide variety of specializations such as cardio, yoga, and stress management.
Suggested articles:
Disclosure: None. This is a paid sponsored article and is not intended to be investing advice. Even though the author received no additional compensation for this piece except for what is typically made by Insider Monkey, we don’t guarantee the accuracy of the statements made in this article. Insider Monkey will receive $1000 from Interactive Strength Inc. (NASDAQ:TRNR) or its agency for producing and publishing this article. Other than this compensation, Insider Monkey and its principals are not affiliated with Interactive Strength Inc and have no ownership in TRNR. Insider Monkey doesn’t recommend purchase/sale of any securities, cryptocurrencies, or ICOs. Please get in touch with a financial professional before making any financial decisions. You understand that Insider Monkey doesn’t accept any responsibility and you will be using the information presented here at your own risk. You acknowledge that this disclaimer is a simplified version of our Terms of Use, and by accessing or using our site, you agree to be bound by all of its terms and conditions. If at any time you find these terms and conditions unacceptable, you must immediately leave the Site and cease all use of the Site.
