EQUIPMENT
Insights

In 2025, the equipment manufacturing sector faced a convergence of pressures. Early in the year, U.S. tariff increases sent shockwaves through the industry, forcing many manufacturers to reassess their global footprints. Some scrambled to shift production away from China and other high-tariff regions, while others diverted investment into non-U.S. growth markets. Several operators struggled with order flow and delivery into key regions, resulting in severe financial strain — in some cases leading to closures or asset sales, as seen with Aktiv Solutions. Competitive intensity continued to rise. New entrants and low-cost manufacturers exerted downward pricing pressure, while the need to differentiate through smart features, connectivity, and tech-enabled experiences drove up R&D spend. Brands from China, Vietnam, Taiwan, and Thailand are increasingly gathering market share with robust and aggressively priced products, particularly on the OEM side. Meanwhile, heightened regulatory scrutiny — especially around digital fitness equipment, cybersecurity, and smart-device categories, such as body scanners and cryotherapy — added further cost and complexity. Yet the picture wasn’t all bleak. Pilates and strength equipment sales surged as operators raced to build high-demand zones into their clubs. Investment in smart, connected machines and recovery-focused offerings also accelerated. And while cardio experienced a relative slowdown, manufacturers still saw meaningful upside — underscored by the FIBO’s biggest ever event and by major players like iFIT and Technogym entering the Pilates space in 2025.