The market for sports applications - Italy

1.2 A booming global market

According to Hootsuite, the number of smartphone users worldwide will stand at *.** billion at the beginning of ****, an increase of nearly * percent from the previous year and a penetration rate of ** percent. In Europe, there are nearly *.* billion mobile subscriptions.

According to a study conducted by Stock Apps, the global sports app market will increase by **.**% each year for the next four years. Thus, revenue could increase from the current $*.** billion to $*.** billion in ****. Along with earnings, the number of users will also increase, which now stands at about *** million and may cross the billion mark in the next four years.

The global number of sports and fitness app downloads has been on the rise since ****, after a dramatic jump in **** during the health crisis.

Nombre de téléchargements d'applications mobile de sport et de fitness au mois de janvier Monde, ****-****, en millions de téléchargements Source: ****

The chart below shows the most downloaded health and fitness apps in the world in ****. Note that Flo Ovulation and e-Nabiz are not sports apps per se, as they are menstrual cycle monitoring and medical appointment management apps, respectively.

It should also be noted that the most downloaded sports application in ...

1.3 The Italian market

According to Data Reportal, as of January ****, there were **.** million Internet users in Italy with an Internet penetration rate of**.*% of the total population at the beginning of ****.

The Kepios analysis indicates that Internet users in Italy increased by *** thousand(***) between **** and ****.

As for fitness apps, these grossed ** million in Italy , **.*% more than in **** , and there was a simultaneous increase in downloads, these were **.* million, **.*% more than in ****.[***]

This is trend also confirmed at the continental level: across the Eurozone, industry revenues grew by **.*%, or $***.* million, and downloads increased by **%.

However, between the increase in sales and installations, the gap remains wide, because the download count also considers Immuni, included in the health and fitness category, which was the most downloaded app of the year with *.* million downloads. In second place is the calorie counter and food diary Yazio while in third place is Nike Training Club.

As for the apps that grossed the most, in first place isSweat, in secondStravaeYazioobtains.

the Italian market is sixth in Europe in both number of downloads and box office, suffice it to say thatSweatearned $*.* million[***].

As for the apps with the most downloads in February ****, great success in Italy for WeWard, which entered the ...

1.4 The strong impact of Covid-19 on the market

In March ****, the lockdown meant not only severe restrictions on outdoor travel, but also the closure of all public places, including gyms. Thus, to exercise, people had no choice but to work out at home or run within the * km radius allowed.

As a result of the restrictions and closures imposed, the fitness industry had to reinvent itself. Efforts were made to reach Italians directly in their homes through apps and websites. Evidence of the boom in digital training during the lockdown is the data on the number of visits to diet or fitness websites or apps, which increased by ** percent in France, ** percent in Germany, ** percent in Spain, and ** percent in the United Kingdom and *** percent in Italy. Research in the United States then showed that fitness and health app downloads increased by **% in the second quarter of **** and that many streaming services saw a dramatic increase in demand. Indeed, while in **** only * percent of users surveyed had used fitness streaming services on a weekly basis, by April **** that percentage had grown to more than ** percent. To cite one example, online workout video library Daily Burn saw a *** percent increase in signups as the pandemic took hold in the U.S. ...

2.1 The practice of sports in Italy

About ** million Italians participate in sports. Of these, according to the Eurobarometer, it is mainly freelancers and managers who do the most sports while the tendency to engage in physical activity decreases with increasing age. In Italy:

** percent of men and ** percent of women over ** do not play sports; between the ages of ** and ** the figure drops to **% for men and **% for women; between the ages of ** and **, **% of men and **% of women say they are completely inactive. the most active segment of the population is ** - ** years old with about **% playing sports.

Different sports practices are widespread in Italy and vary according to gender. Women practice much more gymnastics or aerobics than men (***) reflecting how men prefer to practice other types of outdoor sports such as soccer, basketball or swimming.

Most Widespread Sports Practices Italy, ****, in percent Source: ****

Training frequency also changes between men and women. The former are more likely to train continuously during the week (***) while women practice sports less assiduously. Interestingly, about ** percent of both men and women are engaged in sports activities weekly, such as soccer, dance, volleyball, etc..

Frequency of Training Italy, ****, in percent Source: ****

Weekly training frequency Italy, ****, in percent Source: ****

Lombardy\ ...

2.2 The Use of Sport Applications in Italy

As seen, the use of sports apps in Italy is rising sharply, driven in part by the increase in sports practice.

IPSOS conducted a study of the main European and American markets to analyze consumption habits related to sports apps. It found that about ** percent of Italians have used an app to track their physical activity, a figure among the highest in Europe, second only to the United Kingdom(***).

When taken into consideration the data on use by gender and age group, it emerges that it is men who make greater use of these apps(***) versus limited use by women, only **% said they use them.

With regard to age group, it is men between ** - ** years old who make greater use of these apps(***). Among women who make greater use are again those between ** - ** years old .

Use of Sports Apps by Sex and Age Europe, ****, in percent Source: ****

Regarding the number of sports apps used, it can be seen that there is a strong brand loyalty between consumers and apps. In fact, **% of the sample said they use only * sports app, compared to *% who said they use more than * and only *% said they use more than *.

Number of Sports Apps ...

2.3 The development of connected devices

The Anglo-Saxon term "wearable" is used to define all those wearable technological devices that measure and monitor a person's sports performance. By means of sensors, connected to the athlete, they transmit a series of data that allow monitoring one's performance, state of health, fatigue, stress and general performance through the use of various sports applications.

The types of models offered by the market are quite varied: they range from smartwatches to heart rate monitors, from the more classic pedometer to devices integrated into clothing, whether team uniform jerseys, or running shoes, or sensors in helmets or baseball team bats.

Use by Italians has greatly increased in recent years, when compared with data from the years before the pandemic now there has been a **% increase in the adoption of this type of technology. This type of technology is increasingly pronounced among women(***) and a percentage among"home" sportsmen rises as high as** percent[***].

Smartphones, smartwatches and wristbands are the most used devices, respectively by **.*%, **% and **.*% of the sample. Ranking that partially changes if we consider only women: in fact, in third place is the laptop, further confirmation of the impact of smart working on physical activity.

Devices most used by Italians during ...

3.1 Market organization and dynamics

There are three main categories of players in the market:

Large sports equipment companies that have developed their own app (***). Companies that specialize in developing a sports app (***). Actors who are absent from the sports industry and are trying to enter the market in another way (***).

Several types can be distinguishedamong large sports equipment companies:

Those who developed their app before developing connected apparel (***) Those who developed an application after developing connected apparel (***).

The proper functioning of a sports application then requires the integration of other tools to enable the user's performance to be measured. Different sensors allow different data to be measured, such as :

Gyroscope detects the acceleration of the smartphone's rotation around an axis, speed, and changes in rotation Magnetometer measures magnetic fields using * sensors, which allows the orientation of the phone to be known. Combined with the gyroscope, it then lets you know all the movements of the phone and its exact position. Accelerometer detects the acceleration of the phone along certain axes Pedometer calculates the number of steps taken in a day. GPS gives an exact idea of the location of the user using his smartphone.

By combining the previous * tools, an application developer can develop solutions ...

3.2 The main sports applications

The supply of applications is very wide in Italy, and their use is increasingly widespread. The main sports applications in Italy, by number of downloads and usage are :

Nike Training Club (***)

It is one of the most popular apps, developed by Nike, suggests *** free workouts differently focused on arms, legs, abs or endurance depending on preference, with sessions lasting from ** to ** minutes to be done at home, in the park or with friends. With the "goals" feature, you can monitor your progress, check completed sessions and improvements in terms of time and session duration.

For those who prefer the gym instead, Nike's app recommends various routines to follow, such as Gym Strong to strengthen the whole body through the gradual use of weights or Body Weight, which offers a series of free-body or equipment exercises focused on increasing endurance. The app also allows you to choose between yoga, mobility, strength training, cardio and HIIT. Compared to other fitness apps, it has two advantages: it allows you to spread out your workout program over several weeks, and it offers valuable health advice.

Adidas Running

Adidas launched this app with a focus on a particular market segment : lovers of running and outdoor sports. ...

3.3 The main Italian applications

Sport-related applications are also increasingly being developed in Italy. As many as * Italian startups that have invested "in sports innovation" have entered the SpinLap program, the first European sports-tech acceleration program born from the collaboration between the Israeli network Hype-Sports Innovation, Trentino Sviluppo and the University of Trento. In all, there are ** startups in the program[***]. Among the main applications born and developed Italian are :

WearIt

it is a startupborn in **** the application allows you to choose the sport, the time and the place in which to practice it. Virtual dates are created, which then turn into real ones, with other fans. The startup wants to make it easier and more fun to keep fit and help coaches connect with clients and run their businesses. In the past, it has collaborated with Luna Rossa during the preparation for the America's Cup.

it also produces the technology for a Smart Skiboot that can analyze performance and ski quality, then uses the data to provide features such as digital coaching to improve a skier's skills, challenges, rewards, social sharing and other gamification dynamics.the hardware and software solution offered by Wearit also gives the ability to detect and prevent accidents, with the goal ...

4.1 Type Of Offering

Whether it is large international groups such as Samsung (***), there is a huge variety of mobile applications for sports.

PlayStore

On the Play Store, the app platform for Android phones, all apps dedicated to sports activities are grouped under the category"Health and Fitness," which in turn is segmented into different activity areas (***).

The sports apps are then found in the subcategories : Follow Your Physical Evolution or Workout Away from Home (***). [***]

AppStore

On the Apple app platform, there is a Fitness and Health category that includes all the apps considered in this study. Similar to the Android app platform, the apps are further segmented under different headings, such as: Your trainer follows you everywhere or Wake up fit.

In general, we can divide apps according to the sport they specialize in or according to their functionality.

Sports apps are generally dedicated to the following sports:

Running, such as the widely downloaded apps Runtastic or Nike Run Club. Walking, such as WeWard, which rewards users with points and vouchers based on the number of steps taken Fitness, or "weight training exercises to do at home," with or without equipment. There are many similar apps in this segment, as the functionality generally boils ...

4.2 The Different Business Models

We can distinguish four different business models in the mobile application market The Freemium model consists of offering the application for free and pushing customers to purchase additional features. This model maximizes the value of a customer over time and then deploys a free customer base that will convert new customers. There are several apps that use this model such as Runtastic, which can be downloaded for free but offers a premium package that allows you to set new routes and access all the features of Runtastic apps (***). This business model is prevalent in the industry in that most apps can be downloaded for free and you only get access to a limited number of workouts or features; use of the full version is contingent on paying a monthly/annual fee. The free model is financed by advertising and is more suitable for utility applications provided that the frequency and time of use of the application is sufficiently important to attract advertisers. Advertising is integrated in the form of banners or content. Most applications are born with this business model. Such as NTC, Adidas Running or Under Armour brand apps the paid model in which the idea is to charge to ...

4.3 The development of applications for Yoga

Since the early ****s, the practice of meditation has begun to be widespread, mainly due to the development of meditation apps. These allow the user to conduct "mindfulness" meditation sessions lasting between * minutes and an hour. The meditation market is very promising and could be worth as early as the end of **** $* billion in the United States alone[***].

Revenus des principales applications mobile de méditation Monde, mars ****, en millions de dollars Source: ****

Headspace is the second largest app in terms of revenue for the month of March ****. it was launched in **** and has over ** million users in ****[***].

All meditation apps offer a paid subscription after allowing the user to benefit from several free guided meditation sessions.

Source: ****

5.1 Regulation

Regulation of this type is still under development. However, the European Union has repeatedly issued provisions in terms of privacy protection by applications, and these types of applications are strongly affected. These in fact, thanks also to the connection to wearable deviceshave access has a large amount of private data related to the health status of their users.

Article * of the Data Protection Directive (***) qualifies health data as a special category of data to which a higher level of data protection applies. The processing of special categories of data is prohibited unless an exception applies. .

The Data Protection Directive thus establishes a high level of protection for health data, but it does not clearly define what kind of information should be considered as health data under Article *.

Also in August ****, the Future of Privacy Forum (***) published a set of best practices for wearable apps and devices and consumer wellness. The document articulates a foundation of responsible practices designed to support a focused FPF-based fiduciary framework for the collection and use of consumer-generated wellness data. The best practices are based on existing legal expectations and requirements established by major mobile app platforms, providing organizations with practical guidance that can improve legal and ...

6.1 Segmentation

  Company Type Sport Compatibility with wearable devices Turnover Activity trackers Runtastic (***) International Generalist Yes $** Billion (***) Strava International Generalist Yes ** Million $ (***) Nike Run Club (***) International Running Yes **.* Billion $ (***) Workout Export Start-up Fitness No na Coaching Activities * minutes Workout Startup Fitness No na Fizzup ETI Fitness Yes * Million $ (***) * minutes fitness maison Start-up Fitness No na Zova SME Coaching No * Million $ (***) Devices Connected Apple Watch International Generalist Yes ** Billion $ (***) Fitbit International Generalist Yes *.** Billion $ (***) Samsung Galaxy Watch (***) International Generalist Yes (***) Xiaomi International Generalist Yes **.* Billion $ (***) Apparel Connected Athos International Running No $** Million (***) Under Armour International Running No *.** Billion $ (***) Applications YOGA Headspace International Meditation No $*** Million (***) Calm International Meditation No ***-*** Million $ (***)

• Nike
• 7 Minutes Workout
• Strava
• 5 minutes fitness maison
• Zova
• Apple Watch
• FitBit
• Samsung Galaxy Watch (Groupe Samsung)
• Athos
• Adidas Italia
• Headspace Inc