Since the start of the pandemic, there has been a global increase in consumer awareness of health and fitness, and now more than ever, people and companies are taking a greater interest in nutrition, wellness, and exercise. Technology breakthroughs in AI, personalization and big data are enabling new innovations for a healthier future. As we have seen thus far with fintech, mobility, and retail, Israeli startups are on the cutting edge of innovation here as well.
Global Outlook and Trends
The coronavirus pandemic was a shock for industries worldwide. However, a combination of a greater consumer desire to be healthy and advancements in certain technologies resulted in a boom for the digital fitness and wellness industry. 2021 saw a record $55 billion in revenue for the digital fitness and wellness industry, an increase of roughly $10 billion from the previous year. This figure is expected to rise to over $90 billion by 2026, increasing by a compound annual growth rate (CAGR) of 10.6% over the next 5 years. During the same period, the market is expected to reach 573.7 Million units sold, growing by a CAGR of 12.1%. One of the market’s fastest-growing sectors - and the American College of Sports Medicine’s top fitness trend for 2022 - is wearable fitness technology. These are devices that one wears when working out that use sensors to track movement and then converts any information collected into steps taken, calories burned or other health data points. The global wearable fitness technology market was estimated to be around $10 billion in 2021 and is expected to nearly double by 2026.
The growth of health and sports solutions is not only limited to fitness and mental wellness, people are also more focused on what they eat. As a result, nutrition technology has gained a lot of attraction recently. Thanks to greater knowledge about unique metabolisms and microbiomes, modern-day healthy eating has evolved beyond just knowing the 5 major food groups, and developments in AI and personalisation are providing people with unique recommendations of what they should and shouldn’t eat, when to eat, and more. The personalized nutrition market is expected to more than double 2020’s market value and reach $19.7 billion by 2027.
Israel’s Health and Sports Tech Landscape Israel, which placed 10th in Bloomberg’s Global Health Index, is home to 90 health and sports-tech startups according to data from Startup Nation Central and research by Axis Innovation. Israel’s health and sports tech ecosystem is made up of nutrition tech, fitness tech, wellness tech and sports tech startups, that all share the common goal of digitising the process of getting fit and healthy.
Axis Innovation - data from Start-Up Nation Finder
40% of Israel’s health and sports tech startups are less than 5 years old. Nutrition tech is the most mature sector - over 70% of startups were founded before 2017. Conversely, with 65% of startups being 5 years old or younger, wellness tech is a fairly new market for Israel.
Axis Innovation - data from Start-Up Nation Finder
Predictions
Based on Axis Innovation’s research, analysis, and discussions with experts, we have some predictions for the future of Israel’s health and sports tech ecosystem.
We expect Israeli wellness tech to boom in 2022. Israel’s wellness tech market began to grow first in 2015, and it has continued to develop since then. New wellness tech startups are emerging each year, with mental health being a large focus of tech entrepreneurs in Israel.
Computer vision will play a large role in the future of health and sports tech. Startups are developing computer vision solutions for people who exercise at home. Kemtai, an Israeli startup founded in 2019, has developed a home exercise platform that corrects one’s form when they are doing their exercises. Their platform uses computer vision technology and artificial intelligence to analyse human movement and provide real-time corrective guidance and feedback. We believe that computer vision solutions such as Kemtai’s are the future of home exercise as well as physical therapy.
Summary
Since the start of the pandemic, the health and sports tech market has exploded. It is a fairly young sector in Israel, and we are seeing new startups each year respond to the growing global demand for new technology solutions to help people get fit and healthy. Israel’s budding startup ecosystem continues to innovate and grow and create new innovative solutions to digitise the world of health and sports.
By Sam Lander
References
https://www.researchandmarkets.com/reports/2769237/wireless_health_and_fitness_devices_global
https://www.clubindustry.com/industry-news/wearable-technology-top-fitness-trend-2022-survey
https://www.cbinsights.com/research/next-gen-nutrition-market-outlook/
https://www.cbinsights.com/research/next-gen-nutrition-market-outlook/
https://worldpopulationreview.com/country-rankings/healthiest-countries