Artificial Intelligence
Global Fitness Equipment Market is reach USD 16.47 Billion with anticipated CAGR of 5.14% for 2022-2027: Bonafide Research
Clifton, New Jersey, May 26, 2023 (GLOBE NEWSWIRE) — The fitness equipment industry is going through an impressive transformation driven by a strong focus on innovation and technological advancements. As people increasingly prioritize their health and wellness, the demand for cutting-edge fitness equipment has reached unprecedented levels. This industry has witnessed rapid changes to meet the growing desire for overall well-being and individuals taking charge of their health. Recognizing this trend, leading companies have invested heavily in research and development, aiming to constantly improve and push the boundaries. The outcome is an incredible range of fitness equipment that seamlessly incorporates advanced features like artificial intelligence, virtual reality, and personalized tracking systems. These technologies not only enhance the workout experience but also help users set and achieve their fitness goals more precisely and efficiently. Additionally, there has been a strong focus on ergonomic design, prioritizing user comfort, safety, and biomechanical efficiency. Equipment now offers adjustable seating positions, optimized range of motion, and careful engineering to support proper posture, reduce the risk of injuries, and maximize the effectiveness of each exercise. Moreover, the use of durable and high-quality materials ensures the equipment’s longevity, allowing both fitness centers and individuals to make long-term investments in their fitness equipment.
The global rise in obesity rates and lifestyle diseases such as diabetes and cardiovascular disorders has prompted individuals to invest in fitness equipment for convenient and regular exercise. Fitness equipment provides a convenient solution for people to engage in physical activity within the comfort of their own homes or at fitness centers. The increasing number of fitness centers and gym memberships globally is driving the demand for fitness equipment. As more individuals prioritize fitness and seek professional guidance, fitness centers invest in a wide range of equipment to cater to the diverse needs of their members, including cardio machines, strength training equipment, and specialized training systems. In addition to that, urbanization has led to sedentary lifestyles characterized by long working hours, limited physical activity, and increased reliance on technology. As a result, individuals are seeking ways to incorporate exercise into their daily routines, leading to a surge in the demand for fitness equipment that allows them to exercise conveniently at home or in fitness facilities. Also, the aging population, particularly in developed countries, has created a demand for fitness equipment that caters to the specific needs of older adults. There is a growing emphasis on active aging and maintaining fitness levels among seniors, driving the demand for specialized equipment that promotes mobility, balance, and overall well-being.
Key Takeaways:
- North America has been observed as the largest market with a 38.2% share in 2021, being the hub of manufacturing fitness equipment.
- The strength training equipment segment possesses a robust market presence with an estimated 3.85% CAGR for 2022–2027, owing to more consumers being attracted by the product’s ability to increase muscle mass and flexible joints.
- The treadmill segment is leading the market with USD 1848 Million in 2021 whereas resistance bands & tubes are growing at 6.17% CAGR by 2022-2027.
- With the recent technological advancements, such as wearable self-monitoring and virtual group exercises, the residential segment is expected to reach USD 7522 Million by 2028.
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Many organizations are recognizing the importance of employee health and wellness. Corporate wellness programs are becoming more prevalent, offering opportunities for fitness equipment providers to supply gyms and fitness facilities within corporate offices. This includes equipment suitable for office gyms, such as compact treadmills, standing desks, and exercise bikes, promoting physical activity and well-being during work hours. With that, the rise of health and wellness tourism presents an opportunity for fitness equipment providers. Fitness centers and hotels catering to health-conscious travelers often require high-quality fitness equipment to meet the needs of their guests. Collaborating with wellness resorts and fitness retreats can open up new avenues for market expansion and brand exposure. There is a growing demand for eco-friendly and sustainable fitness equipment. Consumers are increasingly conscious of the environmental impact of their purchasing decisions and seek equipment made from recycled materials, energy-efficient designs, and sustainable manufacturing processes. The fitness equipment market is susceptible to counterfeit products and intellectual property infringement. Unauthorized manufacturers are producing imitation products that mimic popular brands, leading to brand dilution, reputational damage, and loss of market share. Protecting intellectual property rights and combating counterfeit products is a significant challenge.
Fitness equipment can be expensive, especially high-end and advanced models. Also, the high initial cost of purchasing fitness equipment is acting as a restraint for some consumers, particularly those with limited financial resources or budget constraints. This cost barrier is limiting the market reach and adoption of fitness equipment, especially in price-sensitive markets. Fitness equipment, particularly larger and bulkier machines, require ample space for installation and use. Limited space in homes, apartments, or commercial fitness facilities can be a restraint, preventing individuals or fitness centers from investing in certain types of equipment. Storage constraints also pose challenges, especially for home users who may not have dedicated workout areas. Fitness equipment requires regular maintenance and occasional repairs to ensure optimal performance and longevity. These maintenance and repair costs add up over time, particularly for commercial fitness facilities with a large inventory of equipment. While fitness equipment offers a range of features and settings, it still has limitations in terms of customization and personalization. Each individual has unique fitness goals, body types, and preferences, and not all equipment can cater to these specific requirements. This lack of customization also impacts the user experience and limits the effectiveness of the equipment for some individuals.
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Historically fitness equipment was only limited to weight training and some cardio equipment which are mostly used in health clubs and gyms. With the passage of time, a number of changes have been observed in the fitness habit of consumers at a global level. This change in fitness habits has led to the creation of a wide range of fitness equipment. The fitness equipment market has been getting broader verities of innovative equipment being manufactured by the existing players as well as the new players coming into the market. The trend toward home fitness has gained momentum, especially in the wake of the COVID-19 pandemic. There is a growing demand for compact, versatile, and user-friendly fitness equipment that individuals can use in the comfort of their homes. Additionally, there is an opportunity to provide personalized fitness solutions, such as connected equipment that offers customized workout programs and tracking features tailored to individual needs. With health awareness and fitness getting into the list of consumers’ habit, their attitude towards bringing change in daily routine have been experienced. There are scenarios when due to hectic schedules and busy work life; many people are unable to make it to the gym every day. Things are getting changes with the advancement of technologies; also it is affecting the fitness industry. Also, fitness equipment is incorporating advanced biometric sensors and health monitoring capabilities. These sensors can track heart rate, calories burned, sleep patterns, and other health metrics, providing users with comprehensive data insights and personalized recommendations.
One such technology that is making its way into the fitness industry is virtual reality in fitness. With VR in fitness, people are not only getting attracted to it, but it is also letting them fight out the boredom associated with daily exercise. Working out in front of the television with loud music on till now was considered to be a joyful workout. Now, technology has removed the geographical barrier to fitness, now people can exercise in an entirely different world. The new form of workout in the form of virtual reality and augmented reality is viewed as the future of fitness. Many gyms and health clubs in developed countries are already implementing it to make workout fun for members and also increase their profits. The inclusion of wearable fitness devices like Fitbit and the Apple Watch has allured the attention of fitness freak consumers. From being luxurious items it has now become a fashion statement, these wearable are now accessible and widely used. The excitement of performing exercises in gyms to get more intensified with advancements in the wearable tech market resulting in improved fitness experiences. Gyms can now monitor users’ activities, and by using the resulting data, give exercisers quantifiable results to let them know if they are on the right track or not.
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Individuals are becoming more aware of the importance of cardiovascular fitness in maintaining overall well-being. Cardiovascular exercise helps improve heart health, strengthen the cardiovascular system, and manage weight. This awareness has led to an increased interest in cardiovascular fitness equipment. As the global population ages, there is a growing focus on maintaining cardiovascular health to support healthy aging. Older adults are increasingly adopting regular cardiovascular exercise as part of their lifestyle, leading to increased demand for age-friendly and low-impact cardiovascular fitness equipment. Regular cardiovascular exercise is seen as a preventive measure to reduce the risk of chronic conditions such as heart disease, obesity, and diabetes. This increased focus on preventive healthcare has boosted the demand for cardiovascular fitness equipment. Treadmills are one of the most popular cardiovascular equipment types. They simulate walking or running, offering adjustable speed and incline settings to provide a customizable workout experience. Further, stationary bikes come in different variations, including upright bikes, recumbent bikes, and spin bikes. They simulate the experience of outdoor cycling and provide cardiovascular benefits while targeting the lower body muscles. Other Cardiovascular Equipment category includes a range of other cardiovascular equipment types such as arc trainers, ski machines, step mills, and versa climbers. These machines offer unique cardiovascular workouts and are often found in specialized fitness facilities or as part of a diverse cardio equipment selection in commercial gyms.
However, fitness centers and commercial gyms play a significant role in driving the demand for strength fitness equipment. These establishments invest in a wide range of strength training equipment to cater to their members’ needs. The increasing number of fitness centers and the growing popularity of gym memberships have contributed to the growth of the strength fitness equipment market. The trend of strength training has transformed over the years from just being weight oriented to a number of innovative training with the inclusion of free weight and endurance training. For instance, dumbbells are incredibly versatile strength training tools. They can be used for a wide range of exercises, targeting different muscle groups. From basic movements like bicep curls and shoulder presses to compound exercises like lunges and bench presses, dumbbells provide numerous options for varying the intensity and targeting specific areas of the body. Their versatility appeals to individuals of all fitness levels and goals. Dumbbells also align with the trend of functional training, which focuses on movements that mimic real-life activities. Functional training emphasizes the development of strength, stability, and coordination for everyday tasks and sports performance.
Strength equipment is also used in sports training facilities for athletic performance enhancement. These facilities focus on strength and conditioning training programs tailored to specific sports and athletes. Strength equipment in sports training facilities is designed to improve power, agility, and overall athletic performance. Educational institutions such as colleges, universities, and schools may have strength equipment as part of their fitness facilities. These facilities cater to students, faculty, and staff, providing access to strength training for general fitness and wellness purposes. With the increasing popularity of home fitness, there is a growing market for strength equipment among home users. Home users include individuals who prefer to work out in the comfort and convenience of their own homes. Home strength equipment allows users to set up their personal workout spaces, providing access to strength training without the need to visit a gym.
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The rising prevalence of obesity and associated heart diseases across the North American region has undoubtedly, enunciated the need for fitness equipment thus supporting the expansion of the North American fitness equipment market. Speaking of the rising obesity rate, the Centers for Disease Control put forth obesity statistics for the United States. It was observed that the prevalence of obesity in U.S. adults was somewhere around 42 percent, which has opened gates for umpteen heart diseases, high blood pressure, type 2 diabetes, and depression. To cut on the rising count and incidences of such diseases, users in North America are incorporating strength training and cardiovascular workouts in their daily routine, escalating the demand for fitness equipment. Also, strength training has always been a priority for people who have been looking forward to losing extra inches while also attaining immunity. The demand for robust strength training equipment for enhancing joint flexibility and bone health will, to a much larger extent, support the prolific growth of the fitness equipment market across North America. In fact, the American Heart Association has been laying immense focus on practicing strength training at least twice a week.
European countries have the trend of larger gyms, more members, and lower prices have been the factor experienced in the growth of the fitness equipment segment in the region. Health and fitness clubs the major revenue generator have been very attractive to investors. Developing commercial fitness centers and the trends of boutique gyms have led fitness equipment manufacturers to make the market competitive. Some of the major fitness equipment manufacturers in the European market are Core Health & Fitness, Johnson Health Tech, Tunturi’s new fitness BV, Body Solid Europe, Exigo, Torque Fitness LLC, etc. In addition, increased awareness about fitness and its related health benefits drives the adoption of fitness equipment, especially through gym memberships and in-home equipment sales. Initiatives, such as corporate wellness programs, contribute to the growth of the fitness equipment market. Further, the number of fitness centers at super specialty hospitals has increased due to the supportive government measures to promote health awareness, thereby further supplementing the demand for fitness equipment.
Asia-Pacific has emerged as one of the most promising markets for fitness equipment in the last couple of years. The region currently is standing at the third position in the overall fitness equipment market. People in the region have a higher attraction towards athletic & resistance training with the trend of getting a lean fit body. The market has emerged with several growing fitness equipment manufacturing companies some of the prominent companies in the list are SportsArt Fitness, BFT Fitness, Stingray Fitness, Shuhua Fitness, Amer Sports Corporation, etc. The fitness equipment market in the Asia-Pacific region has posed an increasing trend towards the in-home fitness routine which has boosted the residential sale of the equipment. Installation in the form of a home gym or training sections at housing societies has been a factor in the growth of the segments. Countries like India, Australia, and others have observed a surge in the adaption of gym fitness. Equipment like dumbbells, treadmills, stationary bikes, rowers, and other free weights, etc. are attracting consumers in the residential segment.
South America is considered an untapped but potential market for the fitness equipment industry to thrive. The commercialization in its fitness industry is still in the nascent phase, which has led to lower penetration of modernized ranges of fitness equipment in the region. Gym training is still the most preferred form of fitness training process adopted in South America. In addition to that, the region has observed an emergence of new business models and continues to have multipurpose and family-oriented clubs. However, the surge in demand for commercial fitness equipment has boosted the growth of the region’s cardiovascular and strength equipment segment. The development of women-centric gyms also the trend of home gyms majorly in Middle-Eastern countries have fueled the overall region’s market growth. This has led to higher attraction toward the utilization of cardiovascular fitness equipment. The fitness sector has witnessed tremendous growth in the past few years, leading to the rise in permits for women’s fitness clubs in Saudi Arabia. Along with this, the government has approved the staging of the World Boxing Series, which has added significantly to the fitness industry’s growth.
Considered in the Report
- Geography: Global
- Historic Year: 2016
- Base year: 2021
- Estimated year: 2022
- Forecast year: 2027
Table of Contents
1. Executive Summary
2. Report Methodology
3. Market Structure
3.1. Market Considerate
3.2. Market Definition
4. Economic /Demographic Snapshot
5. Global Fitness Equipment Market Outlook
5.1. Market Size By Value
5.2. Market Share
5.2.1. By Region
5.2.2. By Country
5.2.3. By Company
5.2.4. By Type
5.2.5. By End User
6. Global Cardiovascular Equipment Market Outlook
6.1. Market Size By Value
6.1.1. By Region
6.1.2. By Type
7. Global Strength Equipment Market Outlook
7.1. Market Size By Value
7.1.1. By Region
7.1.2. By Type
8. North America Fitness Equipment Market Outlook
8.1. Market Size
8.1.1. By Value
8.1.2. By Cardiovascular Equipment Market
8.1.3. By Strength Equipment Market
8.2. Market Share
8.2.1. By Country
8.2.2. By Type
8.2.3. By End User
8.2.4. By Cardiovascular Type
8.2.5. By Strength Type
8.3. US Fitness Equipment Market Outlook
8.3.1. Market Size By Value
8.3.2. Market Share
8.3.2.1. By Cardiovascular Type
8.3.2.2. By Strength Type
8.3.2.3. By End User
To be Continued….TOC Continued
| Market Segmentation | Details |
| By Type |
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| By Cardiovascular fitness equipment |
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| By Strength fitness equipment |
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| By End-User |
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| By Region | |
| By Country | |
| Company profiles |
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| Other Market Details |
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The Global Lateral Fitness Equipment Market is projected to grow at a compound annual growth rate (CAGR) of 10.96% during the forecast period 2021-2027. The commonly used lateral fitness equipment are treadmills, stationary bicycles, stair climbers, and weight-lifting machines. Moreover, the surge in cases of diabetes and obesity has led to a revolution in the global fitness industry. According to World Health Organization (WHO), 13% of adults aged above 18 years were obese and 39 % of adults were overweight. This has majorly made way for an increase in the growth of clubs and gym memberships in the country, which has also resulted in the lateral fitness equipment market growth. Globally, there is an increase in the gym culture as more people are joining the gym movement for great health. Moreover, a huge number of people living in metro and Tier-2 cities are rapidly becoming health-conscious and have started hitting gyms, which also results in fueling the growth of the lateral fitness equipment market. Furthermore, the increase in advanced technology has changed the pattern of fitness activities. Now people are using technological devices such as GPS, pedometers, heart rate monitors, and smartphone apps to monitor their workout efforts in gyms. The increase in the trend of being thin and slim for women and slender and muscular for men is becoming sociocultural and also influencing people to engage in fitness to have an ideal body image.
The Global Online/Virtual Fitness Market is projected to grow at a compound annual growth rate (CAGR) of 26.7% during the forecast period 2021-2027. The online/virtual fitness market encompasses a wide range of services and platforms, including fitness apps, on-demand workout videos, virtual personal training, live-streaming fitness classes, and virtual reality (VR) fitness experiences. These platforms offer convenience, flexibility, and access to a variety of workouts and training programs from the comfort of one’s own home. The demand for online fitness solutions has been on the rise due to factors such as busy lifestyles, the need for convenience, and the ability to personalize workouts according to individual preferences. Advancements in technology have made it easier to access online fitness platforms through smartphones, tablets, smart TVs, and wearable devices. This has enhanced the overall user experience and made virtual workouts more engaging. Traditional fitness centers and gyms have recognized the potential of online fitness and have started offering virtual classes and training sessions to cater to a broader customer base. Additionally, new startups have emerged, focusing exclusively on online fitness services. Increasing awareness about the importance of fitness and overall health has fueled the demand for online fitness platforms. People are becoming more proactive about their well-being and are actively seeking ways to stay fit and active.
The Global Home Fitness Equipment Market will reach $14.12 Billion by 2031, growing by 3.4% annually over 2021-2031, driven by the increased product innovations, high customization of fitness devices, and the rising investments and homecare spending amid the COVID-19 pandemic. As the number of people suffering from obesity rises, the demand for the product is expected to increase as it is a vital tool for them to lose weight. Furthermore, increased knowledge of the lack of physical exercise has resulted in many health difficulties such as heart disease, diabetes, cancer, and others, which has increased demand for these products. Furthermore, increasing inclination toward digital technology is aiding the market growth. The increasing popularity of fitness applications in smart devices for enhancing and maintaining personal fitness has played a significant role in the market growth. Additionally, governments in both developed and developing countries are launching several public health efforts to enhance public awareness of wellness, which will help implement this equipment, particularly among young people. The North American market has witnessed significant growth, due to the rising health awareness among consumers with the growing adoption of exercises related to physical well-being, weight management, improving body stamina, and muscular strength driving the market growth in the country. The demand for fitness equipment has increased in European countries, such as the U.K., Germany, and France, owing to the increase in health awareness among the obese population. However, rapid urbanization, rising disposable income, and increasing youth population are the key propellants of the Asia-Pacific Home Fitness Equipment Market growth in various Asia-Pacific countries, as the population is actively getting involved in fitness activities.
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Artificial Intelligence
Terra Drone, Unifly, and Aloft Launch UTM Development for AAM Targeting Global Markets
TOKYO, April 25, 2024 /PRNewswire/ — Terra Drone Corporation, a leading drone and Advanced Air Mobility (AAM) technology provider headquartered in Japan, announced today the launch of joint development with its Group companies Unifly NV (“Unifly”) and Aloft Technologies Inc. (“Aloft”) focused on UAS Traffic Management (UTM) for AAMs targeting global markets. Terra Drone has been making strides in its pioneering UTM business via strategic investments in Unifly, a leading UTM technology provider based in Belgium, and Aloft, which has the top UTM market share in the U.S. This collaboration marks the world’s first-ever joint UTM development for AAMs by multiple companies with extensive track records in UTM implementation and operation.
The three companies pursue joint UTM development to capitalize on the rapid global progress in electric vertical take-off and landing aircrafts (eVTOLs), set to revolutionize transportation. Morgan Stanley forecasts the Urban Air Mobility (UAM) market to reach $1 trillion by 2040 and $9 trillion by 2050 (1), with eVTOLs gaining global recognition through test flights and prototype showcases.
The companies proudly announce initiatives to enhance their existing UTM platforms in anticipation of the surge in eVTOL aircraft and drone activities. The shared vision for the UTM platform is to enable safe and efficient flight operations for eVTOLs and drones in the foreseeable future.
Recognizing the evolving needs of the AAM industry, they are dedicated to extending their platform by incorporating crucial additional functions. These enhancements, designed with automation at their core, aim to streamline operational efficiencies and pave the way for the integration of their increasingly automated UTM technology into the design and operational framework of AAMs. Through these efforts, they aim to set new standards in UTM and to facilitate the seamless integration of eVTOLs and drones into the national airspace, bolstering the potential for the AAM industry.
Through this initiative, they aim to build a global UTM infrastructure that kickstarts the AAM industry worldwide, creating a cohesive ecosystem that supports AAM growth and addresses broader challenges of urban mobility, sustainability, and air traffic safety.
Notes to Editor:
Research by Morgan Stanley in a report titled “eVTOL/Urban Air Mobility TAM Update: A Slow Take-Off, But Sky’s the Limit” https://advisor.morganstanley.com/the-busot-group/documents/field/b/bu/busot-group/Electric%20Vehicles.pdf]
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Artificial Intelligence
IBM to Acquire HashiCorp, Inc. Creating a Comprehensive End-to-End Hybrid Cloud Platform
$6.4 billion acquisition adds suite of leading hybrid and multi-cloud lifecycle management products to help clients grappling with today’s AI-driven application growth and complexity
HashiCorp’s capabilities to drive significant synergies across multiple strategic growth areas for IBM, including Red Hat, watsonx, data security, IT automation and Consulting
As a part of IBM, HashiCorp is expected to accelerate innovation and enhance its go-to-market, growth and monetization initiatives
Transaction expected to be accretive to Adjusted EBITDA within the first full year, post close, and free cash flow in year two
ARMONK, N.Y. and SAN FRANCISCO, April 24, 2024 /PRNewswire/ — IBM (NYSE: IBM) and HashiCorp Inc. (NASDAQ: HCP), a leading multi-cloud infrastructure automation company, today announced they have entered into a definitive agreement under which IBM will acquire HashiCorp for $35 per share in cash, representing an enterprise value of $6.4 billion. HashiCorp’s suite of products provides enterprises with extensive Infrastructure Lifecycle Management and Security Lifecycle Management capabilities to enable organizations to automate their hybrid and multi-cloud environments. Today’s announcement is a continuation of IBM’s deep focus and investment in hybrid cloud and AI, the two most transformational technologies for clients today.
“Enterprise clients are wrestling with an unprecedented expansion in infrastructure and applications across public and private clouds, as well as on-prem environments. The global excitement surrounding generative AI has exacerbated these challenges and CIOs and developers are up against dramatic complexity in their tech strategies,” said Arvind Krishna, IBM chairman and chief executive officer. “HashiCorp has a proven track record of enabling clients to manage the complexity of today’s infrastructure and application sprawl. Combining IBM’s portfolio and expertise with HashiCorp’s capabilities and talent will create a comprehensive hybrid cloud platform designed for the AI era.”
The rise of cloud-native workloads and associated applications is driving a radical expansion in the number of cloud workloads enterprises are managing. In addition, generative AI deployment continues to grow alongside traditional workloads. As a result, developers are working with increasingly heterogeneous, dynamic, and complex infrastructure strategies. This represents a massive challenge for technology professionals.
HashiCorp’s capabilities enable enterprises to use automation to deliver lifecycle management for infrastructure and security, providing a system of record for the critical workflows needed for hybrid and multi-cloud environments. HashiCorp’s Terraform is the industry standard for infrastructure provisioning in these environments. HashiCorp’s offerings help clients take a cloud-agnostic, and highly interoperable approach to multi-cloud management, and complement IBM’s commitment to industry collaboration (including deep and expanding partnerships with hyperscale cloud service providers), developer communities, and open-source hybrid cloud and AI innovation.
“Our strategy at its core is about enabling companies to innovate in the cloud, while providing a consistent approach to managing cloud at scale. The need for effective management and automation is critical with the rise of multi-cloud and hybrid cloud, which is being accelerated by today’s AI revolution,” said Armon Dadgar, HashiCorp co-founder and chief technology officer. “I’m incredibly excited by today’s news and to be joining IBM to accelerate HashiCorp’s mission and expand access to our products to an even broader set of developers and enterprises.”
“Today is an exciting day for our dedicated teams across the world as well as the developer communities we serve,” said Dave McJannet, HashiCorp chief executive officer. “IBM’s leadership in hybrid cloud along with its rich history of innovation, make it the ideal home for HashiCorp as we enter the next phase of our growth journey. I’m proud of the work we’ve done as a standalone company, I am excited to be able to help our customers further, and I look forward to the future of HashiCorp as part of IBM.”
Transaction Rationale
Strong Strategic Fit – The acquisition of HashiCorp by IBM creates a comprehensive end-to-end hybrid cloud platform built for AI-driven complexity. The combination of each company’s portfolio and talent will deliver clients extensive application, infrastructure and security lifecycle management capabilitiesAccelerates growth in key focus areas – Upon close, HashiCorp is expected to drive significant synergies for IBM, including across multiple strategic growth areas like Red Hat, watsonx, data security, IT automation and Consulting. For example, the powerful combination of Red Hat’s Ansible Automation Platform’s configuration management and Terraform’s automation will simplify provisioning and configuration of applications across hybrid cloud environments. The two companies also anticipate an acceleration of HashiCorp’s growth initiatives by leveraging IBM’s world-class go-to-market strategy, scale, and reach, operating in more than 175 countries across the globeExpands Total Addressable Market (TAM) – The acquisition will create the opportunity to deliver more comprehensive hybrid and multi-cloud offerings to enterprise clients. HashiCorp’s offerings, combined with IBM and Red Hat, will give clients a platform to automate the deployment and orchestration of workloads across evolving infrastructure including hyperscale cloud service providers, private clouds and on-prem environments. This will enhance IBM’s ability to address the total cloud opportunity, which according to IDC had a TAM of $1.1 trillion in 2023, with a compound annual growth rate in the high teens through 2027.1Attractive Financial Opportunity – The transaction will accelerate IBM’s growth profile over time driven by go-to-market and product synergies. This growth combined with operating efficiencies, is expected to achieve substantial near-term margin expansion for the acquired business. It is anticipated that the transaction will be accretive to Adjusted EBITDA within the first full year, post close, and free cash flow in year two.HashiCorp boasts a roster of more than 4,400 clients, including Bloomberg, Comcast, Deutsche Bank, GitHub, J.P Morgan Chase, Starbucks and Vodafone. HashiCorp’s offerings have widescale adoption in the developer community and are used by 85% of the Fortune 500. Their community products across infrastructure and security were downloaded more than 500 million times in HashiCorp’s FY2024 and include:
Terraform – provides organizations with a single workflow to provision their cloud, private datacenter, and SaaS infrastructure and continuously manage infrastructure throughout its lifecycleVault – provides organizations with identity-based security to automatically authenticate and authorize access to secrets and other sensitive dataAdditional products – Boundary for secure remote access; Consul for service-based networking; Nomad for workload orchestration; Packer for building and managing images as code; and Waypoint internal developer platformTransaction Details
Under the terms of the agreement, IBM will acquire HashiCorp for $35 per share in cash, or $6.4 billion enterprise value, net of cash. HashiCorp will be acquired with available cash on hand.
The boards of directors of IBM and HashiCorp have both approved the transaction. The acquisition is subject to approval by HashiCorp shareholders, regulatory approvals and other customary closing conditions.
The Company’s largest shareholders and investors, who collectively hold approximately 43% of the voting power of HashiCorp’s outstanding common stock, entered into a voting agreement with IBM pursuant to which each has agreed to vote all of their common shares in favor of the transaction and against any alternative transactions.
The transaction is expected to close by the end of 2024.
____________________1 The total cloud opportunity is the sum of the cloud-directed spends across Hardware, IT services and SW for Private and Public cloud implementation, sourced from IDC’s Worldwide Black Book Live Edition, March 2024 (V1 2024)
Conference Call Details
IBM’s regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed here. Presentation charts will be available shortly before the Webcast.
About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
About HashiCorp
HashiCorp is The Infrastructure Cloud™ company, helping organizations automate multi-cloud and hybrid environments with Infrastructure Lifecycle Management and Security Lifecycle Management. HashiCorp offers The Infrastructure Cloud on the HashiCorp Cloud Platform (HCP) for managed cloud services, as well as self-hosted enterprise offerings and community source-available products. The company is headquartered in San Francisco, California. For more information, visit HashiCorp.com.
Press Contacts:
IBM:Tim Davidson, [email protected]
HashiCorp:Matthew Sherman / Jed Repko / Haley Salas / Joycelyn BarnettJoele Frank, Wilkinson Brimmer Katcher212-355-4449
Additional Information and Where to Find It
HashiCorp, Inc. (“HashiCorp”), the members of HashiCorp’s board of directors and certain of HashiCorp’s executive officers are participants in the solicitation of proxies from stockholders in connection with the pending acquisition of HashiCorp (the “Transaction”). HashiCorp plans to file a proxy statement (the “Transaction Proxy Statement”) with the Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies to approve the Transaction. David McJannet, Armon Dadgar, Susan St. Ledger, Todd Ford, David Henshall, Glenn Solomon and Sigal Zarmi, all of whom are members of HashiCorp’s board of directors, and Navam Welihinda, HashiCorp’s chief financial officer, are participants in HashiCorp’s solicitation. Information regarding such participants, including their direct or indirect interests, by security holdings or otherwise, will be included in the Transaction Proxy Statement and other relevant documents to be filed with the SEC in connection with the Transaction. Additional information about such participants is available under the captions “Board of Directors and Corporate Governance,” “Executive Officers” and “Security Ownership of Certain Beneficial Owners and Management” in HashiCorp’s definitive proxy statement in connection with its 2023 Annual Meeting of Stockholders (the “2023 Proxy Statement”), which was filed with the SEC on May 17, 2023 (and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1720671/000114036123025250/ny20008192x1_def14a.htm). To the extent that holdings of HashiCorp’s securities have changed since the amounts printed in the 2023 Proxy Statement, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC (which are available at https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001720671&type=&dateb=&owner=only&count=40&search_text=). Information regarding HashiCorp’s transactions with related persons is set forth under the caption “Related Person Transactions” in the 2023 Proxy Statement. Certain illustrative information regarding the payments to that may be owed, and the circumstances in which they may be owed, to HashiCorp’s named executive officers in a change of control of HashiCorp is set forth under the caption “Executive Compensation—Potential Payments upon Termination or Change in Control” in the 2023 Proxy Statement. With respect to Ms. St. Ledger, certain of such illustrative information is contained in the Current Report on Form 8-K filed with the SEC on June 7, 2023 (and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1720671/000162828023021270/hcp-20230607.htm). Promptly after filing the definitive Transaction Proxy Statement with the SEC, HashiCorp will mail the definitive Transaction Proxy Statement and a WHITE proxy card to each stockholder entitled to vote at the special meeting to consider the Transaction. STOCKHOLDERS ARE URGED TO READ THE TRANSACTION PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT HASHICORP WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain, free of charge, the preliminary and definitive versions of the Transaction Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by HashiCorp with the SEC in connection with the Transaction at the SEC’s website (http://www.sec.gov). Copies of HashiCorp’s definitive Transaction Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by HashiCorp with the SEC in connection with the Transaction will also be available, free of charge, at HashiCorp’s investor relations website (https://ir.hashicorp.com/), or by emailing HashiCorp’s investor relations department ([email protected]).
Forward-Looking Statements
Certain statements contained in this communication may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially.
Statements in this communication regarding IBM and HashiCorp that are forward-looking may include statements regarding: (i) the Transaction; (ii) the expected timing of the closing of the Transaction; (iii) considerations taken into account in approving and entering into the Transaction; (iv) the anticipated benefits to, or impact of, the Transaction on IBM’s and HashiCorp’s businesses; and (v) expectations for IBM and HashiCorp following the closing of the Transaction. There can be no assurance that the Transaction will be consummated.
Risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, in addition to those identified above, include: (i) the possibility that the conditions to the closing of the Transaction are not satisfied, including the risk that required approvals from HashiCorp’s stockholders for the Transaction or required regulatory approvals to consummate the Transaction are not obtained, on a timely basis or at all; (ii) the occurrence of any event, change or other circumstance that could give rise to a right to terminate the Transaction, including in circumstances requiring HashiCorp to pay a termination fee; (iii) possible disruption related to the Transaction to IBM’s and HashiCorp’s current plans, operations and business relationships, including through the loss of customers and employees; (iv) the amount of the costs, fees, expenses and other charges incurred by IBM and HashiCorp related to the Transaction; (v) the risk that IBM’s or HashiCorp’s stock price may fluctuate during the pendency of the Transaction and may decline if the Transaction is not completed; (vi) the diversion of IBM and HashiCorp management’s time and attention from ongoing business operations and opportunities; (vii) the response of competitors and other market participants to the Transaction; (viii) potential litigation relating to the Transaction; (ix) uncertainty as to timing of completion of the Transaction and the ability of each party to consummate the Transaction; and (x) other risks and uncertainties detailed in the periodic reports that IBM and HashiCorp filed with the SEC, including IBM’s and HashiCorp’s respective Annual Reports on Form 10-K. All forward-looking statements in this communication are based on information available to IBM and HashiCorp as of the date of this communication, and, except as required by law, IBM and HashiCorp do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
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Artificial Intelligence
Businessabc.net, part of Ztudium group partners with IEBF to offer GenerativeAI tools for SMEs, Adds Dilip Pungliya to Leadership
LONDON and NEW DELHI, April 24, 2024 /PRNewswire/ — Businessabc.net part of ztudium group partners with Indo-European Business Forum IEBF and signed an MOU to collaborate in building tech AI-powered tools and trade corridors and technological solutions for businesses in India, UK, and Europe.
Businessabc.net is a global business abc AI, digital certification search engine, and directory marketplace that offers a fresh approach to business insights, and analytics and makes it accessible to every company, and employee, empowering knowledge-sharing and strategic insights across every level for businesses worldwide. Businessabc offers a digital hub marketplace to empower SMEs and businesses of all types with B2B, B2C, and AI-powered tools, that give them access to strategies, and insights and connect them with chambers of commerce, trade corridors, digital supply chains, provenance tools, and multi-store e-commerce solutions. The Indo-European Business Forum – IEBF is an independent, impartial organisation promoting two-way flows of trade, and investment in India, the UK, and EU member countries.
Businessabc.net owned by ztudium announces this strategic partnership with the IEBF and announces Dilip Pungliya as a new partner and Board Member to lead these endeavours. In this role, Mr. Pungliya, a tech, business, and data scientist executive will bring his extensive expertise in business strategy and digital transformation to lead key initiatives within the organisation.
The growth of Generative AI among Small and Medium Enterprises (SMEs) worldwide has been steadily gaining momentum, and in India, the UK, and Europe a burgeoning tech ecosystem is growing awareness of the transformative potential of artificial intelligence.
IEBF and Businessabc.net join forces to expand the platform with new indexes powered by Generative AI to enhance efficiency, streamline operations, and give companies a competitive edge in the market. Factors such as the availability of cost-effective AI solutions, the skilled workforce, and a global need to push towards digitalisation have contributed to the adoption of Generative AI technologies. GenAI tools and tech solutions are critical to unlocking new value for businesses and becoming the most important tools for organisations of all sizes. AI revolution through platforms such as businessabc.net semantic and GenAI search, indexes, and chatbots, can solve business problems and offer leaders integrated solutions for their growth.
IEBF has been collaborating with Governments in India, UK, and Europe,. Their contribution includes events in the UK House of Lords, Indian governmental organisations, and research and education initiatives for businesses. Created by Mr. Vijay Goel and Mr. Sunil Kumar Gupta the founders, responsibles for the organisation said about this: “We are excited to work and enhance business solutions between IEBF and Businessabc.net, part of Ztudium group. All businesses need to be aware, educated, and prepared for this new AI and digital growth tools world. Data from India’s Ministry of Electronics and Information Technology (MeitY) reports that GenAI is expected to add USD 450–500 billion to India’s GDP by 2025 – 10% of the country’s USD 5 trillion GDP target. We expect to work together to empower businesses in India, the UK, and Europe joining forces with Businessabc.net to organise strategic trade corridors, events, and Indexes.”
Dinis Guarda, Founder of Ztudium / Businessabc.net, a business top thought leader, author, and Youtuber said about the partnership: “We are thrilled to work with IEBF to expand the businessabc.net solutions to India, UK, and Europe businesses and welcome Dilip Punglyia to support, lead this partnership and Ztudium group. Together we will offer cutting-edge simple tools that use genAI in business and finance. In the financial sector alone GenAI is expected to increase global gross domestic product (GDP) by 7%—nearly $7 trillion—and boost productivity growth by 1.5%, according to Goldman Sachs Research.”
Dilip Pungliya, a seasoned tech, digital, and business strategy leader with more than twenty five years of experience creating data-driven solutions will be at the forefront of this partnership. Mr. Dilip Pungliya said about this: “I’m thrilled to join businessabc.net and Ztudium leadership team and contribute to the growth of the partnership with the IEBF and its holistic company’s mission of driving innovation and digital transformation through cutting-edge technologies like AI, fintech, Web 3.0, Metaverse, and Blockchain. This partnership will allow us to create a digital ID, new AI data-driven generative tools, and scale growth for businesses in India, UK, and Europe, and Dilip’s wealth of experience and strategic vision will be invaluable as we continue to drive innovation and empower businesses with transformative technologies.”
About the Indo-European Business Forum
IEBF is an independent, impartial body actively promoting two-way flows of trade, and investment in India and EU member countries. Indo European Business Forum is an open forum comprising like-minded people who believe that “India can offer strong and sustained business opportunities for European Union countries”. IEBF is patronised by leading personalities from both India and the EU having excellence in the fields of business, finance, real estate, and art, to name a few. Our advisory board consists of people who are determined to create a progressive world.
About the Businessabc.net,
Founded in August 2011 by Dinis Guarda, who was joined by Sonesh Sira as board and partner some years after businessabc.net part of Ztudium group has been creating Digital Transformation, and AI tools and being recognised as one of the top global thought leaders organisations by organisations like Thinkers360.com. The company has been working and advising Fortune 500 companies and governments and offers technology products and platforms. Some of its offers are citiesabc.com, fashionsabc.com, sportsabc.org. It also manages a media division with intelligenthq.com, tradersdna.com, hedgethink.com, and services that integrate a wide range of 4IR, AI, 3D, web 3.0, and blockchain technologies solutions such as Metaverseabc. tech, MStores.shopping, iDNA.technology, and AI.DNA. The platform unveiled recently its Top 10,000 Public Companies Market Cap Index, which lists tech giants like Apple, Microsoft, Google, Alphabet, Nvidia, and Meta, and LVMH, IBM, and JPMorgan Chase & Co., from other industries at the top.
About Ztudium: The maker of 4IR, AI, Web 3.0, and Smart Cities technologies
Ztudium is a UK-based global maker of leading proprietary intellectual property and technologies that integrate Fourth Industrial Revolution (4IR) technologies. The company creates technology products, platforms, media, and services that integrate fintech, smart cities, Web 3.0, AI, Metaverse, and Blockchain. Ztudium collaborates with multiple governments, organisations, educational institutions, and business networks worldwide.
For media inquiries, please contact:
Media Contact Name: Manan KothariEmail Address: [email protected] Number: +44 7833881659
Company Name: Businessabc / ZtudiumCompany Address: 85, Great portland street, London W1W7LTWebsite URL: www.businessabc.net, www.ztudium.com
View original content:https://www.prnewswire.co.uk/news-releases/businessabcnet-part-of-ztudium-group-partners-with-iebf-to-offer-generativeai-tools-for-smes-adds-dilip-pungliya-to-leadership-302126571.html
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