How Large Is The Australian Fitness Industry?
Australian fitness industry is substantial, but its size depends on what is being measured. A narrow estimate may count only revenue earned by gyms and fitness centres. A broader view can include personal training, Pilates, yoga, community exercise, digital fitness, wearables, equipment and other wellbeing services. Those figures should not be compared as though they describe the same market.
For the commercial gym and fitness centre category, IBISWorld estimates Australian industry revenue at $3.7 billion in 2026, an increase of 2.8% for the year. It also counts 8,590 operating businesses in the category. AUSactive takes a wider sector view and reports that more than 9 million Australians engage in exercise and active health programs each year.
Together, these measures show a mature market with broad consumer participation and many competing operators. They do not mean that every suburb can support another gym or that every fitness model will perform in the same way. A prospective owner still needs to test the specific catchment, offer, site and cost structure.
Australian Fitness Industry at a Glance
| Measure |
Current figure |
Scope |
|---|---|---|
| Gym and fitness centre revenue | $3.7 billion in 2026 | IBISWorld market-size estimate |
| Gym and fitness centre businesses | 8,590 in 2026 | IBISWorld business-count estimate |
| Annual exercise participation | More than 9 million Australians |
AUSactive, people aged over 15 |
| AUSactive membership | 15,000 professionals and 3,500 businesses | Membership of the peak sector body |
What Is Included in the Fitness Industry?
For someone considering gym ownership, the most useful market definition is usually the revenue and competition connected to physical fitness facilities. This includes 24/7 gyms, full-service health clubs, boutique studios, functional training facilities and other businesses that sell access, coaching or classes from a physical site.
The wider exercise economy is still relevant because it shapes member expectations. Home workout platforms, personal trainers, sporting activities, Pilates, wellness services and wearable technology may compete for the same time and household spending. They can also complement a gym membership. A member may train at a club, attend group sessions and use an app or wearable to track progress.
How the Australian Fitness Market Has Changed
The older source articles capture a genuine shift away from a market dominated by traditional large clubs. Australians now have access to budget 24/7 gyms, premium clubs, specialised studios, functional training, small-group coaching, digital services and hybrid formats. This gives members more choice and makes positioning more important for operators.
The Australian Sports Commission notes that participation in non-organised activities such as running, walking and gyms increased over the decade covered by its research. It also identifies greater demand for varied fitness experiences and services suited to individual needs. For owners, this means the product is no longer just equipment and floor space. Convenience, coaching, community, technology and service all influence the decision to join and stay.
The Main Trends Shaping Gym Ownership
1. Convenience and 24/7 access
Members train around work, family, study and shift schedules. Round-the-clock access can broaden the hours in which a facility provides value without requiring overnight staffing. The operator still needs reliable access control, security, emergency procedures, cleaning, maintenance and responsive member support.
2. Functional and strength-based training
Functional movement, free weights, strength training and open training zones have become established parts of the market. They can serve a wide range of goals, from everyday capability and healthy ageing to sport and performance. The commercial test is whether the floor plan, equipment mix and coaching offer match the target members and the site’s capacity.
3. Community and personal support
Digital tools make fitness more accessible, but they do not replace the value many members place on familiar staff, accountability and a welcoming environment. Smaller clubs and group-based models can create stronger member relationships when service is consistent. Community should be treated as an operating practice, not a slogan: staff interaction, follow-up, class quality, cleanliness and member communication all matter.
4. Hybrid memberships and broader value
Hybrid gyms combine independent access with coached services such as group training or personal training. Tiered memberships can give members a choice between access-only and higher-service options. For an owner, this may support more than one revenue level, but the extra services must be priced to cover coaching, scheduling, space and administration.
5. Technology-supported operations
Access systems, automated billing, member-management software, online bookings, apps and performance reporting are now central to many gym models. Technology can reduce repetitive administration and provide better visibility over leads, joins, payments, attendance and cancellations. It should support service rather than replace it, and the forecast must include software, payment, security and maintenance costs.
6. Healthy ageing and a wider member base
Fitness is not limited to younger or highly experienced members. Older adults, beginners and people seeking strength, mobility or general wellbeing may require a different environment from performance-focused customers. A broader market can create opportunity, but programming, accessibility, staff capability and communication must suit the people the club intends to serve.
7. Wellness and digital fitness
Many consumers now connect exercise with mental wellbeing, stress management, sleep and healthy ageing. Wearables and fitness apps support that broader view by recording activity, recovery and progress. A gym does not need to adopt every trend. New services and technology should solve a clear member need, fit the brand and produce enough value to justify their cost and complexity.
What the Post-Pandemic Period Taught Gym Operators
The pandemic-era Stepz articles document unusual disruption, including closures, rebuilding and the need to maintain member relationships while normal operations were restricted. Those events should not be used as a standard forecast for a new club, and individual revenue or break-even stories should never be presented as a guaranteed outcome.
The lasting business lessons are more useful: maintain adequate working capital, understand insurance and lease obligations, communicate clearly with members, protect service standards and use operating systems that can respond when conditions change. The Dapto story also emphasised practical fundamentals such as a clean and well-maintained club, genuine staff interaction and consistent attention to retention. These principles remain relevant without treating an exceptional period as a normal benchmark.
A Large Industry Is Still a Competitive Industry
Market size shows that Australians spend heavily on fitness, but a large category attracts competition. IBISWorld’s current analysis says budget and 24-hour gyms continue to appeal to cost-conscious members, while operators are also expanding into areas such as recovery, Pilates, wellness and digital services. This creates choice for consumers and pressure on owners to offer a clear reason to join.
Competition is not measured only by the number of nearby gyms. Compare their prices, access, training styles, staffed hours, class schedules, member experience, reviews, parking and target audience. A proposed club needs a defendable position and enough realistic demand to cover its full cost base.
What Industry Growth Means for a Prospective Gym Owner
Industry growth can support an investment case, but it sits behind the unit economics of the proposed club. Before relying on a national trend, test the following at territory and site level:
Catchment population, demographics, residential or workforce growth and travel patterns
Direct and indirect competitors, including gyms, studios, trainers and digital alternatives
The target member, value proposition, membership tiers and realistic collected revenue per member
The complete lease cost, fit-out requirements, equipment, utilities and ongoing maintenance
Staffing, coaching capacity, sales process, local marketing and owner involvement
Membership ramp, retention, cancellations, failed payments and peak-time capacity
Working capital and the result if opening is delayed or membership grows more slowly than planned
A national market can be healthy while a particular site is unsuitable. Build conservative, base and upside forecasts, then have the assumptions reviewed by an accountant and other independent advisers before committing.
Where Stepz Fitness Fits in the Market
Stepz Fitness combines 24/7 gym access with group training in a smaller, community-focused club format. The model responds to several long-term market preferences: convenient access, functional and strength training, service, community and technology-supported operations. Its capped-membership approach is intended to protect the member experience, although the capacity and pricing of each proposed club must still support its cost base.
Stepz Fitness currently has 27 gyms and 17,000 members across NSW, QLD, the ACT and SA. Its club format and development process have been refined over 27 builds. The network has recorded 31% year-on-year revenue growth and 38.9% year-on-year membership growth, with seven new clubs added in the last 12 months.
Sam Waller was ranked #11 in Australia's Top 30 Franchise Executives 2026 and was a 2026 Franchisor of the Year Finalist. A new Stepz Fitness franchise starts from $350,000, with the final investment determined by the site and project requirements.
These figures provide current network context, not a forecast or guarantee for an individual club. A buyer should request the current franchise documents, project budget and support details, then test the proposed territory, lease, finance and operating assumptions independently.
FAQ
How much is the Australian gym industry worth?
IBISWorld estimates that Australian gym and fitness centre operations generated $3.7 billion in revenue in 2026. Broader fitness-market figures may be higher because they can include equipment, clothing, digital fitness and other services. Always check the scope and date before comparing estimates.
How many gym and fitness businesses operate in Australia?
IBISWorld counts 8,590 businesses in the Australian gym and fitness centre operation category in 2026. A business count is not necessarily the same as the number of physical locations, because one business may operate several clubs and classification methods vary.
Is the Australian fitness industry growing?
IBISWorld reports that market size increased by 2.8% in 2026, while its five-year result reflects the disruption and recovery of the pandemic period. Growth is not uniform across every model or location. Current demand is being shaped by pricing, convenience, service diversification and local competition.
Which fitness trends matter most for gym owners?
The most commercially relevant trends include 24/7 convenience, strength and functional training, community, hybrid memberships, technology, healthy ageing and a broader focus on wellbeing. Owners should adopt only the elements that fit their target members and financial model.
Does a large market make a gym franchise a safe investment?
No investment is automatically safe because the wider market is large. The result depends on the territory, site, lease, capital, membership revenue, retention, staffing, fees and operating performance. Complete independent due diligence before signing or paying money.
How much does a Stepz Fitness franchise cost?
A new Stepz Fitness franchise starts from $350,000. The final investment is site-specific. Confirm the current inclusions, exclusions, working capital, contingency and finance costs for the proposed project.
Use Industry Data as a Starting Point
Australia’s fitness industry has broad participation, billions of dollars in annual gym and fitness centre revenue and thousands of operating businesses. That makes it a meaningful market, but also a competitive one. The useful question for a buyer is not only how large the industry is, but whether a particular club can win and retain enough suitable members at a sustainable cost.
If you are considering Stepz Fitness Franchise, request the current information for your preferred territory and proposed site. Compare the opportunity with local demand, complete project costs, working capital and your intended owner role before making a decision.