North America Running Shoe Market Size, Trends and Insights By Gender (Men, Women, Kids), By Product Type (Treadmill, Road, Trail, Mud, Barefoot), By Distribution Channel (Online, Offline), By Price Point (Upto $60, $60 to $120, $120 to $200, Above $200), and By Region - Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2024–2033
Report Snapshot
| Study Period: | 2024-2033 |
| Fastest Growing Market: | North America |
| Largest Market: | North America |
Major Players
- Nike Inc.
- Adidas AG
- New Balance Athletics Inc.
- ASICS Corporation
- Puma SE
- Under Armour Inc.
- Others
Reports Description
As per the current market research conducted by the CMI Team, the North America Running Shoe Market is expected to record a CAGR of 5.7% from 2023 to 2032. In 2023, the market size is projected to reach a valuation of USD 12.3 Billion. By 2032, the valuation is anticipated to reach USD 17.1 Billion.
The North America Running Shoe Market is a dynamic sector encompassing the production, distribution, and retail of athletic footwear designed for running enthusiasts. Fueled by a robust fitness culture, technological innovations, and lifestyle trends, major players such as Nike, Adidas, and New Balance dominate the market.
The industry has witnessed shifts in consumer behavior, including increased online sales and a growing emphasis on sustainable and versatile designs. With a focus on performance, comfort, and style, the North America Running Shoe Market remains a key player in the broader sportswear and athletic footwear industry.
North America Running Shoe Market – Significant Growth Factors
The North America Running Shoe Market presents significant growth opportunities due to several factors:
- Fitness and Wellness Trends: The growing emphasis on fitness and wellness continues to drive demand for running shoes, with consumers adopting running as a popular form of exercise, promoting the need for specialized athletic footwear.
- Technological Advancements: Ongoing innovations in shoe technology, including responsive cushioning and biomechanical optimizations, contribute to enhanced performance, comfort, and injury prevention, stimulating consumer interest and market growth.
- E-commerce Boom: The rise of e-commerce has significantly expanded market reach, offering consumers convenience, a wide range of options, and contactless transactions, leading to a surge in online sales of running shoes.
- Athleisure Lifestyle: The broader adoption of athleisure as a lifestyle trend fuels demand for versatile running shoes that seamlessly transition between athletic activities and casual wear, reflecting changing consumer preferences.
- Sustainability Focus: The increasing consumer awareness of environmental concerns presents an opportunity for running shoe manufacturers to capitalize on sustainable practices and materials, aligning with the demand for eco-friendly products.
- Digital Marketing and Personalization: Leveraging digital marketing strategies and personalized experiences, such as customization options for consumers, can create unique value propositions and foster brand loyalty in the competitive North America Running Shoe Market.
- Health and Wellness Collaborations: Collaborations with fitness influencers, health experts, or wellness brands provide an avenue for running shoe companies to align with broader health and wellness narratives, creating partnerships that resonate with consumers seeking a holistic approach to their fitness journey.
North America Running Shoe Market – Mergers and Acquisitions
The North America Running Shoe Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the North America Running Shoe Market include:
- In 2021, Puma SE inaugurated its largest store in North India, situated in Gurgaon’s CyberHub. This digitally enabled experience store employs digital touchpoints to attract tech-savvy customers, catering to the rising trend of online purchases while offering an immersive in-person shopping experience.
- In 2021, Nike unveiled the ‘Go FlyEase,’ a hands-free sports shoe with no laces or fastenings, initially designed for ease of use by individuals with disabilities. The innovative design, now accessible to a broader audience, prioritizes convenience, allowing for effortless wear and removal.
These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the North America Running Shoe Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.
COMPARATIVE ANALYSIS OF THE RELATED MARKET
| North America Running Shoe Market | Plus Size Clothing Market | Running Shoe Market |
| CAGR 5.7% (Approx) | CAGR 5.9% (Approx) | CAGR 4% (Approx) |
| USD 17.1 Billion by 2032 | USD 594.32 Billion by 2032 | USD 19 Billion by 2032 |
North America Running Shoe Market – Significant Threats
The North America Running Shoe Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:
- Economic Downturn: Economic uncertainties and recessions pose a significant threat to the North America Running Shoe Market, as consumers may cut discretionary spending on non-essential items like athletic footwear.
- Intense Competition: The market is highly competitive with major players vying for market share. Intense competition can lead to pricing pressures, reduced profit margins, and a constant need for innovation to stay ahead.
- Supply Chain Disruptions: Global events, natural disasters, or geopolitical tensions can disrupt the supply chain, causing manufacturing delays, shortages of raw materials, and impacting the availability of running shoes in the market.
- Consumer Shifts in Preferences: Rapid changes in consumer preferences, influenced by fashion trends or shifts in lifestyle choices, can pose a threat to running shoe manufacturers that may struggle to adapt quickly to evolving market demands.
- Counterfeit Products: The prevalence of counterfeit running shoes can undermine the reputation of authentic brands, leading to trust issues among consumers and potentially impacting sales and market share. Counterfeit products may also compromise on quality and safety standards, posing risks to consumers.
- Pandemic and Health Crises: Ongoing or future health crises, similar to the impact of the COVID-19 pandemic, can disrupt the North America Running Shoe Market. Lockdowns, restrictions, and changes in consumer behavior during health emergencies may lead to decreased retail activity, production interruptions, and logistical challenges.
Report Scope
| Feature of the Report | Details |
| Market Size in 2023 | USD 12.3 Billion |
| Projected Market Size in 2032 | USD 17.1 Billion |
| Market Size in 2022 | USD 11.6 Billion |
| CAGR Growth Rate | 5.7% CAGR |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Key Segment | By Gender, Product Type, Distribution Channel, Price Point and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Regional Scope | North America |
| Buying Options | Request tailored purchasing options to fulfil your requirements for research. |
Category-Wise Insights
By Gender
- Men: Men’s running shoes in the North American market cater to adult male consumers. Trends include a focus on performance and technology, with innovations in cushioning and materials. Stylish designs that seamlessly transition from workouts to casual wear are also prevalent.
- Women: Women’s running shoes target the female demographic, emphasizing comfort and style. Current trends incorporate vibrant colors, sustainable materials, and designs that balance fashion and functionality for an active lifestyle.
- Kids: Children’s running shoes in North America are tailored for the younger demographic. Trends include durable, lightweight designs with vibrant colors and playful elements. Emphasis is on comfort and support, promoting an active and healthy lifestyle from an early age.
By Product Type
- Road Running Shoes: Road running shoes are optimized for hard, even surfaces. In North America, the market trend involves blending durability with lightweight construction and advanced cushioning technologies for optimal performance on paved roads.
- Trail Running Shoes: Trail running shoes are crafted for off-road terrains, emphasizing traction and durability. In North America, the trend involves integrating rugged outsoles, protective features, and waterproof materials to meet the demands of diverse trail conditions.
- Mud Running Shoes: Mud running shoes are specialized for muddy and wet conditions, prioritizing water drainage and enhanced grip. In the North America Running Shoe Market, the trend is towards durable, mud-resistant designs with aggressive outsoles for obstacle courses and mud run enthusiasts.
- Barefoot Running Shoes: Barefoot running shoes simulate a natural running experience, promoting minimalistic design. In North America, the trend involves offering lightweight, flexible options with thin soles, catering to runners seeking a more natural feel and biomechanical benefits.
By Distribution Channel
- Online: Online distribution in the North America Running Shoe Market refers to the sale of running shoes through e-commerce platforms. The trend includes a significant surge in online sales, driven by consumer preference for convenient, contactless shopping experiences, and the broad availability of product choices and reviews.
- Offline: Offline distribution involves traditional retail channels like physical stores. Despite challenges, including closures and restrictions, offline sales remain relevant due to consumer preferences for in-store experiences, the ability to try on shoes, and the presence of specialized running shoe retailers.
By Price Point
- Up to $60: Affordable running shoes priced up to $60 cater to budget-conscious consumers. This segment emphasizes basic performance features. Current trends include lightweight designs and vibrant color options.
- $60 to $120: Mid-range running shoes priced between $60 and $120 offer a balance between performance and affordability. Trends in this segment focus on advanced cushioning technologies and durability for regular runners.
- $120 to $200: Premium running shoes within the $120 to $200 range target enthusiasts seeking high-performance features, including specialized materials and advanced biomechanical designs. Current trends involve a combination of innovation and style.
- Above $200: Luxury running shoes priced above $200 target elite athletes and luxury enthusiasts. Trends in this segment include cutting-edge technologies, personalized features, and collaborations with high-end fashion designers, creating exclusive and premium offerings.
Competitive Landscape – North America Running Shoe Market
The North America Running Shoe Market is highly competitive, with a large number of manufacturers and retailers operating. Some of the key players in the market include:
- Nike Inc.
- Adidas AG
- New Balance Athletics Inc.
- ASICS Corporation
- Puma SE
- Under Armour Inc.
- Brooks Sports Inc.
- Saucony Inc.
- HOKA ONE ONE
- Skechers U.S.A. Inc.
- Newton Running Company
- Mizuno Corporation
- Reebok International Ltd.
- Salomon S.A.
- Altra Running
- Others
These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.
New players entering the running shoe market are leveraging innovation to establish themselves. Brands like Allbirds and APL Athletic Propulsion Labs have gained traction through sustainable materials and unique designs.
However, key players like Nike and Adidas dominate by continually pioneering technological advancements, design innovations, and extensive marketing. Their established global presence, diverse product lines, and strategic collaborations with athletes reinforce their market dominance.
These giants effectively capture consumer trends, ensuring a strong foothold in the competitive North America Running Shoe Market.
The North America Running Shoe Market is segmented as follows:
By Gender
- Men
- Women
- Kids
By Product Type
- Treadmill
- Road
- Trail
- Mud
- Barefoot
By Distribution Channel
- Online
- Offline
By Price Point
- Up to $60
- $60 to $120
- $120 to $200
- Above $200
Regional Coverage:
North America
- U.S.
- Canada
- Mexico
- Rest of North America
Table of Contents
- Chapter 1. Preface
- 1.1 Report Description and Scope
- 1.2 Research scope
- 1.3 Research methodology
- 1.3.1 Market Research Type
- 1.3.2 Market Research Methodology
- Chapter 2. Executive Summary
- 2.1 North America Running Shoe Market, (2024 – 2033) (USD Billion)
- 2.2 North America Running Shoe Market: snapshot
- Chapter 3. North America Running Shoe Market – Industry Analysis
- 3.1 North America Running Shoe Market: Market Dynamics
- 3.2 Market Drivers
- 3.2.1 Fashion and Style Preferences
- 3.2.2 Sporting Events
- 3.2.3 Health and Wellness Trend
- 3.2.4 Technological Advancements
- 3.2.5 Sustainability Focus
- 3.2.6 E-commerce Boom
- 3.2.7 Personalization and Customization
- 3.2.8 Health and Fitness Partnerships.
- 3.2.9 Fitness and Wellness Trends
- 3.2.10 Technological Advancements
- 3.2.11 E-commerce Boom
- 3.2.12 Athleisure Lifestyle
- 3.2.13 Sustainability Focus
- 3.2.14 Digital Marketing and Personalization
- 3.2.15 Health and Wellness Collaborations.
- 3.3 Market Restraints
- 3.4 Market Opportunities
- 3.5 Market Challenges
- 3.6 Porter’s Five Forces Analysis
- 3.7 Market Attractiveness Analysis
- 3.7.1 Market Attractiveness Analysis By Gender
- 3.7.2 Market Attractiveness Analysis By Product Type
- 3.7.3 Market Attractiveness Analysis By Distribution Channel
- 3.7.4 Market Attractiveness Analysis By Price Point
- Chapter 4. North America Running Shoe Market- Competitive Landscape
- 4.1 Company market share analysis
- 4.1.1 North America Running Shoe Market: Company Market Share, 2022
- 4.2 Strategic development
- 4.2.1 Acquisitions & mergers
- 4.2.2 New Product launches
- 4.2.3 Agreements, partnerships, collaboration, and joint ventures
- 4.2.4 Research and development and Regional expansion
- 4.3 Price trend analysis
- 4.1 Company market share analysis
- Chapter 5. North America Running Shoe Market – Gender Analysis
- 5.1 North America Running Shoe Market Overview: By Gender
- 5.1.1 North America Running Shoe Market Share, By Gender, 2022 and – 2033
- 5.2 Men
- 5.2.1 North America Running Shoe Market by Men, 2024 – 2033 (USD Billion)
- 5.3 Women
- 5.3.1 North America Running Shoe Market by Women, 2024 – 2033 (USD Billion)
- 5.4 Kids
- 5.4.1 North America Running Shoe Market by Kids, 2024 – 2033 (USD Billion)
- 5.1 North America Running Shoe Market Overview: By Gender
- Chapter 6. North America Running Shoe Market – Product Type Analysis
- 6.1 North America Running Shoe Market Overview: By Product Type
- 6.1.1 North America Running Shoe Market Share, By Product Type, 2022 and – 2033
- 6.2 Treadmill
- 6.2.1 North America Running Shoe Market by Treadmill, 2024 – 2033 (USD Billion)
- 6.3 Road
- 6.3.1 North America Running Shoe Market by Road, 2024 – 2033 (USD Billion)
- 6.4 Trail
- 6.4.1 North America Running Shoe Market by Trail, 2024 – 2033 (USD Billion)
- 6.5 Mud
- 6.5.1 North America Running Shoe Market by Mud, 2024 – 2033 (USD Billion)
- 6.6 Barefoot
- 6.6.1 North America Running Shoe Market by Barefoot, 2024 – 2033 (USD Billion)
- 6.1 North America Running Shoe Market Overview: By Product Type
- Chapter 7. North America Running Shoe Market – Distribution Channel Analysis
- 7.1 North America Running Shoe Market Overview: By Distribution Channel
- 7.1.1 North America Running Shoe Market Share, By Distribution Channel, 2022 and – 2033
- 7.2 Online
- 7.2.1 North America Running Shoe Market by Online, 2024 – 2033 (USD Billion)
- 7.3 Offline
- 7.3.1 North America Running Shoe Market by Offline, 2024 – 2033 (USD Billion)
- 7.1 North America Running Shoe Market Overview: By Distribution Channel
- Chapter 8. North America Running Shoe Market – Price Point Analysis
- 8.1 North America Running Shoe Market Overview: By Price Point
- 8.1.1 North America Running Shoe Market Share, By Price Point, 2022 and – 2033
- 8.2 Upto $60
- 8.2.1 North America Running Shoe Market by Upto $60, 2024 – 2033 (USD Billion)
- 8.3 $60 to $120
- 8.3.1 North America Running Shoe Market by $60 to $120, 2024 – 2033 (USD Billion)
- 8.4 $120 to $200
- 8.4.1 North America Running Shoe Market by $120 to $200, 2024 – 2033 (USD Billion)
- 8.5 Above $200
- 8.5.1 North America Running Shoe Market by Above $200, 2024 – 2033 (USD Billion)
- 8.1 North America Running Shoe Market Overview: By Price Point
- Chapter 9. North America Running Shoe Market – Regional Analysis
- 9.1 North America Running Shoe Market Regional Overview
- 9.2 North America Running Shoe Market Share, by Region, 2022 & – 2033 (USD Billion)
- 9.3. North America
- 9.3.1 North America North America Running Shoe Market, 2024 – 2033 (USD Billion)
- 9.3.1.1 North America North America Running Shoe Market, by Country, 2024 – 2033 (USD Billion)
- 9.3.1 North America North America Running Shoe Market, 2024 – 2033 (USD Billion)
- 9.4 North America North America Running Shoe Market, by Gender, 2024 – 2033
- 9.4.1 North America North America Running Shoe Market, by Gender, 2024 – 2033 (USD Billion)
- 9.5 North America North America Running Shoe Market, by Product Type, 2024 – 2033
- 9.5.1 North America North America Running Shoe Market, by Product Type, 2024 – 2033 (USD Billion)
- 9.6 North America North America Running Shoe Market, by Distribution Channel, 2024 – 2033
- 9.6.1 North America North America Running Shoe Market, by Distribution Channel, 2024 – 2033 (USD Billion)
- 9.7 North America North America Running Shoe Market, by Price Point, 2024 – 2033
- 9.7.1 North America North America Running Shoe Market, by Price Point, 2024 – 2033 (USD Billion)
- Chapter 10. Company Profiles
- 10.1 Nike Inc.
- 10.1.1 Overview
- 10.1.2 Financials
- 10.1.3 Product Portfolio
- 10.1.4 Business Strategy
- 10.1.5 Recent Developments
- 10.2 Adidas AG
- 10.2.1 Overview
- 10.2.2 Financials
- 10.2.3 Product Portfolio
- 10.2.4 Business Strategy
- 10.2.5 Recent Developments
- 10.3 New Balance Athletics Inc.
- 10.3.1 Overview
- 10.3.2 Financials
- 10.3.3 Product Portfolio
- 10.3.4 Business Strategy
- 10.3.5 Recent Developments
- 10.4 ASICS Corporation
- 10.4.1 Overview
- 10.4.2 Financials
- 10.4.3 Product Portfolio
- 10.4.4 Business Strategy
- 10.4.5 Recent Developments
- 10.5 Puma SE
- 10.5.1 Overview
- 10.5.2 Financials
- 10.5.3 Product Portfolio
- 10.5.4 Business Strategy
- 10.5.5 Recent Developments
- 10.6 Under Armour Inc.
- 10.6.1 Overview
- 10.6.2 Financials
- 10.6.3 Product Portfolio
- 10.6.4 Business Strategy
- 10.6.5 Recent Developments
- 10.7 Brooks Sports Inc.
- 10.7.1 Overview
- 10.7.2 Financials
- 10.7.3 Product Portfolio
- 10.7.4 Business Strategy
- 10.7.5 Recent Developments
- 10.8 Saucony Inc.
- 10.8.1 Overview
- 10.8.2 Financials
- 10.8.3 Product Portfolio
- 10.8.4 Business Strategy
- 10.8.5 Recent Developments
- 10.9 HOKA ONE ONE
- 10.9.1 Overview
- 10.9.2 Financials
- 10.9.3 Product Portfolio
- 10.9.4 Business Strategy
- 10.9.5 Recent Developments
- 10.10 Skechers U.S.A. Inc.
- 10.10.1 Overview
- 10.10.2 Financials
- 10.10.3 Product Portfolio
- 10.10.4 Business Strategy
- 10.10.5 Recent Developments
- 10.11 Newton Running Company
- 10.11.1 Overview
- 10.11.2 Financials
- 10.11.3 Product Portfolio
- 10.11.4 Business Strategy
- 10.11.5 Recent Developments
- 10.12 Mizuno Corporation
- 10.12.1 Overview
- 10.12.2 Financials
- 10.12.3 Product Portfolio
- 10.12.4 Business Strategy
- 10.12.5 Recent Developments
- 10.13 Reebok International Ltd.
- 10.13.1 Overview
- 10.13.2 Financials
- 10.13.3 Product Portfolio
- 10.13.4 Business Strategy
- 10.13.5 Recent Developments
- 10.14 Salomon S.A.
- 10.14.1 Overview
- 10.14.2 Financials
- 10.14.3 Product Portfolio
- 10.14.4 Business Strategy
- 10.14.5 Recent Developments
- 10.15 Altra Running
- 10.15.1 Overview
- 10.15.2 Financials
- 10.15.3 Product Portfolio
- 10.15.4 Business Strategy
- 10.15.5 Recent Developments
- 10.16 Others.
- 10.16.1 Overview
- 10.16.2 Financials
- 10.16.3 Product Portfolio
- 10.16.4 Business Strategy
- 10.16.5 Recent Developments
- 10.1 Nike Inc.
List Of Figures
Figures No 1 to 28
List Of Tables
Tables No 1 to 6
Report Methodology
In order to get the most precise estimates and forecasts possible, Custom Market Insights applies a detailed and adaptive research methodology centered on reducing deviations. For segregating and assessing quantitative aspects of the market, the company uses a combination of top-down and bottom-up approaches. Furthermore, data triangulation, which examines the market from three different aspects, is a recurring theme in all of our research reports. The following are critical components of the methodology used in all of our studies:
Preliminary Data Mining
On a broad scale, raw market information is retrieved and compiled. Data is constantly screened to make sure that only substantiated and verified sources are taken into account. Furthermore, data is mined from a plethora of reports in our archive and also a number of reputed & reliable paid databases. To gain a detailed understanding of the business, it is necessary to know the entire product life cycle and to facilitate this, we gather data from different suppliers, distributors, and buyers.
Surveys, technological conferences, and trade magazines are used to identify technical issues and trends. Technical data is also gathered from the standpoint of intellectual property, with a focus on freedom of movement and white space. The dynamics of the industry in terms of drivers, restraints, and valuation trends are also gathered. As a result, the content created contains a diverse range of original data, which is then cross-validated and verified with published sources.
Statistical Model
Simulation models are used to generate our business estimates and forecasts. For each study, a one-of-a-kind model is created. Data gathered for market dynamics, the digital landscape, development services, and valuation patterns are fed into the prototype and analyzed concurrently. These factors are compared, and their effect over the projected timeline is quantified using correlation, regression, and statistical modeling. Market forecasting is accomplished through the use of a combination of economic techniques, technical analysis, industry experience, and domain knowledge.
Short-term forecasting is typically done with econometric models, while long-term forecasting is done with technological market models. These are based on a synthesis of the technological environment, legal frameworks, economic outlook, and business regulations. Bottom-up market evaluation is favored, with crucial regional markets reviewed as distinct entities and data integration to acquire worldwide estimates. This is essential for gaining a thorough knowledge of the industry and ensuring that errors are kept to a minimum.
Some of the variables taken into account for forecasting are as follows:
• Industry drivers and constraints, as well as their current and projected impact
• The raw material case, as well as supply-versus-price trends
• Current volume and projected volume growth through 2032
We allocate weights to these variables and use weighted average analysis to determine the estimated market growth rate.
Primary Validation
This is the final step in our report’s estimating and forecasting process. Extensive primary interviews are carried out, both in-person and over the phone, to validate our findings and the assumptions that led to them.
Leading companies from across the supply chain, including suppliers, technology companies, subject matter experts, and buyers, use techniques like interviewing to ensure a comprehensive and non-biased overview of the business. These interviews are conducted all over the world, with the help of local staff and translators, to overcome language barriers.
Primary interviews not only aid with data validation, but also offer additional important insight into the industry, existing business scenario, and future projections, thereby improving the quality of our reports.
All of our estimates and forecasts are validated through extensive research work with key industry participants (KIPs), which typically include:
• Market leaders
• Suppliers of raw materials
• Suppliers of raw materials
• Buyers.
The following are the primary research objectives:
• To ensure the accuracy and acceptability of our data.
• Gaining an understanding of the current market and future projections.
Data Collection Matrix
| Perspective | Primary research | Secondary research |
| Supply-side |
|
|
| Demand-side |
|
|
Market Analysis Matrix
| Qualitative analysis | Quantitative analysis |
|
|
Prominent Player
- Nike Inc.
- Adidas AG
- New Balance Athletics Inc.
- ASICS Corporation
- Puma SE
- Under Armour Inc.
- Brooks Sports Inc.
- Saucony Inc.
- HOKA ONE ONE
- Skechers U.S.A. Inc.
- Newton Running Company
- Mizuno Corporation
- Reebok International Ltd.
- Salomon S.A.
- Altra Running
- Others
FAQs
The key factors driving the Market are Fitness and Wellness Trends, Technological Advancements, E-commerce Boom, Athleisure Lifestyle, Sustainability Focus, Digital Marketing and Personalization And Health and Wellness Collaborations.
The “Treadmill” category dominated the market in 2022.
The key players in the market are Nike Inc., Adidas AG, New Balance Athletics Inc., ASICS Corporation, Puma SE, Under Armour Inc., Brooks Sports Inc., Saucony Inc. , HOKA ONE ONE , Skechers U.S.A. Inc., Newton Running Company, Mizuno Corporation, Reebok International Ltd. , Salomon S.A. , Altra Running, Others.
The market is projected to grow at a CAGR of 5.7% during the forecast period, 2023-2032.
The North America Running Shoe Market size was valued at USD 12.3 Billion in 2023.