“As you ride outside on the road, your bike continues to move forward with momentum from the force that you exerted onto the pedals from roughly the 1 o’clock to 5 o’clock position in the pedal stroke. Across the bottom and top of the pedal stroke, the legs have little ability to create any meaningful force against the pedals because of biomechanical inefficiencies in body position due to being seated almost directly above the crank. This lack of resistance to pedal against may even give the legs a micro-rest in each pedal stroke as the momentum of the rear wheel continues moving forward and the legs try to keep up with the rpm’s needed to move the crank.
“On a rear wheel resistance trainer, there is little to no momentum of the rear wheel. If you stop pedaling the rear wheel comes to an almost immediate stop. Because there is resistance around the entire pedal circle, your legs are not used to having to produce power throughout the entire pedal stroke. As a result of this inefficiency, more strain is put on your cardiovascular system. As a result, this reduces your ability to create the same wattages as outdoors.
“To be clear, it isn’t just the momentum (stored kinetic energy) of the rear wheel that keeps us moving out on the road, but rather that of our body plus the bicycle as a whole. An easy way of envisioning this is to imagine trying to stop the rear wheel of your bike wheel when it’s spinning rapidly in the workstand by grabbing the tire with your hand versus trying to stop that wheel while spinning out on the road using the same technique. In general, until you are “trained” to ride on a rear wheel resistance trainer, your watts will be 20 to 30 watts lower on the trainer than outside. As you become trained to this way of pedaling, this gap will narrow and quite likely go away.”
https://www.trainingpeaks.com/blog/adjusting-your-functional-threshold-power-for-indoor-riding/