The recreational vehicle market was valued at USD 31 billion in 2020, and it is expected to reach USD 48 billion by 2026, registering a CAGR of 7% during the forecast period (2021 - 2026).
The COVID-19 crisis has tremendously impacted the tourism industry. Thus, this has derailed the sales of recreational vehicles in the market. However, the slow recovery of the market and consumers’ preference to stay in caravans, then hotels can stimulate the growth of the market. The high proliferation of rental services in emerging economies is expected to propel the market over the forecast period.
The growing number of active campers is contributing to the demand for RVs. The commercial usage of RV is on the rise. Growth in peer-to-peer rental services is expected to increase popularity among millennials, which are increasingly seeking rental services. Furthermore, the increasing demand for road trips as a getaway from quarantine may boost market growth. The post lockdown period is likely to witness a rise in the number of first-time buyers.
The North American recreational vehicle market is likely to dominate the market. Moreover, it may expand during the forecast period, propelled by a rapidly growing number of recreational parks and camping grounds in the region. According to the RV Industry Association (RVIA) report, there are quite 13,000 privately-owned and 1,600 public campgrounds within the United States, enabling individuals to experience camping activities with their recreational vehicles.
Because of the COVID-19 outbreak, the global recreational vehicle market is expected to witness rapid growth, especially in North America and Europe. The Asia Pacific region is expected to witness significant growth during the forecast period. As these vehicles provide a reliable and personal way to travel, it is considered the safest travel alternative during the COVID-19 pandemic, while maintaining social distance norms.
Key Market Trends
Motorhomes Segment Expected to Lead the Market
The motorhomes segment of the market is anticipated to register the highest CAGR during the forecast period. The increase in the number of campgrounds in the country illustrates the increasing preference for recreational travel with motorhomes. Additionally, they are widely used in the country, not only for vacation traveling but also for tailgating, traveling with pets, business, and as a preferred mode of transportation for outdoor sports and other leisure activities.
Among the motorhomes, the class C motorhomes provide better fuel efficiency than the type A or B motorhomes. They are often referred to as mini-motorhomes, which provide the amenities of a larger motorhome in a scaled-down version and at a lower price. The price of these motorhomes starts from approximately USD 40,000 and goes up to USD 200,000. Moreover, manufacturers are adding multiple slide-outs to increase the living space and are designing a large variety of floor plans with larger chassis versions.
These hybrid class C+ (ideal for a family with 4-6 members) are currently being tested for increasing the consumer base of class C motorhomes. Such developments are anticipated to boost the growth of the segment during the forecast period. The class C segment is expected to reach over USD 13 billion by 2025. Class C combines the best features of both class A and B into a more versatile and affordable mid-size motorhome.
Class A motorized are expected to continue to dominate in terms of revenue, contributing approximately 50% of the global recreational vehicle market share in 2019. The growth in online rental websites and applications has further eased the process of renting, boosting the demand in the tech-savvy millennial population.
North America also dominated the commercial sales in 2019, and it is likely to dominate during the forecast period. The United States is the largest commercial RV market across the world, which is primarily dominated by rental agencies.
North America to Witness Significant Growth
The North American recreational vehicle market is the largest across the globe. RV is highly popular among Americans, and over 11% of households own it. Over 1 million households in the United States live in RVs full time. It allows traveling at 20-60% less cost, which is mainly driving the popularity of RV among millennials. The recreational vehicle market contributes an overall USD 114 billion to the US economy, employing over 600,000 people. Thus, RV is one of the global industries in the US economy.
Over the next few years, the United States is expected to drive revenue growth of the North American recreational vehicles market. The Canadian recreational vehicles market may also exhibit significant growth in the years to come. Canada is expected to gain more than 15 BPS. It is expected to hold more than a 10% share of the North American recreational vehicles market until the end of the forecast period.
On the other hand, the United States may lose more than 10 BPS, but it is likely to occupy more than 80% of this regional market until the end of 2024. In terms of CAGR, Canada is more lucrative than the United States in the North American recreational vehicles market. However, the United States is a more attractive market in terms of market share, owing to growing personal disposable income levels and tax relaxation.
The proliferation of campgrounds with multiple facilities, including fishing, white water rafting, and hiking, along with natural scenic landscapes, is providing robust opportunities for the market. Luxury RV resorts offer specialized sports facilities, including golf courses, tennis courts, health spas, and gourmet restaurants, which positively influence the market revenue.
The Recreational Vehicle Market is intensely competitive with the presence of several manufacturers selling products that compete directly through product features. Companies operating in the are adopting merger & acquisition strategies coupled with partnerships and collaborations to increase their market share. For instance,
- In May 2021, Pottery Barn, a portfolio brand of Williams-Sonoma, Inc., partners with travel trailer brand, Airstream, to a new collection of statement décor and accessories inspired by the spirit of adventure that brings the comforts of home on the road.
Market leaders are also focusing on investments in R&D and continuous innovations for the development of lightweight raw materials to reduce vehicle weight and increase fuel efficiency. For instance,
- In August 2020, Forest River announced that it is expanding its operations in DeKalb and LaGrange counties. The company said it may invest USD 3.5 million to expand its 20-acre manufacturing campus at 685 E. Main St. in Butler. The new facilities are expected to allow the company to enhance the production of the XLR Toy Hauler.
- In September 2020, the AL-KO Vehicle Technology Group was investing over USD 4.6 million in new, more efficient laser cutting systems, reducing its CO2 emissions by 500 metric tons per year and bringing other production improvements. With a total of three state-of-the-art fiber laser cutting systems, the company may manufacture parts for axles, frames, and drawbars for trailers and leisure and commercial vehicles.
Key players operating in the global market include Thor Industries, Forest River Inc., Winnebago Industries, and REV Recreation Group. Other significant players include Erwin Hymer, Airstream, Crossroads RV, Highland Ridge, Skyline Corporation, DRV Luxury Suites, Cruiser RV, Dutchmen RV, Fleetwood Corporation, Grand Design RV, Kropf Industries, GMC Motorhome, Keystone RV, and Pleasure-Way Industries.
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1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Towable RVs
5.2 By Towable RVs
5.2.1 Travel Trailers
5.2.2 Fifth Wheel Trailers
5.2.3 Folding Camp Trailers
5.2.4 Truck Campers
5.3 By Motorhomes
5.3.1 Type A
5.3.2 Type B
5.3.3 Type C
5.4 By Application
5.5 By Geography
5.5.1 North America
184.108.40.206 United states
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.5.4 Rest of the World
184.108.40.206 South America
220.127.116.11 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Thor Industries Inc.
6.2.2 Forest River Inc.
6.2.3 Winnebago Industries Inc.
6.2.4 REV Group
6.2.5 NeXus RV
6.2.6 Tiffin Motorhomes Inc.
6.2.7 Triple E Recreational Vehicles
6.2.8 Dethleffs GmbH & Co. KG
6.2.9 Burstner GmbH & Co. KG
6.2.10 The Swift Group
6.2.11 Rapido Motorhomes
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
A selection of companies mentioned in this report includes:
- Thor Industries Inc.
- Forest River Inc.
- Winnebago Industries Inc.
- REV Group
- NeXus RV
- Tiffin Motorhomes Inc.
- Triple E Recreational Vehicles
- Dethleffs GmbH & Co. KG
- Burstner GmbH & Co. KG
- The Swift Group
- Rapido Motorhomes