Recreational Vehicle Market - Global Outlook and Forecast 2020-2025

INDUSTRY INSIGHTS

The global recreational vehicle market size to reach USD 42 billion in 2020 and is projected to grow on account of the increasing demand for camping and outdoor recreational activities in the millennial population, especially in the US. In the US, the number of active camp households increased by 1.4 million in 2018. The growing number of active campers is contributing to demand. The commercial usage of recreational vehicle (RV) is on the rise. The rental facilities are boosting the growth of the market. The growth in peer-to-peer rental services is also influencing the popularity among millennials, which are increasingly seeking rental services.

Because of the outbreak of the COVID-19 pandemic, the global recreational vehicle market is expected to witness rapid growth, especially in North America and Europe. As these vehicles provide a reliable and personal way to travel, it is considered the safest travel alternative during the coronavirus pandemic, while maintaining social distance norms. While the spread of virus and limitations for travel and transportation is stringent, the demand for RV is expected to grow across geographies in 2020. Further, the increasing demand for road trips as a getaway from quarantine would also boost growth. The post lockdown period is likely to witness the rise in the number of first-time buyers.

SNIPPETS

• The class B motorhomes segment is expected to witness rapid growth in demand on account of increasing preference for seeking compact and affordable vehicles among consumers.
• The private ownership dominates the global recreational vehicle market size; however, the commercial use of RV is expected to witness faster growth largely driven due to the increase in the rental market.
• The US recreational vehicle market is expected to reach over $23 billion by 2025. The growth is on account of the rebounding economy and increased consumer confidence.
• The recreational vehicle market share in Europe is expected to reach revenues of over $11 billion by 2025. This is due to the increasing popularity of caravanning, which is finding an appeal among Europeans.   

RECREATIONAL VEHICLE MARKET SEGMENTATION

This research report includes a detailed segmentation by

• Product
• Application
• Geography

INSIGHTS BY PRODUCTS

The towable recreational vehicle market is expected to grow at a CAGR of over 6% during the period 2019–2025. Towable ones are more prevalent in North America than in Europe. The shipment accounted for 89% of the total shipments in North America in 2019. Travel trailers are the most popular towable segment. Consumers mostly prefer them as they are the most inexpensive. They are cheaper and more straightforward than motorhomes and are also available in a wide range of designs, sizes, and prices.

Motorhomes are available in three varieties - Class A, Class B, and Class C. The Class A segment is one of the most common vehicle and accounted for over 40% of the global motorhome revenue in 2019. Class B motorhomes accounted for over 12% of the worldwide motorhome revenue in 2019, and the segment is witnessing the fastest growth. They are typically more affordable to maintain and have better fuel efficiency than larger counterparts. The class C segment is expected to reach over $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 approx. 50% of the global recreational vehicle market share in 2019.

INSIGHTS BY APPLICATION

Private ownership of RV has been dominating the shipments; however, the market scenario is changing rapidly. Commercial usage is growing substantially in rental agencies and businesses. 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 is likely to dominate during the forecast period. The US is the largest commercial RV market across the globe, which is primarily dominated by rental agencies.

The RV ownership reached nine million in 2019. The rapid rise in ownership indicates a resurgent interest in this type of lifestyle. With an increasing number of millennials embracing this lifestyle, the demand is expected to further boost during the forecast period. About 38% of the 40 million recreational vehicle owners in the US are millennials. The rise in camping trailers & activities is a major factor driving the growth of the segment.

INSIGHTS BY GEOGRAPHY

The North America recreational vehicle market is the largest across the globe. RV is highly popular among Americans, and over 11% of households own one. Over 1 million households in the US live in these vehicles full time. It allows traveling at 20–60% less cost, which is mainly driving this popular concept among millennials. The market contributes an overall $114 billion to the US economy, employing over 600,000 people. Thus, RV is one of the global industries in the US economy. Millennials are particularly driving the recreational vehicle market in North America. About 44% of campers in 2018 reported being interested in traveling across different destinations.

INSIGHTS BY VENDORS

Low entry barriers characterize the global recreational vehicle market, and it is intensely competitive with the presence of several manufacturers selling products that compete directly through product features. Thor Industries, Forest River, Winnebago Industries, and REV Group are some of the key vendors operating in the market. The competition is based upon price, design, value, quality, insurance coverage, and service. North America constitutes the largest RV market globally, with US brands dominating the global RV industry. Low entry barriers result in numerous existing and potential manufacturing competitors.

The global recreational vehicle market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Segmentation by Products

• Towable
  • Travel Trailers
  • Fifth Wheel
  • Folding Utility Trailers
  • Sports Utility Trailers/Toy Haulers 
• Motorized
  • Class A
  • Class B
  • Class C

By Application

• Private
• Commercial  

By Geography

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • Saudi Arabia
  • Turkey
  • South Africa