"Market Intelligence for High-Geared Performance"
The global recreational vehicle market size is projected to reach USD 87.89 billion by 2028 from its value USD 55.90 billion in 2021, at CAGR of 6.7% during forecast period. The recreational vehicle market was valued at USD 55.28 billion in 2020. The global impact of novel coronavirus disease has been unprecedented and staggering, with recreational vehicle witnessing a negative demand shock across all regions amid the coronavirus crisis. Based on our analysis, the global market exhibited a decline of -5.9% in 2020. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Recreational vehicle (RV) is designed as temporary accommodation, and is most commonly used for camping, season use, recreation, or travel. Most RVs have one deck, though some of the customized RVs available also include two decks. These vehicles are towable (truck campers, folding camping trailers, and travel trailers) or motorized (motorhomes). Additionally, some major types such as caravans, motorhomes, and campervans are also known as camper trailers and travel trailers, fifth-wheel trailers, popup campers, and truck campers.
The recreational vehicle market growth is attributed to the growing demand for road trips as a getaway from quarantine, the rising number of active campers, and the rapidly increasing demand for comfortable travel & accommodation of large passenger groups. Furthermore, the post lockdown period is expected to witness an upsurge in the number of first-time RV buyers. According to RV Industry Association, recreational vehicle shipments are projected to reach 600,200 units by 2022, a four percent raise over 2021.
Further, according to the latest study from Go RVing, Inc., a consumer-facing website for the RV business, approximately 25% of present RV owners are younger than 35 and plan to upgrade to a new unit and purchase new RVs in the coming years. This factor indicates the market growth potential for the recreational vehicle industry. However, international agreements to curb carbon dioxide emissions and environmental regulations regarding fuel efficiency play an important factor in this industry.
COVID-19 Impact on the Tourism Industry to slowdown Market Growth
The COVID-19 pandemic has significantly disrupted each and every industry vertical, and automobile manufacturers and RV companies are no exception. In 2020, the COVID-19 pandemic immensely impacted the tourism industry across the world. Therefore, this situation has derailed the sales of these vehicles in the market. Nevertheless, the slow recovery of this market and end-user preference to stay in campervans, then hotels can stimulate the market growth over the forecast period. The high proliferation of rental RV services in developing economies is anticipated to propel the market from 2021 to 2028.
Request a Free sample to learn more about this report.
Surge in Recreational Vehicle Rental Services to Drive Market Growth
Increased consumer spending on tourism and recreational activities is boosting the market growth. Thus, the demand for the RV has been growing for the previous few years due to the luxuries and comfortable accommodation facilities. Moreover, the rising trend of outing or traveling on weekends with large passenger groups due to the hectic and busy schedule in the corporate sector also raises the demand for RVs. Further, the demand for the RV is majorly increased by the movie industry due to the remote locations of film shooting. RV is a premium and technologically advanced product and is majorly taken on rent-basis for the film industry. Hence, the surge in RV rental services helps drive market growth over the forecast period.
Increasing Demand for Customized RVs for Personal Use to Propel Market Growth
Some consumers use RVs as their main residence owing to their benefits, such as lower insurance and maintenance costs, low fuel consumption, easily towable units, and depreciation value. The RV manufacturers have been concentrating on developing new RVs for particular applications as there are changing demands based on utilization. Therefore, key players have determined how improved attractiveness and luxury with advanced technologies can influence RV buyers. The rising demand for customized RVs for personal use drives the market growth in the coming years.
Environmental Concerns & Government Regulations to Impact the Industry Growth
International agreements to curb carbon dioxide emissions and environmental regulations about fuel efficiency hamper this industry. Several environmental regulatory proposals include increased fuel tax, which is expected to increase transportation costs and adversely affect RV demand. Further, hybrid-electric engines have the potential to offset increased environmental regulations concerning fuel efficiency, but commercially viable options are not yet available in the RV space.
To know how our report can help streamline your business, Speak to Analyst
Motorhomes Segment to Dominate led by Rise in Number of Campgrounds Across the Globe
Based on vehicle type, the market share is split into motorhomes and towable RVs.
The motorhomes segment held a major share in 2020. It is anticipated to be the fastest-growing segment in the coming years due to the ongoing increasing demand for comfortable travel with better accommodation. Moreover, the rise in the number of campgrounds across the globe illustrates the growing preference for recreational travel with motorhomes. Moreover, these types of vehicles are extensively used in North America and Europe, not only for vacation traveling but also for business, traveling with pets, tailgating, and as a preferred mode of transportation for outdoor sports and other leisure activities. Further, these RVs offer benefits such as enhanced interior space with services comprising bathroom, sink, kitchen, and beds are likely to drive the segment growth.
Commercial Segment e to Growing Rapidly Owing to Commercial RVs Increasing Traction from the Tourism Industry
In terms of application, the recreational vehicle market share is broken down into residential and commercial.
The commercial segment is expected to record the fastest growth in the market from 2021 to 2028 because commercial RVs are gaining increasing traction due to the growing tourism industry across the globe. Locals and travelers mostly use the RVs for camping purposes. Camping has grown as the most usual outdoor recreational activity among travelers who choose a compact living area integrated with several other luxurious facilities. This trend is anticipated to drive the market growth considered the most appropriate way of camping.
North America Recreational Vehicle Market Size, 2020 (USD billion)
To get more information on the regional analysis of this market, Request a Free sample
North America, led by the U.S., dominated the market share in 2020, garnering USD 23.65 billion in terms of annual revenue. Dominance of the region is attributable to its high popularity among Americans and continued strong growth in outdoor recreational activities in this region.
Camping activities account for around 1/3rd of total outdoor activity, mainly in Canada and the U.S. This factor facilitates the growing demand for these vehicles in the region. Further, the rise of campgrounds with multiple facilities, such as hiking, white water rafting, and fishing, along with natural scenic landscapes, is offering market growth opportunities. Luxury RV resorts provide specialized facilities, such as gourmet restaurants, health spas, tennis courts, and golf courses, that positively influence the regional market revenue.
The Asia Pacific is expected to be the fastest-growing market over the forecast period. Rapid growth in the tourism sector, outdoor recreational activities, and disposable income are driving the Asia Pacific market. In addition, Caravanning is the major trend across European countries. Thus, new registrations of leisure vehicles are rising. In Germany, caravanning is more popular, thus, it shows the strong growth in demand for used motor caravans and new caravans over the forecast period.
The market is highly competitive due to the presence of established players including Winnebago Industries, Inc., REV Group., Forest River, Inc., Airstream, Inc., Thor Industries Inc., Tiffin Motorhomes Inc., Triple E Recreational Vehicles, Dethleffs GmbH & Co. KG, Erwin Hymer Group, and among others. Companies are looking to invest heavily in developing innovative products and are adopting acquisition and new product launch strategies to strengthen their market position.
An Infographic Representation of Recreational Vehicles (RV) Market
To get information on various segments, share your queries with us
The recreational vehicle market research report provides a detailed analysis of the market and focuses on key aspects such as leading RV companies, vehicle types, and leading applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.
ATTRIBUTE | DETAILS |
Study Period | 2017-2028 |
Base Year | 2020 |
Estimated Year | 2021 |
Forecast Period | 2021-2028 |
Historical Period | 2017-2019 |
Unit | Value (USD billion) |
Segmentation | By Vehicle Type
|
By Application
| |
By Geography
|
Fortune Business Insights says that the global market size was USD 55.28 billion in 2020 and is projected to reach USD 87.89 billion by 2028.
In 2020, the North America market value stood at USD 23.65 billion.
The market is projected to grow at a CAGR of 6.7% and will exhibit steady growth in the forecast period (2021-2028).
The motorhomes segment is expected to be the leading segment in this market during the forecast period.
Rising number of active campers, and rapidly increasing demand for comfortable travel & accommodation of large passenger groups to propel the market growth
North America dominated the market share in 2020.