Report Code: A06427 | Pages: 194 | ||
Tables: 116 | Charts: 52 |
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The global recreational vehicle market was valued at $57.3 billion in 2021, and is projected to reach $117 billion by 2031, growing at a CAGR of 7.6% from 2022 to 2031.
A recreational vehicle (RV) is a motorized or non-motorized vehicle which is designed for temporary accommodation. These vehicles are generally utilized for camping, recreation, or travel. In addition, these vehicles are equipped with all the amenities found in home with living space. It includes kitchen, bathroom, bedroom, and a rest room. Moreover, these vehicles are generally categorized as towables and motorhomes. Towables RV includes travel trailers, folding camping trailers and truck campers. Motorhomes can be further categorized into three types such as Class A, Class B and Class C motorhomes.Â
The global recreational vehicle market is experiencing growth, due to changing outlook of the leisure and recreational activities, surge in recreational vehicle rental services, and rise in electrification activities. However, fluctuating prices of raw materials used for manufacturing of recreational vehicles is the factor hampering the growth of the market. Furthermore, growing demand for technologically advanced recreational vehicles is the factor expected to offer growth opportunities during the forecast period.
The recreational vehicle market is segmented on the basis of type, application, and region. By type, it is segmented into motorhomes, and towable RVs. By application, it is fragmented into personal and commercial. By region, the report is analyzed across North America, Europe, Asia-Pacific, and LAMEA.Â
Some leading companies profiled in the recreational vehicle market report comprises Airstream, Coachment RV, Cruiser RV, Entegra Coach, Forest River Inc., Gulfstream Coach Inc., Jayco Inc, Newmar Corporation, Oliver Travel Trailer, Thor Industries Inc, Tiffin Motorhomes, and Winnebago Industries.
Changing outlook of the leisure and recreational activities
Leisure and recreational activities have been gaining traction in recent years across the globe as every individual is focusing toward the positive lifestyle for stress management. Weather situations, geopolitics situations and changing consumer spending outlook are the key factors that support recreational activities across the globe. Moreover, citizens across the globe have focused toward living healthier lifestyles, driving the growth for active and outdoor recreation sector. According to Bureau of Economic Analysis, U.S. published data, the U.S. has witnessed outdoor recreation economy accounted for 2.1% ($459.8 billion) of gross domestic product (GDP) for the nation in 2019.
The recreational activities are gaining momentum and it is expected to gain traction in the upcoming years. Recreational vehicles are widely used for recreational purposes across the globe. The changing public lifestyle and growing health concern is anticipated to support the growth of recreation activities in the recent years. The increase in recreational activities is expected to in turn support the growth of recreational vehicles, which in turn is expected to boost the growth of recreational vehicle market during the forecast period.
Surge in recreational vehicle rental services
Recreational vehicle rental companies have observed growth in recreational vehicle rental bookings as several countries have started to come out of the lockdown restrictions. People are now considering road trips as a getaway from quarantine which in turn is increasing the demand for RVs, thereby boosting the recreational vehicle market growth.
In addition, renting a RV with desired features at affordable prices is the preferred choice of several customers. Therefore, several online platforms such as RVshare.com and Outdoorsy are aiding customers to rent a recreational vehicle at an affordable price, which contributes toward the growth of the recreational vehicle rental services.
Moreover, the rise in trend of outing or traveling on weekends with large passenger groups owing to busy schedule in the corporate sector is raising the demand for recreational vehicles rental services. Thus, surge in recreational vehicle rental services is the factor expected to drive the growth of the market during the forecast timeframe.
Rise in electrification activities
Recreational vehicle OEMs are relying on electrical components, owing to their output efficiency and lightweight; thus, making recreational vehicle electrification a fuel economic solution. Furthermore, electrification is the future step, as majority of the manufacturers are integrating several components and features that operated through the battery input to cope up with green mobility requirements.
In addition, batteries are the significant part of the recreational vehicle that supplies the electricity input to various electrical components required for effective functioning. Moreover, the price of battery is declining significantly. For instance, according to a research study published by Bloomberg New Energy Finance (BNEF) on the automotive battery, in 2010, the automotive battery price was $1,100 per Kwh, whereas it was $137 per Kwh in 2020. Moreover, these prices are expected to fall in a same momentum in the upcoming years. Thus, rise in electrification activities is expected to drive the growth of the recreational vehicle market.
Fluctuating prices of raw materials used for manufacturing of recreational vehicles
Fluctuating prices of raw materials such as aluminum, steel, and copper can negatively impact the revenue and profit margins of recreational vehicle manufacturers. The fluctuation in the price can cause fluctuation in the supply of components for RVs, which in turn is anticipated to result in incomplete fulfillment of demand for recreational vehicles in the market. In addition, the increase in the price of components owing to fluctuating prices of raw materials force the recreational vehicle manufacturer to increase the initial cost of recreational vehicle, which impacts the growth of the recreational vehicle market. Thus, fluctuating prices of raw materials used for manufacturing of recreational vehicle is a major factor that restrains the growth of the market. Â
Growing demand for technologically advanced recreational vehicles
Consumers in the market are demanding recreational vehicles with incorporation of advanced technologies with wireless systems. In addition, demand for recreational vehicles with the integration of novel design and technologies by young generation has been observed. Moreover, several recreational vehicle manufacturers are focusing on introduction of technologically advanced recreational vehicles at affordable prices in the market. For instance, in July 2022, ATC, a manufacturer of aluminum RVs and trailers, introduced its 2023 toy hauler models namely, Pla 500 Series and Pla 700 Series. Both the new RVs comprises advanced technology and new design that enhance owner comfort and usability. The toy haulers features a multiplex touchscreen control, by which owner of RV can control and monitor core RV functions and features from touchscreen or smartphone app.
The spread of the COVID-19 pandemic has positively impacted the global recreational vehicle (RV) market. Recreational vehicle industry observed rise in the sales of recreational vehicles during the pandemic period as people started to prefer staying in recreational vehicle such as caravans in comparison to hotels. For instance, the Recreational Vehicle Industry Association observed North American RV sales rose to 4.5% in 2020, to 424,400 units. In addition, the recreational vehicle manufacturers faced a shortage in the supply of raw materials, owing to the pandemic quarantine measures and restrictions. Majority of the domestic RVs market participants especially from North America and Europe depend on the Asia-Pacific countries such as China, Australia, and other countries for the supply of the raw materials. Supply chain disruption results to hamper manufacturing activities of the recreational vehicles, thereby resulted in delay in the production of recreational vehicles. However, with the removal of lockdown restrictions, rise in the recreational vehicle rental services has been observed, which is expected to drive the growth of the market during the forecast period. Furthermore, post-pandemic, growing demand for technologically advanced recreational vehicles has also been observed, which in turn is expected to provide ample opportunities for the market during the forecast period.
Recreational Vehicle Market Report Highlights
Aspects | Details |
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Market Size By 2031 | USD 117 billion |
Growth Rate | CAGR of 7.6% |
Forecast period | 2021 - 2031 |
Report Pages | 194 |
By Type |
|
By Application |
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By Region |
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Key Market Players | Newmar, Thor Industries, Cruiser RV, Forest River Inc., Gulfstream Coach, Jayco, Oliver Travel Trailers, Tiffin Motorhomes, Coachmen RV, Entegra Coach, Winnebago Industries, Airstream |
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The global recreational vehicle market is expected to witness significant growth due to changing outlook of the leisure and recreational activities, surge in recreational vehicle rental services, and rise in electrification activities.
The key players of the market focus on introducing technologically advanced products to remain competitive in the market. North America accounted for a major share of the market in 2021, owing to the presence of major players in the region. However, Asia-Pacific is expected to grow at the highest CAGR during the forecast period.
Several investments, and expansions by the companies operating in recreational vehicle industry, fuel the growth of the market. For instance, in August 2020, Forest River announced plans to expand its operations in Dekalb and LaGrange countries. The company is projected to invest $3.5 million to expand its operations at Butler facility. The new facility will enable Forest River to enhance production of the XLR Toy Hauler.
Key players operating in recreational vehicle market are introducing new electric motorhomes recreational vehicle in the market which fuels the growth of the market. For instance, in January 2022, Thor unveiled an electric motorhome concept with 300 miles range. The Thor Vision Vehicle is powered by a high-capacity battery pack and an integrated fuel cell.
A. The global recreational vehicle market was valued at $57.30 billion in 2021 and is projected to reach $117.0 billion in 2031, registering a CAGR of 7.6%.
A. The top companies in the market include Airstream, Coachment RV, Cruiser RV, Entegra Coach, Forest River Inc., Gulfstream Coach Inc., Jayco Inc, Newmar Corporation, Oliver Travel Trailer, Thor Industries Inc, Tiffin Motorhomes, and Winnebago Industries.
A. The largest regional market is North America.
A. The leading application is personal use.
A. The upcoming trends include surge in recreational vehicle rental services and rise in electrification activities.
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