The global recreational vehicle market is anticipated to grow at a CAGR of around 10.5% during the forecast period 2021 to 2028 and to reach around US$ 121.3 Bn by 2028.
Rapidly growing demand for the luxury of big passenger classes and accommodation would fuel the adoption of carriages worldwide. The move from traditional travel packages to road trips fuels competition in the industry for motorized and towable recreational vehicles. Development of GDP and disposable income will also add to business profits. This would increase the purchasing capacity. Progress in technology has led to the introduction of electric RVs, such as advanced batteries and electric motor trains. The introduction of high automotive emissions standards enables customers to shift to hybrid and electric leisure cars, thereby increasing the scale of the market. The integration with motorhomes of advanced technology such as driver support and collision mitigation will increase passenger and pedestrian safety and will increase growth in the market for leisure vehicles. The high initial purchasing costs are one of the key factors restraining business growth. The total costs of the car are significantly influenced by innovating, high-quality components that reduce the weight of recreational vehicles along with the customization of inner and outer functions. The cost of ownership of the leisure vehicle also means that motor homes are subject to large maintenance premiums and other road tax & maintenance premiums. Continuous battery repair and substitution of gas in power plants requires high prices and running expenses, thus threatening the growth of the industry.
In view of the outbreak of COVID-19 the recreational automotive industry is expected to see a sluggish rise. The sluggish growth of the tourism industry and the rising buying power of consumers across the globe can be due to a severe effect. Due to COVID-19 distribution, buyers are willing to live indoors, which has an impact on sales of tourist and recreational vehicles.
Segment Analysis by Region
The sales of recreational vehicles have risen in North America. This is expected that the growing US economy would increase the leisure demand for cars. The North American authorities encourage the adoption of environmentally friendly goods which lead to the popularity of leisure vehicles in the area. Manufacturers including Thor Industries, Inc. and Forest River, Inc. sell increased fuel economy and built recreational vehicles such as mobile homes or caravans. Continuing tourism, along with policy policies, and growing disposable income in the middle class population would promote business development in North America. Investments in the growth and introduction of new and updated models for leisure vehicles and in manufacturing operations would boost the region's share of the market in leisure vehicles. In recent years, Mexico has experienced a steady rise, which the projection period forecasts will continue. The role of manufacturing firms is expected to rise and the demand for productive leisure vehicles is expected to expand the market share for recreational vehicles as a brand.
Europe has aimed economically to reduce pollution by 20 % by 2020. The government agreed to focus the reduction of emissions and to set sustainability criteria for controlling fuel emissions, as transport sector in Europe has grown. The standards of OEMs for recreational vehicles in Europe are likely to be affected. In turn, suppliers actively invest in recreational vehicle production to conform with the Universal Leisure Vehicle Requirements. When discretionary consumption is rising per capita, leisure off-road vehicles are built with advanced technology due to improved automation and device controls. However, Europe is projected to expand its position on the global recreational car market during the forecast period through the participation of key OEMs, stricter government pollution regulation regulations and expanded investments in the production of recreational vehicle.
Pandemic situation across the globe has disrupted the business flow worldwide. In 2020 every industry vertical in its 2nd, 3rd, 4th quarter has witnessed substantial drop on production and revenue, this was majorly due to lockdown. The restriction on the operations is impacting the production side and also impacting the supply chain of products. The disrupted supply of raw materials and low operational factories efficiency has contributed in the slower growth of the global market. Moreover, there is an urgent need for a rapid acceleration in the manufacturing process at high operational efficiency, better supply chain models, and effective distribution network. These factors to some extent will help the industry vertical to flourish and aid market growth.
The global market is highly competitive due to presence of large number of players and innovative product offerings. In addition, business expansion activities through partnerships and agreements are factors expected to further increase the competition.
The global recreational vehicle market is segmented into product type, motorhomes type, and application. The application segment is bifurcated into leisure and business. Among application the business segment is expected to account for significant revenue share in the global market. The players profiled in the report Winnebago Industries, Forest River, Inc., Thor Industries, DRV Luxury Suites, Erwin Hymer, Crossroads RV, Highland Ridge, REV Recreation Group, Airstream, Skyline Corporation, and others.
Recreational Vehicle Market By Product Type
Fifth Wheel Campers
By Motorhomes Type
Class A Motorhomes
Class B Motorhomes
Class C Motorhomes
Recreational Vehicle Market By Application
Recreational Vehicle Market By Geography
The market value of recreational vehicle is anticipated to be around US$ 65,000 Mn in 2027.
It is anticipated to grow around 7% CAGR amid the forecast period.2020-2027
North America held maximum share in 2019.
Asia Pacific is projected to grow at a fast pace during forecast period from 2020-2027.
Shifting consumer preferences toward camping tourism is expected to drive the growth of the recreational vehicle market.
High cost of purchase and maintenance of recreational vehicles is a major factor expected to restraint the growth of the market.
Winnebago Industries, Forest River, Inc., Thor Industries, DRV Luxury Suites, Erwin Hymer, Crossroads RV, Highland Ridge, REV Recreation Group, Airstream, Skyline Corporation, and other are the prominent players in the recreational vehicle market.