Recreational Vehicle Market Size By Vehicle (Motorhomes [Class A, Class B, Class C], Towable RVs [Travel Trailer, Fifth Wheel, Tent Trailer]), By Fuel (Gasoline, Diesel), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

Industry Trends

Recreational Vehicle Market size exceeded USD 42.5 billion in 2019 and is poised to grow at a CAGR of over 7% between 2020 and 2026.
 

Rapidly increasing demand for comfortable travel and accommodation of large passenger groups will fuel the adoption of RVs across the globe. The shift in consumer preference from conventional holiday packages to road trips is driving the market demand for towable and motorized recreational vehicles. Increasing spending power due to GDP growth and disposable income will further contribute to the market revenue.
 

Technological advancements, such as advanced batteries and electric powertrains, have led to the introduction of electric RVs. The implementation of stringent vehicle emission regulations is encouraging consumers to switch to electric & hybrid recreational vehicles, augmenting the market size. The integration of advanced technologies, such as driver assistance and collision mitigation systems, into motorhomes will enhance passenger and pedestrian safety, thereby escalating the recreational vehicle market growth.
 

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One of the major factors restricting the market growth is the high initial purchase cost. Innovative & high-quality materials used to reduce the weight of recreational vehicles along with the customization of interior & exterior features will contribute significantly to the overall vehicle cost. Motorhomes also involve high insurance costs and other road tax & insurance-related expenses, significantly increasing the cost of ownership of the recreational vehicle. Continuous maintenance and replacement of batteries and refilling gas in power generators incur high expenses and amount to high operating costs, thus challenging the industry growth.
 

The recreational vehicle market is anticipated to witness a slow growth owing to outbreak of the COVID-19 pandemic. The sluggish growth can be attributed to severely impacted tourism sector and the decreasing purchasing power of consumers across the globe. Due to the spread of COVID-19, consumers are highly inclined toward staying indoors to stay safe, impacting tourism and recreational vehicle sales.
 

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Increasing demand for economical recreational tourism

The towable RVs segment held around 45% market share in 2019 and is expected to reach USD 28 billion by 2026. The rapidly growing demand for towable RVs can be credited to its low cost over motorized RVs and the absence of a built-in engine & powertrain. Towable recreational vehicles allow customers to use an existing truck or a panel van to tow the trailer, significantly reducing the on-road cost of the vehicles.
 

New product launches by industry players are providing a positive outlook for the market growth. For instance, in June 2019, Airstream launched its new series of towable recreational vehicles, the Bambi and Caravel trailers. These trailers offer a large floor space and reduced weight owing to their aluminum construction. Additional features contributing to their market demand include extra window awnings, rear bumper storage, and stainless- steel rock guards.
 

Growing adoption of gasoline-powered recreational vehicles due to low harmful emissions

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The gasoline segment generated over USD 22 billion revenue in 2019 and is predicted to witness growth of around 8% through 2026 led by lower carbon emissions and reduced maintenance & acquisition costs. The long life of gasoline engines is due to reduced piston movements compared to diesel engines will also contribute to the market expansion. The superior peak power output and low engine noise are further providing a positive outlook to the market.
 

Proliferation of recreational camping grounds to increase demand in North America

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The North America recreational vehicle market size was over USD 22 billion in 2019 and is projected to expand at 8.5% CAGR during the forecast period propelled by rapidly growing number of recreational parks & camping grounds in the region. According to the Recreational Vehicle Industry Association (RVIA) report, in 2018, there are more than 13,000 privately-owned and 1,600 public campgrounds in the U.S., enabling individuals to experience camping activities with their recreational vehicles.
 

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 are also positively influencing the market revenue.
 

Mergers and acquisitions are the key strategies adopted by leading RV manufacturers

Companies operating in the are adopting merger & acquisition strategies coupled with partnerships and collaborations to increase their market share. For instance, in February 2019, Thor Industries acquired Erwin Hymer Group for around USD 2.4 billion. This acquisition aided the company to gain a competitive advantage by leveraging Erwin’s brand image and also enhanced its market representation.
 

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 2019, the REV Recreation Group invested USD 4.8 million in R&D activities to develop new products and expand its business operations, supporting market growth.
 

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.
 

The recreational vehicle market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipment in units from 2020 to 2026 for the following segments:

Market by Vehicle

• Motorhomes

• Class A
• Class B
• Class C

• Towable RVs

• Travel Trailer
• Fifth Wheel
• Tent Trailer

Market by Fuel

• Gasoline
• Diesel

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Sweden
  • Netherlands
  • Norway
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • UAE