Recreational Vehicle (RV) Market worth over $64bn by 2026
Published Date: June 30, 2020 Authors: Preeti Wadhwani, Prasenjit Saha
Recreational Vehicle Market size is set to surpass USD 64 billion by 2026, according to a new research report by Global Market Insights, Inc.
Increasing investments and R&D activities undertaken by market players to offer lightweight, highly fuel-efficient RVs are fueling the market growth. Manufacturers are offering a high level of customization with several floor plans and interior designs to cater to specific customer requirements. The integration of modern appliances into these recreational vehicles is further augmenting their market share.
The recreational vehicle market is driven by increasing investments in road infrastructure developments across the globe. According to the industry update, in 2019, the U.S. government assigned USD 1,650 million for the development of the national & interstate highways. Similarly, the Government of Canada invested USD 85.8 billion in infrastructure development out of which 22.5% was allocated to road infrastructure development. Large-sized recreational vehicles require smooth & paved roads for safe and efficient rides.
Increasing fuel prices and high maintenance costs are key factors impacting the market. The non-aerodynamic shape, heavyweight, and large size will significantly impact the fuel efficiency of recreational vehicles. Low vehicle fuel efficiency and frequent gas refills further add to the operating expenses. Manufacturers are continuously investing in R&D to reduce the cost of RVs by introducing attractive financing programs. These low-interest financing programs significantly assist in encouraging buyers to invest in RVs.
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The high & rising impacts of COVID-19 in several countries have led to a slowdown in the market growth. Partial lockdowns, social distancing measures, and restrictions on movements are adversely impacting the industry revenue. Several other factors including rising financial insecurities and shortage of labor are also hindering the industry. Several states in the U.S. have imposed restrictions on recreational activities to contain the spread of the virus.
Growing demand for luxury and customization in recreational vehicles
The Europe motorhomes segment dominated over 70% recreational vehicle market share in 2019 and is expected to witness growth rate of over 6% through 2026. Growth can be attributed to superior luxury and floor space provided by motorhomes. These vehicles offer advanced features and include foldable furniture that can slide out as per user requirements. The capability of motorhomes to be driven without a carrier is contributing to their increasing market demand.
Browse key industry insights spread across 310 pages with 434 market data tables & 36 figures & charts from the report, “Recreational Vehicle (RV) 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” in detail along with the table of contents:
High fuel efficiency and engine power are driving the diesel RV market demand
Diesel RVs held a market share of over 45% in 2019 and is estimated to reach USD 28 billion by 2026. The increasing demand for high fuel efficiency in recreational vehicles is supporting the adoption of diesel RVs. High energy density offered by diesel fuel reduces the overall fuel consumption. The vehicles are integrated with a rear engine configuration that significantly assists in reducing cabin noise and enhancing cooling efficiency. Diesel engines also provide high torque and power that are suitable for carrying heavy weights across long distances and diversified terrains. However, high maintenance costs will limit segment growth.
Rapid development in the Asia Pacific tourism sector
The Asia Pacific recreational vehicle (RV) market size was around USD 5 billion in 2019 and is anticipated to expand at over 7% CAGR from 2020 to 2026. Tourism development initiatives undertaken by various government authorities in the Asia Pacific region are contributing to the market growth. For instance, in October 2019, the Australian Department of Tourism launched the Tourism 2020 initiative to encourage foreign tourists to visit Australia.
The increasing number of international tourist arrivals in Australia, New Zealand, India, and China are creating a huge demand for RVs. These countries provide favorable climatic conditions and a variety of natural & manmade tourist attractions to visit. The capability of RVs to travel to remote destinations that are inaccessible via other modes of transport is positively influencing the market statistics in this region.
Market leaders are adopting new product launch strategies to introduce technologically advanced and feature-rich recreational vehicles in the market. For instance, in January 2020, Renegade RV, a subsidiary of REV Group and manufacturer of adventure & luxury motor coaches, launched an updated Villagio motor coach model. This RV is built on a Mercedes-Benz Sprinter chassis and integrated with a Blue Tec 3.0L turbo diesel engine to ensure an exceptional driving experience. Collaborative partnership is also a key strategy adopted by market players, contributing to industry growth.
Key players operating in the recreational vehicle market include Winnebago Industries, Thor Industries, Forest River, Inc., Airstream, Highland Ridge, DRV Luxury Suits, Pleasure-Way Industries, Kropf Industries, Dutchmen RV, Fleetwood Corporation, and Skyline Corporation.