The Caravan and Motorhome Market was valued at USD 47 billion in 2020 and is expected to reach USD 71 billion by 2026 registering a CAGR of 7. 66 % during the forecast period (2021 - 2026).
New York, June 01, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Caravan and Motorhome Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06079817/?utm_source=GNW
The COVID-19 crisis has negatively affected the tourism industry. This, in turn, has led to the decline in sales of recreational vehicles in the market. However, the Increased household income due to the advent of digital ways of generating money and the growing awareness of health benefits from camping is a major driving force stimulating the market’s growth. The high penetration of rental companies in emerging economies is expected to propel the market in the forecast period.
The increase in travel activities and the cost benefits offered over other modes of travel are encouraging people to purchase recreational vehicles (RVs). Also, the ability of an RV to be customized at ease is propelling RV’s technological trends at enormous speed. The smart home system in RVs is one of the important factors in deciding the customer’s choice.
Motorhomes are witnessing a significant growth in demand across the world, especially from European countries. Increasing number of High Net Worth Individuals (HNWI) coupled with availability of widespread parking areas for RVs are driving their adoption in North America and Europe. In 2020, Europe accounted for major share of the global caravan and motorhome market due to higher number of motorhomes sold when compared to North America.
With the outbreak of pandemic COVID-19, the demand for recreational vehicles is witnessed a surge in demand. With the ease in lockdown measures globally, people are willing to go for camping activities for relaxation. This trend has been witnessed by several RV sellers and rental companies across the world.
Key Market Trends
Motorhome Segment Expected to Grow at a Higher CAGR
Camping and traveling are increasingly being popular among millennials, as a part of recreational activity. For instance, millennials account for two-fifths of the total number of campers across the world. Such popularity of camping among millennials is driving the adoption of RVs. For instance, according to Thor Industries Inc., the company witnessed a 21.18% increase in the purchase of Thor traveler trailers from millennials during 2019-2020.
Caravans and Motorhomes are significantly expensive to purchase, due to which a large population is unable to afford them. However, the availability of rental companies is attracting customers who have budget constraints and customers not willing to invest in the purchase of a new vehicle.
Among the motorhomes, the Class C motorhomes provide better fuel efficiency than the type A or B motorhomes. They are often referred to as mini-motorhomes, which provide the amenities of a larger motorhome in a scaled-down version and at a lower price. The price of these motorhomes starts from approximately USD 40,000 and goes up to USD 200,000. In addition, manufacturers are adding multiple slide-outs to increase the living space and are designing a large variety of floor plans with larger chassis versions.
Class A motorized are expected to continue to dominate in terms of revenue, contributing approx. 50% of the global market share in 2020. The growth in online rental websites and applications has further eased the process of renting, boosting the demand in the tech-savvy millennial population.
North America dominated the sales in 2020 and is likely to dominate during the forecast period. The US is the largest market across the globe, which is primarily dominated by rental agencies.
North America To Witness Significant Growth
North America is the largest market in terms of caravan and motorhomes sales. 11% of households in North America have an RV. Over 1 million households in the US live in RVs full time. It allows traveling at 20–60% less cost, which is mainly driving the popularity of RV among millennials. The recreational vehicle market contributes an overall USD 114 billion to the US economy, employing over 600,000 people. Thus, RV is one of the global industries in the US economy.
The trend for full-time living on wheels has been increasing over the past decade since most of the vehicles are equipped with bare minimum facilities that are necessary for full-time living in the vehicle. Recreational vehicles stood at 24% as preferred camping activity among the camping population across the United States.
In Europe, Germany holds the major share of caravan and motorhome sales. Caravan rental is becoming popular in the country, with both manufacturers as well as rental companies vying up for more market share as the country is very well equipped with all the service areas for RVs and campers. Moreover Germany has an extensive network of campsites
The Caravan and Motorhomes Market is intensely competitive with the presence of several manufacturers selling products that compete directly through product features. Companies operating in the are adopting merger & acquisition strategies coupled with partnerships and collaborations to increase their market share. For Instance,
- In May 2021, Pottery Barn, a portfolio brand of Williams-Sonoma, Inc. partners with travel trailer brand, Airstream, to a new collection of statement décor and accessories inspired by the spirit of adventure that brings the comforts of home on the road.
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 August 2020, Forest River announced that it is expanding its operations in DeKalb and LaGrange counties. The company said it will invest USD 3.5 million to expand its 20-acre manufacturing campus at 685 E. Main St. in Butler. The new facilities will allow the company to enhance the production of the XLR Toy Hauler.
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