NORTH AMERICA RECREATIONAL VEHICLE MARKET

KEY FINDINGS

• The growth of the market is being driven by rising disposable incomes, increased demand for leisure activities, government support for RV tourism, and technological advancements in RVs.
• The towable RV segment is the largest segment of the market, accounting for over 60% of the market share.
• Some key trends shaping the market include increased demand for luxury RVs, growth of the rental RV market, and development of new RV technologies.
• Consumers in North America have more disposable income than ever before, which they are increasingly spending on leisure activities and experiences. RVs provide a convenient and affordable way to enjoy outdoor recreation and travel, making them a popular choice for consumers with rising disposable incomes.
• Consumers in North America are increasingly prioritizing leisure activities, such as camping, hiking, and fishing. RVs provide a comfortable and convenient way to enjoy these activities, making them a popular choice for consumers of all ages.
• RV manufacturers are constantly developing new and innovative RVs with improved features and amenities. This is making RVs more appealing to consumers and driving the growth of the RV market.
• The population in North America is aging, and retirees are a key demographic for the RV market. Retirees have the time and financial resources to enjoy RVing, and they are increasingly choosing to live and travel in RVs.
• The minimalist lifestyle is becoming increasingly popular in North America, and RVs provide a convenient and affordable way to live a minimalist lifestyle.
• The cost of RVs has been rising in recent years, due to factors such as inflation, supply chain disruptions, and increased demand. This is making RVs less affordable for some consumers.
• The RV industry is facing a shortage of skilled labor, which is making it difficult for RV manufacturers to keep up with demand. This is leading to longer wait times for new RVs and higher prices for used RVs.
• The RV industry is also facing supply chain disruptions, which are making it difficult for RV manufacturers to obtain the materials and components they need to produce RVs. This is leading to longer wait times for new RVs and higher prices for RVs.
• The current economic uncertainty is making some consumers hesitant to make large purchases, such as an RV. This is having a negative impact on the RV market.
• Some consumers are concerned about the environmental impact of RVing, which could lead to a decline in demand for RVs in the future.
• RV Shipments in North America decreased by about 2.1 % in 2019 YOY but is expected to grow in 2020-2024
• Pessimistic growth is possible due to the impact of COVID-19.
• Camping accounts for about 1/3rd of total outdoor activity mainly in USA and Canada. This allows for increasing demand for RV Vehicles in the region
• The hashtag #vanlife has been used more than 7.7 Million times on Instagram.
• The average RV owner ages between 38-55 and are male.
• Approximately 1 million Americans live in RVs full time.
• Over 11% of US households own a recreational vehicle.
• The industry supports nearly 600,000 jobs.
• There are over 16,000 campgrounds and parking facilities to support public and private RV camping.
• There are more than 100 RV manufacturers with the majority of those being in the United States.
• RV Vacations can cost about 60% less than a traditional holiday.
• North America has about 370 national outlets and local RV dealers.
• Winnebago Group announced Record $840M Revenue in Q2 2021
• Organic RV Market Share Gains Continue, rising to 11.5% on a Trailing Twelve-Month Basis. Second Quarter Gross Margin Expansion of 590 Basis Points to 18.6%
• Interest in the Outdoors Remains High as Evidenced by Elevated Order Backlogs and Retail Sales Growth
• The producers for the upcoming Discovery Channel TV series “RVing in the USA” announced in March 2021 that they have formed an alliance of promotion and video content relating to the RV industry and lifestyle with one of the long-recognized leaders in the RV community, Escapees RV Club.
• Duo Form on Tuesday, March 23 2021, launched two new sizes in its unique RV Skylight Shade family of products, which are now available through RV distribution and direct from Duo Form.
• Lazydays Holdings Inc. Announced $11.3 Million Influx in March, 2021 for the previous annual report.
• Thor Industries Inc. announcement of record results for the second fiscal quarter ended Jan. 31, 2021, highlighted by net sales of $2.73 billion, an increase of 36.2% as compared to the second quarter of the prior year. Second-quarter results include $1.95 billion in North American RV net sales and $733.5 million in European RV net sales.
• At Traveland RV in West Kelowna, British Columbia, Sales exploded last year when people realized they could get away without interacting with people outside of their bubbles, and that frame of mind is showing no signs of slowing down.

NORTH AMERICA RECREATIONAL VEHICLE MARKET OVERVIEW

There is an escalating consumer preference for upscale recreational vehicles (RVs) equipped with premium features and lavish amenities. RV manufacturers are actively catering to this demand by introducing luxury RV models that encompass amenities like slide-outs, fireplaces, and gourmet kitchens.

The RV rental sector is experiencing rapid growth as an increasing number of individuals express interest in the RV lifestyle without the commitment of RV ownership. RV rental companies are diversifying their offerings with a range of rental options, including different RV types, varying rental durations, and flexible pick-up and drop-off locations.

RV manufacturers are continuously advancing RV technology, unveiling novel and inventive concepts like self-driving RVs and solar-powered RVs. These technological advancements are enhancing the appeal of RVs to consumers and propelling the overall RV market's expansion.

RV manufacturers are well-positioned to capitalize on the buoyant RV market. Investors can participate in this growth by directly investing in RV manufacturers through stock purchases or by considering exchange-traded funds (ETFs) that encompass the RV industry.

RV rental companies are also poised to benefit from the burgeoning RV market. Investors have the option to invest in RV rental companies by acquiring their stocks or exploring ETFs that track the broader tourism industry.

RV parks and campgrounds serve as destinations for RV owners to park their vehicles and engage in outdoor recreational activities. Investors can acquire individual RV parks and campgrounds or explore investment in companies responsible for owning and operating such facilities.

RV suppliers play a vital role in providing RV manufacturers with essential materials and components needed for RV production. Investors can directly invest in RV supplier companies by purchasing their stocks or by exploring ETFs linked to the manufacturing sector.

RV technology firms are at the forefront of developing pioneering RV technologies, such as self-driving RVs and solar-powered RVs. Investors can consider direct investments in RV technology companies through stock purchases or by exploring ETFs associated with the technology industry.

INTRODUCTION TO NORTH AMERICA RECREATIONAL VEHICLE MARKET

According to the Recreation Vehicle Industry Association (RVIA), a recreational vehicle is a vehicle designed as temporary living quarters for camping, recreation, season use, or travel. Recreational vehicles are categorized as motorized (motorhomes) or towable (travel trailers, folding camping trailers, and truck campers).

By type, the segment is subdivided as follows: Motor Homes (Class A, Class B, and Class C), Travel Trailers & Campers (Conventional Travel Trailers and Fifth-wheel Travel Trailers), and Camping Trailers (Folding Camping Trailer and Truck Camper). It started getting manufactured in the 1970s and had become quite popular due to its ease of holiday and camping.

According to our study, US ownership is increasing at a fast pace due to the rise in income, employment, and household wealth and as a cumulative effect of revenge tourism after being denied the option of going out owing to COVID-19 norms and restrictions.  But also, due to the long-term impact of COVID-19, there is a possibility of demands slugging this year and coming year.

NORTH AMERICA RECREATIONAL VEHICLE MARKET NEW PRODUCT LAUNCH

The RVIA launched a new RV safety campaign in January 2023 called "RV Safe & Smart." The campaign is designed to educate RV owners and operators about RV safety best practices.

Winnebago Industries, the largest RV manufacturer in North America, is launching the e-RV2, a fully electric RV. The e-RV2 has a range of up to 125 miles and can be charged using a standard household outlet or a public EV charging station. The e-RV2 is also equipped with a variety of premium features, including a solar panel system, a lithium-ion battery pack, and a smart home system. The e-RV2 is expected to be released in 2024.

Cirrus, a subsidiary of Keystone RV, is launching the Grand Villa Super Coach Edition, a new line of luxury fifth wheel trailers. The Grand Villa Super Coach Edition is available in a variety of floor plans and can be equipped with a variety of features, such as a slide-out, a fireplace, and a gourmet kitchen. The Grand Villa Super Coach Edition is expected to be released in 2024.

Grand Design is launching the Momentum G-Class, a new line of luxury toy haulers. The Momentum G-Class is available in a variety of floor plans and can be equipped with a variety of features, such as a slide-out, a fireplace, and a gourmet kitchen. The Momentum G-Class is expected to be released in 2024.

NORTH AMERICA RECREATIONAL VEHICLE MARKET SIZE AND FORECAST

The North America recreational vehicle market was valued at US$ xx in 2023 and is expected to reach US$ xx by 2030, growing at a CAGR of xx% between 2024 and 2030.

The U.S. is the largest market for recreational vehicles and was estimated to hold more than 80% share of the market till 2019 end. The market is also likely to showcase a considerable incremental dollar opportunity till the end of 2024.

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.

North America is nurturing a trend of becoming eco-friendly, and when it comes to recreation, using eco-friendly recreational vehicles has become very popular in the region. Manufacturers are offering recreational vehicles with more fuel efficiency and improved design. Recent models of recreational vehicles are equipped with fuel-efficient diesel engines and lighter composites, which could improve the overall fuel efficiency and contribute to reduced emissions.

The North America recreational vehicles market is slated to witness significant growth in the hybrid recreational vehicle segment. Hybrid models of recreational vehicles are a combination of diesel engines and batteries. Like hybrid cars, these recreational vehicles depend on battery power for slower driving, and both the diesel engine and battery for higher driving speeds.

NORTH AMERICA RECREATIONAL VEHICLE MARKET TRENDS

• Governments in North America are increasingly recognizing the economic benefits of RV tourism and are providing support for the development of RV parks and campgrounds, as well as tax breaks and other incentives for RV owners. This is making RVing more accessible and affordable for consumers, and is boosting the growth of the RV market.
• The rental RV market is also expected to experience significant growth in the coming years. This is due to the increasing popularity of RVing among millennials and other younger generations who are interested in experiencing new travel destinations and outdoor activities without the commitment of purchasing an RV.
• RV manufacturers are well-positioned to benefit from the growth of the RV market. Investors can invest in RV manufacturers directly by purchasing their stock or through exchange-traded funds (ETFs) that track the RV industry.
• According to the RV Industry Association (RVIA), RV shipments in North America reached a record high of 600,240 units in 2023, up 9.6% from 2022. This is the fifth consecutive year of record growth for the RV industry.
• To meet the growing demand for RVs, RV manufacturers are expanding their production capacity. For example, Winnebago Industries, the largest RV manufacturer in North America, is investing $300 million to expand its production capacity by 50%.
• RV parks and campgrounds are investing in new amenities to attract RV campers. Jellystone Park Camp-Resorts, a chain of family-friendly campgrounds, announced that it is investing $10 million to add new water parks and other amenities to its campgrounds in 2023.
• RV manufacturers are constantly developing new and innovative RV technologies, such as self-driving RVs, RVs powered by solar energy, and RVs equipped with smart home features. These technological advancements are making RVs more appealing to consumers and driving the growth of the RV market.
• The RV industry is becoming more diverse and inclusive. This is due to the growing popularity of RVing among women, minorities, and LGBTQ+ consumers.
• RV sharing platforms are also emerging, allowing RV owners to rent out their RVs to others when they are not using them. This is making it more affordable for people to experience RVing and is also providing RV owners with a new way to generate income from their RVs.
• RV subscription services are emerging, offering consumers a convenient and affordable way to experience RVing without having to commit to purchasing an RV.

• Rise in the manufacturing cost for RV manufacturers and RV dealers adjusting their inventories due to changes in inventory carrying costs, there is a decline in the sales of RVs.
• Rise in the manufacturing cost for RV manufacturers and RV dealers adjusting their inventories due to changes in inventory carrying costs, there is a decline in the sales of RVs.
• People prefer motorhomes, as well as travel trailers as a viable and convenient option, due to the fuel economy offered by them.
• Consumers are increasingly demanding for lightweight vehicles, with greater technology and other amenities. Research and development show a direct relation between fuel efficiency and vehicle weight.
• Motorhomes are widely used in the country, not only for travels during vacations, but also for tailgating, traveling with pets, for business, and as a preferred mode of transportation in outdoor sports and other leisure activities.
• 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.

• These vehicles provide campers with comfortable sleeping quarters and all the necessities, along with some luxurious features, such as a refrigerator, hot water, air conditioning, and heating. However, they miss out on some features, such as a full-sized entertainment system and laundry facilities, owing to their small size.
• The emergence of smart driver assist systems as one of the prime reasons driving the recreational vehicle (RV) market in North America growth during the next few years
• Also, diversification of product offerings of OEMs and increased use of advanced materials for component design will lead to sizable demand in the market.

NORTH AMERICA RECREATIONAL VEHICLE MARKET DYNAMICS

The increase in the number of campgrounds in the country illustrates the increasing preference for recreational travel with motorhomes. Thus, the United States has more than 370 chain outlets and local motorhome dealers engaged in the trading of motorhomes, to meet the increasing demand for the same.

These dealers provide not only a range of state-of-the-art motorhomes but also the latest-model-year second-hand motorhome units preferred by most fleet operators. These sellers offer deals not just on new motorhome models, but also on pre-owned units for savings, along with easy financing for eligible and legitimate borrowers

The market is driven by the increasing adoption of RVs by different generations of consumers, enhanced exposure leading to increased sales, and integration of advanced technologies into RVs.

The quick and steady recovery of the United States from the recent COVID-19 pandemic, along with the availability of a healthier financing environment, drives the motorhome market in the United States. Currently, the country forms the largest market for RVs, globally.

Over the years, the renting process of a new RV has become easier. In addition, the RV rentals are offering lucrative deals to lure customers. With the new models and technologies arriving in the market every year, customers have a plethora of options to choose from. Every new trip can be made with a new RV model with different amenities. This factor provides the customers a new experience every time they rent a new type of RV.

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.

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.

NORTH AMERICA RECREATIONAL VEHICLE MARKET NEW TRENDS

Since the onset of the Covid crisis, recreational vehicle sales have surged, with many Americans perceiving them as a safe way to get out and explore. Now, Winnebago is one of the brands seeking to cash in on the industry's resurgence while simultaneously following the trend toward electrification by introducing the world's first all-electric, zero-emission motor home.

The Winnebago e-RV, which made its debut at the Florida RV SuperShow, is one of a small but rising number of battery-powered RVs that might transform the outdoor travel industry in the coming decade.Winnebago isn't the only one with this problem.

During the event, Thor Industries unveiled a battery-powered, "self-propelled" Airstream camper, and Mercedes-Benz unveiled a prototype camper version of its all-electric EQV van in Europe. In the motor home sector, the future is electric.

For the time being, anyone seeking an environmentally friendly recreational vehicle will have to make some compromises, beginning with a limited range. RV customers are expected to pay a premium for battery-powered models, just as they do for passenger automobiles.

The number of options and functionalities available is projected to expand dramatically. The whole transportation industry is under pressure to clean up its act. Manufacturers are being pushed to increase fuel efficiency and cut pollution at both the federal and state levels.

NORTH AMERICA RV MARKET SEGMENTATION

North America Recreational Vehicle Market By Type

• Towable RVs
• Motorhomes

North America Recreational Vehicle Market By Fuel type

• Gasoline
• Diesel
• Electric

North America Recreational Vehicle Market By End-user

• Leisure travelers
• Businesses
• Government agencies

Motorhomes

• There are 3 types of Motorhomes, Type A, Type B, and Type C.
• Type B motorhomes are witnessing a strong demand among the 3 types, as they are smaller in size compared to Type A and also allow walking making it family-friendly.
• Some important reasons are its motility and ease of driving.
• The market share of Type B is about 46%, Type C about 30%, and Type A about 24%.

Towable RVs

• There are 5 types of Towable RVs, Travel Trailer, Fifth Wheel Trailer, Folding camping trailer, Truck Campers, and Park Model.
• Over 289, 940 travel trailers were sold in 2018 in the USA.
• 14% of households own a fifth-wheel trailer.
• The Bestseller of Fifth wheel was Keystone Montana, representing 8% of sales.

By Geographical Segmentation- Canada, USA 

• There are more than 100 RV Manufacturers with the majority in USA.
• About 472,000 vehicles were manufactured in 2019, a slight decrease of 2.1% from 2018 but the possibility of a rise.
• About 15% of Canadian households are estimated to own a recreational vehicle.
• Of the 4,500 US and Canadian leisure travellers surveyed, 46 percent people believe camping would be the safest type of travel when COVID-19 restrictions are lifted, versus 8 percent who viewed international air travel as the safest option.
• The impact of Covid-19 is there on the campgrounds as it is restricted due to social distancing and economic issues.
• Sales have increased by about 200% from 2009 to 2019.
• It is also noted that 14% of people who never owned any RV are planning in the future.
• Canada recreational vehicles expected to increase in terms of volume by 5x by 2024.
• USA expected to record more than 500 BPS by 2024 and increase by volume about 7x.
• Aluminium recreational vehicles expected to be more attractive in the future.

By Construction Material

• Wood
• Aluminium
• Fiberglass
• Steel
• Others

Fiberglass is in high demand due to the lightweight and therefore an increase in fuel economy.

NORTH AMERICA RECREATIONAL VEHICLE MARKET COMPETITIVE LANDSCAPE

Some significant increase in market share has been observed recently, for example, Thor Industries, one of the market leaders increased from 28% in 2014 to 60.18% currently. Winnebago Industries has a 14.4 % market share and the Rev group 19.57%. Growth forecasts to about an increase of 2.2% of Winnebago and a decrease of 1.5% of Thor Industries, still being strong in the market.

The recreational vehicle market is highly competitive amongst the dominant players. The companies are continually competing with each other and are opting for strategies. Companies are continuously supporting R&D to generate ideas of lightweight and economic vehicles, while offering more luxurious services in the vehicle.

Mergers and acquisition have been a common sight, for instance, in 2019, Thor Industries Inc. announced the complete acquisition of Erwin Hymers Group, excluding its North American business thus increasing its market share and enhancing its market representation.  

• In March 2021, Lazydays Holdings Inc. completed its acquisition of Chilhowee RV Centre, located just outside Knoxville, Tenn., and a short drive from the entrance to Great Smoky Mountains National Park, the most visited National Park in America with over 11 million annual visitors. Chilhowee RV has a wide selection of outstanding RV brands including Airstream, Winnebago, Forest Riverand THOR Industries.
• In December 2020, Thor Industries Inc. announced that it had bought Tiffin Motorhomes, in a deal worth USD 300 million. After the deal, the Tiffin Group will operate as a stand-alone division of the corporation, and the Tiffin family will continue to run it.
• In November 2020, the Winnebago Industries' Specialty Vehicle Division introduced its updated 2021 Accessibility Enhanced (AE) RV line. The Inspire AE and Adventurer 30T AE 2021 models will feature standard wheelchair tie-downs, platform wheelchair lifts, and expanded hallways and bathrooms.
• 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.

NORTH AMERICA RECREATIONAL VEHICLE MARKET COMPANY PROFILES

• Thor Industries
• Winnebago Industries
• Forest River Inc
• Tiffin Motorhomes
• Grand Design
• Coachmen RV
• Jayco RV
• Heartland RV
• Airstream
• Keystone RV

THIS NORTH AMERICA RECREATIONAL VEHICLE MARKET REPORT WILL ANSWER THE FOLLOWING QUESTIONS

1. What is the current size and growth rate of the North America Recreational Vehicle Market?
2. What are the key drivers fueling the growth of the North America Recreational Vehicle Market?
3. What are the main challenges and obstacles facing the North America Recreational Vehicle Market?
4. What are the major types of RVs popular in North America, such as motorhomes, towable RVs, or camper vans?
5. How is the demand for luxury RVs and entry-level RVs evolving in North America?
6. What are the demographics of RV buyers in North America, including age groups and income levels?
7. What factors influence consumer preferences when selecting an RV, such as size, features, or brand?
8. Who are the major RV manufacturers and brands dominating the North America market?
9. How is competition in the RV market evolving, and are there any new entrants or disruptions?
10. What strategies are manufacturers employing to stay competitive and meet consumer demands?
11. How do economic conditions, including interest rates and fuel prices, impact the North America Recreational Vehicle Market?
12. How is the adoption of electric or hybrid RVs progressing in North America?
13. What role does digital connectivity play in enhancing the RV experience for consumers?
14. How is the RV rental market growing in North America, and what are the popular rental platforms?
15. How do travel and camping trends influence RV ownership and usage in North America Recreational Vehicle Market?
16. What efforts are being made within the North America RV industry to promote sustainability and eco-friendliness?
17. How are RV manufacturers addressing waste management and energy efficiency?
18. What is the current state of the resale and used North America Recreational Vehicle Market?
19. What factors affect the resale value of RVs, and what resources are available for buyers and sellers in this market?