NORTH AMERICA RECREATIONAL VEHICLE MARKET ANALYSIS

The North America recreational vehicle market was valued for US$ 18.75 Bn in 2022 is expected to exhibit a CAGR of 8.6% during the forecast period.

A recreational vehicle or RV is a motor vehicle that includes quarters designed for accommodation. There are different types of RVs including campervans, caravans, truck campers, popup campers, fifth-wheel trailers, and campervans. RVs are typically used for travel, season use, recreation, or camping. A typical RV is comprised of a kitchen, a bathroom, and one or more sleeping facilities. Furthermore, RVs can either be trailer or self-motorized. The majority of RVs are single-deck, though double-deck RVs also exist. Some RVs have expandable sides or canopies to provide larger areas. Moreover, the fifth-wheel trailer is a type of travel trailer, known for its spacious two-level floor plans and it can be towed with a pickup truck. The capacity is up to six people.

North America Recreational Vehicle Market Drivers:

• Rising electrification activities: Electrical components are preferred by recreational vehicle OEMs, due to their output efficiency and small weight, making the electrification of these vehicles a fuel-efficient option. Additionally, electrification is the next step, since most of the manufacturers are incorporating several parts and features that run by a battery input to meet the demands for green mobility. The important component of recreational vehicles that gives electricity input to numerous electrical components necessary for efficient operation is the battery.
• Rising exports of RVs from the U.S. can present major business growth opportunities: Rising disposable income in middle-class consumers in the Asia Pacific countries has increased the demand for recreational vehicles. Manufacturers from the U.S. and Canada are witnessing massive demand from Asia Pacific, especially in countries such as South Korea, China, and Japan, owing to a large number of consumers preferring recreational vehicle lifestyles and camping. Market players can capitalize on these chances and gain a competitive edge in the market.

North America Recreational Vehicle Market Opportunities:

• Growing technological advancements: Recreational vehicles with the integration of modern technology and wireless systems are in high demand in the market. Additionally, the younger generation prefers recreational vehicles that incorporate advanced design and technology. Moreover, a number of recreational vehicle producers are concentrating on introducing competitively priced, and technically advanced recreational vehicles to the market. For instance, ATC, a U.S.-based producer of aluminum RVs and trailers, debuted its Pla 500 Series and Pla 700 Series toy hauler models for 2023 in July 2022. Both of the new RVs have modern technology and fresh styling that improve the owner usability and comfort. The toy haulers include a multiplex touchscreen control that allows the RV owner to operate and keep an eye on key features and operations from a touchscreen or smartphone.
• Growing demand for advanced and affordable recreational vehicles: Consumers in the market are demanding recreational vehicles with the incorporation of advanced technologies with wireless systems. In fact, the younger generation is demanding RVs with the inclusion of novel design and digitalization. Furthermore, key manufacturers in the market are focused on introducing recreational vehicles with the incorporation of advanced technologies at affordable prices.

North America Recreational Vehicle Market Restraint:

• The lack of skilled labours: A key restraint in the recreational vehicle (RV) market is the shortage of skilled labor. This shortage can hinder the production and servicing of RVs, impacting the industry's overall growth and efficiency. Furthermore, new industry players are finding it challenging to expand their businesses, owing to the lack of skilled personnel. This, in turn, is expected to hamper growth of the market during the forecast period.

• Counterbalance: The problem of lack of skilled laborers in the North America recreation vehicle market can be overcome by providing proper training and development programs to the workers, in order to resolve the skills gap. Also, if workers are searched for with specific skills that match with the business needs, then with proper use of the expertise, new and existing key players can expand the business. Factors such as seasonality and cyclicality are expected to hinder the North America recreational vehicle market growth over the forecast period. High price associated with various conversions is expected to hamper the market growth. The cost of customizing and transforming a van into a comfortable and useful living area can be expensive. The cost of high-quality materials, advanced technology integration, and specialized craftsmanship can contribute to a higher overall cost.  The high price can be a hindrance to potential customers, and thus, limiting market penetration and adoption of van conversions.

North America Recreational Vehicle Impact of Coronavirus (COVID-19) Pandemic:

• Due to the huge spread of the COVID-19 virus in the countries like U.S. and Canada, the government restricted traveling activities in these countries. In addition to this, various hill stations and tourist’s attractions were forced to remain closed for a long time. This restriction on traveling greatly impacted the sales of recreational vehicles. Furthermore, due to fewer sales, this country’s revenues got hampered.
• The COVID-19 crisis has adversely impacted the tourism industry. Thus, this has derailed the sales of recreational vehicles in the market. However, the slow recovery of the market and consumers' preference to stay in caravans, than hotels, can stimulate the growth of the market. The high proliferation of rental services in emerging economies is expected to propel the market growth over the forecast period.

North America Recreational Vehicle Competitive Scenario:

The key players operating in the North America recreational vehicle market are Thor Industries, Inc., Tiffin Motorhomes, Inc., Winnebago Industries, Inc., Forest River, Inc., Jayco, Inc., Nexus RV LLC, REV Group, Inc., Starcraft RV, Inc., Heartland Recreational Vehicles, Airstream, Northwood Manufacturing, and Triple E Recreational Vehicles.                                

Recent Developments:

The major companies in the market are involved in mergers and acquisitions in order to gain a competitive edge in the market.

• In May 2021, in a portfolio brand of Williams-Sonoma, Inc., partnered 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
• In March 2023, Airstream, Inc. launched a concept travel trailer developed in partnership with Studio F. A. Porsche, an interior design solution provider. The concept was showcased at the South by Southwest (SXSW) Conference and Festivals in Texas, U.S
• In December 2020, Thor Industries Inc., manufacturer of recreational vehicles announced the acquisition of Tiffin Motorhomes, an Alabama-based manufacturer of high-end recreational vehicles, in a deal worth US$ 300 million
• In June 2021, Airstream, Inc. a recreational vehicle manufacturer announced the launch of the fully loaded, adventure-ready Interstate 24X – the latest addition to the brand’s lineup of high-end Class B motorhomes
• The U.S. held the dominant position in the North America recreational vehicle Market in 2022, accounting for 88.5% shares in terms of value, followed by Canada.

Statistics:

The North America recreational vehicle market is expected to witness growth due to increasing interest in outdoor recreational vehicle activities, growing trend of experiential travel, and the desire for flexible and socially distant vacation options, especially during the COVID-19 pandemic. There are several key market players in North America such as Thor Industries, Forest River Inc., Winnebago Industries, and REV Group. These market players are focusing on product launches and development strategies. For instance, in May 2021, Forest River Inc., a manufacturer of recreational vehicles, launched its subsidiary of travel trailers named East To West. The new brand will focus on the best quality, value added products with a limited number of floor plans, one color scheme and an extensive range of standards.

 Figure 1: North America Recreational Vehicle Market Share (%), By Region, 2022

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North America Recreational Vehicle Market - Segmentation

The North America recreational vehicle market is classified into following segments based on exterior construction material and type.

• The motorhome segment is expected to exert significant dominance in the market throughout the forecast period; with the highest anticipated Compound Annual Growth Rate (CAGR). The increasing number of campgrounds in the country serves as clear evidence of the growing preference for recreational travel using motorhomes. This trend underscores the popularity of motorhome travel among consumers. Motorhomes find wide-ranging applications in the country, extending beyond vacation travel. They are favored for diverse activities such as tailgating, accommodating pets during journeys, serving as mobile offices for business purposes, and acting as a preferred mode of transportation for outdoor sports and leisure activities.
• Among the motorhome categories, class C motorhomes offer superior fuel efficiency compared to type A or B motorhomes. Often referred to as mini-motorhomes, they provide the amenities of larger motorhomes but at a more cost-effective price point. These class C motorhomes typically range in price from approximately US$ 40,000 to US$ 200,000. The motorhome segment's anticipated dominance is driven by the increasing availability of campgrounds, the multifaceted use of motorhomes, the cost-effectiveness and fuel efficiency of class C motorhomes, and ongoing innovations in design. Motorhomes are evolving into a lifestyle choice that caters to a multitude of activities and individual preferences.

Figure 2: North America Recreational Vehicle Market (US$ Bn), By Type, 2022 

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• The North America recreational vehicle market was valued at US$ 18.7 Bn in 2022 and is expected to reach US$ 35.78 Bn by 2030, growing at a CAGR of 8.6% between 2023 and 2030.