The North America Recreational Vehicle (SAN) Market, By Exterior Construction Material (Wood, Aluminum, Fiberglass, Steel and Others), By Type (Motorhomes (Class A Motor Homes (Gasoline, Diesel), Class B Motor Homes (Gasoline, Diesel) Class C Motor Homes(Gasoline and Diesel), Travel Trailer & Campers (Conventional Travel Trailers and Fifth-wheel Travel Trailers) and Camping Trailers (Folding Camping Trailer and Truck Camper), By Country (U.S. and Canada)- North America Forecast to 2027”, is expected to be valued at US$ 690,697.6 Million by 2027, exhibiting a CAGR of 7.9% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
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 Trailer & Campers (Conventional Travel Trailers and Fifth-wheel Travel Trailers), and Camping Trailers (Folding Camping Trailer and Truck Camper).
Increasing disposable income is expected to boost the North America recreational vehicle market growth during the forecast period
Growing personal disposable income and IRS tax deduction have increased the adoption of recreational vehicles in North America. According to the Organization for Economic Co-operation and Development (OECD) in the U.S., the annual growth rate of household disposable income accounts for 2.46% and for Canada 0.93% in 2014. Furthermore, in the U.S., interest loan for recreational vehicle is deductible as a second home mortgage interest and is fully supported by the IRS. Hence, these factors are expected to drive growth of the North America recreational vehicle market in the near future.
Robust online sales network can present lucrative growth opportunities for market players
Majority of buyers first try to reach products through an online network. E-commerce has emerged as a major platform for selling and purchasing different items. Online sale is a great boon for people who prefer to buy things from a virtual store, rather than spending a lot of time in the bricks and mortar stores. It is crucial to increase visibility on online platforms to attract consumers and gain trust. According to Coherent Market Insights’ analysis, in recreational vehicles market, 60% of businesses have no online presence, only about 12% have active Facebook pages. Through online sales network, massive opportunities are available for market players to capitalize on.
Dearth of skilled personnel is expected to hamper the North America recreational vehicle market growth over the forecast period
Manufacturing of recreational vehicles requires skilled individuals. Currently, there is a shortage of skilled workers in the market. Low unemployment rates and difficulty to find entry-level workers are major reasons behind shortage of skilled labors in recreational vehicles industry. The new industry entrants and major key manufacturers are witnessing difficulties in expanding their businesses in northern Indiana owing to shortage of skilled labors. Hence, these factors are expected to hinder the North America recreational vehicle market growth in the near future.
According to Recreation Vehicle Rental Association (RVRA), in 2015, majority of dealers who rent recreational vehicles reported rising revenues in addition to long-term rental contracts, as well as plans to expand their fleets. Towable rental segment is expected to expand rapidly over the forecast period. Rental recreational vehicles are affordable options for consumers on peak season of recreation traveling and profitable for recreational vehicle dealers. According to Recreation Vehicle Rental Association (RVRA), in 2015, 63% of dealers agreed that the profit margin from rental business is profitable.
Consumers across the globe are increasingly preferring lightweight recreational vehicles. This is owing to increasing the growing demand for multiple rooms, high technology equipment, spacious interiors, and other amenities. Furthermore, lightweight vehicles are more efficient and contribute to fewer emissions. Research and development on fuel economy of recreational vehicles show a direct correlation between fuel efficiency and vehicle weight. Manufacturers such as GULF STREAM, Eveland's, Inc., Casita Travel Trailers, and StarCraft RV offer lightweight travel trailers made of lightweight materials.
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.