Class A motorhomes are expected to continue to dominate
New York, June 01, 2021 (GLOBE NEWSWIRE) – Reportlinker.com announces the publication of the report “Caravan and Motorhome Market – Growth, Trends, COVID-19 Impact and Forecast (2021-2026)” – https: // www .reportlinker.com / p06079817 /? utm_source = GNW
The COVID-19 crisis has had a negative impact on the tourism industry. This, in turn, has led to lower sales of recreational vehicles in the market. However, increasing household income due to the advent of digital ways to generate money and the growing awareness of the health benefits of camping is a major driving force driving the growth of the market. The high penetration of rental companies in emerging economies is expected to propel the market during the forecast period.
The increase in travel activity and the cost advantages offered over other modes of travel encourage people to purchase recreational vehicles (RVs). In addition, the ability of an RV to be customized at ease is propelling RV technology trends at tremendous speed. One of the important factors in deciding the customer’s choice is the smart home system in recreational vehicles.
Motorhomes are experiencing significant growth in demand around the world, especially from European countries. The growing number of High Net Worth Individuals (HNWIs), coupled with the availability of ample RV parking areas, is driving their adoption in North America and Europe. In 2020, Europe accounted for a significant share of the global caravan and motorhome market due to the higher number of motorhomes sold compared to North America.
With the outbreak of the COVID-19 pandemic, the demand for recreational vehicles is seeing an increase in demand. With the ease of global foreclosure measures, people are ready to go camping activities to relax. This trend has been observed by several RV sellers and rental companies around the world.
Main market trends
Motorhome segment expected to grow at a higher CAGR
Camping and travel are increasingly popular among millennials as part of recreational activities. For example, millennials make up two-fifths of the total number of campers around the world. Such popularity of camping among millennials is driving the adoption of recreational vehicles. For example, according to Thor Industries Inc., the company saw a 21.18% increase in the purchase of Thor passenger trailers from millennials in 2019-2020.
Caravans and motorhomes are very expensive to buy, due to which a large population cannot afford to buy them. However, the availability of rental companies attracts customers who have budget constraints and customers who do not want to invest in the purchase of a new vehicle.
Among motorhomes, class C motorhomes offer better fuel efficiency than type A or B motorhomes. They are often referred to as mini motorhomes, which offer the amenities of a larger motorhome. large in a reduced version and at a lower price. The price of these RVs starts at around $ 40,000 and goes up to $ 200,000. In addition, manufacturers add more slides to increase living space and design a wide variety of floor plans with larger frame versions.
Class A motorhomes are expected to continue to dominate in terms of income, contributing approx. 50% of the global market share in 2020. The growth of online rental websites and apps has made the rental process even easier, driving demand from the tech-savvy millennial population.
North America dominated sales in 2020 and is expected to dominate during the forecast period. The United States is the largest market in the world, mainly dominated by rental companies.
North America to experience significant growth
North America is the largest market in terms of sales of caravans and motorhomes. 11% of households in North America have an RV. Over a million homes in the United States live in RVs full time. It allows travel at 20-60% lower cost, which is the main reason for the popularity of RV among millennials. The recreational vehicle market contributes $ 114 billion to the US economy, employing more than 600,000 people. Thus, VR is one of the global industries of the US economy.
The trend for full-time living on wheels has increased over the past decade, as most vehicles are equipped with the bare minimum of facilities necessary to live full-time in the vehicle. Recreational vehicles accounted for 24% as the preferred camping activity among the camping population across the United States.
In Europe, Germany holds the largest share of caravan and motorhome sales. Caravan rentals are becoming popular in the country, with manufacturers and rental companies vying for more market share as the country is very well equipped with all service areas for RVs and RVs. In addition, Germany has an extensive network of campsites
The caravan and motorhome market is extremely competitive with the presence of several manufacturers selling products that compete directly with each other on product characteristics. Companies operating in the are adopt merger and acquisition strategies coupled with partnerships and collaborations to increase their market share. For example,
– In May 2021, Pottery Barn, a portfolio brand of Williams-Sonoma, Inc. is teaming up with travel trailer brand, Airstream, for a new collection of decorations and accessories inspired by the spirit of adventure that brings the comforts of home on the go.
Market leaders are also focusing on R&D investments and continuous innovations for the development of lightweight raw materials to reduce vehicle weight and increase fuel efficiency. For example,
– In August 2020, Forest River announced that it was expanding its operations in DeKalb and LaGrange counties. The company announced that it will invest $ 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 improve production of the XLR toy transporter.
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Read the full report: https://www.reportlinker.com/p06079817/?utm_source=GNW
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