|Fastest Growing Market:||Europe|
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The Caravan and Motorhome Market was valued at USD 47 billion in 2020, and it is expected to reach USD 71 billion by 2026, registering a CAGR of 7.66% during the forecast period (2021 - 2026).
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 are major driving forces 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). The ability of an RV to be customized at ease is also propelling RV’s technological trends at an enormous speed. The smart home system in RVs is one of the important factors in deciding the customer’s choice.
Motorhomes are witnessing significant growth in demand across the world, especially from European countries. The increasing number of high net worth individuals (HNWI), coupled with the availability of widespread parking areas for RVs, is driving the adoption in North America and Europe. In 2020, Europe accounted for the major 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 pandemic, the demand for recreational vehicles is witnessing a surge in demand. With the ease of lockdown measures globally, people are opening up to the idea of camping again. This trend is witnessed by several RV sellers and rental companies across the world.
Scope of the Report
Caravans are most commonly used as temporary accommodation when traveling. However, some people use them as their main residence due to benefits, like easily towable units, low fuel consumption, lower maintenance and insurance costs, and depreciation value. The caravan and motorhomes market report covers the latest trends, the impact of COVID-19, and the technological developments in the market.
Based on Caravan Type, the market is segmented as Travel Trailers, Fifth Wheel Trailers, Folding Camp Trailers, and Truck Campers.
By Motorhomes Type, the market is segmented as Type A, Type B, and Type C.
By Geography, the market covers North America, Europe, Asia-Pacific, and the Rest of the world.
Key Market Trends
Motorhome Segment Expected to Witness Higher CAGR
Camping and traveling are increasingly being popular among millennials as a part of recreational activities. 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 with budget constraints and customers unwilling to invest in the purchase of a new vehicle.
Among 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 they are designing a large variety of floor plans with larger chassis versions.
Class A motorized is expected to continue to dominate in terms of revenue, which contributed approximately 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 it is likely to dominate during the forecast period. The United States is the largest market, primarily dominated by rental agencies.
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North America to Witness Significant Growth
North America is the largest market in terms of caravan and motorhomes sales, with 11% of households having an RV. Over 1 million households in the United States live in RVs full time. It allows traveling at 20-60% less cost, which is the main factor driving the popularity of RVs 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 of full-time living on wheels has been increasing over the past decade since most of the vehicles are equipped with the bare minimum facilities necessary for full-time living. Recreational vehicles stood at 24% as the 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 and 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.
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The caravan and motorhomes market is intensely competitive, with the presence of several manufacturers selling products that compete directly through product features. Companies are adopting strategies like mergers and acquisitions and partnerships and collaborations to increase their market share. For instance,
- In May 2021, Pottery Barn, a portfolio brand of Williams-Sonoma Inc., partnered with travel trailer brand, Airstream, to bring 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 was expanding its operations in DeKalb and LaGrange counties. The company said it would invest USD 3.5 million to expand its 20-acre manufacturing campus at 685 E. Main St. in Butler. The new facilities would allow the company to enhance the production of XLR Toy Hauler.
- In May 2021, East To West, a new division of Forest River Inc., was set to debut its brand new line of travel trailers, Della Terra, at the 11th Annual Forest River Product Expo. The new brand would focus on high-quality, value-added products with a limited number of floorplans, one color scheme, and a broad selection of standards.
- In April 2021, Jayco Inc. announced the launch of a new Customer Experience Software tool across all divisions, including Jayco, Entegra Coach, Highland Ridge, and Starcraft. The tool utilizes Qualtric Software to provide real-time customer experience data accessible anytime, anywhere.
Table of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
188.8.131.52 Travel Trailers
184.108.40.206 Fifth-wheel Trailers
220.127.116.11 Folding Camp Trailers
18.104.22.168 Truck Campers
22.214.171.124 By Type
126.96.36.199.1 Type A
188.8.131.52.2 Type B
184.108.40.206.3 Type C
220.127.116.11 By End User
18.104.22.168.1 Direct Buyers
22.214.171.124.2 Fleet Owners
5.2.1 North America
126.96.36.199 United States
188.8.131.52 Rest of North America
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.2.4 Rest of the World
126.96.36.199 Middle-East and Africa
188.8.131.52 South America
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Dethleffs GmbH & Co. KG
6.2.2 Thor Industries Inc.
6.2.3 Swift Group
6.2.4 Winnebago Industries Inc.
6.2.5 Forest River Inc.
6.2.6 Burstner GmbH & Co. KG
6.2.7 Triple E Recreational Vehicles
6.2.8 Hymer GmbH & Co. KG
6.2.9 Eura Mobil GmbH
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Caravan and Motorhome Market market is studied from 2018 - 2026.
What is the growth rate of Caravan and Motorhome Market?
The Caravan and Motorhome Market is growing at a CAGR of 7.66% over the next 5 years.
What is Caravan and Motorhome Market size in 2018?
The Caravan and Motorhome Market is valued at 46 Billion USD in 2018.
What is Caravan and Motorhome Market size in 2026?
The Caravan and Motorhome Market is valued at 71 Billion USD in 2026.
Which region has highest growth rate in Caravan and Motorhome Market?
Europe is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Caravan and Motorhome Market?
Europe holds highest share in 2020.
Who are the key players in Caravan and Motorhome Market?
Thor Industries Inc., Forest River Inc., Winnebago Industries Inc., Buerstner, Hymer GmbH are the major companies operating in Caravan and Motorhome Market.