|Fastest Growing Market:||Europe|
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The caravan and motorhome market was valued at USD 48.89 billion in 2021. It is expected to reach USD 76.12 billion in 2027, registering a CAGR of 7.66% during the forecast period (2022 - 2027).
Due to the COVID-19 outbreak, the demand for recreational vehicles increased. Moreover, with the ease of lockdown measures globally, people are willing to go camping for relaxation. This trend has been noticed by several RV sellers and rental companies worldwide.
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 worldwide, especially in 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 caravan and motorhome market due to the higher number of motorhomes sold compared to North America.
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 technological developments. The scope of the report covers segmentation based on product type and geography. By product type, the market is segmented into caravans and motorhomes.
By caravan type, the market is segmented into travel trailers, fifth-wheel trailers, folding camp trailers, and truck campers. By motorhomes type, the market is segmented into type A, type B, and type C.
By geography, the market covers North America, Europe, Asia-Pacific, and Rest of the World. For each segment, market sizing and forecast have been done based on value (USD billion).
Key Market Trends
The Motorhome Segment is Expected to Witness Significant Growth During the Forecast Period
Camping and traveling are increasingly gaining popularity among millennials as recreational activities. Among motorhomes, type C motorhomes provide better fuel efficiency than type A or B motorhomes. Many recreational vehicle manufacturers are launching type C recreational vehicles using Ford and Mercedes-Benz chassis. For instance,
- In August 2020, Thor Motor Coach launched the Mercedes-Benz Type C recreational vehicle. Coach Home Platinum 2 uses Ford Transit 3500, while Forest River 2401Q uses Mercedes-Benz Sprinter 3500 chassis.
With the rising demand for small van (type B) motorhomes, many start-ups and companies are offering services to modify stock OEM vehicles and existing vans into campervans. Many customers prefer this conversion for weekend getaways. However, this factor is expected to hinder the sales of OEM type B recreational vehicles during the forecast period.
Westfalia Mobil GmbH, Vanderlust Conversions, and Vanlife Conversions Ltd are a few such companies that provide conversion services. Due to the smaller size of type B vehicles, they are expected to witness the highest electrification during the forecast period. For example,
- In March 2020, Volkswagen launched the e-Bulli camper van. This camper van has 82 bhp and a range of 124 miles on a single charge. Recent electric type B recreational vehicle launches were Fiat Ducato, Nissan Pop Top Electric, Iridium E-Mobile, Dalbury E-Electric, MOIA electric, and Mercedes Sprinter.
Such developments across type A, B, and C motorhomes are expected to contribute to overall market development during the forecast period.
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North America Likely to Play a Key Role in the Market
North America is expected to hold a significant share in the market due to growing recreational activities across the United States and Canada. The presence of key RV manufacturers may further support the market’s growth during the forecast period. About 85% of the recreational vehicles sold in the United States are manufactured domestically. The growing numbers reflected the increased demand that began in the early summer of 2020 and continued for the entire year.
However, the industry has been impacted by the US tariffs on steel and aluminum and other duties on scores of Chinese-made RV parts, from plumbing fixtures to electronic components to vinyl seat covers. Tariff-related price hikes forced manufacturers to pass on some of the increased costs through higher RV prices, leading to slower sales.
The appeal of motorhomes across the United States and Canada is mostly from their lower production and living costs and their freedom of movement. Considering the growth in demand, major players in the market are launching products with the latest technologies and capturing the growing market.
- In October 2020, Winnebago hosted a virtual product launch event highlighting new introductions in its travel trailer and fifth-wheel lineups.
- In June 2020, Scout Campers launched Olympic Drop-In Truck, a minimalist camper with impressive space and capability. Standard features include 160 watts of solar power on the roof with a portable Yeti 1000 lithium power station, dual five-pound propane tanks, and a five-gallon water tank. Options make the Olympic an all-encompassing, all-weather camper with a 3,000 BTU heater, a small refrigerator/freezer, portable toilet, portable cooktop stove, and a pop-top tent.
Due to the increasing demand, several big companies in the region are adding the latest products and entering strategic mergers and acquisitions to expand their product portfolios.
- In March 2021, Rev Recreation Group (RRG) introduced the new diesel-powered luxury motor coach, 2021 American Dream 39RK, to add the luxury factor to recreational vehicles.
Due to such trends and developments, the market may register a high growth rate during the forecast period.
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The caravan and motorhomes market is intensely consolidated, with several manufacturers offering products with advanced features. Companies are adopting strategies, such as mergers and acquisitions, partnerships, and collaborations, to increase their market share. For instance,
- In May 2021, Pottery Barn, a portfolio brand of Williams-Sonoma Inc., partnered with the travel trailer brand Airstream to bring a new collection of statement décor and accessories inspired by the spirit of adventure that brings the comfort 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 plans to expand its operations in DeKalb and LaGrange counties. The company announced an investment of 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 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 will 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.
- In December 2020, Thor Industries acquired Tiffin Motorhomes, the Alabama-based manufacturer of high-end recreational vehicles, in a deal worth USD 300 million.
Table of Contents
1.1 Study Assumptions
1.2 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
126.96.36.199 Travel Trailers
188.8.131.52 Fifth-wheel Trailers
184.108.40.206 Folding Camp Trailers
220.127.116.11 Truck Campers
18.104.22.168 Type A
22.214.171.124 Type B
126.96.36.199 Type C
5.1.3 By End User
188.8.131.52 Direct Buyers
184.108.40.206 Fleet Owners
5.2 By Geography
5.2.1 North America
220.127.116.11 United States
18.104.22.168 Rest of North America
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 South Korea
184.108.40.206 Rest of Asia-Pacific
5.2.4 Rest of the World
220.127.116.11 South America
18.104.22.168 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Thor Industries Inc.
6.2.2 Swift Group
6.2.3 Forest River Inc.
6.2.4 Winnebago Industries Inc.
6.2.5 Burstner GmbH & Co. KG
6.2.6 Triple E Recreational Vehicles
6.2.7 Hymer GmbH & Co. KG
6.2.8 Jayco Inc.
6.2.9 Dethleffs GmbH & Co. KG
6.2.10 Knaus Tabbert AG
6.2.11 Trigano SA
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 - 2027.
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 48 Billion USD in 2018.
What is Caravan and Motorhome Market size in 2027?
The Caravan and Motorhome Market is valued at 76 Billion USD in 2027.
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 2021.
Who are the key players in Caravan and Motorhome Market?
Thor Industries Inc., Forest River Inc., Winnebago Industries Inc., Hymer GmbH, Trigano SA are the major companies operating in Caravan and Motorhome Market.