San Jose, California-based Global Industry Analysts, Inc. reports that the global recreational vehicle market is returning back to normal following the recession-struck 2008-2009.
The research report titled “Recreational Vehicles: A Global Strategic Business Report”, provides comprehensive market overview, trends, and issues, recent industry activity, and profiles of market players worldwide.
The RV market suffered two years of tremendous hardships and losses as the market shrunk significantly by 2009 end from 2007 during the global financial tsunami.
The global credit crisis resulted in reductions in financing and consumer spending, causing ripple effects in the RV industry with two leading manufacturing companies, Fleetwood Enterprises Inc. and Monaco Coach Corp. filing for bankruptcy.
While some prominent manufacturers filed for bankruptcy, dealers also suffered losses. More than 150 dealers had to close in the US alone during the crisis. Though the entire RV industry suffered decline during the economic downturn, impact of on the motorized segment suffered more severe than the towable segment.
RVs are different from other passenger vehicles in their utility as well as consumer base.
Since RV purchases are expensive and hence discretionary, demand is based on increase in discretionary/disposable incomes. Low interest rates and high consumer confidence are very important for growth of RVs. The RV industry is one of the first to be affected during a depression and is one of the first industries to witness high growth through an economic recovery.
Today’s RVs are loaded with traditional amenities and state-of-the-art electronic facilities. Modern electronic facilities including video games, cell phones, TVs, PCs, CD and DVD players along with other traditional amenities such as fully equipped kitchens and baths, central heat/air conditioning, and queen-sized beds are making RV travel more convenient and comfortable than ever before.
Internet is another feature that is driving interests of buyers. Internet allows users to access latest weather reports, travel information, and online maps while traveling, in addition to being connected with business and friends.
Today’s RVs also include hi-tech facilities such as web TVs, telephone connections, wireless modems, and bedrooms that can be converted into mobile offices. Features of these high-tech home-on-wheels are attracting families, who crave flexibility, freedom, and control while traveling.
The US represents the largest regional market for RVs worldwide, as stated by the new market research report on RVs. Following a year that marked the turnaround in the recession-struck industry, the year 2011 witnessed a moderate rise in sales.
Economic environment in the US still remains uncertain, with volatile stock market, drooping home values, and continuing high rate of unemployment denting consumer confidence in the country.
However, growth in the global RV market is expected to be driven by Asia-Pacific, which is projected to grow at a compounded annual rate of around 10 percent during the analysis period 2009-2017.
In the US, rising number of young buyers and those possessing motorhomes shifting towards towables is expected to drive steady growth over the next few years. Class A motorhomes are expected to witness a decline in demand, whereas Class B and Class C motorhomes are expected to record a positive growth.
In regional terms, West and South of the US are expected to witness the fastest gains in demand for RVs due to favorable climatic conditions for longer camping season and easy access to various camping facilities, vacation destinations, and public parklands.
Waning market conditions since the beginning of the global recession has forced the industry into a consolidation mode. For instance, the number of RV manufacturers and suppliers in the US declined substantially since 2008, an outcome of the weaker demand that ensued in the market.
Global Industry Analysts, Inc. (GIA)
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide.
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