An increasing number of consumers inclined towards adventure travel and exploring the U.S. and Canada are driving the growth of North America’s recreational vehicle market.
A variety of styles and design innovations have also fueled the growth of the recreational vehicle market.
The Recreation Vehicle Industry Association’s (RVIA) August survey of manufacturers found RV wholesale shipments finished at 45,031 units, an increase of 25.3 percent over the 35,946 units shipped last August. August 2017 shipments are the best August on comparable record.
RV wholesale shipments climbed to 334,408 units through eight months of 2017, up 15.1 percent over the 290,582 units shipped during the same period last year.
All towable RVs, led by conventional travel trailers, totaled 39,479 units for the month, an increase of 26.7 percent compared to the 31,155 units shipped in August 2016. Year-to-date totals for towable RVs are up 15.3 percent to 292,130 units.
August motorhome shipments are up 15.9 percent to 5,552 units over last year; paced by solid gains in each vehicle category. Year-to-date motorhome shipments reached 42,278 units on 13.9 percent growth over the 37,128 units shipped during the same time last year.
Many manufacturers are gaining traction among young consumers by introducing smaller motorhomes and emphasizing advanced technological product launches that are cost-effective.
Most of the manufacturers have been talking about the increased importance of Millennials in the RV market, but Newmar has put that data into practice with the introduction of the New Aire (See photo above), a 34-foot diesel pusher that comes equipped with the amenities found in larger coaches.
Persistence Market Research recently published a report, titled “Recreational Vehicle Market: North America industry Analysis and Forecast, 2016 to 2024.”
North America’s recreational vehicle market sales are estimated to expand at more than 7 percent Compound Annual Growth Rate (CAGR), reaching $26.19 billion, by the end of 2024. More than 465,000 RV units are expected to be produced within the former half of the assessment period.
Based on exterior construction material, the RV market is classified into wood, fiberglass, aluminum, steel, and others. Leading the market, aluminum segment roughly accounts for market value share of 40 percent. This segment is expected to cross $10 billion value by 2024.
Following aluminum materials closely is the fiberglass construction materials, which are estimated to exhibit highest growth rate of 9 percent CAGR during the forecast period. Increasing demand for eco-friendly lightweight vehicles fuel the growth of fiberglass segment.
Based on the type, recreational vehicles are categorized into motorhomes, travel trailer and campers, and camping trailers.
Motorhomes are further classified as Class A, B, and C motorhomes. Travel trailers and campers segment is further classified as conventional travel trailer and fifth-wheel travel trailer. Camping trailers are further classified as folding camping trailer and truck camper.
Travel trailers and campers, together, are expected to remain the dominant segment, even though large motorhomes equipped with wireless technologies and solar panels are gaining greater traction.
Travel trailer and campers account for market share of nearly 61 percent. Following this is the motorhomes segment with an estimated market share of 37 percent. Travel trailers and campers are expected to reach market value of $14.59 billion, during the forecast period. Whereas, motorhomes segment will experience the fastest growth of 9 percent CAGR.
North American recreational vehicle market is broadly classified into U.S. and Canada, based on region. U.S. is expected to reach the market value of over US $22 billion, by the end of 2024. On the other hand, Canada will possibly incur a market value of US $1,552.2 million during the forecast period.
Canada is foreseen to be a growing market on the basis of higher growth opportunities. Nevertheless, over 87 percent of the share of North American market will be accounted by U.S.
As Yogi Berra said, “It’s tough to make predictions, especially about the future.”