Doubts Related to the North America Recreational Vehicle (SAN) Explained in the Report with Major Key Companies like Thor Industries, Inc., Tiffin Motorhomes, Inc., Winnebago Industries,Forest River,Jayco,Nexus RV , REV Group
The North America Recreational Vehicle Market was accounted for US$ 437,880.0 Mn in terms of value in 2019 and is expected to grow at CAGR of 7.9% for the period 2020-2027.
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Key players operating in the North America recreational vehicle market are Thor Industries, Inc., Tiffin Motorhomes, Inc., Winnebago Industries, Inc., Forest River, Inc., Jayco, Inc., Nexus RV LLC, REV Group, Inc., Starcraft RV, Inc., Heartland Recreational Vehicles, Airstream, Northwood Manufacturing, and Triple E Recreational Vehicles.
Rental industry witnessing massive growth
According to Recreation Vehicle Rental Association (RVRA), in 2015, majority of dealers who rent recreational vehicles reported rising revenues in addition to long-term rental contracts, as well as plans to expand their fleets. Towable rental segment is expected to expand rapidly over the forecast period. Rental recreational vehicles are affordable options for consumers on peak season of recreation traveling and profitable for recreational vehicle dealers. According to Recreation Vehicle Rental Association (RVRA), in 2015, 63% of dealers agreed that the profit margin from rental business is profitable.
Lightweight recreational vehicle segment to expand rapidly
Consumers across the globe are increasingly preferring lightweight recreational vehicles. This is owing to increasing the growing demand for multiple rooms, high technology equipment, spacious interiors, and other amenities. Furthermore, lightweight vehicles are more efficient and contribute to fewer emissions. Research and development on fuel economy of recreational vehicles show a direct correlation between fuel efficiency and vehicle weight. Manufacturers such as GULF STREAM, Eveland's, Inc., Casita Travel Trailers, and StarCraft RV offer lightweight travel trailers made of lightweight materials.
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According to the Recreation Vehicle Industry Association (RVIA), a recreational vehicle is a vehicle designed as temporary living quarters for camping, recreation, season use, or travel. Recreational vehicles are categorized as motorized (motorhomes) or towable (travel trailers, folding camping trailers, and truck campers). By type, the segment is subdivided as follows: Motor Homes (Class A, Class B, and Class C), Travel Trailer & Campers (Conventional Travel Trailers and Fifth-wheel Travel Trailers), and Camping Trailers (Folding Camping Trailer and Truck Camper).
Increasing disposable income is expected to boost the North America recreational vehicle market growth during the forecast period
Growing personal disposable income and IRS tax deduction have increased the adoption of recreational vehicles in North America. According to the Organization for Economic Co-operation and Development (OECD) in the U.S., the annual growth rate of household disposable income accounts for 2.46% and for Canada 0.93% in 2014. Furthermore, in the U.S., interest loan for recreational vehicle is deductible as a second home mortgage interest and is fully supported by the IRS. Hence, these factors are expected to drive growth of the North America recreational vehicle market in the near future.
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