The Recreational Vehicle Industry: Key Statistics and Market Size

• In the United States, the recreational vehicle (RV) market is anticipated to register a compounded annual growth rate of about 7.02% over the next four years.
• Over 10 million US households owned an RV in 2017, while nearly 17.2 million households were looking to buy one.
• For their owners, RVs are an inexpensive way to tour long distances without the need to unpack and repack bags regularly. Owners save up to 78% of travel costs during a vacation as compared to a regular holiday.
•  RV shipments reached 483,672 units in 2018, and this has been seen as a signal of increased market potential.
• Over 23,000 businesses involved in the industry create close to 45,000 direct employment opportunities and $3 billion in direct wages. All these efforts have a $50 billion annual economic impact and $18 billion in annual retail sales in the United States.

Growth in the Recreational Vehicle Industry

• According to the Recreation Vehicle Industry Association(RVIA), ownership of RVs has reached record levels, and although large RV shipments are still coming in, they are coming in at a lower rate.
•  Millennials make up the largest group of campers at 41%. This figure is still growing. This is a demographic that the RV industry is paying more attention to.
• RV shipments for 2018 were at 483,672 units. This was a 4.1% decrease from the previous year.
• However, the RVIA is still bullish on growth in the industry because RV ownership has increased 16% increase since 2001 and a 64% gain since 1980.
• They are also positive about growth because population demographics favor growth. The largest segment of RV buyers are in a key demographic (ages 35-54), indicating plenty of time and room for more growth.
• Also, RV sales are expected to improve because baby boomers continue to enter the age range where owning an RV has been at its highest historically.

Competitive Landscape of the Industry

• In North America, the recreational vehicle market is serviced by major players such as Winnebago Industries, REV Group, Erwin Hymer Group North America, Nexus RV, Forest River Inc. and Triple E RV.
• The competition is extremely strong and remains so because competitors employ various strategies such as expanding their product lines and making acquisitions.

Trends in the Recreational Vehicle Industry

• RV buyers are developing a preference for smaller and simpler models over large, fancy trailers. This is because larger vehicles are harder to maneuver and maintain, and is tough on the user experience.
• The changes in preferences as well as the increased influence of millennials in the industry have caused RV manufacturers to develop a wider range of models under the 30 feet long.
• Manufacturers and other stakeholders in the industry such as truck companies, are making more efforts to communicate better with each other, with manufacturers focused on producing a better quality of product more than the prices of their products.
•  Fiberglass RVs are a growing niche in the industry because more effort is put in to manufacturing them, and they represent better quality than their tin counterparts at a reasonable price.