Motorhome Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Motorhome Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The motorhome market was valued at USD 9.35 billion in 2020. The market is anticipated to reach USD 12.26 billion by 2026, at a CAGR of more than 4.5% during the forecast period, 2021-2026.

The outbreak of COVID-19 and the subsequent shutdowns have affected the motorhome market in several countries. The pandemic's negative impacts are visible in the sales figure of the first few months of 2020 in the major market. However, from June onwards, the motorhome market started gaining momentum; as campers have begun opting for safer motorhome vacations, the growth is expected to continue in the coming years.

Recreational vehicles are designed to be temporary living quarters for camping, recreational travel, or seasonal use, and classified into two main types, namely motorhomes and towable.

Motorhomes are not only used for vacation activities but are also widely used across various other activities like festivals, concerts, and multi-day events. Motorhomes have the added advantage of reducing vacation costs by an average of 55% over other conventional vacation activities. The aforementioned benefits have been driving an increasing demand for motorhomes in the market over the past few years, which is likely to continue during the forecast period.

North America captured a significant share of the global motorhome market in 2020, owing to the increasing number of households owning motorhomes (most of them being millennials) and the growing demand for motorhome rentals in the region.

Key Market TrendsIncreasing Demand for Class C Motorhome

Class C motorhomes are mid-sized RVs that are not built upon existing truck bodies and van chassis. These RVs provide better fuel efficiency than the type A or B motorhomes. Their size varies from 20 ft to 33 ft.

Being built upon existing bodies, these RVs do not cost much and are preferred by families on a budget. They are often referred to as mini-motorhomes, which provide a larger motorhome's amenities in a scaled-down version and at a lower price. The price of these motorhomes starts from approximately USD 40,000 and goes up to USD 200,000.

The type C motorhome is built on an automotive manufactured van frame with an attached cab section. They are built on a more powerful chassis than a type B motorhome, and thereby provide more amenities. The shape of Type C is akin to a van cab with an attached camper, unlike that of class A's bus-like shape.

Most of the manufacturers are looking to roll out various advancements in their class C versions. These RV manufacturers are increasing their class C models, making them bulky by shifting out from the van chassis and opting for a large Ford, Chevy, or other heavy-duty vehicle chassis. Most of these larger versions are also diesel-powered, making them apt to pull heavier loads while being fuel-efficient compared to gasoline engines.

North America to Lead the Motorhome Market

North America captured a major share of more than 50% of the global motorhome market in 2020, owing to the increasing number of households owning motorhomes (a majority-owned by millennials) and the growing demand for motorhome rentals in the region.

The United States is the manufacturing hub of RVs worldwide. According to a study commissioned by the Recreation Vehicle Industry Association, the United States’ ownership of RVs is increasing rapidly.

According to the RVIA December 2020 survey of manufacturers, the total number of RV shipments in December 2020 was estimated at 40,382 units, which is an increase of 46.8% from the 27,516 units shipped in December 2019. Among RVs, the total number of motorhomes shipped in December 2020 was estimated at 3,878 units, which is an increase of 35.3% compared to the 2,867 units shipped in the United States in December 2019.

Motorhomes are being widely used in the country, not only for vacation traveling but also for tailgating, traveling with pets, business, and as a preferred mode of transportation in outdoor sports and other leisure activities. The increase in the number of campgrounds in the country illustrates the increasing preference for recreational travel with motorhomes.

The increase in the adoption rate of motorhomes by the younger generation, the advent of motorhomes with technological improvements, and a healthy economy are expected to significantly contribute to the market's growth during the forecast period. Additionally, sellers are providing lucrative deals and benefits not just on new motorhome models but also on pre-owned units, along with easy financing facilities for qualified borrowers.

Competitive Landscape

Some of the major players in the motorhome market are Thor Industries, Inc., Winnebago Industries, Inc., and Forest River, Inc. The competition among the manufacturers has been increasing over the past few years, owing to the growing demand for fuel-efficient vehicles.

Major players are trying to consolidate their sales by cutting down the costs, while smaller players are focusing on new product launches and expansions. Market leaders are trying to acquire smaller players. For instance, in February 2019, Thor Industries Inc. announced the complete acquisition of Erwin Hymer Group, excluding its North American business.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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