North America Recreational Vehicle Market - Growth, Trends, and Forecast (2018 - 2023)
The market is poised to witness a CAGR of 7.02% during the forecast period 2018-2023. In 2016, the towable RVs and motorhomes segments accounted for shares of 87% and 13% of total RV market in North America, respectively. As of 2016, over 8.5% of US. households own RVs.
As per an IRS rule in North America, a recreational vehicle with basic sleeping, cooking, and bathroom facilities, can be used as security for a loan. As long as the motorhome meets the IRS standards, irrespective of how it is used, the recreational vehicle can be claimed as a second home. This also provides customers with a tax break under the federal tax law. As per the law, an individual can deduct mortgage interest on both, the main home and a second home from his taxable income. The amount of tax savings however depends upon the monthly loan repayment, the tenure of the loan and the interest rate.
The total number of shipments in the North America RV market was 374,246 units by the end of 2015. In terms of the product type, the RV market in North America can be categorized into two major segments: towable RVs, known as travel trailers in this region, and motorhomes. In 2015, the towable RVs and motorhomes segments accounted for shares of 87% and 13% of total RV market in North America, respectively. As of 2015, over 8.5% of US. households own RVs. The growth of the market is reflected by the enduring appeal of the RV lifestyle. The improvement in the economic situation of the region coupled with the changing lifestyle of the people has also enabled a huge impetus to the RV market growth. A research report published by the RVIA (based in US) claimed that among new market entrants, that never owned an RV in the past, 14% plan a near future purchase with more than one third intending to purchase a new RV in the distant future.
Motorhomes as an RV are more expensive than towable RVs, since motorhomes are known to provide a greater degree of luxury and a better quality. Growing demand from the retired individuals of the 'baby booming' period (the period post World War 2 between the years 1946 and 1964, where there was a boom noticed in the birth rate) in North America has been a major reason affecting the growth of these vehicles in North America. According to a study commissioned by the Recreation Vehicle Industry Association, US ownership of RVs is skyrocketing, and the baby boomer market is one of the primary reasons for the increase in motorhome sales. This section of people prefers an experience-seeking lifestyle post retirement and one of the primary thing they do is the procurement of an RV to go out for an outing. Thereby, they look for motorhomes as well as travel trailers as a viable and convenient option due to the fuel economy offered by a motorhome or travel trailer than any other RVs. The personal freedom and the ease of driving and operations in a Motorhome makes Motorhome an attractive appeal for a RV.
These vehicles are not only available for first-hand purchases in North America, but also as a pre-owned vehicle. Similar to any other pre-owned car or truck dealers, the RV dealers are keen on providing second-hand motorhomes, after providing a thorough pre-delivery inspection of the used motorhomes. In addition, rental companies offer housekeeping packages to consumers for motorhomes and travel trailers at an average nominal fee of USD 35-50 per person.
North America has about 370 national chain outlets and local RV dealers. These dealers are involved with state-of-the-art as well as latest RV units. These sellers offer deals not just on new motorhome models but also on pre-owned units for savings along with easy financing for eligible and legitimate borrowers. In addition, an increasing number of campgrounds offer on-site RV rentals. For instance, Alaska Motorhome Rentals provide suitable motorhomes rental for a vacation in and around Alaska.
Major Players: WINNEBAGO, FOREST RIVER, NORTHWOOD, amongst others.
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