London-based Technavio analysts forecast the global RVs generator market to grow at a CAGR of more than 7 percent during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global RVs generator market for 2017 to 2021. The market is segmented by application (travel trailers and campers and motorhomes) and geography (APAC, EMEA, and the Americas).
The robust growth in global tourism expenditure indicates that every year, more money is spent on tourism. This has also led to the growth in RV ownership.
The use of RVs has resulted in an increased interest in road trips among all age groups. The opportunity to experience nature and enjoy the scenic vistas while traveling has resulted in increased sales of RVs since the financial crisis of 2009. It has become a part of the automotive industry’s strategy to put customers in their comfort-zone with the use of technology. The addition of entertainment and kitchen appliances to RVs, to create a sense of well-being while traveling will increase the demand for RV generators during the forecast period.
Technavio heavy industry research analysts highlight the following three factors that are contributing to the growth of the global RVs generator market:
- Favorable tax deductions on RVs
- Rise in global tourism
- Growth of RV rental business
Favorable tax deductions on RVs
In the U.S., as per the IRS rule, an RV, with basic sleeping, cooking, and toilet facilities, can be used as collateral against a loan. As long as the recreational vehicle meets the IRS standards, irrespective of how it is used, one can claim the RV as a second home.
Gaurav Mohindru, a lead engineering tools research analyst at Technavio, said, “A portion of the RV registration is another tax-saving strategy. In some states of North America, taxes on personal property are absent. The annual vehicle registration is calculated based on two components. The first component is based on the weight of the vehicle while the other is based on the vehicle’s value.”
Rise in Global Tourism
The global tourism industry is witnessing high growth and is expected to grow further during the forecast period. The present generation is resorting to more travel compared with the older generations. They also spend more on traveling and traveling modes such as cars and bikes.
“The tourism industry is experiencing huge growth in many countries such as the U.S., the U.K., India, Australia, Germany, and New Zealand, with an exponential increase in the number of international tourists visiting these countries,” said Mohindru. “Recreational vehicles are amongst the various modes of travel among tourists who visit these countries on holidays. The growing demand for RVs translates positively for the global recreational vehicles generator market.”
Growth of RV Rental Business
Road trips require time for planning and preparation for both the tourists as well as the RV renting companies. People are required to have an international driving license and other necessary permits for an international road trip. The rental price of recreational vehicles varies with the season.
The growing RV rental business will provide impetus to the generator demand. Businesses renting RVs will ensure that they provide best facilities and as a result, their automobile fleet will be equipped with generators. Therefore, the steady growth in the RV rental business will have a positive impact on the demand for portable generators used in RVs.
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