According to global industry research firm Research and Markets, the worldwide RV industry is expected to grow at a compound annual growth rate of 7 percent each year through 2025.
The global RV market hit $42 billion in 2020 and is projected to grow on account of the increasing demand for camping and outdoor recreational activities in the millennial population, especially in the U.S.
In the U.S., the number of active camp households increased by 1.4 million in 2018. North America is the largest RV market globally, with more than 11 percent of American households owning an RV. More than 1 million households in the U.S. live in their RV full time.
Overall, the RV market contributes an $114 billion annually to the U.S. economy and employs more than 600,000 people.
Aside from the exploding interest in RV caused primarily by the COVID-19 pandemic, other contributing factors in the industry’s growth are:
- Increase in RV rental services
- Introduction of smart and autonomous technology
- Growth in demand for adventure camping
- Millennials influencing recreational vehicle market
The report found that the towable RV market is expected to grow at a CAGR of more than 6 percent from now until 2025. Towable RVs are more prevalent in North America than in Europe, and they accounted for 89 percent of the total shipments in North America in 2019.
Motorhomes are available in three varieties – Class A, Class B and Class C. The Class A segment is one of the most common motorized RVs, accounting for more than 40 percent of the global motorhome revenue in 2019. Class B motorhomes accounted for over 12 percent and is experiencing the fastest growth. The class C segment is expected to reach more than $13 billion by 2025. Class C combines the best features of both Class A and B into a more versatile and affordable mid-size motorhome.
Private ownership of RV has been dominating the shipments; however, the market scenario is changing rapidly. The commercial usage of RV is growing substantially in rental agencies and businesses. The growth in online rental websites and applications has further eased the process of renting, boosting the demand in the tech-savvy millennial population.
The report said 38 percent of the 40 million recreational vehicle owners in the U.S. are millennials.
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