North America Recreational Vehicle Market is Rapidly Growing with Winnebago Industries, Inc. completing the acquisition of Newmar Corporation, a manufacturer of Class A and Super C motorized RVs

                   

                  North America Recreational Vehicle

A recreational vehicle, also known as RV, is basically a motorized vehicle or trailer that contains living quarters usually designed for temporary lodging. Different kinds of RVs include truck camper, motorhomes, pop-up campers, fifth-wheel camping trailers, and campervans. Most RVs are large enough to sleep 6 people, although there are some smaller recreational vehicles (RV) that can sleep only 2 persons. It may be argued that an RV is not really a recreational vehicle as it is designed more for recreational use, though the term recreational vehicle does refer to any motor vehicle designed mainly for living in recreational situations.

Encouraging demographic conditions for recreational vehicles is expected to accelerate growth of the North America recreational vehicle market. The demographics in North America is the major factor favoring the demand for RVs. The majority of these vehicles are adopted by the geriatric population, who is entering the phase of retirement. However, RV manufacturers are laying major emphasis on consumers aged 18-34 years. Consumers from these age groups are more likely to take participate in camping with friends and families. According to the North American Camping Report 2016, n around 44% of the 1.2 Mn households in North America that started camping in 2015 were the millennial generation. Hence, such factors are expected to accelerate growth of the North America recreational vehicle market. Furthermore, rising disposable income in North America is expected to propel the North America recreational vehicle market growth in the near future. According to the Organization for Economic Co-operation and Development (OECD), gross adjusted household disposable income in the U.S. reached US$ 45,972 in 2014, increasing from US$ 38,658 per capita in 2007.

The lack of skilled professionals required for the manufacturing of RVs combined with factors such as seasonality and cyclicality is expected to restrain growth of the North America recreational vehicle market. However, growing exports of RVs from the U.S. and increasing demand for affordable RVs can present lucrative growth opportunities for industry players in the near future. Furthermore, the emergence of the rental industry and rapid growth of the lightweight recreational vehicle segment are some of the latest trends in the North America recreational vehicle market.

Key competitors operating in the North America recreational vehicle market are Triple E Recreational Vehicles, Thor Industries, Inc., Northwood Manufacturing, Tiffin Motorhomes, Inc., Airstream, Winnebago Industries, Inc., Heartland Recreational Vehicles, Forest River, Inc., Starcraft RV, Inc., Jayco, Inc., REV Group, Inc., and Nexus RV LLC.

For instance, in September 2019, Winnebago Industries, Inc. acquired Newmar Corporation, a manufacturer of Class A and Super C motorized RVs.