Market Trends of Motorhome Industry
This section covers the major market trends shaping the Motorhome Market according to our research experts:
Increasing Nmber of HNWI and Millennials
The growing working population is a significant contributor to rising per capita income. As a result, many HNWI (High Net Worth Individuals) spending on recreational activities, such as traveling and camping, is increasing globally.
The United States has the world's largest economy and is home to most HNWI. China's population as the world's largest, combined with the country's continuously growing economy and tremendous business opportunities, are huge factors for the country's larger number of HNWI. For instance,
- In November 2022, Allison Transmission, a leading designer and manufacturer of conventional and electric vehicles and fully automatic transmissions for medium and heavy commercial vehicles, successfully collaborated with Qingling Motors Co., Ltd to gain traction in the Chinese motorhome market.
- More than ten new Chinese RV brands have gained popularity due to their use of the Qingling 700P light truck chassis and Allison transmission.
According to the world wealth report, Australia's millionaires increased by 4% in 2020, owing to increased mining operations, which contributed 7% of the country's GDP. Although India has fewer millionaires, the country is known as the "engine of growth." It offers enormous opportunities for individual millionaires to grow and contribute to the economy.
With rising per capita income and an increase in the number of HNWI, average spending on recreational activities, such as traveling and camping, is increasing globally. Camping and travel are becoming increasingly popular recreational activities among millennials.
Further, in Germany, buyers are placing value on more comfort and features. Mobile applications linked to the vehicle, with details like water and gas levels in tanks and battery capacity, are becoming popular. According to the European Caravan Federation, in 2021, 82,017 new motorhomes were registered in Germany . Moreover, Germany also has an extensive network of campsites. All these factors are leading to the growth of motorhomes in the upcoming time period.
North America Region Expected to Play Key role in the Market
North America accounted for a sizable share during the forecast period, owing to an increasing number of motorhome-owning households (the majority of which are millennials) and rising demand for motorhome rentals in the region. The United States is one of the world's major RV manufacturing hubs. According to a study commissioned by the Recreation Vehicle Industry Association, RV ownership in the United States is rapidly increasing.
- According to the RV Industry Association's December 2021 survey of manufacturers, total RV shipments for 2021 ended with a record 600,240 wholesale shipments, a 19% increase over the 2017 total of 504,599 shipments.
- Total RV shipments in 2021 are up 39.5% from 430,412 units shipped in 2020. Towable RVs, led by conventional travel trailers, ended 2021 with 544,028 wholesale shipments, a 39.6% increase over 2020. Motorhomes finished up 37.8% from the previous year, with 56,212 units sold. With 3,923 units shipped, Park Model RV completed the year with a 5.7% increase over 2020.
Motorhomes are popular in the United States for vacationing and tailgating, traveling with pets, doing business, and as a preferred mode of transportation for outdoor sports and other leisure activities. The growing number of campgrounds in the country reflects the ever-increasing preference for recreational travel in motorhomes. As a result, major players are developing new products and focusing on EV motorhomes. For instance,
- In January 2022, Thor unveiled a concept EV motorhome with 300 miles range. The company stated that shifting consumer preferences in electric cars and trucks may also portray growth paths for motorhomes.
Furthermore, sellers are offering lucrative deals and benefits not only on new motorhome models but also on pre-owned units and accessible financing options for qualified borrowers. The surge in demand for these vehicles has piqued the interest of prominent financial players who want to seize the opportunity and dominate the market.
Additionally, the younger generation's increasing adoption of motorhomes, the introduction of motorhomes with technological advancements, and a healthy economy are expected to significantly contribute to the market's growth during the forecast period.
