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What is the market size for sales of recreational vehicles (RVs) and campervans?
Hello! Thank you for your question about the market size for recreational vehicles and campervans. The short answer is the annual sales in the U.S. are estimated at $16bln. Used recreational vehicles account for about 25%, or $4bln. While the U.S. is the largest market, Europe is expected to grow at the highest rate in the coming years. Below you will find a deep dive of my methodology and findings.
METHODOLOGY
I started by looking for industry reports for recreational vehicles and campervans, hoping that general numbers won't be behind a paywall. I discovered that according to the reports, RVs can be divided into various categories, including specific types of motorhomes, travel trailers, campers, and folding camping trailers. All of those fit into two larger groups, towables and motorhomes. Therefore, both RVs and campervans are included in them.
At first, I found various reports that gave conflicting numbers. To provide you with the most credible market size, I used the annual sales figure that appeared most frequently and confirmed it with the analysis from Wall Street Journal. It's behind a paywall, but I used this link to access it. Please note that according to the 2015 article from WSJ, the $16bln number is for North America. However, the most recent analysis cites it as the revenue of all U.S. dealers. Considering that the market is growing rapidly and that U.S. has over 90% of the market share, I decided that it's reasonable to believe that the U.S. market size has grown to $16bln since 2015.
As for the share of used recreational vehicles, they are one of the most popular categories, reportedly accounting for 25% of sales. I only found one report that includes such statistics. However, the industry profile from the Recreational Vehicle Industry Association mentions that according to the 2016 Nielsen report on the RVs, the ownership of new and pre-owned recreational vehicles splits up almost evenly. As used vehicles are much cheaper, I assessed that the figure is probable.
I assumed that you are interested in a combined number for RVs and campervans. Also, a detailed segmentation by vehicle type and revenue isn't available in free previews of the reports. In case you are interested in such segmentation, I found some general information and how it compares to segmentation by units shipped.
Calculations I made:
Units shipped nationally (wholesale): 430,691 (total number of units shipped from the U.S.) * 0,89(11% were shipped internationally)=383,314
The whole process of choosing the credible numbers was time-consuming, so I wasn't able to focus on statistics for global or other major western markets. The information on the global market is behind a paywall. However, I found an article that gives an idea about the rising popularity of recreational vehicles in Europe and some numbers for newly registered ones.
OVERVIEW
U.S. MARKET SIZE
There are about 2,600 establishments that sell new and pre-owned recreational vehicles (including campervans), generating a combined annual revenue of $16bln. The market is highly fragmented, with the top 50 companies accounting for 35% of total sales. According to the report by Persistence Market, it is expected to grow at CAGR of 4.8% until 2024.
In 2015, the number of retail units shipped surpassed the pre-recession peak and rose 78% from the low point in 2009. As for the wholesale units, there were 383,314 units shipped nationally, with 15.1% growth compared to 2016, the highest in 10 years.
Even though the industry is experiencing robust growth, analysts from Wall Street Journal warn dealers and manufacturers that it might have a smaller impact on revenues than might be expected. Prices for RVs vary from $5,000 for low-end, folding camping trailers to $200,000 for high-end motor homes (though the most expensive vehicles can reach $1mln). The boom in sales is primarily due to the cheaper ones.
Overall, U.S. is the biggest national market for recreational vehicles due to the stable financial situation, the culture surrounding RVs, and the taxing routine. South and west of the country account for three-fourths of the sales.
USED VERSUS NEW RECREATIONAL VEHICLES
According to the 2016 "Go RVing" report by Nielsen, 48% of RV owners purchased a new vehicle, compared to 52% that chose a used one. The "Recreational Vehicle Dealers Industry Profile" report established that it translates into 25% of total sales.
FURTHER SEGMENTATION
While a detailed segmentation by vehicle type and revenue isn't available, especially for used RVs, out of the total sales for RVs, 30% is generated by new towables and 30% by new motorhomes. It translates into $4.8bln in annual revenue for each category.
Interestingly, segmentation by units shipped looks strikingly different, with (much cheaper) towables accounting for 87.3% and motorhomes, for 12.7%.
EUROPE
According to the "Recreational Vehicle Dealers Industry Profile," even though the U.S. will remain the leader in terms of market share, Europe is expected to experience the fastest growth due to the growing interest in forest recreation and tourism. In 2016, there were 170,064 newly registered RVs, as reported by European Caravan Federation. The number grew by 10.6% compared to 2015. The revenues aren't disclosed.
Germany, the largest market for leisure vehicles, saw 14,366 new registrations (6% rise), while in the UK there were 9,770 new vehicles registered, with 6.6% growth.
CONCLUSION
To wrap it up, recreational vehicles generate around $16bln in annual sales in the U.S. New RVs account for $12bln, compared to $4bln generated by used ones. While U.S. is the largest market for recreational vehicles, Europe's is expected to grow at the highest CAGR, especially in Germany. Thank you for using Wonder! Let us know if we can help with anything else.