Market Trends of Recreational Vehicle Rental Industry
Motorized RVs are the Largest Segment by Product Type
With travel and tourism gaining popularity across the globe, people are seeking unique and adventurous experiences. The desire for experiential and immersive travel experiences has increased demand for motorized RV rental. The shortage of available campgrounds in many countries has also contributed to the market for motorized RVs.
Further, motorhomes are witnessing significant growth in demand worldwide, especially in European countries. The increasing number of HNWIs and the availability of widespread parking areas for RVs are driving their adoption in North America and Europe. In 2022, Europe accounted for a significant share of the global caravan and motorhome market due to more motorhomes sold than North America.
The demand for recreational vehicles has boomed after the outbreak of the pandemic, as most people started planning their holidays while avoiding public transportation due to safety precautions. Several RV rental companies across Europe witnessed significant booking growth during the COVID-19 pandemic.
Moreover, over the past few years, the demand for Class B and Class C motorhomes has increased owing to their advantages. For instance, the population of the United States participating in camping has seen an upward trajectory over the last few years. In 2023, the number of users opting for camping in the United States stood at over 57 million, compared to around 55 million in 2022.
Additionally, various countries’ governments are investing in infrastructure development to attract tourism, which will positively impact motorized RV rental growth during the forecast period. For example, in June 2022, the Spanish government authorized a total expenditure of EUR 110 million from Next Generation EU funding to strengthen tourist competitiveness in numerous territories, including the Balearic Islands, Ceuta, and Melilla.
All these factors combined will positively boost the demand for motorized RVs during the forecast period.
Asia-Pacific Will be the Fastest Growing Region During the Forecast Period
While North America holds the largest recreational vehicle rental market share, Asia-Pacific is expected to be the fastest-growing region during the forecast period. Increasing disposable income and a growing middle-class population across economies like China, India, Japan, and Southeast Asian nations show greater interest in leisure and outdoor experiences.
In 2019, the Chinese tourism industry witnessed an 11.7% surge in revenue, reaching approximately CNY 5.7 trillion (~USD 796 billion). This growth occurred just before the onset of the COVID-19 pandemic. In 2022, the revenue from tourism in China reached around CNY 2 trillion (~USD 280 billion). Notably, most of this revenue during 2020, 2021, and 2022 was generated by domestic tourism, as strict travel restrictions have significantly impacted inbound tourism since February 2020.
Additionally, infrastructure development and road network improvements across APAC have enhanced accessibility to various tourist destinations, including remote and scenic locations that could be best explored through RVs. In India, the government's initiatives, such as the Swadesh Darshan scheme for developing tourist infrastructure and promoting domestic tourism, are the best examples of infrastructural development supporting tourism.
Moreover, the increasing availability of RV rental companies and platforms in the region and the introduction of innovative rental models and services contribute to the market's growth.
