Improving Market Conditions to Drive Recreational Vehicle Sales, According to a New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on the ‘Recreational Vehicles’ market. The global RV industry is projected to reach sales of 731 thousand units by 2017. Major factors driving growth in the market include increasing demand in developed markets, increasing disposable income levels in developed and developing markets, improving consumer confidence, and rising availability of credit at consumer level are the major factors driving growth in the global recreational vehicles market.

Recreational Vehicles: A Global Strategic Business Report

Follow us on LinkedIn – Global recreational vehicle (RV) market is returning back to normalcy with the industry clocking a resurgence in retail sales led by sales growth in the US, the leading market globally following the recession-struck 2008-2009. The RV market suffered two years of tremendous hardships and losses as the market shrunk significantly by 2009 end from 2007 during the global financial tsunami. The global credit crisis resulted in reductions in financing and consumer spending, causing ripple effects in the RV industry with two esteemed and leading manufacturing companies, Fleetwood Enterprises Inc. and Monaco Coach Corp. filing for bankruptcy in the US market. The companies attributed their closure decisions to widespread credit restrictions and deteriorating market conditions, which impacted both customers and dealers. While some prominent manufacturers filed for bankruptcy, dealers also suffered losses. More than 150 dealers had to shut shop in the US alone during the crisis. Though the entire RV industry suffered decline during the economic downturn, impact of on the motorized segment suffered more severe than the towable segment.

Recreational Vehicles (RVs) are different from other passenger vehicles in their utility as well as consumer base. RVs can be termed as lifestyle vehicles as they fulfill all major criteria of lifestyle products and are not used like passenger cars. Since RV purchases are expensive and hence discretionary, demand is based on increase in discretionary/disposable incomes i.e. a real increase in income levels would positively affect RV sales. Low interest rates and high consumer confidence are very important for growth of RVs. The RV industry is one of the first to be affected during a depression and is one of the first industries to witness high growth through an economic recovery. Although these factors have been improving in markets worldwide, the European market is yet again facing a potential crisis, as sovereign debt crisis raises concerns across the region, wilting consumer confidence.

Today’s Recreation Vehicles (RVs) are loaded with traditional amenities and state-of-the-art electronic facilities. Modern electronic facilities including video games, cell phones, TVs, PCs, CD and DVD players along with other traditional amenities such as fully equipped kitchens and baths, central heat/air conditioning, and queen-sized beds are making RV travel more convenient and comfortable than ever before. Internet is another feature that is driving interests of buyers. Internet allows users to access latest weather reports, travel information and online maps while traveling, in addition to being connected with business and friends. Today’s RVs also include hi-tech facilities such as web TVs, telephone connections, wireless modems and bedrooms that can be converted into mobile offices. Features of these high-tech home-on-wheels are attracting families, who crave flexibility, freedom and control while traveling. RV manufacturers are furthermore concentrating on including innovative features and technologies to enhance comfort travel on wheels.

The US represents the largest regional market for Recreational Vehicles worldwide, as stated by the new market research report on Recreational Vehicles. Following a year that marked the turnaround in the recession-struck industry, the year 2011 witnessed a moderate rise in sales indicating towards the sluggish recovery in the industry post recession. Economic environment in the US still remains uncertain, with volatile stock market, drooping home values, and continuing high rate of unemployment denting consumer confidence in the country. However, growth in the global Recreational Vehicles market is expected to be driven by Asia-Pacific, which is projected to grow at a compounded annual rate of around 10% during the analysis period 2009-2017. In the US, rising number of young buyers and those possessing conventional motor homes shifting towards towables is expected to drive steady growth in overall motor homes market over the next few years. Class A motor homes are expected to witness a decline in demand, whereas Class B and Class C motor homes are expected to record a positive growth. In regional terms, West and South of the US are expected to witness the fastest gains in demand for RVs due to favorable climatic conditions for longer camping season and easy access to various camping facilities, vacation destinations, and public parklands.

Waning market conditions since the beginning of the global recession has forced the industry into a consolidation mode. For instance, the number of RV manufacturers and suppliers in the US declined substantially since 2008, an outcome of the weaker demand that ensued in the market. Major players profiled in the report include Eclipse Recreational Vehicles Inc., Fleetwood RV, Inc., Forest River, Inc., Coachmen Recreational Vehicle Company, LLC, Gulf Stream Coach, Inc., Heartland Recreational Vehicles, LLC, Jayco Inc., Monaco RV, LLC, Palomino RV, Thor Industries Inc., and Winnebago Industries, Inc. among others.

The research report titled “Recreational Vehicles: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides comprehensive market overview, trends & issues, recent industry activity and profiles of market players worldwide. Analysis and overview is provided for the years 2009 through 2017, for major geographic markets, such as US, Canada, Japan, Europe, Asia-Pacific and Rest of World. Classification of Recreational Vehicles in the report differs across the geographical markets, in accordance with consumers’ lifestyles and requirements.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Recreational_Vehicles_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/
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