Australia Recreational Vehicle Market - Growth, Trends, Covid-19 Impact, and Forecast (2023 - 2028)

Australia Recreational Vehicle Market - Growth, Trends, Covid-19 Impact, and Forecast (2023 - 2028)

The Australian recreational vehicle market is expected to registere a CAGR of over 7% during the forecast period.

The COVID-19 pandemic tremendously impacted the tourism industry across the country in 2020. Amid the pandemic situation, sales of recreational vehicles were derailed. However, post-pandemic, consumer interest in recreational activities witnessed an increase which in turn fueled the demand for recreational vehicles across the country.

Over the long term, The growing number of active campers is anticipated to contribute to the demand for RVs. The commercial usage of RVs is on the rise. Growth in peer-to-peer rental services is expected to increase popularity among millennials, which are increasingly seeking rental services. Furthermore, the increasing demand for road trips as a getaway from quarantine may boost market growth. The post-lockdown period is likely to witness a rise in the number of first-time buyers. Therefore, players are also coming up with new product launches in the country.

For instance, in April 2022, Hyundai forayed into the RV market with the 4- and 11-seat Staria camper vans. Hyundai's Staria Lounge Camper 4 comes fully equipped with two beds, indoor and outdoor dining areas, an indoor kitchen, and a smart home control touchscreen.

Furthermore, the availability of customization, from raw material selection to the list of components to be installed in the vehicle in terms of size and dimensions, makes it popular for consumers looking for RVs for personal or commercial use. The customization option made available through websites and mobile apps allows buyers to customize their vehicles from any location rather than having to visit the manufacturer's showroom each time. With the growing popularity of adventure camping in rural areas, people prefer to travel to the countryside, away from urbanized areas, to unwind from their hectic daily routine.

The increase in the number of campgrounds in the country illustrates the increasing preference for recreational travel. Additionally, they are widely used in the country, not only for vacation traveling but also for tailgating, traveling with pets, business, and as a preferred mode of transportation for outdoor sports and other leisure activities.

Among the motorhomes, class C motorhomes provide better fuel efficiency than type A or B motorhomes. They are often referred to as mini motorhomes, which provide the amenities of a larger motorhome in a scaled-down version and at a lower price. The price of these motorhomes starts from approximately USD 40,000 and goes up to USD 200,000. Moreover, manufacturers are adding multiple slide-outs to increase the living space and are designing a large variety of floor plans with larger chassis versions.

Moreover, the growing number of active campers is contributing to the demand for RVs. The commercial usage of RVs is on the rise. Growth in peer-to-peer rental services is expected to increase popularity among millennials, which are increasingly seeking rental services. Furthermore, the increasing demand for road trips as a getaway from work life may boost the market growth.

The Australian recreational vehicle market accounted for a higher CAGR last year compared to the previous year, with over 874 units of new RVs sold. In Australia, the rise in outdoor activities among youths owing to the change in lifestyle and increase in travel and tourism will support the market demand for RVs in Australia. As per Tourism Australia Corporate, Australia recorded a 6% rise in international tourist arrivals. The increasing participation in leisure activities will contribute to the high demand for RVs.

In 2021-22, a total of 1,191,830 international visitors arrived in Australia, eight times higher than the previous year. Additionally, the increasing number of recreational parks with camping facilities will further foster RV demand in the region.

However, the rising number of active campers is increasing the demand for RVs. RVs are increasingly being used for commercial purposes. Peer-to-peer rental services are expected to gain popularity among millennials, who are increasingly looking for rental services. Furthermore, the growing popularity of road trips as a way to get away from work may boost the market growth.

The Recreational Vehicle Market is intensely competitive, with the presence of several manufacturers selling products that compete directly through product features. Companies operating in the market are adopting merger and acquisition strategies, coupled with partnerships and collaborations, to increase their market share. For instance,

In September 2022, the Australian Competition and Consumer Commission approved a merger between rival campervan companies, Tourism Holdings and Apollo Tourism & Leisure.

In May 2021, Pottery Barn, a portfolio brand of Williams-Sonoma Inc., partnered with travel trailer brand, Airstream, to create a new collection of statement décor and accessories inspired by the spirit of adventure that brings the comforts of home on the road.

Market leaders are also focusing on investments in R&D and continuous innovations for the development of lightweight raw materials to reduce vehicle weight and increase fuel efficiency.

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