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

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

Australia's recreational vehicle rental market was valued at USD 97.90 million in 2021, and it is expected to grow to USD 189.57 million in 2027, registering a CAGR of about 11.5% during the forecast period 2022-2027.

The COVID-19 Pandemic significantly affected the recreational vehicle rental market across the country. The market still managed to maintain relatively optimistic growth because of increased online bookings. International travel restrictions are expected to result in domestic tourists accounting for the majority of industry revenue in 2020.

Rising demand for road trips as a getaway from quarantine may witness major growth for the market. The post-lockdown period is likely to witness a rise in the number of first-time buyers. An increase in consumer interest in recreational vehicle campaigns to explore the countryside with recreation vehicles are key factors driving the demand for recreational vehicles, which in turn is likely to witness major growth for the market.

The rise youth population rise in the aging population is set to experience favorable growth for the recreational vehicle rental market. An increase in the development of the tourism industry across the country is anticipated to boost the market. Further, the scope for growth of this market will be broadened by the advent of electric recreational vehicles, proliferating RV rental services' demand, and technological advancements.

The growing demand for online rental services was mainly contributed by the presence of active commuters who travel short distances. Further, the increasing demand for road trips as a getaway from quarantine may also boost the growth. The post-lockdown period is likely to witness a rise in the number of first-time buyers with significant contributions from the digitalization of services.

Renting a recreational vehicle (RV) in good condition with desired features at a low cost is the most preferred choice of many customers. The facility of comparing various RV rental prices offered in an area has always been a growing concern among the majority of customers. Thus, to help customers regarding the availability of RV rentals in an area, online platforms like RVshare.com and Outdoorsy have been widely operating in the market. The above platforms provide a one-stop shop for customers who are looking for RV rentals.

Local travel and outstation rental services are expected to witness substantial growth over the next few years due to the lack of route flexibility and standard timings of public transport services. This created a platform for developing online booking services for people due to the shifting preference of travelers toward online car rental services for day-to-day travels, majorly propelling the market. In addition, industry players are also focusing on developing the option of choosing vehicles as per customer convenience through various online platforms during the pandemic.

The Australian Capital Territory (ACT) saw the largest growth in caravan and campervan registrations in 2020, with a 9.7% increase, despite the fact that the overall number of vehicles is still at 5,865.

After a successful year in 2020, South Australia witnessed a more than 4% rise in campervan registrations in 2021. Until 31 January 2021, the total registration of caravans and campervans combined was reported to be more than 700,000 units which is an increase of about 4.2% when compared to 2019.

Caravans remain the most popular recreational vehicle in Australia, accounting for 90% of all recreational vehicle registrations (caravans and campervans). Despite a modest reduction in growth in 2020, both caravan and campervan registrations have shown continuous growth over the last ten years.

For instance, over the past five years, more than 144,000 Caravans and more than 13,000 campervans have been added to the country, reporting a growth of 26% and 22%, respectively. Additionally, 70% of the total campervans registered to run on diesel over petrol or any other alternative fueled vehicle.

With that, caravans in the 1-1.5 tonne range became the most popular weight category in 2020, edging out smaller Caravans/Trailers (weighing 0.5 - 1 tones) as the most popular weight category.

Additionally, owing to the government restrictions due to the global pandemic, in the late 2020 and 2021, the number of tourists visiting Australia drastically decreased. Owing to the increase in the tourist footfall in the country combined with increased registration of recreational vehicles in the country, the Australia Recreational Vehicle Rental Market is expected to witness significant growth in the upcoming years.

The Australian Recreational Vehicle Rental Market is dominated by a few players, including Apollo RV Rentals, Camper Travel, Birtz, Maui, and Mighty Campers.

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