Recreational Vehicle Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Recreational Vehicle Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The recreational vehicle rental market was valued at USD 429 million in 2018, and it is expected registering a CAGR of about 8% during the forecast period (2021 - 2026).

The recreational vehicle (RV) rental market has suffered a slowdown due to the COVID-19 pandemic but still managed to maintain relatively optimistic growth because of increased online bookings. For instance, Outdoorsy witnessed a 1,500% surge in bookings from the lowest booking day amid the coronavirus pandemic to the highest booking. The company's popularity has only continued to trend upwards.

While the spread of the virus and limitations for travel and transportation are stringent, the demand for RVs was expected to grow across geographies in 2020. 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.

In addition, the recreational vehicle rental market is set to experience favorable growth driven by factors such as increasing youth population, rising aging population, development of the tourism industry, and growing popularity of recreational vehicle camping. 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 market is expected to witness rapid growth, especially in North America and Europe, as these vehicles provide a reliable and personal way to travel. It is considered the safest travel alternative during the coronavirus pandemic while maintaining social distance norms and hygiene conditions for safety.

Key Market TrendsIncreasing Demand for Online Rental Booking Services

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.

Asia-Pacific is Expected to Witness Significant Growth

The Asia-Pacific region is likely to hold a significant share in the market, followed by North America. Asia-Pacific is a rapidly expanding market for RV rentals owing to the expansion of economies and the rising middle class that is boosting the demand for leisure-related goods and activities, such as RVs and RV camping. The RV market in China has witnessed significant changes in the last few years, including a national focus on the development of tourism, campgrounds, and the RV industry. These aforementioned factors are likely to contribute to the growth of the recreational vehicle rental market during the forecast period.

The rise in demand for recreational vehicles in China, India, and other countries in Asia-Pacific led to a shift in travel preferences of consumers choosing to explore the countryside and roads with recreational rental vehicles. This is projected to fuel the market in the region in the next few years.

The North American recreational vehicle rental market is anticipated to grow at a faster pace during the forecast period due to rapidly growing recreational parks and camping grounds in the region. Over the next few years, the United States is expected to witness revenue growth in the recreational vehicle rental market. The Canadian recreational vehicle rental market may also exhibit significant growth in the years to come.

Competitive Landscape

The market is moderately fragmented, with numerous international and domestic companies operating across the globe. However, the industry is on the verge of consolidation, with few players capturing the majority of the market. For instance-

Tourism Holdings Ltd (THL), an international RV rental company based in New Zealand, purchased Santa Fe Springs, a California-based El Monte RV, for USD 65 million.

Recently, China Beijing International Recreational Vehicle and Camping Exhibition IVECO launched its intelligent daily recreational vehicle, and along with that, it displayed more than 20 imported IVECO daily RVs. These RVs are equipped with features such as remote temperature and ventilation control, lighting, and one-button parking.

Some of the major players operating in the market are USA RV Rental, Apollo RV Rentals, Cruise America, McRent, EI Monte RV, Fujii, and Cars Japan, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

USA RV Rental
Apollo Tourism & Leisure Ltd (ATL)
McRent
El Monte RV
Fuji Cars Japan
Cruise America
Just Go Motorhome Hire
Camper Travel USA

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