Berkshire Hathaway’s recreational vehicle maker Forest River is riding a wave of strong global growth for the RV market.
The global recreational vehicles market, which was worth $54.63 billion in 2017 is projected to grow at a CAGR of about 4.11% from 2017 to 2025 to $75.38 Billion by 2025.
According to the report, “Recreational Vehicles (RVs) Market Size and Forecast By Product (Towable and Motorhomes), By Application (Commercial and Residential) And Trend Analysis, 2015 – 2025”, in 2016, 40 million Americans participated in camping activities, which is a primary booster for the growth of global recreational vehicle industry.
Berkshire’s Forest River Inc., is the largest player with a more than 25% share, followed by Thor Industries Inc., Winnebago Industries Inc., and REV Recreation Group.
According to the report, the U.S. market has roughly 10 million of the consumers aged between 35 years to 75 years that own recreational vehicles.
The China market is seeing increasing development of tourism and campgrounds coupled with consumers’ changing travel preferences is spurring the traction of recreational vehicles market. However, according to the report the domestic recreational vehicle market in China is still in the nascent stage, wherein consumers purchased about 25,000 vehicles in 2016. The purchase number is expected is to reach 500,000 by 2020 supported by growing economy and rising middle class.
© 2019 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.