IBISWorld Market Research An ageing Australian population is expected to drive demand for industry vehicles.

The Recreational Vehicle Manufacturing industry produces a range of products that enable Australians to travel to remote locations comfortably and economically using the nation's road networks. To use the industry's products to their full potential, major markets need time to travel and the funds to do so. IBISWorld industry analyst Kosta Lev states, “the industry's most lucrative market segments are baby boomers and seniors.” In the five years through 2013-14, the proportion of Australians over the age of 50 has increased and the industry has entered a growth phase. Industry revenue is expected to increase at an annualised 7.0% over the five years though 2013-14, to reach $1.2 billion. Over the same period, the number of registered recreational vehicles (RVs) is expected to grow at an annualised 5.6%. Revenue is forecast to grow by 3.8% in 2013-14.

The five-year growth rate is somewhat exaggerated due to the low base year of 2008-09, caused by the global financial crisis. During the year, the importance of well-off older markets to industry performance was apparent. Although Australia never entered recession, stock markets performed poorly. Retirees and those on the cusp of retirement saw their superannuation accounts decline in value. Demand for industry products fell as consumers put off purchases of big-ticket items. However, the industry has returned to strength as demand for industry products has returned to trend. In the five years through 2018-19, demographics are on the side of the industry, with retiring baby boomers expected to boost the numbers of “grey nomads.” The coming years are projected to be increasingly lucrative for the industry. The cost of inputs, such as iron and steel, should fall as demand for industry products increases. Oil prices, however, are not expected to decline in the coming years. According to Lev, “increasing petrol prices and a regulatory direction towards decreasing carbon emissions are expected to push the industry to develop more fuel-efficient products.” The move towards greener products presents an opportunity for existing industry players to gain market share. Increasing competition from imports is another trend that will challenge the industry in the coming years. However, these effects will be minimised by a falling Australian dollar. The increased competition is likely to increase the level of technology adoption in the local industry.

The Recreational Vehicle Manufacturing industry has a medium level of market share concentration. Industry concentration has declined since 2008-09, with the strongest fall in 2009-10. This indicates that major players were more affected by the drop in demand during the global financial crisis than smaller, niche operators. Over the next five years, market share concentration is expected to be more stable than in the previous five years. The major industry players are Jayco Corporation and Fleetwood Corporation. For more information, visit IBISWorld’s Recreational Vehicle Manufacturing report in Australia industry page.

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IBISWorld Industry Report Key Topics

Companies in this industry manufacture recreational vehicles, including towable and motorised recreational vehicles. Towable recreational vehicles include caravans and camper trailers. Motorised recreational vehicles include motorhomes and campervans.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

International Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Basis of Competition

Barriers to Entry

Industry Globalisation

Major Companies

Operating Conditions

Capital Intensity

Technology & Systems

Revenue Volatility

Regulation & Policy

Industry Assistance

Key Statistics

Industry Data

Annual Change

Key Ratios

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