Car Wash Service Market To Hit Value $41.1 Billion By 2025 |Grand View Research, Inc.
The global car wash
service market size was valued
at USD 33.0 billion in 2018 and is
expected to register a CAGR of 3.2% from
2019 to 2025. Market growth is attributed to increasing focus of consumers
on vehicle maintenance and rising spending power. Busy schedules and time
constraints have also led to consumers giving their vehicles to professional
car washes rather than cleaning them at home.
Dirt, grime, and harsh chemicals that
accumulate on a vehicle over time can cause the metal to corrode. These
deposits are difficult to remove by merely cleaning with a sponge or brush.
Moreover, these household cleaning products could result in scratches on the
surface of the vehicle, further damaging the vehicle’s exterior. As a result,
consumers prefer and trust professional car wash services. In addition, the
hassle of self-cleaning is avoided thanks to such amenities.
Major market players include Mister Car Wash;
Zips Car Wash; International Car Wash Group (ICWG); Autobell Car Wash; Quick
Quack Car Wash; Super Star Car Wash; True Blue Car Wash; Magic Hand Car Wash;
Hoffman Car Wash; and Wash Depot Holdings Inc. The market is highly fragmented, wherein
90.0% of the car wash services are operated by small business owners with an
employee size of 5-15. Players are expanding their reach among consumers by
means of mergers and acquisitions to gain a foothold in the market.
The global car wash service market
size is expected to reach USD 41.1 billion by 2025, according to a new report
by Grand View Research, Inc., registering a 3.2% CAGR over the forecast period.
Growing trend of vehicle maintenance in order to boost its resale value is
expected to boost the demand for car wash services in the coming years. Harmful
chemicals that accumulate on the vehicle over time can cause the metal to
corrode. These deposits are difficult to remove by merely cleaning with a
sponge or brush. Moreover, these household cleaning products could result in
scratches on the surface of the vehicle, further damaging the vehicle’s
exterior. As a result, consumers prefer and trust professional car wash
services. In addition, the hassle of self-cleaning is avoided thanks to such
amenities.
As per International Carwash
Association (ICA), there has been a steady decline in home vehicle washes in
the past 18 years. In 1996, 47.6% consumers preferred washing their vehicles at
home whereas in 2014, only 28.4% consumers opted for the same. This significant
shift is owing to benefits such as speed, convenience, and efficiency offered
by professional car wash operators. Growing consumer discretionary spending in
certain countries is also expected to support market growth. Increasing
awareness regarding wastage of water by washing vehicles at home is giving the
market a major boost.
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The market in Middle East and Africa
is estimated to witness steady growth over the forecast period owing to
increasing number of cars and improving economic conditions in numerous countries
in the region. With a ban on washing vehicles in public spaces in several
countries in the region, there is more scope for professional car washes.
Scarcity of water in the region has also compelled operators to introduce
innovative eco-efficient car wash techniques.
Further key findings from the report suggest:
·
The self-service segment
accounted for the second-largest market share in 2018 and will also register
steady growth over the forecast period. Flexibility on usage of cleaning
supplies and payment only for the amenities used are some of the factors
driving the popularity of this service
·
The roll-over/in-bay segment
held the largest revenue share in the market in 2018 thanks to low operating
cost and less space required for installation. The segment is anticipated to
retain its lead through 2025
·
North America is the largest
and most mature market for car washing solutions, with U.S. accounting for more
than 43.0% of the global revenue in 2018. More than 2 billion cars are washed
in the region each year
·
Some of the key players
operating in the global car wash services market are Mister Car Wash; Zips Car
Wash; International Car Wash Group (ICWG); Autobell Car Wash; Quick Quack Car
Wash; Super Star Car Wash; True Blue Car Wash; Magic Hand Car Wash; Hoffman Car
Wash; and Wash Depot Holdings Inc.
However, strict government regulations
regarding water usage in professional vehicle washing services act as a
restraint for market growth. For instance, in California, car wash services are
required to reuse 50% of the water used during a car wash. To adhere to this
requirement, operators are compelled to use zero-degree nozzles, which results
in added cost of investment and lower profit margins. Nevertheless, some
operators see this as an opportunity to go green and are turning to waterless
cleaning practices. Self-service vehicle washing is highly popular among
consumers who prefer to wash their vehicles by themselves. Flexibility on usage
of foam, water, brush, and other equipment for car wash and payment only for
the amenities they use are some of the factors behind the rising popularity of
this service.
As
per International Carwash Association (ICA), there has been a steady decline in
home vehicle washes in the past 18 years. In 1996, 47.6% consumers preferred
washing their vehicles at home whereas in 2014, only 28.4% consumers opted for
the same. This significant shift is owing to benefits such as speed,
convenience, and efficiency offered by professional car wash operators. Growing
consumer discretionary spending in certain countries is also expected to
support car wash services market growth. Flexibility in payment options and
introduction of mobile apps, on-demand services, and subscription packages have
also played a key role in fueling market demand.
Increasing
consumer awareness and strict government regulations regarding usage and/or
wastage of water is giving the market a major boost. This is compelling car
wash operators to come up with innovative and green cleaning techniques. For
some, however, these regulations act as a restraint as it adds to the cost of
investment and lowers profit margins.
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Grand View Research has segmented the
global car wash services market on the basis of type:
Car Wash Service Type Outlook (Revenue, USD Million, 2015
- 2025)
·
Tunnels
·
Roll-over/In-Bay
·
Self-Service
By
type, the car wash service market is segmented into tunnels, roll-over/in-bay,
andself-service. Roll-over/in-bay car wash services account for the largest
share in the market and the trend is expected to continue over the forecast
period. The segment is also estimated to register the fastest growth from 2019
to 2025. Low operating cost, less space required for installation, and low
water consumption are some of the major factors driving demand for in-bay car
wash among operators. In general, in-bay services use 10-50 gallons of water
per car whereas tunnel services use 14-60 gallons of water. Consumers also are
more inclined toward automated in-bay car wash services as they cost less and
the process is much faster and more efficient.
Self-service
vehicle washing is highly popular among consumers who prefer to wash their
vehicles by themselves. This segment held the second largest revenue share in
2018 and is expected to exhibit strong growth over the forecast period.
Flexibility on usage of foam, water, brush, and other equipment for car wash
and payment only for the amenities they use are some of the factors behind the
rising popularity of this service. Moreover, many car washes operate 24/7,
which further propels the convenience of this service among consumers.
About Grand View Research
Grand View Research, Inc. is a U.S.
based market research and consulting company, registered in the State of
California and headquartered in San Francisco. The company provides syndicated
research reports, customized research reports, and consulting services. To help
clients make informed business decisions, we offer market intelligence studies
ensuring relevant and fact-based research across a range of industries, from
technology to chemicals, materials and healthcare.

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