Car Wash Service Market Size, Share & Trends Analysis Report By Type (Tunnels, Roll-over/ In-bay), By Mode Of Payment (Cash, Cashless), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global car wash service market size was estimated at USD 30.8 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 6.0% from 2023 to 2030. As environmental restrictions forbidding residential car washing techniques become more stringent, the customer base for professional car washes is expected to rise, fueling the demand for these services. In addition, growing consumer interest in automobile maintenance is one of the major factors driving the market. Furthermore, due to the growing popularity of online shopping due to convenience and flexibility, industry players are increasingly focusing on e-tailing.

AMP, a 100% managed, ready-to-go membership platform, was created by a leading mobile application developer in collaboration with Autowash, a high-growth, multi-location car wash firm, and can enhance car wash income by 20%. The AMP platform will be unveiled at the Southwest Car Wash Association Conference in Fort Worth, Texas, from June 9 to 11, 2021. On-demand vehicle wash services are also changing due to ongoing technological advancements. The main purpose of improving car wash technology is to reduce friction and manual vehicle preparation time, resulting in cleaner, drier vehicles in less time. Touchless car washing and hybrid car washing are two technologies that are moving the business forward.

Type Insights

The roll-over or in-bay type segment accounted for the largest share of more than 53.8% in 2022. The segment is projected to expand further at the fastest CAGR retaining its dominant position over the forecast period. Roll-over or in-bay facilities have lower running expenses than tunnel washes since they use just 10-50 gallons for each car against 14-60 gallons in a tunnel. This section is the most profitable because it saves the client time and money.

Furthermore, touchless washes are available with in-bay automatic systems, in which high-pressure water is used to clean the vehicle and provide friction, and soft-cloth brushes are used to clean and disseminate the detergent and shine on the vehicle before it is rinsed off. These in-bay/roll-over automatic vehicle wash services have a number of advantages, including easier client connection, impulsive purchases, and the ability to fit into smaller locations.

There has been a wide application of technology in the car wash services like soft-touch car wash services. These services offer car wash services by automated systems and specialized equipment used in these car washes which can efficiently clean the vehicle in a relatively short amount of time. For instance, Splash Car Wash is offering soft-touch car wash services with a focus on quality and convenience.

There has been an increasing requirement among consumers for personalized and tailored services like mobile car wash services in the market. These services employ trained professionals that specialize in car cleaning and detailing. They also have the necessary equipment and expertise to provide a high-quality service, ensuring that the vehicle receives a thorough and meticulous cleaning. For instance, MobileWash is a popular on-demand mobile car wash service available in the U.S. They have a network of professional detailers who come to the consumer’s location to wash the car.

Moreover, the increasing popularity of convenience stores installing tunnel wash systems represents a new potential opportunity for this market segment. Furthermore, market participants are primarily focused on the environmentally friendly elements of effective vehicle washing services, attracting many clients. In addition, the increasing penetration of auto dealerships in the car wash service industry has fueled the installation of automatic wash facilities on their sites.

Auto dealerships add automated car washes to scale up their Customer Satisfaction Index (CSI) scores, with in-bay washes being the most popular consumer choice. This boosts the growth of in-bay/roll-over automatic car wash services. Moreover, the availability of combination washes is a popular trend among roll-over/in-bay vehicle wash services. Customers can pick between touchless, friction, or a combination of both types of washes using this service.

Mode of Payment Insights

The cashless payment segment is expected to register the highest CAGR of 5.9% during the forecast period. Installing an integrated payment solution, or Point-Of-Sale (POS) system, across pay stations helps car wash business owners increase efficiency, boost sales, and gain detailed insights into their customers. Customers in the millennial generation expect to be able to pay using whatever manner is most convenient for them, such as tokens, debit cards, loyalty cards, EMV-enabled credit card payments, or smartphone payments.

By making it easier to track suppliers, collect important client data, and accept numerous payment methods, an integrated payment system improves the way a firm is operated. For both operators and customers, an integrated system simplifies the entire car wash experience. Carwashes have long offered loyalty clubs and monthly membership plans as a popular payment option. Owners and consumers alike have found that charging a monthly price for all-you-can-wash access to a site or chain of carwashes has proven to be successful. These subscriptions are purchased by customers through online platforms or the company's website.

Regional Insights

North America dominated the global market, accounting for more than 50.00% of the revenue share in 2022. This development can be attributed to increased consumer spending on comfort and leisure, as well as the widespread use of professional vehicle wash services. More than 72% of drivers in the United States use professional car wash services regularly, with conveyor car wash being the most profitable service. The covid-19 outbreak had led to different regulations by the service providers.

For instance, in April 2021, New York State allowed car washes to reopen under strict guidelines limiting the number of employees allowed to be onsite and banning-in person payment. Major Service providers in the U.S. car wash services market are inclined toward mergers and acquisitions to increase their service footprint and boost their revenue. For instance, in July 2021, Driven Brands, Inc. acquired 18 Frank’s Car Wash Express facilities in South Carolina. Following the acquisition of 10 Racer Classic Car Wheels in Texas, the acquisition of Frank’s Car Wash Express became Driven Brands’ largest car wash tuck-in deal.

Europe has regulated this market in countries like Germany and the UK, addressing their environmental concerns like water conservation. For instance, a hosepipe prohibition and a persistent drought in the Southwest of the United Kingdom prevent automobile owners from washing their vehicles privately. Private automobile owners are required to bring their vehicles to car wash services in the UK where the majority of the water is recycled. This strengthens the UK car wash services market value at USD 1.34 billion in 2022, which is attributed to the range of service providers and wide customer base.

The Germany car wash services market was estimated at USD 1.93 billion in 2022. Green Carwash is a car wash chain in Germany that focuses on environmentally friendly practices, including water conservation. They utilize advanced water recycling systems and eco-friendly cleaning products to minimize water consumption and reduce environmental impact. By complying with environmental concerns and attracting environmentally concerned consumers, these services are creating the potential for market growth in the country.

The Asia Pacific car wash services market is likely to gain traction due to the rise in the adoption of different technologies in the region. Waterless car washes are gaining immense popularity in Australia, Spain, France, Indonesia, Japan, Malaysia, Singapore, India, Romania, the U.S., and UAE. For instance, EWash, in Singapore EWash has washed 173,759 cars by 2020 and has saved 24,317,920 liters of water. EWash’s waterless carwash method uses just one cup of water to clean a car compared to the average car wash service station which uses 140 liters of water.

This is in a way boosting the growth of the Singapore car wash services market. For instance, peed Car Wash is a popular car wash chain in India that offers technology-based car wash services. They utilize advanced cleaning equipment and technology to provide efficient and effective car wash solutions. Such a technologically advanced vehicle wash service is driving the India car wash services market with a share of 18.1% of the Asia Pacific region in 2022.

Key Companies & Market Share Insights

The market includes both international and domestic participants. Key market players focus on strategies, such as mergers, acquisitions, and new operating establishments, in different regions to enhance their portfolio offerings in the market.

• In August 2022, Mister Car Wash, Inc. announced the acquisition of Top Wash, three express exterior locations in Anoka, Fridley, and Champlin, Minnesota. The acquisition expanded the presence of Mister Car Wash in the northern suburbs of Minneapolis.

• In June 2022, announced the opening of its newest location in Oviedo, Florida. The new location offers a Platinum package that offers Mister’s signature products including the waterfall HotShine® Carnauba wax, Repel Shield, and Platinum Seal. The new location features a state-of-art tunnel experience with Mister’s proprietary cleaning systems.

Some prominent players in the global car wash service market include:

• Zips Car Wash

• Splash Car Wash

• International Car Wash Group (ICW)

• Autobell Car Wash

• Quick Quack Car Wash

• Super Star Car Wash

• True Blue Car Wash, LLC

• Magic Hands Car Wash

• Hoffman Car Wash

• Wash Depot Holdings Inc.

Car Wash Service Market Report Scope

Global Car Wash Service Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global car wash service market report based on mode of payment, type, and region:

• Type Outlook (Volume, Million Units; Revenue, USD Billion, 2017 - 2030)

  • Tunnels

  • Roll-Over/ In-Bay

  • Self-Service

• Mode of Payment Outlook (Volume, Million Transactions; Revenue, USD Billion, 2017 - 2030)

  • Cash Payment

  • Cashless Payment

• Regional Outlook (Volume, Million Units, Million Transactions; Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Australia

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Chile

    • Colombia

  • Middle East & Africa

    • UAE

    • Saudi Arabia