Car Wash Service Market Size, Share, Trends, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Car Wash Service Market


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 vehicles 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 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.

Type Insights of Car Wash Service Market

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.

Regional Insights of Car Wash Service Market

North America was the largest market for car wash services in 2018 and the trend is likely to continue over the forecast period. North America is a mature market owing to high preference of consumers in the region for automated car washing services. As per the International Carwash Association, more than 2 billion cars are washed each year in North America, which is the highest in any region. The U.S. market is the main driving force and accounted for more than 43.0% of the global revenue in 2018. Asia Pacific is estimated to be the fastest growing market, driven by a thriving automotive industry and growing interest and awareness of consumers regarding proper car maintenance.

The market in Middle East and Africa is projected to witness steady growth over the forecast period owing to increasing number of cars, improving economic conditions in numerous countries in the region, and harsh desert conditions. 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.

According to Octal IT Solution LLP, the number of cars on the roads of the Middle East is expected to rise by 60.0% by 2020, creating lucrative opportunity for operators in the region thanks to growing spending power of consumers. As per an independent survey,non-Emirati residents in UAE get their car cleaned professionally an average of three times a month. Emiratis, on the other hand, get their cars washed around five times in a month.

Market Share Insights of Car Wash Service Market

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.

For instance, in August 2019,Mister Car Wash, an operating company of Leonard Green & Partners L.P., continued its Michigan expansion with the acquisition of Ride the Tide Car Wash, adding up to 26 more locations for the car wash company in Michigan alone. In December 2018, the company acquired Prime Shine Car Wash, which operates in 19 locations across the U.S.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Car Wash Service Market Research Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global car wash service market report on the basis of type and region:

Type Outlook (Revenue, USD Million, 2019 - 2030)

  
Tunnels
  
Roll-over/In-Bay
  
Self-Service