Car Wash Services Market Size, Share & Trends Analysis Report By Type (Tunnels, Roll-over/In-bay, Self-service), By Mode of Payment, By Region (North America, APAC, Europe, CSA, MEA), And Segment Forecasts, 2021 - 2028

Report Overview                    

The global car wash services market size was valued at USD 27.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 3.8% from 2021 to 2028. Growing consumer interest in automobile maintenance is one of the major factors driving the market. The demand for the service has been fueled by an increasing need for convenience and a wider range of budget and luxury options. Furthermore, as environmental restrictions forbidding residential car washing techniques become more stringent, the customer base for professional car washes is expected to rise, fueling demand for the service.

As new entrants do not usually have a tight supply chain model, e-retailing or direct-to-consumer channels are seeing rapid expansion. Furthermore, due to the growing consumer desire for online shopping for 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.

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.

Professional washers are becoming more popular than at-home services. According to the International Carwash Association (ICA), the number of consumers who wash their cars at home has reduced. In 1996, 52.4% of people favored home washes, but by 2014, that percentage had dropped to 28.4%. The percentage of consumers who choose a professional car wash facility increased from 47.6% to 71.6% within the same time period. In 2019, that number climbed even higher, to almost 77.0%.

Type Insights                                                                                                 

The roll-over or in-bay facilities segment dominated the market for car wash service and accounted for the largest revenue share 50.3% in 2020. These facilities have lower running expenses than tunnel washes since they use just 10-50 gallons of water each car against 14-60 gallons in a tunnel. This section is the most profitable because it saves the client time and money. Every facility type, on the other hand, is growing because it appeals to a distinct set of clients.

Customers who prefer to detail their automobiles themselves go to self-service car wash facilities. According to a JBS Industries blog, there were 36,000 facilities in the United States in 2018 that allowed auto owners to wash the exteriors and vacuum the interiors of their vehicles. The increasing popularity of convenience stores installing tunnel wash systems represents a new potential opportunity for the self-service segment. Furthermore, market participants are primarily focused on the environmentally friendly elements of effective vehicle washing services, which is attracting a huge number of clients.

Mode of Payment Insights                                              

The cashless payment segment is expected to exhibit a CAGR of 4.6% over the forecast period to reach USD 25,721.8 million by 2028. This segment is anticipated to account for a total market share of 72.5% in terms of revenue by 2028. Car wash business owners are increasing their efficiency to boost sales and obtain detailed insights on their clientele by installing an integrated payment solution, or point-of-sale (POS) system, across pay stations. Millennial customers expect to be able to use whatever method is the most convenient for them, including tokens, debit cards, loyalty cards, EMV-enabled credit card payments, or via mobile payment option. Moreover, to execute secure payment, many operators in the market are more inclined toward the use of cashless payment mode.

The cash payment segment accounted for a market share of 30.3% in terms of revenue in 2020. This segment was valued at USD 9,859.9 million in 2020 and is expected to register a CAGR of 2.4% over the forecast period to reach USD 11,873.8 million by 2028. The majority of the self-service car wash stations have coin meters to use the service. As per a research study conducted by Professional Carwashing & Detailing (PC&D), cash/coin payment (75%) and last coin alert (69%) are the most prevalent payment methods, while a credit/debit card system is used by 48% of self-serve carwash sites and 25% accept token payments.

Regional Insights                                                                                          

North America dominated the car wash service market and accounted for the largest revenue share of 50.3% in 2020. 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 on a regular basis, with conveyor car wash being the most profitable service.

The on-demand vehicle wash platform has proven to be a lifesaver in the business. Customers can use a car wash app or go to a car wash website for convenience and faster service. In comparison to the European market, the car wash industry in North America is equipped with cutting-edge equipment. In the North American market, starting an on-demand vehicle wash platform has a lot of promise.

Key Companies & Market Share Insights        

The market is fragmented owing to the presence of a large number of domestic as well as international players. In the United States, according to the International Car Wash Group (ICWG), has tremendous development potential due to the rapid increase in the number of automobiles. As a result, ICWG is actively purchasing local car wash businesses in order to expand its chain in the United States. In July 2020, for example, ICWG bought eight sites from Team Clean, a brand owned by Brad Vaden and his family, which would join the Car Wash USA Express brand in Arkansas and Tennessee.

Covid-19 has had a financial impact on the car wash service sector, and major competitors are attempting to capitalize on the industry's disruption through mergers and acquisitions, either on their own or with the help of M&A advice firms. This will almost certainly help them acquire market share. Some of the prominent players in the car wash services market include:

• Splash 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, LLC

• Magic Hands Car Wash

• Hoffman Car Wash

• Wash Depot Holdings Inc.

Car Wash Services Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global car wash services market report on the basis of mode of payment, type, and region:

• Mode of Payment Outlook (Volume, Million Transactions; Revenue, USD Million, 2016 - 2028)

  • Cash Payment

  • Cashless Payment

• Type Outlook (Volume, Million Transactions; Revenue, USD Million, 2016 - 2028)

  • Tunnels

  • Roll-Over/In-Bay

  • Self-service

• Regional Outlook (Volume, Million Transactions; Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE