Car Wash Services Market Size, Share & Trends Analysis Report By Type (Tunnels, Roll-over/In-bay), By Mode of Payment (Cash, Cashless), By Region (North America, APAC), And Segment Forecasts, 2022 - 2030

Report Overview

The global car wash services market size was valued at USD 29.3 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.1% from 2022 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 maximum share of more than 50.4% in 2020. 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, as against 14-60 gallons in a tunnel. This section is the most profitable because it saves the client time and money. Furthermore, touch-free 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.

The 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. 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 environment-friendly elements of effective vehicle washing services, which is attracting a huge number of clients. In addition, the increasing penetration of auto dealerships in the 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 4.6% 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 global revenue in 2021. 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 on-demand vehicle wash platform has proven to be a lifesaver in the business. Customers can use a car wash app or website for convenience and faster service. In comparison to the market in Europe, the industry in North America is equipped with cutting-edge technology. In North America, due to the general significant expenditures made in the business, technological advancements in car wash equipment and apparatus have resulted in enhanced efficiency in the industry operations.

Sonny's Enterprises, the worldwide leader in conveyorized car wash equipment, chemicals, controls, service, and spares, was acquired by Genstar Capital, a major private equity firm, in August 2020. Furthermore, in the U.S., there have been an increasing number of new car wash services launches, leading to the market’s rapid expansion. For instance, Ford Motor Company began offering an on-demand automobile in April 2019 to expand the functionality of its FordPass smartphone app. Owners of 2017 or newer Ford models and 2018 or newer Lincolns models with built-in modems are eligible for the service. As more of its vehicles are equipped with built-in modems, the company anticipates a number of third-party agreements.

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 offering in the market. In July 2021, the acquisition of 18 Frank’s Car Wash Express locations in South Carolina was announced by Driven Brands Holdings Inc. This was Driven Brands’ largest car wash tuck-in acquisition to date, following the acquisition of 10 Racer Classic Car Washes in Texas in May 2021. In August 2020, Zips Car Wash opened its new service centers in Greater Cincinnati (Ohio) and Asheville area, and Greensboro (North Carolina) to expand and follow its aggressive strategy to capture the market.

At the time of opening, Zips Car Wash offered car wash services for USD 1 for the first month as part of its Unlimited Wash Club Program to attract a greater number of customers. In October 2020, ICWG acquired Sudsy’s Car Wash, a center with three locations in Nashville, Tennessee. With this acquisition, ICWG will grow to 29 wash locations in the state of Tennessee and 9 locations in the Nashville Metro Area. Some of the key players operating in the global car wash services 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 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 2017 to 2030. 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, Billion Transaction; Revenue, USD Billion, 2017 - 2030)

  • Cash Payment

  • Cashless Payment

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

  • Tunnels

  • Roll-over/In-bay

  • Self-service

• Regional Outlook (Volume, Billion Transaction; Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • Australia

    • China

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE