Car Wash Service Market Analysis Report By Type, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global car wash service market size was accounted for USD 33 billion, in 2018. It is estimated to grow at a CAGR of 3.2% during the forecast period, 2019 to 2025. Rising disposable income levels and increasing awareness about the maintenance of vehicles among consumers across the globe are the factors expected to drive market growth. Moreover, consumers prefer giving their vehicles to servicing centers and professional car washing centers owing to hectic lifestyles and lack of free time, thereby expected to drive the market for car wash services across the globe.

The vehicle is an asset depreciates with time because of dirt, pollution, harsh chemicals, and grime. The metal parts start corroding and require timely maintenance. This helps in increasing the life of vehicles. Moreover, these services provide convenience to their consumers by saving their time and effort. In addition, cleaning the vehicle at home is a tedious job that can damage its surface and lead to scratches. These factors are anticipated to drive the growth of such luxurious services in the near future.

According to a report by International Carwash Association (ICA), for the past 18 years, a constant decline has been observed in washing vehicles at home. The advantages of professional car washing such as efficiency, speed, and convenience are influencing people to choose such services over washing the vehicles at home. Factors such as the availability of easy payment alternatives, on-demand services, and increased accessibility through mobile apps are playing a major role in propelling the demand for such services over the forecast period.

Government regulations on water consumption and wastage coupled with rising awareness regarding the same among the consumers are expected to impact positively on the market growth. This factor is also enforcing the service providers to use water sparingly as well as use water-friendly procedures. However, for some service providers, this factor affects their income and profits.

Type Insights

Based on type, the market is divided into roll-over/in-bay, self-service, and tunnels segments. The segment of roll-over/in-bay services dominated the global car wash services market and it is projected to grow significantly over the forecast period, 2019 to 2025. Rising demand for in-bay services owing to their affordability, convenience, low operating cost, low water consumption, and less space required for installation is expected to drive the market growth. Generally, water consumed by in-bay services is 10-50 gallons per car and by tunnel, services are 14-60 gallons per car. Further, consumers prefer automatic in-bay services as they are much faster and affordable than manual ones.

The second-largest segment in the global market was the self-service segment in 2018 and is anticipated to grow significantly from 2019 to 2025. This segment is gaining high popularity owing to flexibility in the consumption of water, foam, brush, and other such accessories. Moreover, consumers have to pay only for the services they have used. This is expected to propel the market growth over the forecast period.  

Regional Insights

In 2018, North America held the largest share across the global car wash services market and it is projected to maintain its leading position over the forecast period. Consumers in this region highly rely on automated car wash services owing to their hectic lifestyle and time constraint. According to International Carwash Association, in North America, the number of cars washed every year is more than 2 billion. In 2018, U.S. held the largest revenue share of over 43.0% in the global market. The market for car wash services in the Asia Pacific is projected to grow at the fastest rate over the forecast period owing to rising awareness regarding timely maintenance of vehicles among the consumers coupled with the emerging automotive sector.

The Middle East and Africa are anticipated to grow at a constant rate from 2019 to 2025 due to harsh climatic conditions, rising number of car holders, and improving economic conditions. Government regulation on washing vehicles in public areas has raised potential growth opportunities for servicing centers and car wash services. The presence of desert areas and harsh climatic conditions have led to a shortage of water. This has enforced the service providers to use green and efficient techniques to reduce water wastage. Rising disposable income levels of consumers and a growing number of cars are creating potential growth opportunities for car wash service providers in this region. According to one of the prominent sources, In UAE, the non-Emirati residents clean their cars approximately 3 times in one month through professional car washing services whereas the Emirati residents clean their cars approximately 5 times in one month.

Car Wash Service Market Share Insights

Leading players operating in this industry Zips Car Wash; Mister Car Wash; International Car Wash Group (ICWG); Quick Quack Car Wash; Autobell Car Wash; Super Star Car Wash; Magic Hand Car Wash; True Blue Car Wash; Wash Depot Holdings Inc.; and Hoffman Car Wash. The majority of these services are small-medium enterprises with 5-15 employees. Companies are focusing on strategic initiatives such as M&A to serve a large consumer base and ensure the best quality service to be delivered.

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 2015 to 2025. For the purpose of this study, Million Insights has segmented the global car wash service market report based on type and region:

• Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Tunnels
    • Roll-over/In-Bay
    • Self-Service

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • Australia
    • Central & South America
        • Brazil
    • Middle East & Africa (MEA)
        • UAE