Car Wash Industry Update
The demand for car wash services is anticipated to increase as automobile owners use professional car washing facilities more frequently. The global car wash services market was valued at $29.3 billion in 2021 and is expected to reach $38.6 billion by 2030, at a CAGR of 3.1 percent during the forecast period.
Reports have found car count is also growing with around 66 percent of Americans washing their vehicles between one to two times per month, resulting in 13 washes per year. Moreover, advances in technology and the introduction of mobile apps, on-demand services, and subscription packages increase efficiency and offer new opportunities for fueling market demand.
A Growing Market
The peak of the coronavirus pandemic (COVID-19) ushered significant improvements in the car wash sector. Since then, on-demand services with technology-driven processes are becoming a consumer preference for car washing. Various players in the market are expanding their reach using acquisition to gain a foothold in the market. By offering add-on services coupled with the rapid rise in the number of vehicles, they expect a significant amount of growth potential.
A few of the prominent players in the U.S. car wash services market currently, include:
-Zips Car Wash
-International Car Wash Group (ICWG)
-Quick Quack Car Wash
-True Blue Car Wash
-Autobell Car Wash
-Wash Depot Holdings Inc.
-Mister Car Wash
Mode of Payment
A large part of the car wash market growth is fueled by technological advancements, specifically in the banking industry, as well as a rise in the number of car wash providers that accept cashless payments. The cashless payment segment accounted for the highest share in 2021 and is estimated to ascend with a significant CAGR over the forecast period.
Why Invest in the Car Wash Industry?
The rise in interest from investors looking to acquire a car wash business has grown exponentially. New business models offering a membership or subscription have already created a predictable, steady revenue stream. Since the carwash market remains highly fragmented, it is a key draw for many investors. The industry’s makeup, as well as its subscription-based sales systems, is keeping the market in investors’ spotlight.
Given how highly automated express car washes have become, it’s very difficult to stand out in such a competitive market. Operators are now focusing on key differentiating factors such as finding the best locations, constructing eye-catching buildings, and offering unique car wash experiences.