New York, United States, Nov. 28, 2023 (GLOBE NEWSWIRE) -- A car wash, also called an auto wash, is a facility used to sanitize the exterior and, in a few cases, the interior of vehicles. There are three categories of car washes: self-service, full-service (where employees cleanse the vehicle), and automated (possibly connected to a filling station). A car wash may also serve as a fundraiser if participants pay to have their vehicles washed by volunteers using less sophisticated equipment.
Detergents and other cleansing agents used in contemporary car washes, whether tunnel, in-bay automatic, or self-serve, are designed to loosen and remove dirt and grime. The transition towards safer cleansing agents has begun. Car washes using machines, particularly those with brushes, threaten the exterior finish. Along with "brushless" (for fabric) and "touchless" (for high-pressure water) machinery, more facilities are employing modern "foam" washing wheels made of closed-cell foam.
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High Adoption of Professional Car Wash Services Drives the Global Market
According to Straits Research, “The global car wash service market was valued at USD 27.83 billion in 2022. It is estimated to reach USD 40.24 billion by 2031, growing at a CAGR of 3.63% during the forecast period (2023–2031).” There has been a rise in activity within the car wash industry due to technological advancements and consumer demand for convenient and trustworthy car wash options. Numerous purveyors of car wash services also offer automotive products, vehicle safety inspections, vehicle repairs and maintenance, and pick-up and delivery services. This factor is increasing the demand for car wash services.
Consumers prefer to have their vehicles washed by professionals instead of doing it themselves globally. Mushrooming service providers in cities and villages also contribute to the expansion of the industry. According to a Medium blog post, there were 16,000 car wash locations in the United States in 2018. These include independently owned locations and national car detailing franchises. WashTec/Mark VII washes over two million vehicles per day on its own. As a result, the high rate of professional use of car wash services will spur market expansion during the forecast period.
Rising Demand for Eco-Friendly Car Wash Services Creates Tremendous Opportunities
Eco-friendly car wash services are acquiring popularity in the industry; consequently, manufacturers are moving toward producing eco-friendly and effectively regulated car wash necessities. Traditional car washes use 15 to 80 gallons per vehicle without water conservation apparatus. The environmentally-friendly version uses only 8 to 70 gallons per vehicle when equipped with water reclamation or filtration technology.
Professional vehicle washes utilize a variety of technologies to make the customer experience simple and efficient. WashCard and other companies have begun developing payment portals for professional car washes that enable mobile payments and automated invoicing and cleaning schedules. Thus, the consumer transition toward eco-friendly services will generate market expansion opportunities.
Regional Analysis
North America is the most significant global car wash service market shareholder and is anticipated to exhibit a CAGR of 3.51% during the forecast period. The growth of the North American market is driven by the region's shifting business dynamics and the proliferation of strategic alliances among market participants. The International Car Wash Group (ICWG) acquired Village Express Car Wash in October 2020. With this acquisition, ICWG expanded its presence in the United States to 18 locations between the Car Wash USA Express and Goo Goo Car Wash brands. ICWG is positioned for additional growth in the country through acquisitions and the mid-2021 completion of new site development.
Europe is estimated to exhibit a CAGR of 3.3% over the forecast period. The growth of the European region can be attributed to the initiatives taken by key stakeholders to stimulate market expansion. In June 2020, the Polish startup MultiWash expanded its car wash network throughout the Czech Republic. This nationwide network expansion connects over 150 car wash locations. MultiWash (2017) also intends to launch a Series A round to expand into Slovakia, Austria, and Germany. MultiWash saves users time and money; subscription plans are 30% less expensive on average than pay-per-use payments. The region is home to some of the world's most advanced cashless civilizations. According to a May 2020 study by the Merchant Machine, the Netherlands topped the list of cashless nations in Europe. Such developments in Europe fuel the demand for cashless payment methods for car wash services.
Key Highlights
- Based on the mode of payment, the global car wash service market is bifurcated into cash payment and cashless payment. The cashless payment segment dominates the global market and is projected to exhibit a CAGR of 4.4% over the forecast period.
- Based on type, the global car wash service market is segmented into tunnels, roll-over/in-bay, and self-service. The roll-over/in-bay segment owns the highest market share and is predicted to exhibit a CAGR of 4.01% over the forecast period.
- North America is the most significant global car wash service market shareholder and is anticipated to exhibit a CAGR of 3.51% during the forecast period.
Competitive Players
The key players in the global car wash service market are Zips Car Wash; Splash 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; and Wash Depot Holdings Inc.
Market News
- In May 2023, Repsol announced the establishment of Spain's largest car wash network under the brand name Klin. The energy company intends to have 300 sites by the end of the year, with mobile payment and digitalization at their foundation.
- In July 2023, Clean Express Auto Wash, a member of the Express Wash Concepts family of brands, announced the groundbreaking for their eighth car wash in Toledo. On Friday, July 7, 2023, the groundbreaking ceremony occurred for the new Clean Express Auto Wash facility in Maumee, Ohio.
Global Car Wash Service Market: Segmentation
By Mode of Payment
- Cash Payment
- Cashless Payment
By Type
- Tunnels
- Roll-Over/In-Bay
- Self Service
By Regions
- North America
- Europe
- Asia-Pacific
- Central and South America
- The Middle East and Africa
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