U.S. Car Wash Service Market – Growth, Opportunities and Industry Outlook

The U.S. car wash service market size was valued at USD 14.21 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.8% from 2021 to 2028.

The U.S. Car Wash Service Market size is expected to reach USD 20.74 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 4.8% from 2021 to 2028. In the U.S., more than 72% of drivers use professional car wash services frequently and conveyor car wash is the most revenue-generating service. The on-demand car wash platform can be a good start in this industry if service providers can get the consumers to wash their cars more frequently at these service stations. Many consumers prefer washing their cars at home owing to the high expense and time consumed at car washing stations. Therefore, on-demand car wash apps can emerge as an ideal solution to reduce the time spent at car washing stations.

The low cost of gas and low-interest rates are directly proportional to the increase in the number of new cars on the roads in the U.S. This trend bodes well for the car wash industry. While some customers are buying new cars for the first time, others are upgrading theirs. These customers are highly motivated to keep their new cars clean and in great condition, spurring the demand for car wash services. Ongoing developments in technology are also changing the face of on-demand car wash services. Newer technologies are enabling a greater number of cars to be washed in lesser time and produce better results, thereby propelling the growth of the U.S. market.

By type, roll-over/in-bay car wash services dominated the market in 2020 and will expand at the fastest CAGR over the forecast period. Low operating costs, less space required for installation, and low water consumption are some of the major factors driving the demand for in-bay car wash among operators. In general, in-bay services use 10-50 gallons of water per car, whereas tunnel services use 14-60 gallons of water. Consumers also are more inclined toward automated in-bay car wash services as they cost less, and the process is much faster and more efficient.

The ongoing trend of on-demand car wash is fueling consumer preference for professional car wash service rather than home washing. The shift from ‘do-it-yourself’ to ‘do-it-for-me is a major trend among consumers with hectic lifestyles and busy schedules. Companies are expanding their presence through a greater number of locations and rendering additional services. For instance, companies such as Washos and Spiffy are continuing to add locations, with Washos hitting a new milestone of 40,000 active clients with a steady monthly growth of 25% in August 2017.

According to the International Carwash Association, the percentage of drivers reporting for most frequent washing of their vehicles at a professional car wash has increased from approximately 48% in 1994 to over 77% in 2019. In addition, around 66% of Americans wash their vehicles somewhere between 1-2 times per month, resulting in 13 washes per year on an average.     

                                      

Related Press Release@ U.S. Car Wash Service Market Report

U.S. Car Wash Service Market Report Highlights

• By type, the roll-over/in-bay segment accounted for the largest share of 41.8% in 2020. This is attributed to the increasing penetration of auto dealerships in the car wash service industry, which has fueled the installation of automatic wash facilities on their sites
• The self-service type segment is expected to expand at a CAGR of 4.9% from 2021 to 2028 owing to its increasing popularity among consumers who prefer to wash their vehicles by themselves
• Key players are taking up acquisitions and expansions to gain a foothold in the market
• In October 2020, Zips Car Wash announced its expansion into Marion, North Carolina as a part of its aggressive growth strategy. Zips Car Wash will offer free top washes from October 9�"18 and USD 1 Unlimited Wash Club Memberships for the first month