U.S. Car Wash Service Market: Tunnels Segment Is Expected To Witness Considerable Growth Over The Forecast Period
U.S. Car Wash Service Industry Overview
The U.S. car wash services market size is expected to reach USD 23.78 billion by 2030, expanding at a CAGR of 5.5% over the forecast period, according to a new report by Grand View Research, Inc. Daily schedules continue to become increasingly hectic, and growing focus towards vehicular maintenance, drive to reduce operating costs and rise in sustainable car washing methods emerge as key factors propelling the U.S. car wash service industry. It is further fueled by investor interest in major segments due to minimum labor requirements, high volumes, and quick returns.1
Environment-friendly car wash services continue to gain popularity among consumers in the U.S. Traditional car washing uses 15 to 80 gallons of water per vehicle, but sustainable car washing practice uses 8 to 70 gallons per vehicle when equipped with water reclamation or filtration technology. As professional car cleaning services provide apt washing solutions, consumers abstain from washing cars themselves as it can get messy & time-consuming, and the substantial use of chemicals can be costly.
Furthermore, a rise in disposable incomes has led to higher spending on professional car washing. The speed and convenience that such car washing services offer often result in unwillingness on the part of consumers to undertake car washing on their own. Post-pandemic, there is a growing tendency towards sanitation. Consumers are spending high amounts on various cleaning methods such as anti-viral, anti-bacterial sanitization, steam disinfection, and many more.
Consumers who use their vehicles regularly for commutes form the majority of the consumer base for such car washing services. They show an increased preference for tunnel washing systems owing to their high automation, efficiency, and customization. Sensor-controlled gates, and touchless or soft-touch washes, are new technological advancements that will pop up soon in various new car washing establishments.
The location of the car wash service company also plays a key role in its success. Consumers prefer a car wash setting that is located on a busy street, and easy to locate. Additional factors such as quality of cleaning supplies, user experience, advertising, curb appeal, performance, speed, and price play a huge role in consumer purchase decisions and affect their loyalty towards a brand.
Companies operating in this market, continue to build a wide distribution network, to expand their consumer base. Various players partner with other companies in the network to tap industries ancillary to the car washing sector. Large base dealers and distributors in the market inhibit increased penetration of car wash services in different business segments. The usage of online portals and websites is increasing traction in the car wash services market due to robust growth in the e-commerce industry. This has also encouraged cashless payment systems at car washing services, a trend further boosted by the millennial population.
U.S. Car Wash Services Market Segmentation
Grand View Research has segmented the U.S. car wash services market based on type and mode of payments:
Based on the Type Insights, the market is segmented into Tunnels, Roll-over/In-bay, and Self-Service.
- Roll-overs/in-bay are one of the most widespread express car wash types. They feature compact machines with brushes, water jets, wheel-wash, and the application of products such as waxes, dryers, or foams. Also, these types offer very versatile machines and their compact nature ensures a thorough washing in a small area. Roll-overs/in-bay offer an environment-friendly approach to the car wash, as they use a lot less water.
- The self-service car wash facilities are projected to grow at a significant CAGR of around 5.5% from 2022 to 2030. This segment is witnessing healthy traction owing to the range of customization it offers to consumers when it comes to cleaning vehicles neatly. Self-service car wash facilities are widely popular among customers who prefer to detail their cars themselves.
Based on the Mode of Payment Insights, the market is segmented into Cash Payment, and Cashless Payment.
- Cashless payment systems dominated the market with a share of more than 70% in 2021. With the deep rooting of online payments among consumers, car wash service owners have increasingly started installing integrated payment solutions, or point-of-sale (POS) systems, across pay stations. Along with boosting sales, these payment systems also offer detailed insights into their clientele.
- The majority of car washing services have coin-operated machines installed to get car cleaning done. As per the Pew Research Center, in 2019, 30% of Americans made cash payments at car wash centers. Although cash payments were common in the past decade, due to the growing popularity of digital transactions, demand for cash payments in the U.S. car wash services market is projected to record low volume during the forecasted period.
Key Companies & Market Share Insights
The market is characterized by the presence of significant domestic service providers. Large players are acquiring local establishments to aid in reaching a wider audience in the country. To expand the consumer base, market players have recognized the importance and dominance of regional players.
- In August 2022, Mister Car Wash, Inc. announced the acquisition of Top Wash, three express exterior locations in Anoka, Fridley, and Champlin, Minnesota. The acquisition expanded the presence of Mister Car Wash in the northern suburbs of Minneapolis.
- In June 2022, Mister Car Wash, Inc. announced the opening of its newest location in Oviedo, Florida. The new location offers a Platinum package that offers Mister’s signature products including the waterfall HotShine® Carnauba wax, Repel Shield and Platinum Seal. The new location features a state-of-art tunnel experience with Mister’s proprietary cleaning systems.
- In November 2021, Driven Brands, Inc. announced its 100th car wash acquisition, bringing the total number of Driven Brands Car Washes in the U.S. to 300.
Some prominent players in the U.S. car wash services market include:
- Driven Brands, Inc.
- Tommy’s Express
- Splash Car Wash
- Zips Carwash
- Autobell Car Wash, Inc.
- Quick Quack Car Wash
- True Blue Car Wash
- Magic Hands Car Wash
- Wash Depot
- Mister Car Wash
- SSCW Enterprises (Super Star Car Wash)
Order a free sample PDF of the U.S. Car Wash Services Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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Grand View Research, Inc.
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