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The car wash market is estimated to grow at a CAGR of 3.07% between 2022 and 2027. The size of the market is forecast to increase by USD 5,018.58 million. The growth of the market depends on several factors, including increased adoption in untapped regions, the need for water-efficient products, and rising demand for drive-through car wash systems.
This report extensively covers market segmentation by type (exterior and interior ), method (cloth friction car washing and touchless car washing), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The need for water-efficient products is notably driving the market growth, although factors such as the need to comply with regulations may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The need for water-efficient products is notably driving the market growth. The car wash industry is a significant consumer of water, with a typical car wash using anywhere from 30 to 80 gallons of water per vehicle, depending on the type of wash. With water scarcity being a growing concern in many parts of the world, there is an increasing need for water-efficient products in the car wash market.
Using water-efficient products in the car wash industry helps conserve water resources, reduce water consumption, and ultimately save money. The use of water-efficient products such as low-flow nozzles, high-pressure spray guns, and recycling systems can significantly reduce the amount of water used to wash cars. Additionally, water-efficient products can help car wash businesses comply with local water regulations and avoid fines for excessive water usage. Another benefit of using water-efficient products in the market is that they can enhance the environmental credentials of car wash businesses. Hence, such factors will drive the growth of the global market during the forecast period.
The adoption of environment-friendly vehicle wash systems is an emerging trend in the market. Water reclamation is the process of treating or processing wastewater to make it reusable by fulfilling water quality requirements. Water reuse is a potential solution for water efficiency in metropolitan environments where black water, grey water, wash water, and rainwater are recycled on a regular basis. Vehicle washing is a water-intensive operation that uses chemicals, resulting in wastewater containing high concentrations of surfactants, oils, greases, waxes, and other toxins that are harmful to aquatic life.
Increasingly stringent laws and rising water prices drive the market to invest in process-integrated water reclamation systems. The use of reclaimed water and the installation of wastewater treatment techniques are employed in all phases of the washing process until the final rinse when the use of fresh or spot-free water (water processed with reverse osmosis) is advised. As a result, the growing emphasis on water conservation and environmental sustainability will result in the development of an eco-friendly market. Therefore, such factors will drive the growth of the global market during the forecast period.
The high initial investments required to set up car washing centers are a significant challenge hampering the adoption of vehicle wash systems. If a vendor is unwilling to purchase an existing car wash center, they will have to invest heavily in the equipment, land acquisition, construction, and other miscellaneous expenses. Vendors choose car wash centers according to the type of vehicle, and they differ in size and design. For that reason, the location of the car wash center needs to be adequate enough to support their business requirements. They also need to find ample land space to set up the business. As vehicles line up at the car wash center to avail various services, service providers need to provide parking space. These require huge investments, which will hinder the growth of the global car wash market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Car Wash Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Autobell Car Wash Inc. -The company offers quality interior and exterior car wash services.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the exterior segment will be significant during the forecast period. Users prefer exterior car washes because they offer a thorough cleaning, restoration, and finishing of a vehicle, to produce show-quality cleanliness and polish. They are usually offered through formats like gantry car washes, conveyor tunnel systems, and self-service car washes.
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The exterior segment was valued at USD 19,478.70 million in 2017 and continued to grow until 2021. A gantry car wash often referred to as a rollover car wash system is the type of wash where the customer drives their vehicle into the wash bay and stops. The car wash equipment then proceeds to roll over the vehicle. Rollover car wash models can be touch-free, friction, or hybrid, combining both touch-free and friction cleaning methods. Customers generally pay for their wash through an automated point of sale (automatic pay station) located at the entrance to the wash bay. Conveyor tunnel systems are the washes that put cars on a motorized track and drag them through a tunnel where they are rinsed, soaped up, washed, rinsed again, and possibly waxed. The cars emerge clean (and perhaps relatively dry) at the other end. Conveyor tunnel systems are ideal for high-volume sites that require a superior wash finish. Using this system on high-volume or commercial sites reduces waiting time and increases wash revenue. Furthermore, a self-service car wash is a method to wash a car when you do not have the right equipment at your disposal and do not have a proper place to wash the vehicle effectively. The self-service car station offers equipment and a driveway to wash the car. The car owner has complete control over the process since they are directly involved in the washing process. Therefore, such factors will boost the growth of the market segment during the forecast period.
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North America is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in North America is a mature and competitive industry that offers a range of services to consumers. The industry is characterized by a large number of small and independent operators, as well as a few larger national chains. The market is segmented into different types of car washes, including self-service, automatic, and full-service washes, each with its own customer base and value proposition. In addition, there are specialty car washes that cater to specific customer needs, such as high-end vehicles or eco-conscious consumers. Consumer preferences are diverse and vary depending on factors such as convenience, speed, and cost, as well as the quality and thoroughness of the wash. Many customers also prioritize environmentally-friendly practices, such as the use of biodegradable cleaning products and water conservation measures.
The market in North America is experiencing several trends, including the adoption of new technology, such as mobile payment systems and automated cleaning equipment, as well as the development of eco-friendly practices. There is also a growing trend toward offering additional services, such as detailing, maintenance, and repair services, to diversify revenue streams. Overall, the market in North America is a significant and growing industry, with strong demand for its services driven by factors such as population growth, rising disposable incomes, and an increasing focus on vehicle maintenance and upkeep. These factors will lead to the growth of the regional market during the forecast period.
The COVID-19 pandemic had a significant impact on the market in North America in 2020. However, as lockdowns have been lifted and the economy has gradually reopened, the market has shown signs of recovery. With people now more aware of the importance of cleanliness and hygiene, there has been a growing demand for car wash services that offer disinfection and sanitization services. This has led to a shift in consumer preferences toward touchless or waterless car wash services that offer a more hygienic option for cleaning vehicles. These factors will lead to the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global car wash market as a part of the global specialized consumer services market within the global diversified consumer services market. The parent global specialized consumer services market covers revenue generated by the consumer service providers, including residential services, home security services, legal services, personal services, renovation, and interior design services, consumer auction services, wedding services, and funeral services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Car Wash Market Scope |
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Report Coverage |
Details |
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Page number |
152 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.07% |
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Market growth 2023-2027 |
USD 5,018.58 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
2.8 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 48% |
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Key countries |
US, Canada, China, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Autobell Car Wash Inc., Cactus Car Wash, Club Car Wash, Driven Brands Holdings Inc., GO Car Wash, Hoffman Development Corp., Magic Hands Car Wash, Mammoth Holdings LLC, Prime Car Wash LLC, Quick Quack Car Wash Holdings LLC, ScrubaDub Auto Wash Centers, SPEED CAR WASH, Splash Car Wash, Super Star Car Wash, SuperiorWash Inc., The London Carwash Co., Tommys Express LLC, True Blue Car Wash LLC, Wash Depot Holdings Inc., and Zips Carwash |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Method
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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