Key Takeaways

• In 2021, the US car wash market was valued at USD 14.67 billion, and it was projected to grow at a CAGR of 4.8% from 2021-2028 to reach USD 20.47 billion in 2028. These figures are from the Grandview Research analysis. 
• The average revenue per car wash in the US is about USD 219,491 in 2020 [calculated].
• The most discussed types of car washes in the US include self-service car washes, automated car washes, and full-service car washes.
• Car owners are encouraged to take their cars to be washed at commercial car wash facilities. This is because the facilities are required by the law to treat the wastewater to reduce its pollutants before it can be discharged into the storm drain systems. Other commercial car washes recycle their wastewater. In addition, most full-service car washes discharge their wastewater into the sanitary sewer instead of storm drains to avoid polluting the environment.
• According to Forest Hills Spa, "the average homeowner uses 116 gallons of water to wash a car! Most commercial car washes use 60 percent less water for the entire process than a homeowner uses just to rinse the car."

Introduction

The US Car Wash Market Size

1. Market Size

• In 2021, the US car wash market was valued at USD 14.67 billion, and it was projected to grow at a CAGR of 4.8% from 2021-2028 to reach USD 20.47 billion in 2028. These figures are from the Grandview Research analysis. 
• In addition, according to research by IBIS World, the US car wash and auto detailing market size [measured in revenue] is worth USD 14.7417 billion in 2022.

 

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2. Average Revenue Per Car Wash

• As of 2022, there are 67,163 car wash and auto detailing businesses in the US.
• The average revenue per car wash in the US is about USD 219,491 in 2020 [calculated - check the research strategy section for calculations].

Insights on the US Car Wash Industry

1. Types of Car Washes, With Their Associated Revenues

[i] Self-Service Car Washes

• A self-serve car wash, also known as a manual car wash, is where a customer is given professional tools, such as rinsing wands and drying equipment, and cleaning supplies, such as a high-pressure water hose, soaps, and sponges, to wash their own vehicle in a designated bay area.
• At these car washes, customers do everything by themself, including choosing the "car wash program and desired wash time to foaming, washing, rinsing and polishing their car." They have a paying machine, and the more money the customer inserts, the more time they have cleaning their vehicle. Customers pay from $2 -$5 per wash program depending on factors like the condition of their vehicle.
• Revenue: The revenue generated by this sub-category of the car wash as a whole in the US is unavailable in the public domain. However, since this is a low-cost business, each bay generates about $1,489 per month and an average annual income of $41,000. 

[ii] Automated Car Washes

• In this car wash, a vehicle is cleaned by "hands-free machinery," i.e., usually, these types of car washes are located in a large garage, such as a bay or tunnel, fitted with brushes and machines that dispense soap and high-pressure water. They are speedy and economical.
• There are two types of automated car washes, i.e., roll-over and conveyor washes. 
• With roll-over [also known as in-bay automatic car wash], the vehicle remains stationary in the bay while being cleaned, i.e., the washing equipment moves past ["roll over"] it. These car washes mostly charge $6.34, making a profit of $4.35 per wash.
• In conveyor washes [also known as tunnel car wash], the vehicle is moved along conveyor belts while being cleaned with stationary series of synchronized wash machines. They charge about $15 per wash.
 
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• Revenue: The revenue generated by this sub-category of the car wash as a whole in the US is unavailable in the public domain. However, an in-bay automatic car wash generates an annual income of about $139,000, making an average profit of $86,531. On the other hand, a conveyor car wash generates an average income of $686,250 per year. 

[iii] Full-Service Car Wash

• This type of car wash provides both car exterior and interior cleaning services. It also offers additional services, including vacuuming and auto detailing services. According to Grand Pix Car Wash 1, "auto detailing is an in-depth version of a regular cleaning." Its purpose is to prolong the vehicle's life while maintaining its "new-look."
• Some services provided at the full-service car wash include interior detailing (i.e., vacuuming, upholstery cleaning, and carpet cleaning), engine cleaning, mold removal treatment, and others. A full list of services can be found here.
• These car washes charge an average of $15 per wash, depending on the services the customer want. However, about 20% of these car washes charge $18 or more.
• Revenue: The revenue generated by this sub-category of the car wash as a whole in the US is unavailable in the public domain. However, a full-service car wash can generate a profit of between $500,000 and $900,000 per year.

Other Types of Car Washes

• Soft Touch Car Washes: Uses only a cloth to scrub a vehicle to avoid damaging its parts, such as side-view mirrors or antennas. In addition, the car is also exposed to no-touch wash machines that dispense soap (not foam) and high-pressure water.
• No-Touch Car Wash: This type does not use any cloth or brush when cleaning a vehicle; instead, they use more cleaning agents for better results. However, the lack of scrubbing makes it less effective for vehicle cleaning.

 

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• Machine Dryer Car Wash: Some automated car washes dry vehicles using machine dryers after cleaning. Others use towels.
• Hand Car Wash: With this type, professionals use their hands to clean a vehicle to ensure every spot is cleaned that automated car washes may miss.
• Waterless Car Wash: "A waterless car wash is a high lubricity spray mixture that heavily saturates a vehicle’s panel, then wipes off dirt or road grime to a dry shine with a clean cloth." This wash saves on water usage while cleaning.
• Rinseless Car Wash: This type of wash incorporates both "traditional hand car wash and waterless car wash method." Here, the wash solution applied to the car is simply wiped off; instead of rinsing the car again using water. This wash saves time, water, and chemical usage.

2. Environmental Impact

• According to various reputable sources in the public domain, including Forest Hills Spa, the Department of Environment and Planning, and Detail Xperts, commercial car wash facilities do not pollute/damage the environment as home washing.
• The wastewater after cleaning a vehicle is usually dirty. It may also contain pollutants and contaminants, such as "soap, detergents, residue from exhaust fumes, gasoline, heavy metals from rust, and motor oils." Therefore, when someone washes their vehicle in the driveway and streets, the polluted water is usually discharged to nearby storm drain systems, which might flow into creeks, lakes, rivers, or streams, degrading the water quality and harming wildlife.
• In addition, the phosphates found in soap make the algae in water grow rapidly and excessively. The Forest Hills Spa article states, "excessive algae smell bad, look bad, and harm water quality." And as algae decay, it consumes up the oxygen the aquatic life depends on.
• Car owners are encouraged to take their cars to be washed at commercial car wash facilities. This is because the facilities are required by the law to treat the wastewater to reduce its pollutants before it can be discharged into the storm drain systems. Other commercial car washes recycle their wastewater. In addition, most full-service car washes discharge their wastewater into the sanitary sewer instead of storm drains to avoid polluting the environment.

 

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3. Water Usage

• According to Forest Hills Spa, "the average homeowner uses 116 gallons of water to wash a car! Most commercial car washes use 60 percent less water for the entire process than a homeowner uses just to rinse the car."
• Commercial car wash facilities use about 38 gallons (148 liters) of water to clean one vehicle. The car wash industry considers this "an environmental hazard," which is also why it's pushing for "green car wash solutions."

Usage of Water, Depending on the Car Wash Type

[i] Friction in-bay automatic

• Each facility uses about 35 gallons of water per vehicle. 
• Per day, one friction in-bay automatic washes approximately 100 vehicles. Therefore, it uses about 3,500 gallons of water per day, which equals 105,000 gallons per month and 1.26 million gallons per year.

[ii] In-bay automatic wash

• This type of wash uses high-pressure touchless method, which uses about 70 gallons per vehicle. 
• Per day, each facility washes approximately 100 vehicles. Therefore, it uses about 7,000 gallons of water per day, which equals 210,000 gallons per month and 2.52 million gallons per year. 

[iii] Tunnel car wash

• Tunnel car wash is fitted with many high-pressure applicator gizmos that use about 120 gallons of water per vehicle.
• Each day, one tunnel car wash can clean about 400 vehicles. Therefore, it uses about 48,000 gallons of water per day, which equals 1.44 million gallons per month and 17 million gallons per year.

Research Strategy

Market Size

Calculations

• The average revenue per car wash = [Total US car was market size [measured in revenue] in 2022/total number of car washes in the US in 2022]
• Therefore, the average revenue per car wash = [USD 14,741,700,00/67,163] = USD 219,491 per car wash.

Insights