As of 2023, there were 58,938 car wash and auto detailing businesses in the United States, which is a 4.8% increase from 2022. This is more than double the number of Starbucks and McDonald’s combined, and the industry is expected to continue growing, with some estimates predicting it will double by 2030.
Grandview Research: The U.S. car wash services market size was estimated at USD 15.21 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.7% from 2023 to 2030.
The growing consumer focus on vehicle maintenance, as well as damage caused to the car body due to bird droppings, dirt, acid raindrops, particulate matter, and salt deposits during the winter months have increased the demand for car wash services in the U.S. The COVID-19 outbreak significantly impacted the business of car washers in the country.
A survey conducted by Womply, an auto wash and detailing company in the U.S., suggested that their weekly revenue dropped by 48% in April 2020 as compared to the same period in 2019.
Additionally, in the week of March 16, 2020, the weekly revenue dropped by 53%, as compared to the same period in the preceding year. This led to many car washing operators providing free vehicle disinfection services, and value-added services to stay ahead in the competition. For instance, seven Southern California carwashes reopened in May 2020, included free vehicle disinfection service to help customers safeguard themselves from the virus.
The demand for car washing in the region has surged, especially in the last decade. This can be attributed to enhanced convenience along with a wide range of service packages as well as affordable alternatives. Due to strict environmental standards that prohibit household car washing methods, the need for professional car cleaning services is expected to rise.
As purchasing power of consumers increases, their attention toward regular vehicle maintenance will keep growing. Moreover, many consumers can’t find time to wash their cars themselves, owing to hectic schedules.
SEKO, a car washing service provider reports that more than 80,000 professional car washing establishments are located in North America. More than 8 million vehicles are washed at car washing establishments each day. In North America, more than 2 billion cars are washed every year.
According to a blog by DetailPro published in May 2021, in the U.S., 66% of people wash their cars 13 times a year on average. According to this, there are typically one or two washes per month. More than 70% of car owners switched to car washing facilities from handwashing in the last decade.
Read more of this article by Grandview Research.
Car wash businesses can be profitable, with revenue and profit margins varying significantly based on the type of car wash (self-service, automatic, full-service, or mobile) and its operational efficiency. Self-service car washes can generate around $40,000 to $100,000 annually, while full-service washes can earn $500,000 to $900,000, according to Car Wash Advisory and National Carwash Solutions. Operating profit margins for car washes generally range from 14% to 26%, but can be higher for some model
Also see: Car Wash Glossary of Terms
