Cleaning up: A high level of car ownership and environmental concerns have boosted demand

The Car Wash and Detailing Services industry has grown steadily over the past five years, supported by consumers' increasing environmental awareness regarding the high water consumption and potential pollution involved in washing vehicles at home. Demand for industry services has also benefited from new car owners being willing to spend more on washing and detailing their vehicles.Over the five years through 2016-17, industry revenue is expected to grow by an annualised 2.8%, to reach $558.9 million. Revenue is expected to rise by a further 2.3% in the current year as growth in the volume of new car sales and rising household discretionary income continue to support the industry's more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies

Industry Report - Starting a New Business Chapter

The industry's barriers to entry are moderate. Initial capital investment is the biggest impediment to potential players. The industry's largest player, Magic Hand Car Wash, operates a franchising model with the average set-up cost estimated to be over $200,000. However, set-up costs vary significantly depending on the type of service offered, with mobile service providers facing much lower franchise fees (e.g. Car Care and Geowash). The mobile and self-service segments are significantly less capital-intensive than the highly automated conveyor tunnel and in-bay automatic car wash segments.Barriers to entry relating to skills, inputs and regulation are minimal. Most workers in the industry are relatively unskilled. New...purchase to read more.

Additional Insights for the Car Wash and Detailing Services Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Car Wash and Detailing Services Industry are

  • Business expertise of operators
  • Proximity to key markets
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicles and Real household discretionary income in the Car Wash and Detailing Services industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Car Wash and Detailing Services Industry?

    Industry operators primarily wash, wax and detail automotive vehicles, including passenger cars, trucks, vans and trailers. The industry excludes companies that predominantly provide automotive repair and maintenance services.

    Industry Products
  • In-bay automatic car washes
  • Self-service bays
  • Conveyor tunnel washes
  • Manual car wash and detailing services
  • Mobile car wash and detailing services
  • Industry Activities
  • Automotive and trailer washing
  • Automotive and trailer detailing (cleaning, polishing and waxing)
  • Self-service car washes
  • Mobile car washes
  • In-bay automatic car washes
  • Conveyor tunnel car washes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicles
  • Real household discretionary income
  • Availability of water
  • Average weekly hours worked
  • Average age of vehicle fleet

  • Current Performance
  • Industry participation
  • Water restrictions
  • Environmental awareness
  • New car sales
  • Outsourcing tasks
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand constraints
  • Environmental awareness
  • New car sales
  • Table: Car Wash and Detailing Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car Wash and Detailing Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Dealers
  • Taxi and Limousine Transport
  • Consumers

  • Key Selling Industries
  • Soap and Cleaning Compound Manufacturing
  • Water Supply

  • Products & Services
  • Self-service bays
  • In-bay automatic car washes
  • Manual car wash and detailing services
  • Conveyor tunnel washes
  • Mobile car wash and detailing services
  • Chart: Car Wash and Detailing Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households in the highest income quintile
  • Private sector
  • Households in the fourth income quintile
  • Households in the third income quintile
  • Households in the second income quintile
  • Government sector
  • Households in the lowest income quintile
  • Chart: Major Market Segmentation for the Car Wash and Detailing Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Car Wash and Detailing Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car Wash and Detailing Services Industry

  • Industry Globalization
    Magic Hand Car Wash Franchisor Pty Ltd,
  • Table: Magic Hand Car Wash Franchisor Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Car Wash and Detailing Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Car Wash and Detailing Services Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Conveyor Tunnel Wash
  • Tunnel washes use a conveyor to move the vehicle through a series of fixed cleaning mechanisms.
  • Detailing
  • The cleaning, polishing and waxing of the outside and inside of a motor vehicle. It can also include rejuvenating the vehicle's surfaces.
  • In-Bay Automatic Car Wash
  • A type of car wash where the vehicle remains stationary while an automatic machine cleans it.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Car Wash and Detailing Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Car Wash and Detailing Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Car Wash and Detailing Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Car Wash and Detailing Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.