Car Wash Industry: Market Size and Growth Trends

This article was written by our expert who is surveying the industry and constantly updating the business plan for a car wash.

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the car wash market.

What is the current global market size of the car wash industry (revenue)?

The car wash industry is a ~USD 36–39 billion global market in 2025.

Independent trackers place 2024 around USD 34.3B and show a step-up into 2025 on the back of continued professionalization and subscriptions. For a launch model, assume your country’s share by vehicle parc and penetration, then cross-check with local market audits.

North America contributes the largest slice, followed by Europe and fast-rising Asia–Pacific; Latin America and MEA remain smaller but accelerating. In practice, site-level revenue depends most on throughput (cars/hour), pricing, and mix (single tickets vs. memberships).

Use a conservative midpoint (e.g., USD 37.5B) for planning, with sensitivity bands ±10% to reflect data variance across sources.

You’ll find detailed market sizing approaches in our car wash business plan, updated every quarter.

How fast has the market been growing annually over the past five years?

The industry grew about 5–7% per year over the last five years.

Growth has been healthiest in networks that scaled express/tunnel formats and memberships, which smoothed demand and lifted ARPU. Europe and North America maintained steady gains; Asia–Pacific outpaced on new-store openings from a lower base.

Underlying drivers include urban living, environmental restrictions on home washing, and payment digitization that reduces friction. Local volatility—weather, fuel prices, and construction delays—can temporarily mask the structural trend.

Model your base case at ~6% CAGR 2019–2024 and stress-test against wet-weather quarters and utility price spikes.

Get expert guidance and actionable steps inside our car wash business plan.

What is the projected CAGR for the next 5–10 years?

The global outlook is ~6.2% CAGR from 2025 to 2030, with longer-term estimates around 5–6% annually.

Asia–Pacific is projected to run above global averages (>7% in several markets), while North America and Europe expand steadily with network consolidation and technology upgrades. Environmental compliance continues to push users from at-home washing into professional sites.

For underwriting, tie your CAGR to catchment growth (vehicle parc and incomes), local water rules, and your expansion cadence (new bays/tunnels per year). Include a downside where growth moderates to ~4.5% if land or utilities tighten.

Anchor your 5-year plan to throughput and membership penetration rather than top-down CAGR alone.

We cover market growth scenarios in the car wash business plan.

Which regions or countries hold the largest market share today?

North America currently accounts for the largest share, followed by Europe and Asia–Pacific.

North America’s share is roughly 40–50% thanks to express/tunnel density and high membership adoption. Europe holds about 21% with steady upgrades driven by environmental regulation enforcement, and Asia–Pacific is expanding its share from rapid store openings.

Which markets are expected to grow the fastest?

Asia–Pacific is expected to lead growth, with several markets running above 7% CAGR.

Urban density, rising car ownership, and digital payments underpin the expansion, with China, India, and Southeast Asia frequently highlighted. Convenience formats and mobile/on-demand services add incremental volume where land is tight.

What are the main car wash service types, and how does demand differ?

Five categories dominate: tunnel/express, roll-over (in-bay), self-service, touchless, and waterless.

Roll-over/in-bay exceeds 55% of sites globally, while express/tunnel captures larger revenue where traffic density is high. Touchless and waterless surge where water scarcity and runoff rules tighten.

What is the average revenue per location, and how does it vary?

Average site revenue ranges widely: roughly USD 150,000–400,000+ per year.

Express/tunnel in dense corridors can exceed the range, while self-service or low-traffic in-bay sites sit near the lower bound. Pricing, memberships, and weather volatility drive dispersion within each region.

How has consumer behavior shifted toward professional washes vs. at-home?

• More than 70% of North American vehicle owners now use professional facilities; at-home washing continues to decline where runoff restrictions apply.
• Apartment living and limited on-site washing access push users into nearby express/in-bay sites or mobile services.
• Memberships normalize monthly spend and increase visit frequency, lifting lifetime value.
• Cashless, app-based, and LPR (license plate recognition) entry remove purchase friction and shorten queues.
• Eco expectations rise; customers reward visible water recycling and biodegradable chemicals with higher trust.

This is one of the strategies explained in our car wash business plan.

What are the major growth drivers?

• Rising vehicle ownership and urbanization increase addressable volume and density.
• Environmental rules on water use and discharge shift demand from home washing to compliant pro sites.
• Automation (express/tunnel) and digital memberships improve throughput and revenue predictability.
• Convenience retail co-location (fuel, C-store) and smart routing capture impulse demand.
• Improved chemistry and recycling lower water and energy per wash, supporting scale.

It’s a key part of what we outline in the car wash business plan.

What challenges and risks should new operators watch?

• Rising OPEX: labor, electricity, chemicals, and water—plus utility volatility and drought surcharges.
• Capital intensity: tunnels and advanced in-bay systems require significant upfront investment and permitting.
• Land scarcity and zoning near prime corridors; queue spillover and ingress/egress constraints.
• Regulatory compliance on water reclamation, effluent, noise, and chemical handling.
• Price competition and discount wars; membership cannibalization if poorly structured.

This is one of the many elements we break down in the car wash business plan.

Who are the key players and how concentrated is the market?

The market is fragmented globally; the top groups hold ~15–20% combined share worldwide.

In North America, chains and consolidators can reach ~30% share across regions; many countries remain dominated by independent operators. For entrants, fragmentation leaves room for local roll-ups and membership-led networks.

Which technologies and business models are reshaping the industry?

Automation, digitization, and eco-systems are the big levers changing throughput and margins.

Expect deeper use of apps, subscriptions, license-plate recognition (LPR), dynamic queues, and robotics in tunnels. Water recycling, touchless, and waterless reduce regulatory risk and operating costs when tuned to local conditions.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Mordor Intelligence — Car Wash Market
2. Grand View Research — Car Wash Service Market
3. Research and Markets — Car Wash Report
4. Business Research Insights — Car Wash Market
5. Future Market Insights — Car Washing Service Market
6. The Business Research Company — Global Car Wash Report
7. Technavio — Car Wash Market Analysis
8. Data Bridge Market Research — Global Car Wash Market
9. Grand View Research — APAC Outlook
10. Research and Markets — United States Car Wash Market