Americans love their cars. With nearly 270 million vehicles on the road today, it should be no surprise that the car wash industry continues to thrive, even with recent headwinds in the form of higher interest rates. Read on to learn about important car wash industry trends today, how the market is changing, and what the future holds for car wash business owners nationwide.
Overview of the Car Wash Industry
The car wash market has come a long way since its humble beginnings at Automobile Laundry in Detroit during the early 1900s. Thanks to constant innovations in technology and automation, operating a car wash continues to be lucrative. As of 2024, there are over 60,000 car washes in the United States alone. Around 208,000 people are employed at professional car washes all across America.
Market Size and Growth Projections
This booming industry continues to see growth. Despite inflationary pressures on consumers, the car wash industry remains a profitable venture for investors and entrepreneurs. According to U.S. Census Bureau estimates, revenues at car washes have climbed gradually since 2000, but when the pandemic hit in 2020, revenues began to surge at an unprecedented rate.
FAQs:
What is the future of the car wash industry?
Current projections suggest that the car wash market will reach a value of over $68 billion no later than 2031. Major drivers in the car wash industry will include leveraging emerging technologies to reduce costs, investing in environmentally friendly equipment, and providing customers with more specialized services in order to stand out in an increasingly competitive market.
Is the car wash market growing?
Yes. Although estimates vary, the compound annual growth rate (CAGR) of the car wash market is expected to be around 6.7% over the next seven years. In addition, the number of car wash employees and their annual salaries has increased since 2015, suggesting sustainable growth across the industry.
Automation in Car Wash Services
The technologies governing automatic car washes are rapidly becoming more and more sophisticated. Thanks to innovations like RFID chips, customers can have their payments processed automatically, eliminating the need for time-consuming POS payments that can increase queue times.
Connected Carwash technology leverages the internet to allow operators to manage their business remotely, with greater efficiency, consistent wash quality and better data reporting than ever before. This type of carwash management solution literally transforms carwash operations and allows mid-sized chains to scale rapidly and effectively.
Advanced sensors like sonar and LIDAR are transforming car washes by quickly profiling vehicle size, dirt levels, and water needs. This customization prevents damage, optimizes cleaning, and reduces costs for chemicals and energy.
Automated car wash systems offer numerous and substantial benefits to owners, including:
- Faster customer turnaround, thus increasing car washes per day
- A more convenient and enjoyable customer experience
- Reduced labor costs associated with guiding customers and processing their payments
- Fewer incidents or collisions, leading to less downtime
Membership Programs and Loyalty Schemes
One of the most enduring trends in car washes is the continued popularity of loyalty programs. Offering membership subscriptions has become the norm at many car washes, and for good reason. After all, customers can simply find another car wash down the street if they aren’t getting the level of service they want at the right price point. By allowing customers to pay a flat monthly fee for unlimited washes, car washes are far more likely to increase customer retention rates and ultimately gain a leg up on nearby competition.
The main advantages of membership programs include:
- Increased customer satisfaction
- Free word-of-mouth advertising
- Ability to observe consumer habits via points-based membership cards
- Predictable monthly income, even during slow seasons
Rise of Ceramic and Graphene Treatments
Ceramic and graphene coatings are transforming vehicle care with their superior protective properties. Ceramic coatings, made from liquid polymers like silicon dioxide, form a durable shield that lasts far longer than traditional wax. Their hydrophobic nature makes water bead off effortlessly, simplifying car washing and maintaining a sleek finish for months. Though the initial cost is higher, the convenience and lasting results make ceramic treatments a popular investment for car owners.
Graphene coatings, known for their ultra-thin yet incredibly strong carbon structure, take protection to the next level. When combined with ceramic, graphene enhances durability, UV resistance, and heat protection while delivering an even deeper gloss. This powerful duo resists water spots, repels dust, and prevents chips and cracks, keeping cars cleaner for longer and elevating the standard for vehicle shine and care.
Customer Tracking and Data Analytics
The ability to track customer habits and preferences through connected carwash technology, a loyalty membership card or data analytics has become essential to the success of many car washes today. This information can provide valuable insights into seasonal demand, which services people seem to prefer the most, and the types of promotions repeat customers would be most interested in learning more about.
Leveraging data analytics with cloud-based car wash management technology can also serve to improve the efficiency of your car wash. At National Carwash Solutions, our NCS Lens app provides comprehensive details regarding water, chemical and electricity usage per vehicle, allowing you to make minute adjustments depending on the specific needs of each customer. In addition, NCS Lens can be connected to your car wash’s vacuums, providing real-time updates related to filter replacement and other potential maintenance issues long before they become a problem.
Increased Competition in the Market
While only 50% of car owners sought professional car wash services in 1996, that number soared to 79% by 2021. Naturally, entrepreneurs across the country have capitalized on this growing demand, making the car wash industry more competitive than in years past. For many, offering specialized car wash services like car wash scents or branded microfiber towel services has been critical to standing out from the crowd.
Maintaining an outstanding level of service is another major factor customers consider when selecting a car wash. If your wash is older or in need of a facelift, work with NCS to Level Up Your Wash and take on the competition with your “best wash forward.”
Eco-Friendly and Sustainable Practices in Car Washes
As environmental concerns gain more attention across the country, it’s become more important for car washes to demonstrate their commitment to a greener future. Making the switch to eco-friendly, ultra concentrated chemicals will certainly help to give your car wash a more sustainable reputation, along with finding ways to reduce the carbon footprint of your car wash. Many car washes today are investing in advanced water recycling systems to lower monthly bills while simultaneously staying ahead of environmental regulations. It’s also worth looking into replacing any outdated equipment you may have with more efficient, modern alternatives.
A great example of state-of-the-art equipment that can improve the efficiency of your car wash is the T-Force Vacuum System. This cutting-edge vacuum technology is engineered to last 50% longer to minimize downtime while consuming 30% less power while in operation. Easily serviceable and made to support multiple users at the same time, the T-Force system is also connectible to NCS Lens, allowing you to monitor the health of your vacuums remotely 24/7.
Providing a Holistic Car Wash Experience
Car washes that thrive in today’s market tend to go out of their way to provide an outstanding customer experience. While this may include expanding wash options or offering more niche services, it’s also worth exploring upgrading your car wash with a few extra amenities. To cater to customers with kids, consider installing a play area in the waiting room with a TV that plays cartoons. For the adults, consider offering free snacks and coffee, or simply convert a section of your car wash into a mini convenience store that sells a few essentials.
Stay Up to Date With the Best Car Wash Solutions
At National Carwash Solutions, we provide car wash owners with the equipment, tools, and support they need to succeed in today’s highly competitive market. From aftermarket parts and expert maintenance services to comprehensive training on the most advanced car wash equipment available today, we can help you cover all the bases. If you’re ready to learn more about what NCS Wash can do for your business, contact us today to get started.
