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Research Outline
Prepared for Bryan R. | Delivered June 17, 2020
Car Washing Industry
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Goals
To provide an overview of teh US car washing industry.
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Early Findings
Car Washinh Industry in the US
According to a report conducted by the ICA in 2020, the US is the biggest player in the car washing industry, reaching over
$15 billion
in revenue in 2019.
There are over
62,000 car washe
s in the US, with in-bay automatic car washes (over 17,000) being the most numerous in the US.
The market in the US is
highly fragmented
, as the majority of the car washes are owned and operated by small to medium-sized independent car wash companies. The biggest company in the US holds just a 2% market share of the market.
T
h
e
biggest car washing services in the US include
Autobell Car Wash
, Mister Car Wash, Zips Car Wash, and Car Wash Group.
Despite that, there are over
2 billion cars
that are washed in the US every year.
In fact, the penetration of car washing has increased tremendously in the last 20-25 years, going from
48% to 77%
in 2019.
However, car washes in the US seem to be under a lot of
stress from stringent government
regulation about water and chemical use.
While we weren't able to specifically determine whether the majority of car washes offer only normal flat-fee payments, we were able to find that
subscription services
can be extremely beneficial to car washing services to attract new customers, which suggests that there are at least a few companies that have used the subscription model and have been successful.
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