Car Wash Market Insights

How Car Washes are Developing to Meet Increased Demand

The speed and convenience provided by car washes has increased the expansion of these properties across the nation. Currently, full-service facilities make up the greatest amount of the car wash market nationally. Their popularity is attributed to the efficiency of the customer going through the wash bay, and the opportunity to clean the vehicle’s interior after the wash.

It is common to see areas in suburban locations across the U.S. that boast signs advertising car washes opening soon. Express car wash properties began to expand prior to the pandemic, and these facilities have not stopped growing. Their popularity is the result of the convenience they offer consumers.

The high interest rate environment has not been a stopping point for car washes, with revenue increasing at an expected CAGR of 5.1%. This upward momentum led to an estimated value of $19.8 billion through Q3 2024. Due to the uptick, this has led to a notch of 22.3% in profit.

There are currently 60,000 car wash locations in the U.S. Due to the rise in these properties, the Census Bureau estimates this sector is expanding at about 7% annually. With the sector noting increases in demand, new trends have emerged to support car wash growth.

Car Washes Meet Modern Transformation

While washes used to take almost an hour for a consumer to complete, technology aided in shifting the process to conveyor-style washes. With this innovation, washes now take around 10 minutes entirely to finish.

Express car wash models are currently growing at the fastest rate, compared to other types of washes. This type of wash takes around three to five minutes, and offers convenience to consumers as there is minimal interaction with other people.

To further benefit these new models, operators began to add subscription-based memberships that boosted revenue and increased customer loyalty. In a report from Raymond James, Sean McBride, senior vice president at Sonny’s Car Wash Factory, stated “Car wash subscriptions quietly eclipsed over $1 billion in revenue not too long ago and continue to grow in popularity.”

New Ways to Aid Construction Development Nationwide

With increased competition for car washes, operators have begun to search for new ways to facilitate opening their property. One method operators can use is modular construction. This outlet involves a building that is created in a factory and is then shipped to the actual building site. During the creation process, the electrical and plumbing systems are built out so the pieces are ready to assemble upon delivery to the car wash.

Modular construction is beneficial because operators can start work on the actual building while the development site is being prepared. This allows for less construction time, which also leads to less stress on the operator when getting construction permits.

The growth of AI has also made its way into car wash properties. One way that operators can utilize AI is to find optimal locations that will best serve the needs of their customers. When operators take advantage of AI in this way, they are able to see market traits, demographics, and consumer preferences to properly place their next location.

Not only does AI help in setting up a new site, but it can also aid in improving the business model of the car wash. The technology can be used to create employee schedules, analyze employee performance, and monitor equipment. Its use in equipment monitoring is especially significant as it can monitor cars moving through the wash bay in order to prevent accidents. It can also be used as an outlet to verify equipment is up-to-date and ensure repairs are done on time.

Innovative Outlets to Increase Customer Satisfaction

Operators have also been on the hunt for new ways to keep customer activity positive, while also keeping their property successful. To target customer preferences for different vehicles, operators can place a variety of sensors in the wash bay to ensure the best clean possible. One example of these sensors is the IQ2.0 Touch Free and Soft Touch systems. This specific kind of system is favorable because it targets the different features of the car, such as the location of the hood and wheels, to ensure the entire vehicle is getting cleaned properly. It is beneficial for all customers because the size of the car doesn’t impact the wash, so any vehicle can go through the wash bay with these sensors for the best clean possible.

Following the trend of cashless transactions in other retailers, some car wash owners have opted to stop using cash in their business models. According to a survey conducted by Visa, 65% of small- to medium-sized businesses noted customers spent more when using cards instead of cash. For the car wash sector specifically, this will ensure a positive experience for the customer moving forward. This is especially beneficial for car wash sites as it allows for a quicker transaction before the car goes in the wash bay.

Recent Sales Activity Across the U.S.

So far in 2024, portfolio sales have noted high transaction volume nationally. In April, Essential Properties Realty Trust noted a large portfolio transaction of four WashU sites, leading to a sale of $18.4 million in the Chicago market.

WashU Locations:

• 8400 S. Cicero Ave., Burbank, Illinois
• 13727 S. Route 59, Plainfield, Illinois
• 780 N. Addison Rd., Villa Park, Illinois
• 360 Lee St., Des Plaines, Illinois

Meanwhile in California, Progressive Real Estate Partners notched a portfolio sale of four different car washes in the Inland Empire this September. The price was not disclosed, but the properties are located in Apple Valley, Hesperia, Pomona, and San Bernardino.

• Apple Valley Auto Spa – 10570 Bear Valley Rd., Apple Valley, California
• G Car Wash – 16575 Bear Valley Rd., Hesperia, California
• Pomona Express Car Wash – 506 West Orange Grove Ave., Pomona, California
• Happy Boy Car Wash – 1250 East Highland Ave., San Bernardino, California

Texas and Oklahoma Car Wash Properties

Oklahoma Car Washes

• Oklahoma Market Size: $184.2M
• Car Washes in Oklahoma: 869
• Oklahoma Industry Employment: 2,602

Tommy’s Express Car Wash

With 12 locations in Oklahoma and many across the country, this operator noted the highest number of visits in the Oklahoma City metro. Its facility at 5920 SE 15th St, Midwest City noted over 200,000 visits in the last 12 months. This number of visits totals about 47,000 visitors, with an average dwell time of 11 minutes.

Texas Car Washes

• Texas Market Size: $2.3B
• Car Washes in Texas: 5,458
• Texas Industry Employment: 25,444

Car Wash Developments in Texas

New car wash operators have made their way to Texas with the expansions of WhiteWater Express and Quick Quack Car Wash. WhiteWater opened a location in Orange, Texas, as well as Bellmead, Texas. With these two openings, WhiteWater now has 57 locations in Texas.

Quick Quack’s new location in Brownsville, Texas is the first for the metro, but there are more planned for the area. Now that the location in Brownsville is open, this brings the number of Quick Quack facilities in Texas to 50 overall.