Vehicle Wash System Market to Grow at an Estimated CAGR of 7% During the Forecast Period 2022-2030

06 Jul 2022

The global market for vehicle wash systems is projected to grow at a CAGR of 7% during the forecast period of 2023 to 2030. As a result of increased spending power, a number of people who own automobiles are looking for maintenance and repair services, and they prioritise speed and convenience. They have decided to go with an automated vehicle wash system rather than a conventional vehicle wash. Because of this, a new fad known as "Do-it-for-Me washing" has emerged. In addition, as people become more conscious of the need to protect the environment, they are more likely to select service providers who provide environmentally friendly options among their available services. Developed nations have a significant presence in the market for the vehicle wash system. Consumers are compelled to wash their vehicles at a professional wash facility as a direct result of stringent legislation pertaining to environmental pollution. For instance, the laws and rules concerning the washing of cars in Germany are rather strict. In the case of a professional wash facility, wastewater is treated and recycled; on the other hand, a significant amount of water is lost in the case of a car wash performed in a private residence.

The hybrid vehicle and the touchless car washing system are two of the most important innovations that are going to take the worldwide market to an entirely new level in the not-too-distant future. Such innovations are reviving the automotive industry and therefore the vehicle washing systems market. When using an automatic car washing system, the driver simply needs to park their vehicle in the designated area before the equipment begins the washing process. This eliminates the need for any human intervention. In the next years, it is anticipated that sales of automatic vehicle washing systems will increase at a rapid rate. This is due to the fact that these systems are considered to be the one-stop facility that are used for cleaning the interior as well as the exterior of vehicles.

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Ready-to-go membership platforms are being released by a variety of companies, some of which are already well-known while others are just getting started. For instance, in May 2023, Tommy Car Wash Systems, which is situated in the United States, introduced Direct Service Program, which is its most recent subscription-based maintenance programme. Customers will be offered routine maintenance work by the company in an effort to reduce the amount of time a wash is unavailable for use. As a result, the introduction of comparable ground-breaking projects by significant companies is expected to contribute to growth.

The primary factor driving growth in the vehicle wash system market is the increasing demand from consumers for quick vehicle washing services. Because it is both time and money efficient, automatic car washes are becoming increasingly popular among consumers, who are responding by increasing their demand for these services. The adoption of vehicle wash systems in dealerships and garages results in a reduction in the number of resources used and the amount of time the vehicle spends in the bay. Because of the relatively low amount of water that is consumed by the vehicle wash systems, garages are increasingly gravitating toward using them. The vehicle wash system market is being driven by a rise in the affordability of consumer goods as well as an increase in the number of vehicles on the road. Automated car washing systems are not only practical but also entail specific, well-defined steps. When the vehicle is washed by hand using traditional methods, the shine and finish of the vehicle are both damaged. The market for vehicle wash systems is anticipated to expand as a result of rising consumer awareness as well as rising requirements for vehicle maintenance in order to preserve a high resale value for the vehicle.

Both the initial purchase price and the ongoing maintenance cost of vehicle wash systems are quite high, which is one of the primary factors that is retraining the market. The growth of the market is being hampered by a number of factors, the most significant of which are the fluctuating prices and the demand-supply imbalance in components that are essential in the development of car wash systems. The industry still needs to make significant progress in conquering the culture of hand-washing. Additionally, the availability of a number of counterfeit car wash systems that are sold at lower prices presents obstacles to the expansion of the market. The emergence of COVID-19 has a devastating impact on the car wash system sector. System developers were confronted with a variety of challenges, including shortages of raw materials, components, and labour; problems with flawless deliveries of end-use solutions; and issues caused by disruptions in supply chains. In addition, several washing centres and car washes were forced to postpone their intentions to invest in cutting-edge equipment and solutions as a result of the stringent lockout rules. In spite of this, the market for vehicle wash systems is quickly returning to normal, as seen by the consistently growing demand. As a result of the lifting of the lockdown, it is anticipated that many countries' market revenues would begin to improve.

The market for vehicle wash systems is segmented into two categories based on process, cloth friction car wash and contact less car wash. The touchless car wash system has a small footprint and a competitive price point. However, the touchless car wash system is a time-consuming operation that uses pressured jets to remove dirt from the vehicle. Because it offers superior cleaning and more expedient service, the cloth friction car wash system is anticipated to expand at a significant growth rate in the coming years.The market for car wash systems by vehicleis segmented as automotive, railways, aerospace, Off highway vehicles. The automotive segment that includes commercial and passenger vehicles dominated the market with 35% of market share in 2021. When it comes to revenue, the passenger car segment of the vehicle wash system industry accounts for a significant portion of the overall market.

The original equipment manufacturer (OE) segment and the aftermarket (aftermarket) segment are also analysed in the vehicle wash system market report. Because of an increase in the number of new purchases made by auto dealers and workshops, the original equipment (OE) segment held a larger share of the market. With respect to system type,the roll overs segment of the market accounted for 35% of the total market share in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 6% between the years 2023 and 2030. Full-service vehicle wash systems have become increasingly popular among operators as a result of the growing demand from customers for environmentally friendly and automated solutions. Because it comprises a predetermined cleaning technique and fixed expenditures, automated car washes or full-service car washes are typically fifteen times more profitable than the self-service system.

North America contributes the maximum to the expansion of the automatic vehicle washing system market. This increase can be seen in both the United States and Canada. It is anticipated that an increase in consumer expenditure on leisure and comfort will bode well for the industry in the U.S.Another important factor that is expected to play a significant role in accelerating growth in the region is the high demand for on-demand vehicle wash platforms. It is anticipated that an increasing number of customers will turn to websites or mobile applications for car washes in order to obtain faster service and greater convenience, which will drive the market. It is also anticipated that an increase in the use of cutting-edge car wash equipment in North America will contribute to the expansion of the market. In number of nations including the United States of America, the United Kingdom, Russia, and Poland, have adopted rigorous regulations to ensure that automobiles are kept clean and in order. These countries also make it illegal for individuals to wash their vehicles in residential areas or on private property. This is done to prevent toxins from automobiles from entering drainage systems. The global market for vehicle washes is being propelled forward by the existence of a supportive regulatory environment. In the coming years, it is anticipated that Asia Pacific will continue to hold a considerable share on the global market for automatic vehicle washing systems. It is projected that an increasing number of car dealers and automotive repair shops across rising economies like India and China will boost regional market growth.

The nature of the global market is that it is extremely competitive, with significant amount of domestic and international companies operating in this segment. The vast majority of the key players are placing an increasing amount of emphasis on strategies to improve their product portfolios all over the world. These strategies include the development of novel manufacturing facilities, acquisitions, and mergers.In the meantime, some of the other businesses are expanding their geographic presence by constructing new service centres in areas that have not yet been exploited. This is done in an effort to generate a large revenue share in the market. Key market players include Ryco Solutions, Inc., Coleman Hanna, Autec, Inc., Wash Tec Group, AquaramaS.r.l., Sonny's Enterprises LLC, PDQ Manufacturing, Inc., and Otto Christ AG and others.

Key Market Trends

  • The global market for vehicle wash systems is projected to grow at a CAGR of 7% during the forecast period of 2023 to 2030.
  • Because it offers superior cleaning and more expedient service, the cloth friction car wash system is anticipated to expand at a significant growth rate in the coming years.
  • The automotive segment that includes commercial and passenger vehicles dominated the market with 35% of market share in 2021. When it comes to revenue, the passenger car segment of the vehicle wash system industry accounts for a significant portion of the overall market.
  • Because of an increase in the number of new purchases made by auto dealers and workshops, the original equipment (OE) segment held a larger share of the market.
  • With respect to system type, the roll overs segment of the market accounted for 35% of the total market share in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 6% between the years 2023 and 2030.
  • North America contributes the maximum to the expansion of the automatic vehicle washing system market.
  • The nature of the global market is that it is extremely competitive, with significant amount of domestic and international companies operating in this segment.
  • Key market players include Ryco Solutions, Inc., Coleman Hanna, Autec, Inc., Wash Tec Group, AquaramaS.r.l., Sonny's Enterprises LLC, PDQ Manufacturing, Inc., and Otto Christ AG and others.
ATTRIBUTE DETAILS
Research Period  2020-2030
Base Year 2021
Forecast Period  2023-2030
Historical Year  2020
Unit  USD Million
Segmentation

 By System (2020-2030; US$ Mn)

 By Process (2020-2030; US$ Mn)

 By End User (2020-2030; US$ Mn)

 By Sales Channel (2020-2030; US$ Mn)

 Region Segment (2020–2030; US$ Mn)

 Global Impact of Covid-19 Segment (2020-2021; US$ Mn )

*Complete segmentation list is on report page

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