All you need to know about extremly dynamic and highly profitable car wash industry
Updated: Feb 15
The car wash industry is extremely dynamic not only in the Philippines, but around the world. This type of service has grown significantly in recent years, increasing its potential every year. No wonder, the number of cars is undoubtedly growing. This is why car wash business is full of exciting opportunities for entry and innovation.
Car Wash Industry is literally a billion-dollar business
9 Important facts and statistics about the modern car wash business you should know
You will be very surprised how many owners have entered the car wash business only recently.
Similarly, you will probably be very shocked to learn how much car wash generates revenue each year.
The number of vehicles in operation is truly increasing worldwide, so it is expected that vehicle washing will experience a great boom in the coming decades.
Read on to learn more about some of the most stunning facts and statistics that cause these remarkable trend. Perhaps this will be your opportunity to make a decision to invest in your ideal business. Enter to the car wash industry which is in last 10 years higly profitable around the world.
1. The number of vehicles in the Philippines is growing every year linearly
The growth in the number of vehicles means an increasing demand for all kinds of services related to operation and maintenance. Currently, the number of vehicles registered in the Philippines is growing by 1.2 million per year. These are potential new customers who will also use car wash services. The charts below summarize the trend in the number of vehicles registered between 2007 and 2018. Source: www.ceicdata.com | LTO - Land Transportation Office.
Source: www.ceicdata.com | LTO - Land Transportation Office.
PREDICTION 2019 - 2020; Source: www.ceicdata.com | LTO - Land Transportation Office.
The total number of vehicles in the Philippines cannot be ascertained. However, it can be assumed that it could be up to 20 million vehicles.
Given that a significant proportion of vehicles are various commercial vehicles, trucks and buses, carwash operators will clearly benefit if their technology and services will also offer services to these potential customers.
2. The value of the Philippines market - car wash industry (2019 - 2020)
The figures below show that the car wash industry is certainly a low-risk and highly profitable business. The return on investment is important for investors and the car wash industry gives them almost 100% confidence in this matter. However, this does not apply to conservative vehicle washing methods, which for the realization of washing service take up a lot of time (eg hours). An innovative technological solution is needed to allow very fast, high-quality and environmentally friendly washing of vehicles with low water consumption and of course friendly staff. Such technologies are already available and allow the car to be washed in 5-7 minutes. In that case, the car wash business is simple and more than highly profitable.
In fact, the value of the car wash industry market in the Philippines is probably much higher, since we do not know the exact number of vehicles.
3. Market value of car wash in USA
The Car Wash market is of course disproportionately larger in the USA and for the provision of services are used technologically advanced car wash units, which we will soon see also in the Philippines. What is worth noting on the chart is primarily a linear increase. This increase is related to the increase in vehicles. So we can say that the more cars in the market, the more the car services market is growing (direct proportion).
The value of the USA car wash market increased by $ 3.34 billion from 2009 to 2019, roughly 40%. A similar trend is also taking place in Europe and many other countries around the world.
4. How many operators of technologically advanced car washes on the market of the Philippines can prosper?
We can boldly say many. The technologically advanced Car Wash business is one of the few ways of doing business that has low operating costs. They range from about 16% to a maximum of 35%, because automatic control system is ensuring the entire car wash process. Therefour a great savings are made notably on the volume of water and cleaning chemistry, as well as of special polymer wax used. Washing is carried out by a worker who is able to wash one vehicle in a few minutes after training and short practice. Therefore, electricity consumption is not high either.
Modern technology for car wash stations
For a comfortable and profitable business, thousands of car wash operators will be successful in the Philippines market. There will be a certain advantage for those who decide to be one of the first to start a car wash business with technologically advanced units. Because they will have a choice of strategically important places (near busy roads, at shopping centers, or at existing gas stations, for example).
Existing conservative car wash operators will also be able to innovate their solutions and turn them into powerful and technologically advanced, which will greatly increase their profits and take their business to a much higher level.
5. Modern car wash technologies are ready to wash any vehicle
One of the indisputable advantages of a new generation car wash is the ability to wash any vehicle. From motorbikes and tricycles, through ordinary cars, vans to trucks and buses. This improves the profitability of the car wash and increases the circle of customers, as it has not been possible so far. Until now, conservative car washers have enabled mostly only conventional cars to be washed.
Return on investment is one of the important factors for any investor and in any project. Modern technological units that have spread worldwide over the past fifteen years are more expensive than conservative car washes. But return on investment is possible in only 3 to 6 months under certain circumstances. This is a big plus for investors. This means that after six months, it is possible to generate great profits and capitalize on the investment in a way that few other projects could do. It's hard to imagine people suddenly stop washing their cars.
7. Convenient and simple business
There is another very attractive thing about modern car washes, which can be of interest to investors. It is an undertaking which does not require significant operational effort. Once the carwash station has been built, all you need to do is take care of the car wash staff and refill the necessary detergents and waxes. However, this is usually done by a specialized supplier company on behalf of the operator. It is also necessary to ensure a continuous supply of water and electricity. So it is an operation that has undemanding logistics and simple human resources management.
8. Car Wash Station - Local Business
And one more significant advantage, car wash is a business at the local level. Therefore, it does not require special, for example nationwide marketing campaigns. Marketing needs to be conducted locally in order to get customers to use the services at the closest washing station that provides modern services in a modern environment at a fair price. Over the years, it is appropriate to prepare loyalty programs for customers (eg 10 washes and one for free, etc.). It's simple, easy and functional.
9. As a result of the above factors, many new entrepreneurs have been established in many countries around the world over the past 15 years, who have been very successful in the car wash industry.
A professional, technologically advanced car wash that has only 2 compartments generates an average annual profit ranging from $ 320,000 to $ 650,000. A carwash with 4 compartments can then generate double the profit. Car wash is therefore a very popular way of doing business that can safely capitalize on your investment.
More about Franchise car wash business opportunity.