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Car Wash and Detailing Services in Australia - Market Research Report (2014-2029)

Andrew Ledovskikh Andrew Ledovskikh Melbourne, Australia Last Updated: February 2024 ANZSIC OD5235

Revenue

$591.0m

2024-25

$599.3m

Past 5-Year Growth

Profit

$XX.Xm

Employees

3,401

Businesses

1,733

Wages

$XXX.Xm

Car Wash and Detailing Services in Australia industry analysis

Revenue for the Car Wash and Detailing Services industry is expected to decline at an annualised 2.4% over the five years through 2023-24, to $591.0 million. This decline can largely be attributed to economic disruptions due to the COVID-19 pandemic, as restrictions on movement and gatherings limited industry demand over the three years through 2021-22. High inflation and rising interest rates are expected to lead to a significant drop in consumer spending power over the two years through 2023-24, contributing to an estimated 2.2% drop in industry revenue for the year. Higher cleaning compound costs are also expected to contribute to a drop in margins, as input costs rise and revenue falls.

Trends and Insights

  • High inflation and rising interest rates are weighing on industry demand. Eroding consumer spending power is expected to cause a decline in revenue as consumers switch from higher priced specialty services to cheaper basic car washes.
  • The Federal Government and a tight labour market are incentivising a transition to automated and self-serve car washing services. Tax incentives for capital investment during the COVID-19 pandemic have encouraged many firms to move away from labour-intensive manual car washes.
  • The industry first developed in Victoria. The state's high rate of vehicle ownership and population density have meant it has long been over-represented in terms of its share of car wash and detailing businesses.
  • The small scale and diversity of service offerings limits market share concentration. The industry is highly fragmented, offering a range of automatic, self-service and mobile car washing services.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 2.4 % over the past five years, to reach an estimated $591.0m in 2024.

Trends and Insights

Lockdowns and restrictions disrupted car wash operations

  • Lockdowns and restrictions related to the COVID-19 pandemic limited car washes’ ability to continue operating in 2021-22, contributing to the biggest revenue contraction in over a decade. Many car washes had to close and those that remained open had reduced sales due to customers limiting their movements.
  • Additional trends and insights available with purchase
Car Wash and Detailing Services in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Rising environmental consciousness and motor vehicle numbers will create a stable base for revenue growth

  • Environmental consciousness among consumers is forecast to continue growing, with discussions of the impacts of climate change and the importance of water conservation. Federal Government efforts to hit the Paris Agreement targets and the rising prevalence of private sector sustainability targets and environmental initiatives is forecast to drive growing awareness of environmental issues.

Biggest companies in the Car Wash and Detailing Services in Australia

Company
Market Share (%)
2024
Revenue ($m)
2024
Magic Hand Car Wash
38.0
Mpower Franchising Pty Ltd
18.5
Coles
18.4

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Car Wash and Detailing Services in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including In-bay automatic car washes, Self-service bays and Conveyor tunnel washes. In-bay automatic car washes is the largest segment of the Car Wash and Detailing Services in Australia.

Trends and Insights

Automatic car wash services fared better during the COVID-19 pandemic

  • Automatic car wash services include in-bay automatic car washes, using either friction or touch-free methods, and conveyor tunnel washes, where the vehicle is pushed through a series of stationary cleaning devices.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry operators primarily wash, wax and detail automotive vehicles, including passenger cars, trucks, vans and trailers. The industry excludes companies that predominantly provide automotive repair and maintenance services.

What's included in this industry?

In-bay automatic car washesSelf-service baysManual car wash and detailing servicesConveyor tunnel washesMobile car wash and detailing services

Companies

Magic Hand Car WashMpower Franchising Pty LtdColes

Purchase this report to view all 4 major companies in this industry.

Related Terms

DETAILINGIN-BAY AUTOMATIC CAR WASHCONVEYOR TUNNEL WASH

Industry Code

ANZSIC 2006

ANZSIC 9412 - Car Wash and Detailing Services in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

High inflation and rising interest rates are weighing on industry demand. Eroding consumer spending power is expected to cause a decline in revenue as consumers switch from h...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The Federal Government and a tight labour market are incentivising a transition to automated and self-serve car washing services. Tax incentives for capital investment during...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The industry first developed in Victoria. The state's high rate of vehicle ownership and population density have meant it has long been over-represented in terms of its share...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The small scale and diversity of service offerings limits market share concentration. The industry is highly fragmented, offering a range of automatic, self-service and mobil...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The COVID-19 pandemic hit hand car washing services hardest. Hand car washes offered greater risk of exposure to the virus and were often forced to close during lockdowns and...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Magic Hand Car Wash's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Mpower Franchising Pty Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Coles's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Magic Hand Car Wash, and factors influencing its performance in the industry
  • Description and key data for Mpower Franchising Pty Ltd, and factors influencing its performance in the industry
  • Description and key data for Coles, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The industry uses self-regulation to promote its environmentally friendly credentials. The Smart Approved WaterMark and Water Safety Rating programs help car washes encourage...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Federal government policies like instant asset write-offs and accelerated depreciation schemes have incentivised investment in automated car wash services. This has led to de...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Car Wash and Detailing Services industry in Australia in 2024?

The market size of the Car Wash and Detailing Services industry in Australia is $591.0m in 2024.

How many businesses are there in the Car Wash and Detailing Services in Australia industry in 2024?

There are 1,733 businesses in the Car Wash and Detailing Services industry in Australia, which has declined at a CAGR of 0.4 % between 2019 and 2024.

Has the Car Wash and Detailing Services industry in Australia grown or declined over the past 5 years?

The market size of the Car Wash and Detailing Services industry in Australia has been declining at a CAGR of 2.4 % between 2019 and 2024.

What is the forecast growth of the Car Wash and Detailing Services industry in Australia over the next 5 years?

Over the next five years, the Car Wash and Detailing Services industry in Australia is expected to grow.

What are the biggest companies in the Car Wash and Detailing Services market in Australia?

The biggest companies operating in the Car Wash and Detailing Services market in Australia are Magic Hand Car Wash, Mpower Franchising Pty Ltd and Coles

What does the Car Wash and Detailing Services in Australia include?

In-bay automatic car washes and Self-service bays are part of the Car Wash and Detailing Services industry.

Which companies have the highest market share in the Car Wash and Detailing Services in Australia?

The company holding the most market share in Australia is Magic Hand Car Wash.

How competitive is the Car Wash and Detailing Services industry in Australia?

The level of competition is high and steady in the Car Wash and Detailing Services industry in Australia.

Related Industries

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.