Current and Emerging Trends in the U.S. Car Wash Industry

Introduction

The car wash industry in the United States is undergoing a dynamic transformation driven by evolving consumer preferences, technological innovation, and increasing environmental regulation. Once a fragmented sector dominated by local operators, the industry has seen rapid consolidation and expansion, with major chains scaling nationwide and new business models emerging. Advances in automation, digital integration, and water recycling technologies are redefining the modern car wash experience making it faster, smarter, and more sustainable. At the same time, growing awareness of water conservation and regulatory pressure is pushing operators to adopt greener practices. This report explores the current and future landscape of the U.S. car wash industry, highlighting key trends, major business developments, technological breakthroughs, and the regulatory forces shaping its path forward.

1. Industry Growth and Consumer Behavior Trends

The U.S. car wash industry has been experiencing steady growth, driven by convenience-oriented consumer habits and a shift away from do-it-yourself car care. Key indicators include:

• Growing Market & Participation: There are nearly 59,000 car wash and auto detailing businesses nationwide as of 2023 (up ~4.8% from 2022). Professional car washes now handle the vast majority of vehicle cleans – over 8 million cars are washed at U.S. facilities each day, adding up to more than 2 billion washes annually in North America. In fact, the share of car washes done at professional facilities jumped from about 50% in 1996 to 79% by 2021, as more than 70% of U.S. car owners have switched from home washing to using car wash centers over the past decade. Environmental regulations discouraging driveway washing (due to runoff) and consumers’ busy schedules have reinforced this shift.

• Market Size & Growth: The U.S. car wash services market was valued around $15–18 billion in the mid-2020s, with forecasts of continued robust growth. One analysis estimates the North American market (dominated ~87% by the U.S.) at $16.4 billion in 2025, projecting a ~5.8% annual growth rate through 2030. Growth is anchored by rising vehicle ownership, higher wash frequency, and business model innovations like express tunnels and subscriptions.

• Express vs. Full-Service: The industry is increasingly oriented toward express, automated car washes rather than traditional labor-intensive full-service washes. By wash format, express conveyor tunnels account for about 51% of industry revenue in North America (2024) and are expanding ~6.1% CAGR. These are the quick, exterior-only washes with fast 3–5 minute cycles and minimal staffing. In contrast, full-service (interior-exterior) washes remain a premium niche – they offer add-ons like interior cleaning and detailing, but face shrinking margins due to higher labor costs. Many operators are favoring high-throughput express models over full-serve, focusing on volume and efficiency. Even self-service bay washes have given way to the convenience of drive-through automatics in many markets.

• Subscription “Unlimited” Programs: A major behavioral shift is the popularity of monthly subscription wash programs. These memberships (often “unlimited wash” clubs) convert occasional customers into frequent users for a flat monthly fee. For example, industry leader Mister Car Wash’s Unlimited Wash Club surpassed 2.1 million members by late 2024, contributing about 75% of the company’s wash revenue. Overall, subscription models are the fastest-growing revenue segment – membership sales in North America are growing ~5.9% annually. Consumers value the convenience and cost savings of unlimited plans, while operators benefit from steady, predictable income. This model, enabled by tech like license plate recognition for quick check-ins, has proven so successful that at one major chain 72% of all wash sales now come from unlimited-plan members.

• Convenience and Frequency: American drivers are also washing their cars more frequently than in decades past. Surveys indicate the average U.S. driver washes their car about 13 times per year (roughly monthly). Busy lifestyles and higher vehicle values (with owners wanting to protect their car’s finish) mean convenience is king – quick, drive-through washes at convenient locations are preferred. This has supported growth in stand-alone express sites and washes integrated at gas stations or retail centers, so drivers can combine errands. Stand-alone car wash sites still dominate ~65% of the market, but gas station or shopping center co-located washes are growing nearly 6% annually as fuel retailers add car wash bays to boost non-fuel revenue.

• Digital Payments and Apps: Another trend in consumer behavior is the move to cashless, app-based transactions. Nearly 69% of car wash payments were cashless in 2024, using credit/debit, mobile wallets, or apps. Many customers use dedicated car wash mobile apps to manage memberships, find locations, and enjoy contactless payment. Technologies like license plate recognition (LPR) allow subscribers to “wash and go” without even rolling down the window – the system recognizes the vehicle and automatically logs the wash. These digital conveniences, accelerated by pandemic-era preferences for touchless service, have increased customer loyalty and throughput (no waiting at pay stations). Operators leverage the data from these systems to track visit frequency and send targeted promotions (e.g. nudging a customer to upgrade their plan or return more often).

Table 1. Key U.S. Car Wash Industry Stats and Trends

Metric (2023–2025)	Statistics / Trends
Number of U.S. car wash businesses	~58,938 establishments (2023) (4.8% growth vs. 2022)
Annual cars washed at pro facilities	~2 billion in North America (8+ million per day)
% of car owners using professional washes	>70% (up from ~50% in 1990s)
Market size & growth (U.S.)	~$16–18 billion in mid-2020s; ~5% CAGR through 2030
Express tunnel share of market revenue	~51% in 2024 (fastest-growing format)
Unlimited wash memberships (trend)	~5.9% annual growth; e.g. 72% of sales via memberships at top chain
Cashless payments at car washes	~69% of transactions (2024); rising use of mobile apps and LPR

2. Expansion of Major Chains and New Entrants

Consolidation and rapid expansion have defined the car wash business landscape in recent years. Large multi-site operators – often backed by private equity – are scaling up quickly through new site development and aggressive acquisition of smaller chains. This has led to a more concentrated industry, whereas it was once mostly local mom-and-pop operations. Some notable expansion trends and players include:

• Mister Car Wash (MCW): The nation’s largest car wash chain, Mister Car Wash has been in growth mode since its 2021 IPO. By mid-2024 it operated 491 locations across 21+ states, up 9% from 449 a year prior. In full-year 2024 it added about 40 new “greenfield” sites (ground-up builds) and entered a few new markets. Mister’s growth is fueled by its Unlimited Wash Club and efficient express model – 72% of its wash revenue now comes from its ~2.1 million subscription members. Although the company has slightly reined in expansion pace for 2025, it still projects steady new unit openings. With 518 locations as of Q1 2025, Mister Car Wash remains a bellwether, focusing on clustering sites in metro areas and upgrading technology (it has rolled out a new high-tier “Titanium” wash package and LPR systems chain-wide).

• Zips Car Wash: Zips grew from a regional player into the largest privately held car wash operator in the U.S., boasting about 280 locations in 25 states as of mid-2024. Backed by private equity since 2020, Zips expanded primarily by acquiring dozens of smaller car wash businesses (over 60 sites in 2022 alone). It operates under multiple brands (Zips, Rocket Express, Jet Brite, etc.) and pursued an “express exterior” model across its portfolio. However, the rapid roll-up came at a cost: Zips took on significant debt – reportedly over $650 million – and in early 2025 the company filed for Chapter 11 bankruptcy protection. This development, while a setback, also exemplifies the consolidation trend: industry observers note that well-funded competitors may swoop in to buy some of Zips’ sites out of bankruptcy, further concentrating ownership. Zips’ story highlights both the opportunities and risks of aggressive expansion in this booming sector.

• Other Fast-Growing Chains: Many other chains have been rapidly expanding, often with backing from franchise investors or PE firms:

  • Quick Quack Car Wash – A regional express wash chain (based in CA/TX) that grew to over 230 locations by 2024, making it one of the fastest-growing in the Western U.S. Quick Quack is known for its quirky branding (“Don’t Drive Dirty!”) and focus on customer experience. It raised new growth financing in 2024 and is expanding in the Sunbelt states.

  • GO Car Wash – Founded in 2019, GO Car Wash scaled to 145 locations in just five years. By August 2024 it celebrated its 150th location opening. GO’s rapid growth (through both new builds and acquisitions) was fueled by private investors and an experienced management team. The chain emphasizes modern express facilities and strong employee culture. GO Car Wash aims to continue its “explosive growth” trajectory, targeting new regions across the country.

  • Tommy’s Express Car Wash – A franchise-driven express wash brand that has gained national presence. Tommy’s had over 120 U.S. sites by 2023 and as of 2025 lists 256 operating locations (plus 70+ in development) across the U.S. and now Canada. Its high-tech, dual-belt conveyor design and franchise model have attracted entrepreneurs, making Tommy’s one of the prominent emerging franchises in car washing. The brand is even expanding internationally (first Canadian sites opening in 2025).

  • Quick Drive/Take 5 Car Wash (Driven Brands): Driven Brands (owner of Take 5 Oil Change, Maaco, etc.) entered the car wash arena around 2020 by acquiring the International Car Wash Group (ICWG) and numerous regional express wash chains. By 2023 Driven’s car wash segment operated around 360 sites under the “Take 5 Car Wash” banner. However, in a strategic shift, Driven Brands divested its U.S. car wash business in early 2025, selling all sites to an up-and-coming operator, Whistle Express Car Wash. This blockbuster deal (385 sites, ~$530 million) instantly made Whistle Express the largest express car wash platform in the country. Whistle Express, originally a Southeastern U.S. chain, thus emerged as a new major player literally overnight by acquiring the Take 5 locations. This reflects how private equity and M&A are reshaping the industry, as scaled platforms change hands to optimize portfolios.

• New Entrants and Startups: Alongside the big chains, innovative startups and franchise concepts are expanding the definition of “car wash.” For example, mobile car wash and detailing startups have attracted venture capital – Spiffy, an on-demand mobile car care company, raised over $30 million and grew to nearly $90M revenue by 2024, offering app-booked mobile washes/oil changes in dozens of cities. Similarly, waterless car wash franchises like No-H2O are gaining traction, appealing to eco-conscious consumers by cleaning cars with virtually no water. The U.S. waterless car wash franchise market is still niche (~$1.2 billion in 2024) but is projected to grow ~9.5% annually through 2033. These asset-light models (which often come to the customer or set up in parking lots) are expanding via franchising in urban areas, complementing the traditional fixed-site car wash.

Overall, the expansion trend in the U.S. is two-fold: major car wash chains are scaling up rapidly, turning a once-fragmented industry into one dominated by several big players, and new models are emerging (mobile services, waterless cleaning, etc.) targeting market segments not served by drive-through tunnels. This dynamic growth is expected to continue, though we are also seeing some local saturation – a few municipalities have even temporarily restricted new car wash construction to manage over-building (e.g. one Ohio town imposed a moratorium on new car wash permits due to concerns about too many facilities). By and large, however, capital investment in car washes remains strong in 2025, viewing car washes as a resilient, high-margin business with opportunities for further consolidation and innovation.

3. Technological Innovations in Car Washing

Technology is at the heart of the modern car wash, driving improvements in efficiency, customer experience, and environmental sustainability. Automation and smart systems now power most new car wash facilities, and ongoing innovations are reshaping how washes operate. Key technology and innovation trends include:

• Advanced Automation & AI: Today’s car washes are highly automated systems of conveyors, sensors, and computer controls that minimize human labor. Vehicles are guided through by conveyor belts while an array of pumps, sprayers, and robotic brushes handle the cleaning. New installations often use belt conveyors (instead of old tire tracks) for smoother, safer loading. AI and computer vision are increasingly integrated to optimize the wash process: for example, AI-enhanced license plate recognition systems can more accurately identify vehicles in varying lighting or weather, speeding up customer check-in for members. Similarly, sensors and machine learning help detect a vehicle’s size and shape and even level of dirt, allowing the system to adjust water pressure, soap mix, and brush pressure on the flym. Some cutting-edge washes use sonar or lidar scanning of the car’s contours to calibrate equipment for optimal coverage. The result is a more consistent clean with minimal waste or risk of damage. These smart controls also enable “touchless” washes (for sensitive paint) and improve safety by pausing the line if an issue is detected (e.g. a misaligned vehicle). In back offices, operators employ AI-driven analytics for maintenance – predictive maintenance systems monitor motor vibrations, water quality, etc., and can alert staff to service equipment before breakdowns, reducing downtime.

• Mobile Apps and Digital Integration: The proliferation of mobile apps, RFID tags, and LPR (license plate recognition) has made the car wash experience more digital. Nearly all large chains offer a smartphone app for locating washes, buying plans, and managing subscriptions. These apps often integrate with on-site systems so that a member can simply drive up and be automatically recognized (by plate or an RFID windshield tag) to enter. This frictionless payment experience reduces wait times and labor (no need for a cashier). Additionally, apps enable loyalty rewards and gamification (e.g. tracking how much water you saved by using a professional wash). The data collected (frequency of visits, add-on purchases, etc.) feeds into CRM systems – allowing car wash operators to tailor promotions or send reminders. For instance, if a subscriber hasn’t washed in a few weeks, the system might send a discounted upgrade offer to re-engage them. From the operator’s perspective, these digital tools have increased retention and upselling, contributing to the strong growth of memberships and higher average revenue per customer.

• Water Recycling and Filtration: Water usage efficiency is a critical innovation focus, both to cut costs and to comply with environmental expectations (see next section for regulations). Modern car wash equipment can reclaim and reuse a significant portion of water from each wash. Advanced water recycling systems (including filtration, oil-water separation, and UV purification) now allow 50–85% of water to be recycled on-site. For example, Cobblestone Auto Spa in Arizona implemented a cutting-edge reclamation technology that brought its water usage down to just 11.6 gallons per car on average, far below the ~35 gallons/vehicle used by typical older systems. Over a three-month period, that site even recorded several days below 10 gallons per car – an extremely low figure. This is achieved by “regenerating” the wash water to near-potable standards and reusing it for the bulk of the wash cycles. Such systems not only cut fresh water consumption by more than half, they also reduce operating costs (water bills) and ensure the car wash can keep running even during drought restrictions. Many new express wash locations in water-scarce regions (California, Southwest, etc.) are built with closed-loop water reclaim systems, which has become a de facto standard for large chains.

• Energy-Efficient Equipment: Car wash operators are also adopting greener energy practices. High-efficiency electric motors with variable-frequency drives are used to run brushes and conveyors more efficiently (using only as much power as needed based on vehicle load). Modern facilities use LED lighting and motion sensors to cut electricity use when the wash is idle. Some car washes are going a step further by installing solar panels on their rooftops or canopies to offset energy consumption. For example, a car wash chain in Texas added a 15 kW solar array and was able to supply ~38,000 kWh/year, cutting grid electricity usage by about 20% and saving thousands of dollars annually. Over the 25-year life of the system, they expect over $100,000 in energy savings and an offset of 26 metric tons of CO₂ emissions per year. While solar adoption is not yet widespread, it is an emerging trend particularly in new builds where sustainability is a marketing point. Additionally, some car washes use energy-efficient water heating and recycling heat exchangers to recapture heat from used water to pre-warm incoming water, saving on gas or electric heating costs.

• Chemical and Equipment Innovations: The chemistry of car washing has also advanced. Leading operators now use eco-friendly, biodegradable soaps and detergents that clean effectively without harsh phosphates or acids that could harm the environment. Many have phased out older chemicals like hydrofluoric acid (once used for wheel cleaning) in favor of safer alternatives. In terms of equipment, new “brushless” or soft-cloth materials have improved to clean without scratching, and nozzle designs optimize spray patterns to use less water for the same cleaning power. Some futuristic innovations include on-demand mixing of cleaning agents (so none is wasted), and the use of IoT (Internet of Things) sensors on equipment – for instance, vacuum stations that alert when filters are full, or automatic chemical dispensers that reorder supplies when running low. All of these tech improvements culminate in a modern car wash that is faster, smarter, and greener than those of the past.

In summary, the car wash industry is leveraging technology on multiple fronts – from smart automation that increases throughput and consistency (boosting profitability), to digital platforms that enhance customer convenience, and sustainability tech that reduces resource usage. Many operators view tech adoption as essential for staying competitive. As one industry observer noted, the combination of new technologies (data analytics, AI, advanced machinery) has made the once low-tech car wash business “ripe for disruption” and new investment. Going forward, we can expect continued innovation such as fully unattended 24-hour car washes using AI monitoring, and integration with connected cars (e.g. your car’s infotainment could schedule itself a wash). The ongoing tech revolution in car washing is aimed at delivering a quick, seamless, and environmentally responsible experience for the customer – and a more efficient operation for owners.

4. Environmental Regulations and Compliance

Environmental considerations – particularly water usage, wastewater runoff, and chemical use – play an increasingly important role in the car wash industry. Both government regulations and voluntary initiatives are pushing car wash operators toward more sustainable practices. Here we summarize key regulations and trends on this front:

• Water Use Restrictions and Recycling Mandates: Given that traditional car washes can use 40–60 gallons of fresh water per vehicle, many jurisdictions have enacted rules to curb water waste. California has been a leader in this area: a state law (since 2013) requires that all new conveyor or in-bay car washes must install a water recycling system that reuses at least 60% of the water (or source 60% recycled water from a water provider). This effectively mandates high-efficiency reclaim systems for new car wash constructions in California. Other states and local governments have similar rules or incentives. Georgia, for example, set Best Management Practices for car washes including that conveyor washes built after 2000 must recycle at least 50% of water, and it established a certification program: Georgia certifies car washes with water-saving setups such that those using recycled water are exempted from outdoor watering bans during droughts. This means a certified car wash in Georgia is not treated as “outdoor water use” under water restriction ordinances, recognizing that it recycles water and is a controlled use. In many arid regions (Texas, Arizona, Nevada, etc.), city drought contingency plans heavily restrict or even ban non-recycling car washes during water emergencies. For instance, some Texas cities allow commercial car washes to operate during drought stages only if they recycle water on-site, and prohibit charity or at-home washes unless using certain equipment. The broader trend is that professional car washes are being encouraged (or required) to recirculate water, which can save tens of thousands of gallons per year per site. These regulations not only conserve water but also give professional car washes a public relations boost (as washing at a certified car wash can use significantly less water than a home driveway wash). In some areas, it’s even illegal to wash your car at home if the soapy runoff would enter storm drains, further driving consumers to eco-friendly commercial washes.

• Runoff Management and Wastewater: Stormwater pollution from car washing is a concern for regulators because wash runoff can contain detergents, oils, brake dust, and other contaminants. Federal law (Clean Water Act) prohibits discharging pollutants into storm drains and water bodies without a permit. In practice, cities enforce this by requiring car wash facilities to route their wastewater to the sewer (where it can be treated) or recycle it on-site. Many municipalities explicitly ban any car wash (even charity washes) from letting wash water enter the storm drain system. For example, Fairfax County, Virginia has a local ordinance that prohibits any commercial car wash water from entering storm drains or streams without proper permits. To comply, car washes must have interceptors and drainage that send used water to water treatment facilities or to reclaim tanks. Mobile detailers often must use containment mats to capture runoff for proper disposal. Enforcement of these rules is increasing, with hefty fines for violators, because even biodegradable soap can harm aquatic life if it flows untreated into creeks. The industry has responded by developing water capture and filtration systems (even mobile units use portable berms to collect water). Additionally, environmental authorities encourage best practices like biodegradable, phosphate-free soaps and minimal chemical usage to lessen the impact if any runoff occurs. Overall, complying with wastewater regulations has become part of doing business – modern car washes are typically designed with zero runoff, either recycling all water or sending it to municipal treatment, and they carefully manage oil/grease separators to prevent any contaminants from leaching out.

• Chemical Regulations and Safety: Car wash operators must also heed regulations on the chemicals and products they use. Soaps, detergents, and protective coatings are coming under more scrutiny to ensure they are environmentally friendly. Certain harsh compounds have been phased out or banned. For instance, the U.S. EPA in late 2024 banned the use of trichloroethylene (TCE) and perchloroethylene (PCE) – solvents historically used in automotive degreasing and detailing – due to their health risks. While these solvents were more common in auto repair and dry cleaning than in routine car washing, detail shops and engine cleaners will now shift to safer alternatives. Another area of focus is the phase-out of PFAS (“forever chemicals”). These are water- and oil-repellent chemicals that could be present in some car waxes, surface protectants, or cleaning foams. California considered legislation in 2023 to ban PFAS in household and industrial cleaners, which would have included many automotive cleaning products. (That particular bill was vetoed, but it signaled the direction of policy.) Several states like Washington, Maine, and others are moving forward with restrictions on PFAS in consumer products. The implication for car washes is that product manufacturers are reformulating soaps and waxes to be PFAS-free and more biodegradable. Car wash chains voluntarily tout that they use “environmentally safe” chemicals now – for example, many advertise citrus-based cleaners and phosphate-free soaps. Worker safety regulations also affect chemical usage: OSHA and state agencies require proper ventilation and personal protective equipment if any hazardous cleaning agents are used, and many operators have switched to less caustic cleaning agents to protect employees and customers.

• Environmental Compliance and Programs: Beyond laws, the industry has its own initiatives. The International Carwash Association promotes a “WaterSavers” certification for member washes that meet criteria for water recycling and environmental best practices (e.g., recycling at least 50% of water, properly treating effluents). Many car wash businesses participate to market themselves as eco-friendly. Some cities offer rebates or tax incentives for car washes that install high-efficiency equipment (since it reduces strain on municipal water supplies). In the face of climate change and frequent droughts in parts of the country, it’s likely we’ll see more stringent rules forthcoming: for example, if drought conditions persist, states like California could tighten the recycling requirement beyond 60%, and other states may adopt similar mandates. Already, New Mexico and Arizona have been encouraging or requiring reclaim systems for new washes through water authority guidelines. On the flip side, during extreme drought, some local authorities have imposed temporary measures like limiting operating days or hours for car washes that don’t meet recycling standards – though most modern facilities with reclaim systems are exempted due to their lower net water use.

In summary, environmental regulations are steadily steering the car wash industry toward sustainability. Compliance with water recycling requirements, prevention of chemical runoff, and use of greener chemicals are now standard considerations for any car wash operator. The trend is mutually beneficial: environmentally compliant car washes not only avoid fines and support community water conservation, but they also save on water costs and appeal to eco-conscious customers. As one industry statistic illustrates, professional car washes can use less than half the water of a typical driveway wash, and much of that is recycled. That efficiency, combined with regulatory pressure, means the future of car washing in the U.S. is undeniably green – both in practice and requirement. Operators who invest in sustainable technology and procedures are finding it easier to navigate new regulations and even turn environmental responsibility into a selling point for their business.

Sources: 

The information above is compiled from recent industry research reports, trade publications, and news releases, including:

• Mordor Intelligence’s North America Car Wash Market analysis

• data from the International Carwash Association and professional journals

• financial filings of major car wash companies

• environmental regulatory documents.

These sources provide up-to-date insights into market size, growth rates, technological advancements, and regulatory changes impacting U.S. car wash businesses as of 2024–2025. Each trend and fact is supported by the cited references above.

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