Melbourne, Australia (PRWEB) August 06, 2014
Operators in the Car Wash and Detailing Services industry in Australia have gone through a period of spotless growth over the past five years. Early in the period, water restrictions and consumers' environmental awareness regarding the effects of washing vehicles at home drove consumers to industry operators. According to IBISWorld industry analyst David Whytcross, “strong new car sales have also supported the industry's growth, as consumers with new cars are more likely to pay for expensive washing and detailing.”
Industry revenue is forecast to grow by a compound annual rate of 2.5% over the five years through 2014-15, to reach $526.8 million. Although rising new car sales assisted industry growth over the past five years, a slowdown in sales in 2014-15 is projected to result in more subdued industry revenue growth of 1.2% for the year. The industry has a low level of market share concentration. The biggest industry player is Magic Hand Car Wash Franchisor Pty Ltd.
The drought between 2002-03 and 2009-10 resulted in harsh water restrictions being introduced, which prevented consumers from washing their vehicles at home. While water restrictions have since been relaxed, consumers have become accustomed to outsourcing their car washing and have continued to do so, particularly in using in-bay automatic washes and self-service bays. The Car Wash and Detailing Services industry has thus benefited significantly from these trends, in addition to growing environmental awareness regarding the superior water usage and chemical treatment in industry operators' car washes. The industry has also benefited from rising discretionary incomes and consumers becoming more time-conscious, which has driven them to move away from washing vehicles at home.
Similar trends are expected over the next five years, as the industry becomes increasingly automated. “In particular, in-bay automatic washes and conveyor tunnel washes are expected to become more popular,” says Whytcross. Increasing urbanization is expected to take some of the polish off industry revenue growth, as consumers drive their cars less frequently. However, El Nino weather patterns are expected to return. This will result in dry conditions and the potential implementation of more stringent water restrictions. Further, consumers are expected to become more concerned about the detrimental environmental effects of washing vehicles at home.
For more information, visit IBISWorld’s Car Wash and Detailing Services industry in Australia report page.
Operators in the industry are primarily engaged in washing, waxing, and detailing automotive vehicles, including passenger cars, trucks, vans, and trailers. The industry excludes companies that predominantly provide automotive repair and maintenance services.
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Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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