KSA Car Wash Market Outlook to 2030

Market Overview:

The market growth will be driven by the increasing ownership of car in the country and the emphasis on car care by the employees. Currently, around 15-20% of the total potential market has been captured by the car wash industry, showing a huge amount of potential in the car wash industry of Saudi Arabia​ With the adoption of automatic car washes, companies will be able to increase their capacity and effectively increase the total revenue generated in the industry.

The market features a mix of automated and manual carwash services, catering to diverse customer preferences. Carwash services in KSA typically include automated touchless or brush systems, as well as manual services where attendants perform the cleaning. Some establishments offer additional services like interior detailing, waxing, and polishing.

The KSA carwash market is fiercely competitive, with both established players like B,right and Mr. Clean battling it out against innovative app-based aggregators and regional upstarts. B,right is the dominant player, boasting extensive network, premium offerings, and loyalty programs. However, their prices might be perceived as higher than some competitors. Mr. Clean is renowned for their budget-friendly express washes and convenient locations. However, their service quality and technology integration might lag some rivals. App-based Aggregators (Ezhalha, Morni): These disruptors offer on-demand convenience and competitive pricing, capturing a growing share of the market. However, brand recognition and quality control remain challenges. Local companies like Chem-Dry and Clean Cloud are carving niches with specialized services like steam washing and waterless options. Their success hinges on offering unique value propositions and building strong local presence. Overall, the KSA carwash market is dynamic and diverse.

KSA Carwash Market Analysis

• KSA Carwash market is valued at 274.3 SAR Mn in 2017 and is expected to be 494.1 SAR Mn in 2022. The market is growing with a CAGR of 12.5% during the time-period of 2017-2022.
• The market has seen a growth in KSA due to various factors like increasing demand of automobiles and helpful government regulations in KSA.
• The market is diverse, with established players like B,right and Mr. Clean facing competition from app-based aggregators, regional players, and specialized service providers. Each segment caters to different price points, convenience needs, and customer preferences.
• Digital transformation is disrupting the market. Mobile apps for booking, on-demand services, and smart carwash stations are gaining traction, offering seamless customer experiences and operational efficiency.
• Environmental concerns are influencing the market. Waterless carwash techniques, eco-friendly products, and energy-efficient equipment are becoming increasingly popular among both providers and consumers.
• Demand and growth vary across different regions. Major cities like Riyadh and Jeddah exhibit higher market saturation and adoption of advanced technologies, while smaller towns and rural areas often rely on traditional carwash methods.
• The market is expected to remain promising, driven by the aforementioned factors. However, challenges like land availability, regulatory complexities, and economic fluctuations need to be addressed for sustainable growth.

Key Trends by Market Segment:

By Type of wash: KSA Carwash market segmentation by type of wash in 2022, in interior, exterior and exterior and interior market. KSA Carwash market is dominated by exterior type of wash over 90% of total market share. Exterior carwash is important as it needs to be done regularly for cleaning the vehicle, it is affordable and can be done without a expertise.

By Type of Vehicle: KSA carwash market is segmented into vehicle by Commercial and passenger vehicles in 2022.  The market is dominated by Passenger vehicles by 84% in 2022. Commercial vehicles market has been contributing ~15% in 2022. Saudi Arabia has a high rate of over <90% private vehicle ownership compared to commercial vehicles. Many commercial vehicle owners in Saudi Arabia prefer to maintain and clean their vehicles in-house. Passenger car owners tend to place a higher value on the cleanliness and appearance of their vehicles, driving the demand for car wash services. Commercial vehicle owners may prioritize other forms of maintenance over regular car washes, owing to their different usage patterns.

By Region: KSA Carwash market is segmented into regions of Riyadh, Makkah, Eastern region, and others. The market is dominated by Al Riyadh region as they are having the maximum carwash centers i.e ~275-285. Riyadh though accounts for the highest number of cars in the country, it also has the highest car wash centers and the highest ratio of car wash centers per 1000 cars.​ The ratio of Al Riyadh is almost 50% higher than the average ratio seen in other regions of Al Madinah, Asir, Jazan and more, although the numbers of cars on road are almost identical.​ Al Riyadh and Mecca serves as the primary region of entry for any company looking to start their operations of car washing due to higher people acceptance, more ability to spend, need of convenience and other factors. Others include Al Madinah, Asir, Jazan, Al Qassim, Tabuk, Hail, Al Jawf, Najran, Northern Borders, Al Bahah.

Competitive Landscape:

Major Players in KSA Carwash Market

• SASCO: Boasting an extensive network across the Kingdom, SASCO offers various wash packages and loyalty programs, catering to premium and mid-range segments.
• B,right: Renowned for their high-quality automated washes, focus on customer experience, and presence in prime locations. Their price point might be perceived as higher than some competitors.
• Clean: A household name, Mr. Clean offers budget-friendly express washes and convenient locations, attracting price-conscious customers. However, their service quality and technology integration might lag behind rivals.
• Chem-Dry: Offers eco-friendly steam washing, targeting customers seeking a gentle and water-efficient option.
• Clean Cloud: Known for their waterless carwash services, appealing to environmentally conscious consumers and areas with water scarcity. Their success hinges on offering unique value propositions and efficient delivery.
• Riyadh and Jeddah exhibit intense competition with a mix of established players, app-based services, and regional chains. Technology integration and premium offerings are prominent. Traditional carwash methods like manual washes and local shops are prevalent. Price sensitivity and accessibility are key factors.
• Established players are offering targeted discounts and value packages to counter the competitive pricing of app-based services. Integration of mobile booking, tracking systems, and smart carwash equipment is becoming increasingly common. Building strong customer relationships through rewards and personalized services plays a crucial role.
• The market is expected to remain dynamic and competitive, driven by increasing car ownership, technological advancements, and environmental concerns. Consolidation and strategic partnerships might emerge as players seek to expand their reach and optimize operations.

Recent Developments:

• Acquisition of Ezhalha by Careem: This move strengthens Careem's presence in the on-demand carwash market and increases competition for established players.
• Waterless carwash and eco-friendly products are gaining traction due to increased environmental awareness. Companies like Chem-Dry and Clean Cloud are witnessing significant growth.
• Tech Integration: Smart carwash stations with automated wash systems, mobile booking apps with AI-powered scheduling, and digital payment options are becoming increasingly popular. B,right and SASCO are investing heavily in these technologies.
• Monthly or annual subscription plans offering unlimited washes or discounted rates are being introduced by major players like Ezhalha and B,right, catering to cost-conscious customers.

Future Outlook:

• KSA Carwash Market is expected to reach 1379.7 SAR Mn in 2030 which is valued at 494.1 SAR Mn in 2022. The market is expected to grow with a CAGR of 13.7% during 2022-2030.
• The market is growing due to various factors like rising vehicle ownership, urbanization and lifestyle changes and helpful expansion of consumers offerings.
• The market is to be dominated by the interior type of wash by contributing the maximum 88% of market share, in which the market size is expected to be valued at 27.5 Mn cars served.
• While the exterior car wash segment will continue to dominate the market throughout the forecast period, customers will tend to focus on availing bundled services of interior as well as exterior washing owing to their increasing consciousness of the need for a clean and hygienic car. This is also evident by the fact that the segment ‘exterior & interior both’ is expected to witness the highest CAGR in future among all the segments.