Year in Review: Major Developments in the Car Wash Industry

As the calendar turns, it’s worth reflecting on the most important developments that shaped the car wash industry over the past year. Below are key events, shifts, and data points that investors, operators, and property owners should know as we head into 2026.

 

1. Another Active Year of M&A and Consolidation

• Some high-profile deals underscored investor confidence. For example, a major automotive-services company sold its U.S. car wash business in 2025 for approximately $385 million — a clear sign of active portfolio reshuffling. (Driven Brands)

• At the same time, the sector’s fragmentation — many independent operators and regional players — continues to offer opportunities for consolidation and roll-ups.

What this means: The car wash industry remains a hot target for investors and consolidators. Well-maintained, high-performing assets continue to attract strong interest — which raises the bar for property readiness and financial performance.

 

2. Strong Demand and Healthy Growth Metrics

• According to a 2025 market update, same-store car washes (i.e., locations open at least one year) saw year-over-year sales growth remain above 7% for 11 consecutive quarters, and rose to 12.4% in Q1 2025 — a robust signal of demand. (Matrix CMG)
• Overall, the U.S. car wash services market was estimated at around $14.74 billion in 2024, with projections indicating continued growth through the latter half of the decade. (Grand View Research)

What this means: Despite economic headwinds, consumer demand for car wash services remains resilient. For owners and potential buyers, this helps justify valuations and supports long-term cash flow stability.

 

3. Tech, Automation & Subscriptions Fuel Operational Evolution

• The industry continues shifting toward automated and express-wash models, with express/exterior-only tunnels gaining considerable traction. INNOWAVE STUDIO

• Growth in membership and subscription-based wash clubs has been a standout trend — helping generate recurring, predictable revenue for operators and smoothing seasonality in demand. INNOWAVE STUDIO

• Meanwhile, increased adoption of water-recycling, eco-friendly cleaning systems and other sustainability upgrades has aligned many car wash facilities with environmental standards — reflecting broader shifts toward responsible operations. Accio

What this means: Operational efficiency and modern facility design are no longer optional — they’re critical. Investors and operators who prioritize technology, throughput and sustainability are better positioned for growth and resale value.

 

4. Valuation Dynamics: Multiples & Market Maturity

• Recent data (Q1 2025) shows a range of EBITDA and revenue multiples for different types of car wash operations. For example, express exterior-only washes in the mid-market segment command higher multiples than many full-service or detailing operations. (First Page Sage)

• At the same time, industry analyses suggest the market is entering a phase of maturation — rather than hyper-growth — where aggressive expansion yields to disciplined operations, careful capital allocation and value preservation. (bbgres)

What this means: For sellers and investors, there’s increasing emphasis on operational metrics (membership retention, throughput, cost control) over just growth in count of sites. Well-run assets with stable cash flow and institutional-grade operations tend to command premium valuations.

 

5. Challenges & Market Reset: Select Distress and Restructuring

• Not all players have succeeded: interest-rate pressures, rising labor and input costs, and changing consumer behaviors have squeezed margins for some operators, leading to consolidation or exit. (Carwashmagazine)
• This stress has prompted caution among investors — prompting renewed due diligence, more conservative underwriting, and scrutiny of environmental compliance, location and operational sustainability.

What this means: The industry’s shifting landscape rewards discipline. Operators planning acquisitions or exits must ensure properties are structurally and operationally sound — and financially defensible under changing conditions.

 

Looking Ahead: What to Watch in 2026

• Continued growth of membership and subscription-based models as demand for convenience rises.

• Further consolidation/roll-ups among operators — well-managed assets will remain in demand.

• Increasing importance of environmental compliance and sustainability (water recycling, waste, energy efficiency) — both for regulatory alignment and investor appeal.

• Emphasis on real estate fundamentals: zoning, site selection, environmental due diligence and income stability will drive valuations more than ever.

Why This Matters for Miracle, LLC

As a specialized real estate advisor in the car wash sector, Miracle uses these insights to guide clients on acquisition strategy, portfolio structuring and exit planning. Because the industry remains dynamic, we emphasize readiness — from operations to compliance — to maximize value and minimize risk.

If you’re evaluating a car wash acquisition, sale or repositioning, now is the time to act with data-driven confidence. Contact us today and let’s connect!