Malaysia Car Wash Service Market Size, Share & Trends Analysis Report By Type (Tunnels, Roll-over/In-bay, Self-service, Manual), And Segment Forecasts, 2021 - 2028

Report Overview

The Malaysia car wash service market size was valued at USD 727.1 million in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 3.8% from 2021 to 2028. One of the foremost factors driving the market for car wash services in Malaysia is the rising production and sale of automobiles. In 2019, the Malaysian automotive industry was among the top 10 largest manufacturing bases in the Asia Pacific and the 23rd largest in the world. According to the Ministry of International Trade and Industry (MITI), the country’s automotive industry is one of the key contributors to its GDP with a 4.3% contribution in 2019. The COVID-19 pandemic has severely impacted countries across the globe and Malaysia is no exception.

In addition to the pandemic, the country is facing problems caused by declining oil prices. The country’s economy contracted by 17.1% in the second quarter of 2020 as compared to the same time period in 2019. The automotive industry was greatly impacted by the pandemic and led the Malaysian Automotive Association (MAA) to revise its projection for private and commercial vehicle sales in 2020, reducing it from 607,000 units to 400,000 units. The first case of the coronavirus was detected in the country in February 2020 and the outbreak emerged around March 2020. A nationwide Movement Control Order (MCO) was then issued to help control the spread of the virus. Due to the coronavirus pandemic, many businesses in Malaysia have been struggling to stay open, including car wash service centers.

Car washes use large quantities of water per day and this water is replete with effluents such as fats, oil, and grease (FOG) and surfactants and chemical oxygen demand (COD). Among the several types of wastewater generated from various manufacturing and other activities, car wash water represents one of the most heavily contaminated water. It contains oil, grease, detergent, surfactants, phosphates, and various other chemicals. Hence, direct disposal of such water into the regular drainage system can worsen the already prevalent water pollution problem.

Waterless car wash services offer immense growth opportunities for the market. With various water conservation regulations in the country, the need for such eco-friendly ways of car washing is expected to gain popularity. The increase in human population, agricultural and industrial developments, and rising commercial and household infrastructure have contributed to the growing usage of water. According to the National Water Services Commission (SPAN), in 2019, the daily water consumption per person in Malaysia was 230 liters.

Consumers are also inclined toward service centers that use eco-friendly products and ensure minimum usage of water for car washing. Moreover, the government ban on car washing in the open, on main streets, and in public spaces is impacting consumers’ decision to opt for car wash services. For instance, in September 2020, the Government of Malaysia announced a temporary blanket ban on gardening and washing cars. It also put a temporary closure notice on car washes and commercial laundry services amid the water disruption. At this time, companies providing steam car washing services are expected to gain popularity and after the ban is lifted, car washing centers that use minimal water will gain popularity among customers.

Type Insights

The manual car wash segment dominated the market with a share of over 77.0% in 2020. This is attributed to the low cost of this service type compared to the automatic car wash service. In addition, the traditional method of car wash is acting as a major driver for the market in the country.

The roll-over/in-bay car wash segment is projected to register the highest CAGR of 4.7% from 2021 to 2028. The increasing penetration of auto dealerships in the car wash service industry has fueled the installation of automatic wash facilities on their sites. Auto dealerships add automated car washes to scale up their Customer Satisfaction Index (CSI) scores, with in-bay washes being the most popular consumer choice. This boosts the growth of in-bay/roll-over automatic car wash services in the country. Furthermore, automatic in-bay car washes are by far the most prevalent type of car wash in Malaysia. It is a quick, convenient, and inexpensive way to clean a vehicle, along with offering a variety of wash options like featuring transparent bay windows that allow onlookers to view the process of how a car is being washed. These factors have contributed to its increased demand in the country over the past few years.

Key Companies & Market Share Insights        

In order to increase the profitability of the business, many operators in the market are focusing on offering additional services, such as waxing, polishing, and coating, as these ensure higher profit margins compared to a regular car wash. The car wash service in the country has a widespread presence and a significant number of consumers use these services. The major threat to the growth of car wash services currently is the effect of the coronavirus pandemic on the overall market.

Credit offerings by banks and private equity firms are tightening in order to prevent defaults and non-performing assets (NPA). This factor is acting as a major restraint for the growth of small and individual operators, as private equity firms and banks are offering credit only to well-established companies and players with a strong balance sheet. This will significantly hamper the growth and expansion plans of these operators and could result in them selling off their businesses to larger companies with more funds. Some prominent players in the Malaysia car wash service market include:

• UNITEC Textile Decoration Co., Ltd.

• Call2wash Global Sdn Bhd

• 1L Car Wash

• Topbest Car Grooming Centre

• CARS International

• Supwave Car Wash

Malaysia Car Wash Service Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the Malaysia car wash service market report on the basis of type:

• Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Tunnels

  • Roll-over/In-bay

  • Self-service

  • Manual