The car wash and detailing services industry has undergone five years of growth. Here’s a quick snapshot of the sector from the latest report.

There was an uptake of new car sales which helped boost growth as new car owners invest in keeping their vehicles in good shape. But a more subdued level of sales is expected to drive down the detailing industry revenue growth from 2015 onwards. IbisWorld predicts a slower growth rate over the next five years: an annual rate of 2.1 percent to reach $584.1m in 2019-29.

An advantage for this sector of the automotive services market is the increasing consumer awareness of environmental issues; a disadvantage the increased density of cities, with less imperative for car use.

Victoria remains the sector’s stronghold, with more car wash businesses per head than any other Australian state. But Western Australia is showing the greatest growth, fuelled by the resources boom, although this is now slowing.

There are few barriers to entry: mobile car detailing businesses have the advantage of lower investment levels; however some automated location-based set-up costs can be substantial. At the same time, there are no particular skill sets required, and regulation is minimal.

Mobile car wash services account for just five percent of the market but are particularly suited to a franchising model, suggests IbisWorld.

According to the report Car Wash and Detailing Services in Australia, April 2015, the franchised Magic Hand Car Wash business is the largest provider of hand car-wash services with an estimated 7.8 percent market share. The model combines a car wash and caf_ and has 40 locations in five states.

The Car Care Australia mobile detailer is cited as another significant franchised operation, with more than 200 Australian franchises.

• Source: IbisWorld Car Wash and Detailing Services in Australia, April 2015