75+ HVAC Facts and Statistics You Need to Know in 2025 (w/ Infographic!)

Ah, HVAC. What would life be without this industry that keeps homes, businesses, and factories comfortable all year round? 

For many consumers, HVAC is nothing more than an acronym for a system built for cooling and heating. But if you’re an industry veteran or someone dipping your toe into this business, it’s more than meets the eye – it’s a constantly evolving industry with tons of HVAC facts and industry statistics to keep up with. 

This article compiles the best HVAC facts and figures, allowing you to set your expectations right, keep your fingers on the pulse of current market demands, and hopefully gain insights to help with your decision-making. 

Ready to geek out over anything HVAC? Let’s dive right in!

Key Findings

• The U.S. HVAC market value hit $30.41B in 2023, with a projected 7.4% annual growth rate through 2030.
• U.S. consumers spend $10B+ annually on HVAC repairs and maintenance.
• The HVAC industry faces a shortage of 110,000 technicians, with 25,000 leaving annually.
• Delays drive 55% of negative HVAC reviews, making timely service and clear scheduling essential; top contractors use reliable HVAC management software to manage customer expectations.

HVAC Industry History

The history of HVAC systems is a journey of innovations that have improved indoor comfort and efficiency. Here’s an overview of how modern HVAC systems developed.

Early Foundations of Heating and Cooling

• Roman Hypocaust (80 B.C.): One of the earliest underfloor heating systems, the hypocaust was used to warm Roman homes and bathhouses. 
• 1620 – First Thermostat-like Device: Dutch engineer Cornelius Drebbel developed the first thermostat-like device: a mercury-controlled incubator to regulate air temperature, considered one of the first feedback-controlled devices​
• 1830 – First Room Thermostat: Scottish chemist Andrew Ure created the first room thermostat to control temperatures in textile mills, marking an early application of thermostat technology for industrial settings​.
• 1834 – First Refrigeration System: Jacob Perkins developed the first practical refrigeration system using vapor-compression technology, which laid the foundation for modern air conditioning.

The Birth of Modern HVAC

• 1883 – First Electric Thermostat: Warren S. Johnson invented the first electric thermostat, reducing classroom disruptions by signaling temperature changes to building staff, which eventually led him to found Johnson Controls​.
• 1895 – Multi-Zone Temperature Control System: Building on his earlier thermostat, Johnson’s 1895 multi-zone system automated temperature control system was used across large buildings, becoming a standard in sites like the U.S. Capitol and the Smithsonian; it remains a landmark in HVAC history
• 1902 – First Electrical Air Conditioner: Willis Carrier created the first electrical air conditioner to control humidity at a printing plant, marking the start of modern HVAC systems.
• 1950s – Air Conditioning in Homes: Initially used in movie theaters (1920s – 1930s), air conditioning became more common in homes by the 1950s. The postwar period saw the rise of more affordable, mass-produced air conditioning systems to keep up with the demand of the growing middle class. 

Key Milestones in HVAC Development

1973 – Energy Crisis: The energy crisis of the 1970s forced the HVAC industry to focus on energy efficiency, which led to the development of more energy-saving systems. 

1990s: The HVAC industry phased out ozone-depleting refrigerants like R-22 due to the Montreal Protocol, adopting R-410A as a more eco-friendly alternative, despite its high global warming potential​.

1992 – Launch of ENERGY STAR: The U.S. Environmental Protection Agency (EPA) launched the ENERGY STAR program in 1992 to promote energy efficiency in various products and buildings, establishing it as a recognized international standard for energy efficiency.

2000s – Smart and Sustainable Systems: The rise of smart thermostats and renewable energy sources like geothermal heating has made HVAC systems more efficient and environmentally friendly. 

2016: The Kigali Amendment further accelerated the shift to even lower-GWP refrigerants such as R-32, encouraging industry-wide redesigns for improved sustainability​.

2023 – New Energy Efficiency Standards for HVAC Systems: Starting in 2023, new residential central AC and air-source heat pump systems sold in the U.S. must meet higher energy efficiency standards.

They must have a minimum of 14 SEER for northern states and 15 SEER for southern states, along with an 8.8 HSPF for heat pumps (Check out this article on HVAC terms for more info on SEER, HSPF, and other acronyms!).

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HVAC Market Overview

The HVAC industry plays a crucial role in maintaining indoor comfort for residential, commercial, and industrial spaces. This section dives into the market size, revenue growth, and key segments of the global and U.S. HVAC markets.

Global HVAC Market 

• The global HVAC systems market was valued at approximately $233.55 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2030, reaching an estimated $382.66 billion size by 2030. 
• The growth is driven by the rising need for cost-effective and energy-efficient space cooling and heating applications in commercial and industrial sectors. 

U.S. HVAC Market

• The U.S. HVAC systems market size was estimated at $30.41 billion in 2023, with projections of a 7.4% CAGR from 2024 to 2030. 
• The Western U.S. led in HVAC revenue share at 24.4% in 2023, driven by a high population, strong median incomes, and varied weather conditions that boost residential HVAC demand. 
• In the Midwest, states like Illinois, Michigan, and Ohio, with numerous manufacturing facilities, maintain strong industrial HVAC demand — a trend projected to persist long-term.
• U.S. construction spending climbed from $809 billion in 2010 to $1,293.98 billion in 2018, bringing a surge in HVAC installations to meet the needs of new builds and renovations.

HVAC Market Segments

a. Residential HVAC Market: Residential HVAC systems account for nearly 40% of the market, with a strong emphasis on air conditioning systems, particularly in regions with extreme seasonal climates.

b. Commercial HVAC Market: The commercial HVAC sector makes up roughly 30% of the market, primarily due to the increased need for heating and cooling in office spaces, retail centers, and public buildings.

c. Industrial HVAC Market: The industrial segment accounts for around 15-20% of the market and is driven by the need for climate control in manufacturing facilities, data centers, and other industrial applications.

Market Demand and Consumer Behavior

Air Conditioning Usage Across U.S. Regions:

• As of 2020, 88% of U.S. households use air conditioning, with two-thirds relying on central AC or heat pumps. 
• The Midwest and South regions lead in AC usage, with rates at 92% and 93%, while the West has the lowest at 73%, especially along the Pacific Coast (49%). 
• In the Northeast, half of households primarily use individual AC units like window, wall, or mini-split systems, diverging from the central AC trend in other regions.

Growth in HVAC Repair and Maintenance Spending: U.S. consumers spend over $10 billion annually on HVAC repair and maintenance, presenting OEMs with opportunities to expand service offerings. However, this shift toward maintenance could also challenge traditional product sales, as consumers may prioritize repairs over new purchases.

HVAC System Replacements and Energy Impact: In the U.S., three million heating and cooling systems are replaced annually. Since heating and cooling make up roughly half of a typical home’s energy use, high-performance HVAC systems are essential for controlling energy consumption and costs, both for individual homeowners and across the country.

Tax Credits and Rebates Fuel HVAC Demand: U.S. consumers benefit from a variety of tax credits and rebates, making energy-efficient HVAC systems an attractive choice. Programs like New Jersey’s COOLAdvantage offer incentives for installing eco-friendly heat pumps and ACs, supporting a national push toward environmental sustainability. 

What Drives HVAC Sales for Homeowners: “Cost savings” are often the main reason customers consider switching to efficient units. Despite the focus on cost, most customers—especially upper-middle-class families—ultimately choose upgrades that enhance comfort or safety, even if they come at a higher price. 

Preventive Maintenance Concerns: Though about one in three worry about their HVAC’s condition, only 30% schedule preventative maintenance, 27% regularly clean outdoor units, and 23% check blades and belts. Simple upkeep could improve system longevity, but inflation and lack of knowledge leave many systems vulnerable.

The Technician-Homeowner Connection: While 86% of homeowners lack detailed knowledge of HVAC components, they value reliable advice and 60% would even follow a trusted technician if they switched companies. 

The Value of People Skills in HVAC: Positive reviews for HVAC companies highlight that customer interaction skills are just as vital as technical know-how, with 41% of positive reviews mentioning friendliness and courtesy. 

The Importance of Time Management in HVAC: Slowness or unresponsiveness accounts for 55% of negative customer reviews, showing that delays are the most common frustration for customers. Successful contractors understand that effective service scheduling through reliable software and clear communication about timelines is essential to managing customer expectations.

HVAC Business Ownership and Operations

The HVAC industry consists of a wide range of businesses, from small family-run operations to larger corporations. This section covers key facts about the number of HVAC businesses, ownership structures, and costs of business ownership.

Total Number of HVAC Businesses in the U.S.: The HVAC industry in the U.S. grew from 119,635 establishments in 2018 to an estimated 146,075 in 2023.

Small Business Composition: The majority of HVAC firms are small, family-owned businesses or sole proprietorships, typically owner-operated with fewer than five employees and annual revenues under $1 million. These smaller firms often face challenges in financing the shift to models focused on energy efficiency and performance.

Regional Distribution: California, Florida, and Texas have the highest number of HVAC businesses in the U.S., with California hosting the largest number at 12,286 businesses, followed by Florida with 9,797 and Texas with 9,096.

The high demand in these states stems from both extreme seasonal temperatures and significant population growth, making them top markets for HVAC services and installation.

Top HVAC Companies: The largest companies in the U.S. HVAC contractor market are Emcor Group, Inc., Comfort Systems USA, Inc., and ACCO Engineered Systems, Inc., each playing a key role in providing large-scale HVAC services across the commercial, industrial, and institutional sectors.

Family-Owned vs. Corporate-Owned: Majority of HVAC businesses in the U.S. (or an estimated >70%) are family-owned, many of which have been passed down through generations. Larger corporate-owned firms make up the remaining percentage and often serve broader regional or national markets.

Startup Costs for an HVAC Business: Starting an HVAC business typically costs between $2,000 and $12,000, not including vehicles. A reliable used van may cost up to $40,000, while new ones can reach between $125,000 and $150,000.

Many contractors minimize upfront costs by leasing vehicles and purchasing secondhand HVAC tools, making entry into the HVAC industry more affordable.

HVAC Industry Profitability and Costs

The profitability of HVAC businesses is influenced by various factors, including labor, materials, and market demand. Let’s dive into the profit margins, operating costs, and service pricing within the HVAC industry.

Income

Earnings for HVAC Business Owners: HVAC business owners see a wide income range, with the average income reaching $598K annually, though the median sits at $76K. This disparity shows that while a few owners make millions, most earn closer to the industry median, highlighting the impact of business size and market reach on potential income.

Profit Margins

The average profit margin for HVAC companies is approximately 5.3%, slightly exceeding industry standards for trades businesses, which typically see net profits in the range of 3-5%​.

Target Profitability for HVAC Contractors: HVAC contractors typically aim for an operating income of around 12% (net margin), calculated as earnings before interest and taxes divided by total revenues. This 12% target serves as a reliable profitability benchmark when evaluating new business opportunities.

Well-managed HVAC companies can achieve higher overall net profits, depending on factors like department efficiency and service quality.

Specifically, the service/repair departments often yield the highest margins due to demand for ongoing maintenance, with a potential for 15-20% net profit; flat-rate pricing in this area can further increase profit margins to 20-25%​.

Seasonal Cash Flow and Profit Margins in HVAC: HVAC contractors face a seasonal cash flow challenge, as peak replacement and maintenance seasons often last only seven months.

To stay profitable, contractors use lines of credit to cover off-season expenses and price jobs with high gross profit margins on equipment (about 45%) but aim to limit labor hours due to lower profitability.

Factors Affecting Profitability

Labor Costs (33.8%): Labor remains one of the largest expenses, with wages accounting for 33.8% of total HVAC business costs. High demand for qualified technicians and regional wage variations, especially in high-cost urban areas, contribute significantly to these expenses​.

Materials and Purchases (38.8%): Materials, including HVAC units, installation supplies, and repair parts, make up 38.8% of expenses. Costs can vary based on the type of system (e.g., standard vs. energy-efficient) and are subject to fluctuations due to market and supply chain conditions​.

Overhead and Operating Expenses: Additional expenses, including depreciation (0.9%), rent and utilities (3.3%), and marketing (0.5%), add to the overhead. Other costs, which represent 17.4% of expenses, cover vehicle maintenance, insurance, and office administration, with higher costs for companies offering emergency services or operating across large service areas​.

Cost of HVAC Services

HVAC Replacement and Installation Costs: Replacing an HVAC system typically costs $5,000 to $12,500, with options like ductwork or HEPA filters raising costs to $22,000. Central AC units range from $3,900 to $7,900, while options like mini-splits and whole-house fans vary based on features and installation needs.

Heating Systems: Furnace installation costs range from $1,700 to $10,000 depending on type (electric, gas, oil), while boilers vary from $1,800 to $16,000. Heat pump types, including geothermal and solar, span $2,500 to $39,000, offering choices for energy efficiency across climates.

Size-Based Costs: AC unit costs depend on home size, with 1.5- to 3.5-ton systems costing $2,000 to $3,500. Furnace sizes from 40,000 to 140,000 BTUs range between $2,000 and $8,000, though factors like climate and home insulation can adjust these requirements.

HVAC Maintenance Contracts

Revenue Drivers in the HVAC Industry: For traditional HVAC contractors, maintenance contracts are a primary revenue source, with a portfolio of around 500 service contracts seen as ideal for business sustainability.

These contracts bring in revenue from annual maintenance visits and generate additional sales opportunities for repairs, unit replacements, and home energy upgrades. 

• Residential customers typically spend between $120 to $500 per year for basic plans, while more comprehensive contracts can range from $500 to $1,500 or more annually. 
• For commercial systems, maintenance contracts generally cost between $500 to $2,000 per year, depending on the complexity and size of the system. 

These contracts not only generate steady, recurring revenue for HVAC businesses but also assist customers in avoiding unexpected repair costs by ensuring regular maintenance and system efficiency.

HVAC Employment and Workforce Statistics

HVAC Employment Stats

Employment: Approximately 397,450 HVAC mechanics and installers are employed in the U.S. 

Job Outlook for HVAC Technicians: Employment for HVAC mechanics and installers is expected to grow by 9% from 2023 to 2033, faster than the average for all occupations. Each year, about 42,500 job openings are projected, largely due to workers retiring or moving to other fields.

Factors Driving HVAC Job Growth: Employment for HVAC technicians is on the rise, fueled by ongoing commercial and residential construction and the increasing complexity of climate-control systems.

Repair and replacement work remains a significant part of the job, with energy efficiency and pollution reduction efforts pushing demand as systems are retrofitted, upgraded, or replaced.

States with Highest Employment: Florida leads in HVAC employment with 37,370 workers, followed closely by California (35,630) and Texas (31,910).

Metropolitan Areas with Highest HVAC Employment: The New York-Newark-Jersey City area leads with 22,780 HVAC workers, followed by Dallas-Fort Worth-Arlington with 10,060 workers and Miami-Fort Lauderdale-West Palm Beach at 9,540.

HVAC Workforce Demographics

Gender and Diversity

• The HVAC industry is predominantly male (>90%). This gender disparity indicates a significant imbalance compared to other trades. 
• Women only make up about 9% of the HVAC workforce, with more female technicians, CEOs, and women-owned HVAC businesses emerging each year. 
• The largest ethnic group among HVAC technicians is White, making up approximately 64.31% of the workforce, followed by 19.88% Hispanic or Latino and 8.25% Black or African American.

Workforce Age

The average age of HVAC technicians is 40 years or older, representing approximately 49% of the HVAC technician population. This demographic indicates a significant portion of mid-career professionals, with a potential impact on future labor supply as many technicians approach retirement age.

Training and Education

Becoming an HVAC Technician: Most HVAC technicians start with a postsecondary nondegree award, though some enter the field with just a high school diploma. Competency usually requires extensive on-the-job training, and some states require licenses or certifications. 

Education and Training for HVAC Technicians: 

• Most HVAC technicians receive training from technical schools or community colleges, where programs in heating, air conditioning, and refrigeration run from 6 months to 2 years. 
• These programs award either a certificate or an associate degree, depending on the depth of study and institution. Specialized HVAC training is key to preparing technicians for the technical demands of the job.

Apprenticeships: HVAC professionals frequently complete apprenticeships that blend classroom learning with practical experience. These apprenticeship programs generally span 3 to 4 years, allowing individuals to gain valuable on-the-job training under the supervision of experienced technicians. 

Licenses and Certifications in HVAC: 

• HVAC technicians must be EPA-certified to handle refrigerants, usually by passing an exam included in their HVACR training. 
• Some states and local areas also require specific HVAC licenses, so it’s wise to check local requirements. 
• Optional certifications, like those from NATE (North American Technical Excellence) or RETA (Refrigerating Engineers and Technicians Association), can boost a technician’s credentials, and many employers prefer these. 
• A driver’s license is often needed, too, as the job requires traveling to various work sites.

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Wages and Salary Data

Average Annual Wage: $59,620 for HVAC technicians.

Top-Paying Industries: 

• The highest-paying industries are Scheduled Air Transportation (annual mean wage of $99,380) and Natural Gas Distribution ($90,620). 
• Other high-paying sectors include Navigational Instrument Manufacturing ($90,570) and Aerospace Manufacturing ($86,410). 
• These specialized industries typically require advanced skills, reflecting the premium wages offered.

Top-Paying States: 

• HVAC technicians earn the highest wages in the District of Columbia, with an average annual salary of $77,970, followed by Alaska at $75,660. 
• Other high-paying states include Massachusetts ($75,190), Hawaii ($74,200), and Washington ($72,340). 
• These states offer higher wages due to increased demand, regional labor costs, and specialized skill requirements.

Top-Paying Metro Areas: 

• The San Jose-Sunnyvale-Santa Clara, CA metro area leads with HVAC technician salaries averaging $91,500 annually, followed by San Francisco-Oakland-Hayward at $79,870. 
• Other high-paying areas include Seattle-Tacoma-Bellevue, WA ($79,280), Anchorage, AK ($78,090), and Boston-Cambridge-Nashua, MA-NH ($77,130). 
• These areas reflect high compensation aligned with regional demand, cost of living, and specialized skill requirements for HVAC professionals.

Top HVAC Certifications and Degrees for Higher Salaries: 

Advanced HVAC degrees and commercial certifications can lead to significant salary boosts. 

• A Bachelor’s in HVAC increases salaries by about 20%, while an Associate Degree in HVAC-R offers an even higher median pay of $68,000—often reflecting years of experience. 
• Commercial certifications, like Commercial A/C or Refrigeration, also offer strong earning potential with median salaries of around $69,000, typically achieved after many years in the field. 

Experience and Earnings in HVAC: 

HVAC technicians with less than 5 years in the field typically earn around $40K, about 27% below the industry median, and those with 6-10 years of experience.

Pay increases slow after 10 years; techs with 6-10 years make just 14% less than those with 11-15 years, and salaries tend to plateau after 16 years.

Challenges and Risks

Injuries and Illnesses in HVAC: 

• HVAC technicians face some of the highest rates of workplace injuries and illnesses, often from burns, strains, and handling heavy equipment. 
• Proper safety measures, like using personal protective equipment (PPE) and safe lifting techniques, are essential for reducing these risks. 
• PPE for HVAC techs can include specialized clothing, goggles, and masks—especially important when working with hazardous refrigerants.

High Failure Rate in the HVAC Industry: HVAC contractors face a high failure rate, with 20% ultimately closing and 70% of new businesses failing within their first year. While economic factors play a role, many failures stem from limited business skills or planning, making it challenging to build a sustainable customer base.

Skilled Labor Shortage in HVAC: 

• The HVAC industry faces a critical shortage of qualified technicians, with a current deficit of around 110,000 and about 25,000 leaving their companies annually. 
• This shortage, due to factors like an aging workforce, limited training, and competition from other sectors, impacts repair times, increases costs, and can result in subpar equipment performance. 
• Contractors face potential revenue losses, estimated at $250,000 per year, emphasizing the need for ongoing efforts in recruitment and retention, enhanced training programs, and technological solutions to boost efficiency.

Wrapping Up

Data plays a critical role in shaping HVAC business decisions—from navigating regulations and pricing services to understanding customer needs and managing operational efficiency. 

To fully leverage these insights and streamline operations, HVAC businesses can benefit from adopting specialized business management software like Workyard. 

Workyard helps HVAC businesses improve project tracking, labor management, and budgeting, ultimately enabling them to make data-driven decisions and optimize their operations. 

Discover how Workyard’s features can keep your HVAC team competitive without losing sight of profits. Or, try it for free today to see how it works.