HVAC industry statistics 2024

HVAC industry statistics

In a rapidly warming world, the U.S. HVAC industry has grown continuously, reaching a market share of more than $30 billion in 2023. The adoption of air conditioning systems across the U.S. has become nearly ubiquitous. Between 2017 and 2021, sales of HVACR equipment and water heaters grew by an average annual rate of 3.4%.

The industry remains segmented across different parts of the country, with significantly higher use of air conditioning systems in the South compared to the Pacific Coast. But a push to adopt more energy efficient HVAC systems and tax incentives of energy-efficient product installations are expected to propel continued industry growth in the coming years.

Types of HVAC systems

There are several types of HVAC systems. Choosing the system that suits your needs may depend on your location, the environment, the age of your home and existing systems in your residence.

• Split System: This type of HVAC is made up of an outdoor unit and indoor unit, and comes with several different configurations. These may include an interior gas-powered heating system, and an exterior cooling system.
• Hybrid Split System: Similar to a split system, this HVAC type can also rely on electricity for heating, rather than natural gas, helping to save on energy costs.
• Packaged System: Less common than split systems, this HVAC combines heating and cooling components into a single unit, typically located outside a building.
• Ductless Mini-Splits: This system provides heating and cooling without ductwork, and is used to control the temperature in a specific room.

A new HVAC system may run you anywhere from $5,000–$12,000, though costs may be higher for certain systems. For example, a geothermal heat pump, for example, could cost upwards of $15,000. In the long run, these pumps save on energy costs by relying on the relatively constant temperature below ground.

Find out more here on the costs of an AC system.

HVAC industry size

In 2020, there were nearly 990,000 plumbing and HVAC contractor establishments across the U.S. The industry is expected to see continued market growth in future years, with roughly 400,000 workers employed as HVACR mechanics and installers contributing to the sector’s $30 billion market share.

The HVAC market size is expected to be more than $32 billion in 2024 and grow by a compound annual growth rate of 7.4% between 2024 and 2030.

HVAC industry by state

In a business that is heavily dependent on the climate, the HVAC industry can vary significantly across different regions of the country.

Consumers in southern states, such as Florida and Texas, and southwestern states such as Arizona and Nevada, have reported significantly higher rates of air conditioning consumption than those in the Pacific Northwest and New England, where summer temperatures are milder.

In 2020, the number of HVAC and plumbing businesses was highest in states with the largest population levels, including California, Florida and Texas. States with the most HVAC businesses per 100,000 residents were those concentrated in colder climates. Per capita in 2020, Montana, Wyoming and Maine recorded the highest number of HVAC and plumbing establishments.

Largest HVAC companies

The top companies involved in HVAC services include EMCOR Group, Inc., a Connecticut-based construction company, Ireland-based Trane Technologies, Rheem, a manufacturer based in Atlanta, Georgia, and, Carrier Global, a Florida-based company that specializes in security and HVAC systems.

Find more here about choosing the right HVAC company.

HVAC industry employment

In May 2023, there were nearly 400,000 workers employed as HVACR mechanics and installers. They reported a median hourly wage of $27.55, more than $4 above the national median wage of $23.11 per hour.

These mechanics and installers, also called HVACR technicians, are responsible for installations, maintenance and repairs of HVAC systems, as well as installing electrical components and wiring.

Florida recorded the highest number of HVACR mechanics and installers, with more than 37,000 in 2023, followed by California and Texas. Delaware had the highest rate of employment for HVACR workers, followed by Idaho and Florida.

Despite being home to fewer workers and fewer businesses, HVACR employees in Washington, D.C. reported the highest average wages, at more than $37 per hour. The next highest-paid HVACR workers are in Alaska and Massachusetts.

These workers are also predominantly male, with women making up less than 10% of HVAC technicians.

HVAC industry job types

The HVAC industry includes a vast range of specialized positions, including air conditioning mechanics, refrigeration mechanics and furnace installers.

These positions can vary depending on their placement in other industries, such as fuel dealers and commercial equipment repair technicians. The majority of HVACR specialists are employed as building equipment contractors, who report slightly lower earnings than the average among all HVACR workers.

Some closely related jobs, including boilermakers and electricians, also report higher levels of pay than typical HVACR contractors.

HVAC industry projections

The HVAC industry is projected to see consistent growth in the coming years, though industry groups have indicated that in the short term, there are some challenges on the horizon including inflation and higher interest rates that may dampen demand.

Still, from 2024 to 2030, the industry is projected to see annual growth of 7.4% in its market share.

Employment of HVACR mechanics and installers is also projected to grow by 6% from 2022 to 2032, double the national average among all occupations.

The projections for continued growth come as the U.S. and other nations have placed an emphasis on improving the energy efficiency of HVAC systems and utilizing more environmentally friendly technologies.

In December 2023, the U.S. was one of 60 nations to pledge to increase the global average efficiency of new air conditioners by 50%. In September 2023, a group of 25 state governors committed to quadrupling the country’s number of heat pumps by 2030, a push that would increase the use of a more environmentally friendly and efficient heating and cooling technology.

The federal Inflation Reduction Act has also created an Energy Efficient Home Improvement Credit, which provides a tax credit equal to 30% of certain qualified expenses. These include certain energy efficiency improvements, residential energy property expenses and home energy audits.

References

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