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47 HVAC Industry Statistics and Trends

The heating, ventilation and air conditioning (HVAC) industry provides comfort environmentally to indoor environments. It uses thermal manipulations through heating and cooling processes while providing filtering tech that improves air quality. Some agencies in this industry also provide refrigeration services.

Regional climate changes determine the demand for heating or cooling services. New energy efficiency standards have provided the industry a boost through the need to replace outdated installations. Automation is a significant factor for providers today, with technological advances playing a major role in the products offered and overall operations.

Carrier Corporation is a dominant player in the U.S. market with a 17% share of the business. With the projected growth of the American residential HVAC industry expected to reach 5% each year, now is the perfect time to get to know names like Ferguson, Daikin, and Carrier better.

Critical HVAC Industry Statistics

#1. The demand for HVAC equipment in the United States totals $20.4 billion per year. The market growth for electronic assets is rising at a 5% clip within the industry. (Statista)

#2. The global projected market size for the HVAC industry is $208.6 billion, with over half of that amount located in Asia. The Asian market value currently stands at $114.36 billion. (Statista)

#3. Over 151 million HVAC units are part of the market volume for the industry worldwide each year. (Statista)

#4. About 53 million air conditioning units are sold in China each year. (Statista)

#5. 91% of households in Japan have at least one air conditioning unit or a centralized system installed to make the interior environment more comfortable. (Statista)

#6. The current market size for air conditioning systems in the United States is valued at $15.4 billion. Over 103 million housing units in the U.S. have air conditioning equipment installed. (Statista)

#7. Over 1.2 million people have direct employment opportunities in the U.S. HVAC industry, which reflects a 5% gain over 2017 numbers. (HVAC Today)

#8. New orders to manufacturers through October 2018 were valued at $47.3 billion, which was the largest total ever recorded by the industry. It’s an increase of 65% in YOY totals. (HVAC Today)

#9. Single-unit housing starts in the United States totaled 888,000 in November 2018, which was an increase of 3.9% in YOY numbers. (HVAC Today)

#10. Sentiments in the industry are not high, as home-builder sentiment is down 24.3% in 2018 figures from the year before. It’s the sharpest YOY drop recorded in almost a decade. (National Association of Home Builders)

#11. 45% of HVAC workers say that they prefer text over email when companies need to communicate with them. (Slick Text)

#12. Over 14 million homes in the United States are using Internet of Things tech with their HVAC systems. (Service Titan)

#13. 61% of Millennials and 46% of Baby Boomers say that they’re willing to pay more for their HVAC equipment if it means their home can become more environmentally friendly. (Service Titan)

#14. 78% of younger consumers in the HVAC industry say that they expect their customer service representative to have their contact information and purchase history available for a conversation. (Salesforce)

#15. Geothermal heat pumps currently make up about 1% of the current HVAC market in the United States. About 50,000 new units get installed in homes and businesses across the United States each year. (U.S. Department of Energy)

#16. The median pay for mechanics and installers in the HVAC industry is $47,610 per year, which equates to $22.89 per hour in the United States. (Bureau of Labor Statistics)

#17. The job outlook for HVAC installers and mechanics is charted at 13%, which indicates that it is much faster than average in the United States. It is also two percentage points lower than what the government reported in 2016. (Bureau of Labor Statistics)

#18. About 46,000 people currently list their occupation as an HVAC installer or mechanic in the United States. (Bureau of Labor Statistics)

#19. When HVAC systems receive regular inspections and maintenance, they can last for 15 years or longer. Yearly cleanings must be part of the approach, along with belt and fan replacements as needed. (Trend Statistics)

#20. 6% of electrical use in the United States goes directly to the HVAC systems in homes and businesses. (Trend Statistics)

#21. 90% of people who use social media consistently are doing some from a mobile device. The HVAC companies that can move into this marketing arena in the next 12-24 months are the ones that will experience the highest levels of success in the future. (Trend Statistics)

#22. Efficiency ratings are variable in the United States because of climate conditions. The southern states average an 80% efficiency requirement, while the northern ones often require a 90% rating or higher. (U.S. Department of Energy)

#23. Non-condensing furnaces are required to have a 78% efficiency rating in the United States. Mobile home units must have an AFUE of at least 75%. Litigation is placing holds on what is or what isn’t necessary in some areas, so consumers must work with their HVAC contractors to understand what they need. (Angie’s List)

#24. Condensing furnaces are typically rated 10% higher in their efficiency ratings that their non-condensing counterparts. Although these systems are more expensive at first, a significant cost savings in fuel costs can happen over the product’s lifespan. (Angie’s List)

#25. Consumers who turn their thermostats back by one degree for eight hours can reduce their utility expenses by 1%. That means someone in the cold north can save 10% by reducing the temperature of their home from 75°F to 65°F. In the warmer south, switching from 72°F to 82°F would accomplish the same result. (Comfort Pro)

#26. Over 40% of energy consumption in the United States goes to heating needs for indoor environments. That’s because a heater typically runs more often and must work harder than an air conditioning unit. (Comfort Pro)

#27. Americans use over 99 quadrillion BTU each year for their HVAC needs. (Comfort Pro)

#28. The most efficient furnace that’s currently available can save homeowners approximately 20% more energy, reducing the utility expense. The Air Ease Series #A97DSMV costs about $1,000 per year to operate. (Comfort Pro)

#29. The United States receives about 2.2 million shipments of furnaces each year. Although there isn’t data on the number that get installed annually, the figures are believed to be relatively consistent. (Comfort Pro)

#30. 98% of the furnaces that get installed in the United States use natural gas. Only 2% are oil furnaces, and this information doesn’t include electricity-based equipment that doesn’t require either option. (Comfort Pro)

#31. 84% of the homes in the United States have some type of air conditioning installed, making this element of the HVAC industry the most lucrative in the world today. It’s more common for households to have an air conditioner than a garage, dining room, or dishwasher. (Warner Service)

#32. 42% of homeowners say that they call a professional HVAC provider to perform routine maintenance on their equipment. Air conditioners that receive attention from the pros can last up to 40% longer. (Warner Service)

#33. Air conditions release about 100 million tons of carbon dioxide into the atmosphere each year, which equates to about two tons per home. (Warner Service)

#34. The installation of a programmable thermostat can save the average homeowner about $180 per year in the United States. Most homes spend about $300 each year on their A/C and refrigeration needs. (Nest)

#35. Installation mistakes that happen in the HVAC industry account for up to a 30% reduction in efficiency. A whole-home approach to reducing energy consumption can also cut costs by up to 30%. (U.S. Department of Energy)

#36. Properly sealing and insulating the air ducts in a home can reduce the heating and cooling costs of the structure by up to 20%. (U.S. Department of Energy)

#37. Total revenues for the HVAC industry in the United States reached $97 billion in 2019, with over 112,000 businesses participating in maintenance and installation activities. (IBIS World)

#38. The average person will spend 90% of their time indoors every day. Air quality estimates in the United States suggest that the air in homes and businesses is up to five times dirtier than what is outside. (EPA)

#39. Estimates suggest that over 4 million people die prematurely every year because of the impacts of indoor air pollution on their health. (World Health Organization)

#40. The most common sources of indoor air pollution are mold, pollen, and pet dander. Fumes from drywall or paint and household cleaners can also be problematic. Some structures might also contend with formaldehyde, second-hand smoke, and carbon monoxide. (CDC)

#41. Maintaining indoor humidity levels at a rate between 30% to 50% can reduce the influence of contaminants with the home. (CDC)

#42. Houses that heat with electricity can save up to 40% of the electricity being used when a ductless system gets installed. (U.S. Department of Energy)

#43. Ductless HVAC systems can save 45% in costs when compared to propane heat and 29% over oil furnaces. Some manufacturers, such as Mitsubishi and Fujitsu, say that they can save over 40% on average when compared to central air. (U.S. Department of Energy)

#44. Ductless HVAC systems are one of the quietest options that homeowners can choose today, with most systems operating between 19 to 23 decibels. (U.S. Department of Energy)

#45. The average cost of a repair for an HVAC system in the United States is $375. Common problems that get addressed include dirty fans, filthy coils, low refrigerant levels, and mechanical breakdown. (Statista)

#46. The average retail cost of a central air system rated at 20 SEER is $5,100. Most homes have a 15 SEER or lower system, with prices that can be as low as $3,600 in some markets. (Statista)

#47. Homeowners pay about $1 per day to operate their HVAC systems when activities get averaged out for the entire year. (Statista)

HVAC Industry Trends and Analysis

88% of respondents in the HVAC industry responded to an AHR Expo and ASHRAE Journal survey to say that they were having a “good” or “excellent” year in 2019. 43% of the respondents to that survey reported growth of up to 10% for the agency, with another 23% stating that they expected growth to exceed 10%. Although those figures seem high, it actually reflects the start of some growing pessimism within the industry.

As automation and new technologies continue to develop, fewer buildings have the need for updates. With new construction projects down in mature markets, HVAC providers find themselves in a repair, inspection, and maintenance pattern instead of the more profitable installation work.

This trend will continue over the next five-year forecast period unless new technologies create the need for updated government regulation. Revenues will still grow between 2% to 4% without new developments, but the companies with a presence in Asia will likely see the majority of the available gains in the HVAC industry.

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