The HVAC industry is constantly evolving due to several factors such as changes in consumer behavior, technological innovations, and more. There are several HVAC industry statistics that present opportunities you can use to grow your business. Facts about the market size, products demand marketing strategies, and employment size can help you strategically position yourself in the market. Below are several HVAC statistics and their impact on HVAC contractors.
The market value of HVAC services in the U.S.A was around $11.45 billion in 2020. This market value is expected to project to around $16.56 billion by 2026.
HVAC companies and technicians could make more profits from their services as the market value continues to increase. The rising market value presents an opportunity for you as an HVAC business owner to boost your ROI. The increasing market value could lead to more investments in the HVAC industry.
Increased demand for AC units
About 87% of homes in the USA use air conditioning units. The most common air conditioning units used are central AC units or room air conditioning systems. Central AC units are popular in the West, Midwest, and the West. On the other hand, room air conditioners are mostly found in the North East. The number of AC units in households is likely to increase over time.
This could create more demand for HVAC services. HVAC technicians might be expected to install more AC units on properties which could lead to more sales. Increased sales could then drive profits in your company.
Air conditioners shipments
The number of air conditioners shipped in the US was around 6.28 million in 2021. In 2019, the number of room air conditioners that were shipped was around 8.49 million units. This was after it was projected in 2018 that the number would be around 8.18 million by 2019.
The increased number of shipments could provide an opportunity for you to install more AC units and drive profits for your company. You can try to book more installation jobs and increase your revenue in the long run.
The number of furnaces shipped in the US is around 2.2 million every year. You could consider investing in furnace installation. Reach out to more property owners and homeowners who need furnace installation or replacement services
Mini split systems market
The mini split system market size in the USA was estimated to be around $98.4 billion in 2021. The market was projected to reach $145 billion by 2026. Mini split systems are energy-efficient, and easy to install. Ductless HVAC units also operate quietly producing around 19 – 23 decibels which most property owners would prefer. These could be the reasons behind the mini split systems’ high demand.
The increase of smart homes could also contribute to the increased demand for mini split systems. In this case, you can consider investing in mini split systems to meet the market demand. Mini split systems also meet the energy efficiency standard which could contribute to more sales and an increased ROI.
The number of heating, air conditioning, refrigeration mechanics and installers employed in the US was estimated to be about 356,960 in May 2021. The states that had the highest number of HVAC technicians are:
- California with around 32,640 workers
- Texas with about 31,060 workers
- Florida with around 30,480 workers
- New York with about 22,240 workers
- Pennsylvania with around 18,110 workers
This means that there could be a more reliable workforce to cope with the demands of the consumers. Your HVAC company can now source more workers to ensure the existing ones are not overworked. This can also boost productivity since labor can be divided equally amongst the workers.
With more employees, your company can meet the demands of more customers which could then increase your profits and contribute to the industry’s growth.
Industries with the highest employment concentration of HVAC employees
Below are the top industries that have the highest number of HVAC workers.
- Building Equipment Contractors with around 265,450 HVAC employees
- Direct Selling Establishments with about 9,600 employees
- Commercial and Industrial Machinery and Equipment with an exception of Automotive and Electronic Repair and Maintenance
- This industry has around 6,200 HVAC workers
- Facilities Support Services with about 2,850 employees
- Personal and Household Goods Repair and Maintenance with around 1,290 HVAC workers
You can try sourcing for clients in these industries as they have the highest demand for HVAC employees. For instance, you can try targeting building contractors or property owners with your HVAC products and services. This way, you can gain more customers and grow your HVAC business.
Employment growth rate
The demand for HVAC technicians was projected to increase by 5% between 2020 and 2030. Increased construction projects could be the driving force behind the increasing demand for HVAC technicians. As technology advances, HVAC equipment might become more complicated and technical requiring more qualified technicians to handle.
DIY projects might become more difficult to implement which would require project owners to seek the services of qualified technicians. Traditional HVAC systems might become obsolete and property owners will need to replace them. New HVAC systems will require advanced knowledge which could drive profit for HVAC companies and overall industry growth. It is imperative to keep track of these HVAC industry statistics especially on labor and productivity.
About 80% of construction companies in the USA are unable to find qualified workers for their projects. This includes HVAC technicians. As more old technicians retire, a gap is left to be filled which creates more demand for HVAC technicians. An increase in more technologically advanced HVAC equipment has also increased the demand for highly qualified HVAC workers.
This could mean more employment opportunities for newly qualified technicians and contractors. You can take advantage of the present gaps to get more contracts from construction companies or homeowners. You can try to work on as many projects as you can to maximize your profits. Try to also keep up with the latest technology and trends in the HVAC industry to remain relevant and useful.
HVAC jobs salary
The average salary of an HVAC technician is $48,630 per year. This can help you take up jobs that pay you according to the most suitable pay range of your choice. Some regions pay higher than others. You can try to get jobs in the areas with a higher pay range.
On the other hand, as an employer, you can select the most suitable pay range for your HVAC technicians while making maximum profit for your company. Try to hire highly qualified technicians that can make more profits for your company in the long run.
Top paying states for HVAC technicians
The following are states which pay HVAC technicians the highest wages in the USA.
- District of Columbia
- The annual wage rate is $70,130
- The annual wage rate is $70,100
- The annual wage rate is $69,100
- New Jersey
- The annual wage rate is $68,460
- New York
- The annual wage rate is 66,180
You can make more profits in these states because of the high wages. You should consider investing your HVAC services in these areas. If your HVAC company is located in these states, you could hire highly qualified technicians who are worth the high wages. Highly qualified technicians can provide quality services which can in turn drive profits for your company.
Accidents in the HVAC profession
By 2016, the fatality rate of HVAC technicians was 8.4 per every 100,000 workers. Falls, trips, and slips were the leading cause of these fatalities. About 27% of fatalities in the HVAC industry are caused by hazardous environments and contact with dangerous substances.
You can invest in effective protective gear such as respirators, protective gloves, or helmets to protect yourself from safety hazards. Ensure your employees have the right insurance covers to cater to their bills in case of accidents at the workplace. For instance, a cover like workmen’s compensation cover covers your employees in case of any work-related accident.
Adoption of mobile communication
About 45% of HVAC workers say that they prefer using texts to communicate in comparison to emails. This can be especially effective in improving communication. You are more likely to see a text message quicker than an email. Effective communication further drives productivity among the workers in your company. Increased productivity can translate to increased sales and profits.
Mobile communication also helps you establish a good relationship with your employees and customers. Text messages present an opportunity for you to gain the trust of your customer by engaging them personally.
HVAC systems in commercial and residential buildings consumed around 10% of electrical energy in 2021. The residential sector contributed to 6% of electricity consumption while the commercial sector was responsible for the remaining 4%. However, more energy-efficient HVAC systems like the ducted air-source heat pump can minimize electric energy usage by up to 50%. Most homeowners also use smart thermostats which help them cut up to 23% of energy costs.
Most homeowners are likely to shift to more energy-efficient HVAC systems to cut energy costs. You should consider investing in energy-efficient HVAC systems which might be in high demand in the future.
Energy efficiency requirements in the US vary according to location due to climate variations. The energy efficiency requirement in the northern states is about 90% while the efficiency requirement in the southern states is around 80%.
Errors made in the installation of HVAC units contribute to around 30% energy efficiency reduction.
You could consider investing more in installing energy-efficient HVAC systems. Try to focus more on the highest-energy efficient models that meet the requirements of most locations. You could get HVAC units that have an efficiency of 90% or more.
In the USA, the green buildings market is projected to reach $103.8 billion by 2023. The purpose of green buildings is to reduce water and energy consumption and reduce health hazards in buildings. This includes the use of energy-efficient HVAC systems that cuts energy costs.
About 61% of the older generation and millennials say that they can pay more for their HVAC systems provided the units can contribute to making their homes more eco-friendly.
You could consider shifting to more energy-efficient HVAC products for your HVAC company. This is because most property owners might prefer energy-efficient HVAC systems like geothermal heat pumps or solar HVAC units for their green buildings in the future.
Geothermal heat pumps
Geothermal HVAC systems can reduce your energy consumption by 20% – 50%. About 50,000 geothermal heat pumps are installed by homeowners in the US. Geothermal heat pumps have a heating efficiency that ranges between 50% – 70% higher than other heating systems.
These heat pumps have a cooling efficiency that ranges between 20% – 40% higher than most cooling systems. This could present an opportunity for you to provide customers with an energy-saving solution and make profits.
Desiccant Enhanced Evaporative (DEVap) HVAC systems
This type of HVAC system reduces 30% – 80% energy consumption. They are more suitable for commercial purposes since these HVAC units are large. You could install commercial DEVap systems on commercial property. Reach out to commercial property owners to secure more jobs and boost your profits.
DEVap HVAC systems are also eco-friendly since they use salt solutions compared to the regular HVAC systems which use refrigerants. These refrigerants can impact the environment negatively by causing damage to the ozone layer. Air conditioners emit around 100 million tons of carbon dioxide which translates to around two tons per household.
Top HVAC companies
Below are some of the top HVAC companies rated according to their monthly revenue.
York International Corporation
This company generates an annual revenue of $23 billion. They provide various HVAC systems for commercial and residential property owners. They are based in Norman, Oklahoma.
Goodman manufacturing company
This company based in Houston, Texas generates a revenue of $18 billion. They deal with residential HVAC systems.
Carrier Corporation is based in Farmington, Connecticut. They generate a revenue of $17.8 billion. This company sells HVAC systems for residential and commercial purposes
This company generates an annual revenue of $11.2 billion. It is located in Davidson, North Carolina. They provide HVAC products and services intended for commercial, residential, institutional, and industrial markets.
Lennox International Inc.
This company is based in Richardson, Texas and generates a revenue worth $3.9 billion. Lennox provides HVAC systems for both commercial and residential purposes.
These top rated companies provide high-quality HVAC products and services and most consumers are likely to purchase HVAC systems from them. Hacking this market could be difficult for a new HVAC company. You could consider investing in an effective and sustainable marketing strategy to create brand awareness. You can also market your company by providing excellent customer service.
Internet of Things (IoT) HVAC solutions
The revenue of HVAC sensors is projected to increase by more than 63% by 2027 as IoT applications increase. The increase in HVAC sensors is likely to be caused by technological advancement. The need to cut electricity costs is also likely to drive the adoption of smart HVAC solutions.
HVAC units with programmable thermostats can save property owners around $180 annually.
Older HVAC systems are likely to become obsolete as people acquire HVAC units with advanced technological features. These features include temperature motion or light sensors. You should consider investing in current models with smart features to capture more clients with smart homes or commercial property. IoT sensors can detect problems in the HVAC units which helps you accurately identify and rectify the problem.
Demographics of HVAC technicians
The following is a classification of HVAC technicians according to their age, gender, and race.
The average age range of an HVAC technician is 42 – 55 years. These technicians retire in the next ten years. This creates a shortage in the number of qualified HVAC technicians since the younger technicians are not as experienced as the older ones.
The shortage of technicians can create more opportunities for you to cater to multiple service calls. You can also try to improve your skills to cater to emerging technologies in the HVAC industry.
97% of HVAC technicians are male while the remaining 3% are female. This could present an opportunity for more female technicians to venture into the HVAC industry.
Here, we illuminate of the race factor when it comes to HVAC industry statistics. The dominant race among HVAC technicians in the USA is white. 69.8% of HVAC technicians are white. 17% of the technicians are Hispanic and 8% are African American. 2.4% of the technicians are Asian while the ethnicity of 2.1% of HVAC technicians is unknown. 0.7% comprises Alaska Native and American Indian.
To curb the shortage, more HVAC technicians of the African American, Asian, Alaska Native, and American Indian could try venturing into the HVAC profession.
Digital marketing HVAC industry statistics
Below are some digital marketing statistics that you could use to your advantage.
There are more than 239 million search engine users in the US. About 79% of marketers say that SEO is more effective than Pay Per Click (PPC) advertising. About 40% of website visitors leave a site when it takes too long to load.
Around 99% of users don’t click on the second page of search results. The HVAC industry is among the top 3 industries with a high conversion rate of 3.3%. About 27% of mobile searches are voice searches.
Are these HVAC industry statistics on SEO worth knowing? Indeed yes! You can consider investing in an effective SEO strategy to increase your visibility on search engines and drive more traffic to your website. An effective SEO strategy can generate viable leads and more clients for your HVAC company. You could hire an SEO expert who can help you drive sales and increase your ROI.
About 75% of B2C marketers use blogging as a marketing strategy. About 69% of marketers say that blogging generates leads for their businesses. Around 53% of marketers say that blogging is their topmost marketing strategy.
What do these HVAC industry statistics mean? You could hire an expert content writer to write high-quality blogs that drive traffic to your website. An expert writer can research and use relevant keywords that focus on user intent. They can also find out what your target audience is looking for.
They could try to be as informative and engaging as possible to capture your readers’ attention. Blogging can help you increase brand awareness, acquire clients and boost your profits.
By 2021, 21% of consumers in the USA searched for local businesses via the internet daily. About 35% of the consumers stated that they searched for local businesses multiple times every week. Google Maps was used by 56% of mobile users in the USA which made it the most downloaded navigation app.
Why are these HVAC industry statistics critical? You could consider investing in an effective local SEO strategy to make your business visible on local searches whenever potential customers search for HVAC technicians or services. You can hire a local SEO expert to help you market your business locally.
They can help you create a Google My Business Profile and optimize it to increase your chances of being found by residential and commercial property owners in your locality.
Social media presence
Social media HVAC industry statistics are very important. YouTube was ranked first with an audience reach of around 73% in January 2022. Most consumers use this platform regularly to watch tutorials and videos. You could consider creating a YouTube channel to reach a wider audience on YouTube. You can post educational videos to capture the attention of potential customers and create brand awareness.
Facebook came in second after YouTube with an audience reach of 63%. You can create a Facebook account and create a page where you could market your HVAC products and services. This platform provides an avenue where you can directly interact with your target audience.
TikTok had a mobile usage outreach of around 30% in 2021. This platform is mostly used by younger individuals. You could use this platform to target young homeowners in your locality. You can post videos of you delivering HVAC services to existing clients.
Nextdoor has more than 17 million recommendations. About 25% of Nexdoor conversations are advisory. This platform covers around 145,000 neighborhoods in the US. You are likely to find most residential property owners on this platform. If you provide residential HVAC services, you can consider advertising your company on this platform.
For every $1 spent, you can get about $42 back when you use email marketing. This could be a great ROI for a small HVAC business. 80% of small and medium enterprises use emails as a customer retention campaign.
You can consider using email marketing as a means to acquire or retain existing clients for your HVAC company. You could try to send follow-up emails to your clients. For instance, you can write to a customer reminding them that their scheduled HVAC maintenance is due.
About 84% of companies that improve their customer service report an increase in revenue. Around 96% of customers say that customer service contributes to their loyalty to a brand. Consumers can pay up to 17% more to purchase from a company with great customer service.
About 78% of younger customers say they would prefer customer service representatives to have their purchase history and their contact details to provide an easy means of communication.
Why are these HVAC industry statistics important? Investing in good customer service increases customer loyalty to your brand and attracts more clients to your HVAC company. This includes addressing issues and solving them professionally.
For instance, if there is a delay in shipment, you can communicate with your client and offer a discount for their next purchase. You can also try to ensure your customers are satisfied with your products or services by asking them for feedback.
HVAC industry statistics can provide you with insights that can help you successfully market your HVAC business, or better yet equip you with knowledge about where your target audience is located and what their needs are. If you require more factual information, get in touch with us today.
Which are the largest HVAC companies in the world?
Below are some of the largest HVAC companies globally.
- Daikin Applied
- LG Electronics
- Toshiba Corporation
- Mitsubishi Electric Corporation
- Samsung Electronics
- Ingersoll Rand
What percentage of HVAC businesses fail?
According to industry professionals, about 50% of small HVAC business startups fail within the first year. About 95% of small businesses fail within 5 years. Therefore, as an HVAC contractor, you should focus on business strategies that can prevent your business from failing. Keeping up with the latest HVAC technologies and trends can help you meet customers’ needs and grow your business.
Similarly, offering great customer service can help your HVAC business thrive. When your customers are fully satisfied, they are likely to invest more in your services.
How big is the HVAC industry?
According to Fortune Business Insights, the North American HVAC system market size value was 441.67 billion in 2021. The market is expected to reach $43.67 billion in 2022 and grow to $62.31 billion by 2029. The driving force behind the increasing market size is the growing demand for smart HVAC systems along with the adoption of the Internet of Things (IoT). The increase of green building construction is also another reason behind the increasing market size in North America.