As an HVAC business owner, there are a lot of challenges to growing your HVAC business and staying ahead of the competition.
The more informed you are about the HVAC industry, the better you can plan and predict your success and HVAC business growth.
HVAC businesses range from one-person operations to larger companies employing 50 technicians or more. They also hire an array of installation crews, HVAC customer service teams, HVAC service, and administration teams to keep the business running.
No two HVAC businesses are exactly alike, but all use the same basic types of HVAC equipment and deal with the same industry challenges.
While smaller HVAC companies often make less than $50,000 in profit annually, larger companies can earn millions in profit.
Many business owners are now looking into HVAC sales training and HVAC business coaching as a way to boost profitability.
The HVAC industry is also facing several challenges, including aging infrastructure, a skilled labor shortage, higher demand for smart HVAC systems, and rising energy costs.
This article will look at the HVAC industry statistics and HVAC trends you need to know in 2024.
HVAC Industry Trends and Statistics in 2024
- In 2022, the global HVAC market attained a value of nearly USD 159 billion. Furthermore, forecasts estimate the global HVAC market will grow to $227 billion by 2028.
- The HVAC industry in the USA is a major economic driver. HVAC companies generate $150 billion in annual revenue and employ over 1.5 million people in the U.S.
- The HVAC industry is expected to continue to grow at a CAGR of 6.1% from 2021 to 2026.
- Each year in the U.S., over 3 Million heating and air conditioner systems are replaced, and $14 billion is spent on HVAC services or HVAC repairs.
- In 2023, the minimum HVAC SEER grading has increased from 14 SEER to 15 SEER in the Southeast and Southwest regions of the United States. The Northern United states minimum SEER requirements increased in 2023 from 13 SEER to 14 SEER for each new AC unit.
- The most popular HVAC technology trends are indoor air quality (IAQ) and smart thermostats. The smart thermostat market was worth $1.2 Billion in 2022, and is projected to grow to $3.8 Billion by 2029. The U.S. indoor air quality market was worth $9.8 billion in 2022 and is projected to grow to $11.9 billion by 2027.
HVAC Industry Market Trends in 2024
- HVAC market trends show that the U.S. Midwest region accounted for the most HVAC industry revenue at over 22.4% in 2022.
- Growth in the construction industry is a strong driver of demand for air conditioning contractors, with features like indoor air quality, natural ventilation, energy consumption, and energy efficiency all changing the way HVAC systems are designed and installed.
- The highest growth in HVAC business revenue is in the southern region. Southern U.S. States recorded the highest revenue growth in the HVAC services market over the past 3 years.
- Nearly 90% of residential households in the United States have air conditioner equipment, which is driving demand in the HVAC equipment market.
- Air conditioning systems consume 6% of all the electricity produced in the United States. This energy usage creates an annual cost of approximately $29 billion to homeowners.
- 12% of the annual household energy expenditure is spent on air conditioning. 43% of U.S. Households use utility gas to heat their homes. 44% of homeowners have already switched over to electrical heating systems.
- In Southern U.S. households, 67% of residents leave their air conditioners running 24 hours a day.
- Over 50% of HVAC customers are willing to pay for a more eco-friendly and energy-efficient HVAC system.
HVAC Repair and Replacement Costs in 2024
- In 2024, the average HVAC repair costs will be about $350 per repair. An average HVAC unit replacement costs between $8,000 up to $15,000 depending upon the SEER rating of the AC unit.
- The most common HVAC repair is for a capacitor, compressor, fan motor, or condenser coil. Heat pump repair is the most common service required heating repair.
- HVAC maintenance costs an average of $200 per year, depending upon the work your HVAC contractor needs to do. Most HVAC maintenance agreements will cover two visits per year, and keep your AC unit running efficiently, and reduce the need for repair.
2024 HVAC Industry Trends by Market Segment
- The cooling and air conditioning segment dominated the HVAC market in 2022. HVAC installation and repair accounted for 57.8% of the total HVAC industry revenue.
- HVAC businesses in the U.S. typically include new construction, retrofit building, and serve residential homeowners, commercial and government businesses, and industrial or retail locations.
- HVAC residential services comprise the largest market share for air conditioning and heating in the USA, accounting for over 50% of total HVAC sales.
- Commercial HVAC services are the second largest part of the market, with over 30% of total HVAC sales.
- Industrial HVAC services are the third largest portion of the market, accounting for 20% of total HVAC sales.
- The largest HVAC systems manufacturing company is Goodman Manufacturing, now owned by Daikin Industries. Other popular HVAC equipment brands include Trane, York, Carrier, Rheem, Johnson Controls, and Lennox.
HVAC Company Growth Statistics in 2024
- In 2023, there are approximately 145,142 HVAC companies in the U.S. as of 2023.
- There are 659,906 HVAC professionals employed in the HVAC industry in the U.S. as of 2023.
- The number of people employed in the HVAC industry in the U.S. has increased by 2.8% over the five years between 2018 and 2023.
- California has the highest HVAC employment for HVAC technicians and installation, with about 69,400 jobs. New York has about 68,100 HVAC jobs, and Texas has about 67,300 HVAC services jobs.
- Growth in the HVAC industry is expected to keep growing at a rate of 5% over the next five years.
- Currently, there are 659,906 people employed in the Heating & Air-Conditioning Contractors industry in the U.S. as of 2023.
- Employment of heating, air conditioning, and ventilation mechanics and installers is projected to grow 5% t from 2021 to 2031.
HVAC Business Owner Statistics in 2024
- 88% of HVAC business owners reported a good or excellent business year in 2022. In addition, 43% of HVAC business owners expected a 5-10% growth in their business in 2023.
- The average profit margin for an HVAC business is between 2.5% and 5%, with the top HVAC companies earning between 10% to 25% profit margins.
- The average HVAC business owner's salary in the USA is $57,767, which equals about $28/hour.
- Less than 2% of HVAC business owners earn more than $100,000 per year in the U.S.
- The average HVAC technician salary is $49,500, which equals about $24/hour. This represents about 20% of the HVAC tech annual revenue they create.
HVAC Marketing Trends for 2024
- The average digital marketing cost for a small HVAC business is $2500 to $12,000 per month.
- Most HVAC business owners will invest 7-10% of their revenue in HVAC marketing.
- Approximately 55% of HVAC contractors use Google ads to get new HVAC customers and promote their brand. The average Click Through Rate for Google Ads for the HVAC services industry is 33%.
- The average cost per lead for HVAC marketing is $62, but can range between $50 up to $150 CPL depending upon the location and competition from other air conditioning contractors.
- The average cost per click for HVAC marketing via Google ads is $6.62.
- The most popular HVAC marketing services outside of Google Guaranteed and Google Business Profiles are Angi's List, HomeAdvisor, Yelp, Networx, and NearMe.
- Facebook, Instagram, and LinkedIn continue to be the best social media platform for HVAC services in 2023. The average cost per HVAC marketing lead on social media ranges from $72 to $166.
Key HVAC Industry Trends to Watch for in 2024
With all the HVAC industry growth we are experiencing, it's important to understand which new industry trends are on the horizon.
Here are some of the key HVAC industry trends that are shaping the future of the HVAC industry in the USA:
Smart HVAC Systems
The Internet of Things is growing and allowing home appliances to communicate via smartphones. HVAC systems are just beginning to incorporate these smart home capabilities. For example, HVAC systems will soon alert you when it needs a repair or routine HVAC maintenance check. A smart HVAC system can also let homeowners control the temperature of their room or workspace. It can incorporate control of lighting, humidity, fan speed, etc., to achieve an ideal home comfort level.
Indoor Air Quality
Many homeowners who suffer from allergies and congestion will add Indoor Air Quality devices to remove mold, pet dander, dust mites, and pollen. Most common indoor air quality solutions are an iWave air purifier, and Air Scrubber, or UV light to reduce odors and indoor contaminants. Indoor air quality can also include sensors or monitors that will track indoor air pollutants. Many US state codes now also require ventilation controls, correct duct insulation and sealing, and HVAC system sizing to ensure both efficiency and fresh flows through the home.
Sustainable Building Design
Newly designed and constructed buildings are now being designed to be greener and focus on energy efficiency. This type of design is called green building design or sustainable building design. The energy efficiency of the AC unit is a major component in the design of new homes and commercial buildings. Because heating and cooling systems use a lot of energy, HVAC professionals are very focused on saving energy and reducing energy consumption costs.
DeVAP HVAC
Billed as the 'Future of Air Conditioning,' DeVAP HVAC systems use an evaporative cooling system. The desiccant in liquid form and evaporative coolers work together to cool a room. Water is run into a honeycomb media, like absorbing it into a sponge. A fan then blows water through the honeycomb media, causing the water to evaporate. The biggest benefit of DeVAP HVAC's new technology is the cost savings.
Solar HVAC Systems
Similar to heat pumps, solar HVAC systems draw energy from the sun to warm a fluid, which then heats the air. Reduced energy consumption bills and minimal environmental impact are just some of the benefits which the solar HVAC unit provides.
Geothermal HVAC Systems
Geothermal HVAC systems use below-ground pipes (called an earth loop) to heat and cool a home or commercial building. Despite changes in weather, the average temperature on the ground stays pretty constant. Geothermal HVAC systems take advantage of this consistency to heat and cool your buildings. Geothermal HVAC is more complex for HVAC technicians to design and quote and can be more expensive to install than other renewable energies, such as solar HVAC.
These are just a few of the many HVAC industry trends and HVAC industry statistics in 2024. By understanding these HVAC market trends, HVAC owners can make informed decisions about competing and standing out in the growing market.
Learn The Secrets of Top-Earning HVAC Business Owners
Ready to grow an HVAC business in 2024? Most business owners are looking for ways to increase HVAC sales and create a business that runs itself.
Our HVAC Business Coaching Program creates multi-million dollar HVAC businesses and helps HVAC business owners to grow their revenue and profit.
With proven HVAC business processes developed by the founders of a $40mm HVAC company, we help our clients fast-track their revenue, train their teams, and secure true financial freedom.
Book a 15-min intro call today to start growing your HVAC business and thrive in the competitive HVAC industry.