HVAC Statistics & Trends You Should Know in 2025 | ServiceTitan

1. HVAC Market & Growth Trends

The HVAC industry is changing quickly, driven by the growing demand for smarter and more efficient solutions. Homeowners and businesses are looking for systems that save energy and cut costs, pushing smart HVAC technology into the spotlight and opening up plenty of opportunities for new and returning business.

Modernization is a top priority, with a balance between repairs, replacements, and new installs. It’s clear the future of HVAC is all about innovation, efficiency, and meeting customers’ unique needs.

• Market Growth: The global HVAC market was valued at approximately $157.71 billion in 2023, and expected to reach $228.74 billion by 2030, growing at a CAGR of about 5.5% during the forecast period. Source: Fortune Business Insights

• Smart HVAC Systems: The market for smart HVAC systems is expected to grow significantly, with projections indicating a rise from $9.7 million in 2022 to $24.3 million by 2031.

Source: Business Research Insights

• Air Conditioning Demand: Nearly 90% of U.S. households utilize air conditioning.

Source: EIA

• Residential Demand: Residential HVAC systems account for approximately 40% of the overall HVAC market, with significant growth anticipated.

Source: Grand View Research

• Replacement Market: U.S. consumers spend over $10 billion annually on HVAC repair and maintenance services, indicating plenty of opportunities for service offerings.

Source: Grand View Research

• Commercial Growth: The commercial HVAC sector makes up roughly 30% of the market, primarily for office spaces and retail centers. Source: Grand View Research

• Geographical Growth: The Asia-Pacific region is one of the fastest-growing HVAC markets, projected to expand at a CAGR of 7.35% from 2024 to 2029. Source: Mordor Intelligence

• System Replacement: Up to 3 million heating and cooling systems are replaced every year in the U.S. Source: Grand View Research

2. HVAC Energy Efficiency & System Lifespan

For HVAC contractors, moving toward energy efficiency solutions is no longer optional, it’s the standard for success.

By educating homeowners about solutions like ductless mini-splits and advanced heat pumps, you position yourself as a trusted advisor, helping customers save money while improving their home's efficiency. Proper maintenance is equally critical, as even high-efficiency systems lose performance without regular care.

By sharing these key stats with your customers, you can emphasize the value of investing in energy-efficient solutions and regular upkeep to maximize both system lifespan and savings.

• Energy Efficiency Improvements: Upgrading to energy-efficient HVAC systems can reduce energy consumption by 20% to 50%. Source: U.S. Department of Energy

• Average System Lifespan: The average lifespan of an HVAC system is about 15 to 20 years, with heat pumps lasting up to 10 years and furnaces around 15 years. Source: CNET

• Reducing Carbon Footprint: Homeowners that upgrade their heating equipment can save up to 7.6 tons of carbon emissions per year. Source: Energy.gov

• Maintenance Impacts: Homes using energy-efficient HVAC systems save an average of $500 annually on energy bills. Source: Energy.gov

• Heat Pump Efficiency: Modern heat pumps can reduce electricity use for heating by up to 75% compared to electric resistance heating. Source: IEA.org

• Ductless Mini-Split Systems: Ductless mini-split systems can achieve efficiencies of up to 30% higher than traditional HVAC systems, making them a popular choice for energy-conscious consumers. Source: U.S. Department of Energy

• Air Conditioning Consumption: Air conditioners use about 12% of the electricity in U.S. homes. Source: Energy.gov

• Improperly installed heating and cooling equipment can reduce system efficiency by 30%. Source: energystar.gov

HVAC Energy Use & Efficiency

Rising energy costs make energy-efficient HVAC systems a practical and attractive option for homeowners. HVAC business owners and contractors play a key role in helping clients understand the long-term financial and environmental benefits of high-efficiency systems, and the drawbacks of failing to upgrade. 

Highlight small but impactful improvements, like sealing ducts or upgrading to ENERGY STAR-certified systems, during consultations. Upgrading systems not only reduces energy consumption but also provides real savings, which can help you turn a one-time customer into a loyal lifelong client.

• Energy Consumption: Over 50% of a typical household’s energy consumption comes from heating and air conditioning. Source: U.S. Energy Information Administration

• Rebates and Incentives: With ENERGY STAR, homeowners can save up to $8,750 on utility bills over the lifetime of their products. Source: Energystar.gov

• Annual Energy Bills: The average homeowner spends about $2,000 annually on energy bills, with a significant portion of that attributed to heating and cooling. Source: Energystar.gov

• Long-term Savings: Homeowners can save up to 20% per year on utility bills with an ENERGY STAR home. Source: CenterPoint Energy

• Heat Pump Savings: Homeowners can save up to $300 annually by switching from a traditional heating system to an energy-efficient heat pump. Source: U.S. Department of Energy

• Impact of Weatherization: Weatherization improvements, including HVAC upgrades, can reduce energy bills by 15-30%. Source: U.S. Department of Energy

• Smart Thermostat Savings: Installing a smart thermostat can save homeowners about 8% on heating and cooling costs. Source: ENERGY STAR

• Energy Cost Savings: Homes that use ENERGY STAR-certified HVAC systems can save between 10% and 30% on heating and cooling costs compared to standard systems. Source: Energy.gov

• Long-Term Value: Energy-efficient upgrades, including efficient HVAC systems, can add up to 8% to a home’s resale value. Source: ENERGY STAR

HVAC Maintenance & Service Statistics

Routine maintenance improves HVAC system longevity and reliability. Contractors who emphasize proactive care help clients avoid costly repairs and maximize energy efficiency. For commercial systems, regular servicing minimizes downtime and ensures smooth operations. 

By presenting maintenance plans as essential for longterm savings and performance, you build trust and foster repeat business. Offering these solutions positions you as a proactive problem-solver, ensuring your clients’ systems operate at their best year-round. 

• Repair Costs: The average repair cost for HVAC systems is approximately $351, but can range from $243 to $1,567 depending on the issue.

Source: CNN

• Significant Spend for Repairs: Every year, Americans spend $14 billion on HVAC services or repairs.

Source: Energy.gov

• Role of Regular Maintenance: HVAC systems require maintenance at least once a year for optimal performance.

Source: HVAC.com

• System Lifespan: Residential single-home HVAC units typically last 15 to 20 years when properly maintained.

Source: CNET

• Maintenance Frequency: Organizations can save up to 20% on energy bills by following operations and maintenance best practices.

Source: Energy.gov

• Shifting to Heat Pumps: There are 13 million homes currently heating their homes with natural gas that would save by switching to a heat pump.

Source: Energy.gov

5. HVAC Industry Statistics

The HVAC industry faces significant challenges, from workforce shortages to rising equipment costs and increasing competition. Contractors who adapt by leveraging smart technologies and operational software can improve efficiency and meet escalating customer expectations for faster, more reliable service.

By embracing innovation and streamlining operations, you can turn these challenges into opportunities and thrive in a competitive market.

• Workforce Shortages: The HVAC industry faces a shortage of 110,000 technicians.

Source: ACHR News

• Tough First Years: 70% of new HVAC businesses fail in their first year of operation.

Source: Energy.gov

• Businesses Must Adapt: Approximately 20% of HVAC contractors fail every year.

Source: Energy.gov

• Rising Costs: Since 2020, equipment prices have gone up roughly 40%.

Source: ACHR News

• Customer Demand: In 2024, multiple HVAC parts manufacturers announced price increases ranging between 2% and 13%.

Source: TrustCampbell

• Cost of Equipment: The price of HVAC and commercial refrigeration equipment in the United States increased by nearly 7% in 2023.

Source: Statista

• Customer Expectations: 34% of consumers surveyed say they're delaying essential home services due to economic strain. 

Source: ACHR News

6. HVAC Employee Statistics

The HVAC workforce is growing, with job opportunities available in both private and public companies. While job growth offers opportunity, filling roles with skilled professionals requires a focus on training and inclusion.

Investing in advanced training and professional development not only boosts employee satisfaction but also strengthens your business’s reputation as a forward-thinking employer.

• HVAC Job Growth: The HVAC industry is expected to grow by 9% from 2021 to 2033, which is faster than the average for all occupations. Source: U.S. Bureau of Labor Statistics (BLS)

• Private vs Public Companies: HVAC technicians are 74% more likely to work for private companies. Source: Zippia

• Job Outlook: An average of 42,500 new jobs will open up for HVAC professionals each year from now until 2032. Source: U.S. Bureau of Labor Statistics (BLS)

• Diversity in the Workforce: Women make up only about 3% of the HVAC workforce, highlighting the need for greater diversity and inclusion initiatives within the industry. Source: Zippia

• Employment Rates: There are over 441,000 HVAC technicians currently employed in the United States. Source: U.S. Bureau of Labor Statistics (BLS)

• Average Age in the Workforce: The average HVAC technician is 40 years old. Source: Zippia

• Pay Rates: In 2023, HVAC technicians earned a median rate of $27.55 an hour. Source: U.S. Bureau of Labor Statistics (BLS)

7. HVAC Consumer Insights

When it comes to choosing HVAC services, consumers are placing greater emphasis on factors beyond price. Reliability, satisfaction, and transparency are influencing decisions. Consumers want to know the systems they invest in will provide lasting comfort and efficiency. Delivering exceptional service and maintaining a strong online reputation are critical, as over the majority of buyers rely on reviews and online reputation to make purchasing decisions.

• Consumers Favor Reliability: 38% of consumers ranked system reliability as their top priority in choosing HVAC equipment. Source: PickHVAC

• Satisfaction Ratings: 83% of homeowners who invested in heat pump upgrades report higher satisfaction with indoor comfort. Source: Green City Times

• Homeowners Don’t Prioritize Maintenance: Only 30% of homeowners schedule preventative maintenance. Source: DuraPlas

• Consumer Awareness: 83% of consumers ranked something other than cost as their top priority when selecting an HVAC system. Source: PickHVAC

• Influence of Reviews: 91% of consumers rely on online reviews when selecting HVAC contractors, demonstrating the importance of reputation. Source: ACHR News

• Reviews Matter: 73.9% of consumers made their HVAC purchase after consulting at least one online review site. Source: PickHVAC

• Demand for Transparency: 70% of consumers desire transparency regarding energy costs and savings when purchasing HVAC systems. Source: ACHR News

Shaping the Future of HVAC

The HVAC industry is transforming, presenting numerous opportunities for those who adapt to shifting landscapes and prioritize customer savings and experience. By prioritizing energy efficiency, sustainability, and customer-centric solutions, you can differentiate your business and build long-term success.

Take the Next Step with ServiceTitan

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