HVAC Industry Growth

The U.S. HVAC industry is set to EXPLODE in size over the next 10 years.
Read below to find expert predictions on how much the industry will grow, why it’s growing and what area will see the most growth.

HOW MUCH THE INDUSTRY WILL GROW

The U.S. HVAC services market is predicted to:

Increase in value from $25.6 billion in 2019 to $35.8 billion in 2030

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Create 13% more HVAC mechanic and installer jobs from 2018 to 2028, much more than the average for all occupations

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Register a compound annual growth rate (CAGR) of 9.7% from 2019 to 2025

WHY IT’S GROWING SO RAPIDLY

Demand for Energy Efficiency:

The U.S. Energy Information Administration’s (EIA) 2015 Residential Energy Consumption Survey (RECS) estimates that 76 million primary occupied U.S. homes (64% of the total) use central air-conditioning equipment. Also, approximately 13 million homes (11%) use heat pumps for heating or cooling. By 2023, all new residential central air-conditioning and air-source heat pump systems sold in the United States will be required to meet new energy efficiency standards, thus fueling the growth of HVAC services.

Booming Construction

According to data published by the United States Census Bureau, construction spending rose from $809.26 billion in 2010 to $1,293.98 billion in 2018. Similarly, privately‐owned housing completions in July 2019 were 6.3% higher compared to July 2018. This growth will trigger a significant uptick in HVAC installations.

WHERE IT WILL GROW THE MOST

According to a survey conducted by the U.S. Census Bureau in 2018, the south has the highest number of households (48 million) of any other region in the U.S. Of the 48 million, nearly 38 million households in the region have an annual income above $25,000. Rising annual household income in the south is expected to further stimulate the adoption of HVAC systems.

Additionally, per the National Association of Home Builders, the construction industry in the south has grown at a rate of approximately 6% from 2017 to 2018.

Naturally, the construction industry growth in this region is increasing the demand for HVAC system installations.

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