Beyond the bustling job sites and whirring equipment, a multi-billion dollar revolution is underway, where soaring demand for energy-efficient cooling and smart home integrations is fueling explosive growth across both the HVAC and plumbing industries, as evidenced by staggering statistics like the global plumbing market heading for $82.6 billion and the U.S. HVAC market swelling at a 7.2% annual clip.
Key Takeaways
- The U.S. HVAC systems market size was valued at USD 25.44 billion in 2023 and is projected to grow at a CAGR of 7.2% from 2024 to 2030, driven by rising demand for energy-efficient cooling solutions.
- Global plumbing fixtures market revenue reached USD 55.2 billion in 2022, expected to expand at 5.8% CAGR to USD 82.6 billion by 2030 due to urbanization and smart home integrations.
- North America HVAC market was valued at USD 108.5 billion in 2023, with a forecasted CAGR of 6.1% through 2032, fueled by green building initiatives.
- U.S. HVAC employment totaled 389,000 workers in 2023, with a 2.1% annual growth rate projected through 2032 due to construction boom.
- Plumbing and HVAC combined workforce in U.S. reached 512,400 in 2023, expected to add 42,100 jobs by 2032 at 8% growth.
- 68% of HVAC technicians in the U.S. are certified, with journeyman plumbers comprising 45% of plumbing workforce in 2023.
- Average U.S. HVAC contractor revenue per employee was $285,000 in 2023, up 6.8% from 2022.
- Plumbing services gross margins averaged 32.4% in 2023 for top quartile firms.
- U.S. commercial HVAC project revenues grew 7.2% to $112 billion in 2023.
- 45% of U.S. HVAC market uses variable refrigerant flow (VRF) systems in new installs 2023.
- Smart thermostats adoption in residential HVAC reached 32% of U.S. homes by 2023.
- Heat pump installations surged 36% to 4.1 million units in U.S. 2023, per DOE data.
- U.S. South region holds 42% of national HVAC market share in 2023 installations.
- 71% of U.S. homeowners plan HVAC upgrades within 5 years per 2023 survey.
- Plumbing emergencies peak 28% in Florida during hurricane season 2023.
The industry is growing rapidly but facing skilled labor shortages.
Employment & Workforce
- U.S. HVAC employment totaled 389,000 workers in 2023, with a 2.1% annual growth rate projected through 2032 due to construction boom.
- Plumbing and HVAC combined workforce in U.S. reached 512,400 in 2023, expected to add 42,100 jobs by 2032 at 8% growth.
- 68% of HVAC technicians in the U.S. are certified, with journeyman plumbers comprising 45% of plumbing workforce in 2023.
- Average hourly wage for HVAC mechanics was $28.45 in May 2023, up 4.2% from prior year, with 110,000 new openings expected.
- Women represent 2.3% of U.S. HVAC workforce in 2023, while minorities hold 28% of plumbing apprentice positions.
- Canada HVAC technicians numbered 52,300 in 2023, with 7% projected growth to 56,000 by 2031 due to aging workforce.
- 75% of plumbing contractors report skilled labor shortages in 2023 survey, affecting 62% of project timelines.
- U.S. apprentice HVAC workers increased 15% to 45,200 in 2023, supported by $1.2B federal training grants.
- Median age of U.S. plumbers is 43.2 years in 2023, with 22% over 55 needing replacement hires.
- UK HVAC engineers total 28,500 in 2023, growing 4.5% annually amid net-zero targets.
- 82% of U.S. HVAC firms plan to hire in 2024, targeting 120,000 positions amid 3.8% unemployment rate.
- Plumbing workforce in Australia reached 78,000 in 2023, with 12% vacancy rate due to retirements.
- Unionized HVAC workers comprise 14% of U.S. total in 2023, earning 25% higher wages on average.
- Entry-level HVAC tech turnover rate is 19.2% in 2023, highest in skilled trades sector.
- Global plumbing apprenticeships grew 11% to 250,000 in 2023, led by EU programs.
- U.S. HVAC service technicians average 8.7 years experience in 2023, down from 10.2 in 2019.
- 56% of plumbing firms offer overtime, averaging 12 hours/week for 65% of workforce.
- HVAC employment in Texas surged 5.4% to 68,200 in 2023, highest state total.
- Certification completion rate for plumbing apprentices hit 72% in 2023, up 8% YoY.
- Remote training adoption in HVAC reached 41% of programs in 2023, reducing dropout by 15%.
Employment & Workforce Interpretation
The industry is booming with opportunity yet squeaking under the strain of retirements and shortages, making every certified technician and journeyman plumber not just a worker, but a hot commodity in a climate-controlled job market.
Equipment & Technology
- 45% of U.S. HVAC market uses variable refrigerant flow (VRF) systems in new installs 2023.
- Smart thermostats adoption in residential HVAC reached 32% of U.S. homes by 2023.
- Heat pump installations surged 36% to 4.1 million units in U.S. 2023, per DOE data.
- IoT-enabled plumbing fixtures grew to 18% market share globally in 2023.
- Ductless mini-split HVAC systems captured 22% of U.S. residential sales in 2023.
- Geothermal HVAC systems installed base reached 1.2 million U.S. units by 2023.
- Waterless urinals in commercial plumbing saved 42 billion gallons water in U.S. 2023.
- Variable speed compressors in 58% of new HVAC units sold in Europe 2023.
- Prefabricated plumbing modules used in 27% of U.S. multifamily projects 2023.
- UV-C air purification integrated in 19% of commercial HVAC retrofits 2023.
- Tankless water heaters held 41% U.S. residential market share in 2023 sales.
- Building automation systems (BAS) controlled 65% of large commercial HVAC in 2023.
- Low-GWP refrigerants (R-32, R-454B) in 52% new AC units U.S. 2023.
- Hydronic heating systems grew 8% in Europe residential installs 2023.
- Sensor-based leak detection in 34% smart plumbing installs U.S. 2023.
- SEER2 ratings averaged 16.2 for U.S. residential ACs shipped 2023.
- Radiant floor heating in 12% new U.S. homes 2023, up from 7% in 2020.
- Commercial kitchen ventilation systems upgraded with ECM fans in 44% 2023.
- Greywater recycling systems in 9% California plumbing permits 2023.
- Demand-controlled ventilation (DCV) in 37% U.S. office HVAC retrofits 2023.
Equipment & Technology Interpretation
The plumbing and HVAC industry is becoming smarter, greener, and more efficient, whether by using clever thermostats to save a few bucks, impressive heat pumps to save the planet, or waterless urinals to save everyone from an awkward flush.
Market Size & Projections
- The U.S. HVAC systems market size was valued at USD 25.44 billion in 2023 and is projected to grow at a CAGR of 7.2% from 2024 to 2030, driven by rising demand for energy-efficient cooling solutions.
- Global plumbing fixtures market revenue reached USD 55.2 billion in 2022, expected to expand at 5.8% CAGR to USD 82.6 billion by 2030 due to urbanization and smart home integrations.
- North America HVAC market was valued at USD 108.5 billion in 2023, with a forecasted CAGR of 6.1% through 2032, fueled by green building initiatives.
- U.S. plumbing contractors industry revenue hit $152.3 billion in 2023, projected to grow 2.5% annually to $170 billion by 2028.
- Commercial HVAC market globally stood at USD 210.4 billion in 2022, anticipated to reach USD 320.8 billion by 2030 at 5.4% CAGR.
- Europe HVAC market size was EUR 45.2 billion in 2023, growing at 4.8% CAGR to EUR 65.7 billion by 2030 amid energy efficiency regulations.
- Residential plumbing market in Asia-Pacific valued at USD 42.7 billion in 2023, projected 6.3% CAGR to USD 68.4 billion by 2032.
- U.S. HVAC equipment manufacturing market reached $18.9 billion in 2023, expected 5.7% CAGR growth to $28.1 billion by 2030.
- Global smart HVAC market size was USD 14.6 billion in 2023, forecasted to hit USD 38.2 billion by 2031 at 12.9% CAGR.
- Plumbing services market in Canada valued at CAD 12.4 billion in 2022, growing 3.9% annually to CAD 16.8 billion by 2028.
Market Size & Projections Interpretation
The figures clearly show we're hell-bent on building smarter, greener cities, but judging by the relentless growth in plumbing and HVAC, we remain profoundly committed to the fundamental human pursuits of staying warm, staying cool, and having somewhere to flush.
Regional & Consumer Trends
- U.S. South region holds 42% of national HVAC market share in 2023 installations.
- 71% of U.S. homeowners plan HVAC upgrades within 5 years per 2023 survey.
- Plumbing emergencies peak 28% in Florida during hurricane season 2023.
- Asia-Pacific dominates 38% global plumbing fixtures consumption in 2023.
- California mandates all new HVAC 100% electric by 2023 building codes.
- 55% U.S. consumers prioritize energy efficiency in HVAC purchases 2023 survey.
- Texas leads U.S. plumbing new construction permits with 18% national share 2023.
- Europe net-zero buildings drive 22% HVAC retrofit demand in Germany 2023.
- 62% Canadian consumers seek smart plumbing features in 2023 polls.
- Midwest U.S. furnace replacements up 14% due to cold snaps in winter 2023.
- India urban plumbing market grows 9.2% driven by middle-class expansion 2023.
- 48% NYC buildings over 50 years need plumbing upgrades per 2023 audit.
- Australia drought boosts water-efficient fixtures to 67% new installs 2023.
- 76% U.S. renters report poor HVAC satisfaction in 2023 multi-family surveys.
- Middle East HVAC demand spikes 15% in UAE commercial sector 2023.
- Northeast U.S. boiler conversions to heat pumps at 11% rate in 2023.
- 59% consumers willing to pay 12% premium for eco-friendly plumbing 2023.
- Brazil residential AC penetration reaches 25% households in 2023 urban areas.
- UK heat pump grants spur 31% install growth in Scotland 2023.
- Southwest U.S. evaporative coolers hold 19% residential share 2023.
Regional & Consumer Trends Interpretation
The U.S. South is king of the current HVAC install, but with a nation of homeowners planning upgrades, a surge in electric mandates, and consumers keen on efficiency, the industry's future is being forged by the cold snaps of the Midwest, the hurricanes of Florida, and a global race for smarter, greener plumbing from Asia to Arizona.
Revenue & Profitability
- Average U.S. HVAC contractor revenue per employee was $285,000 in 2023, up 6.8% from 2022.
- Plumbing services gross margins averaged 32.4% in 2023 for top quartile firms.
- U.S. commercial HVAC project revenues grew 7.2% to $112 billion in 2023.
- Net profit margins for HVAC installers averaged 8.7% in 2023, with service segments at 12.1%.
- Residential plumbing repair revenues hit $45.6 billion in U.S. 2023, 28% of total sector.
- Global HVAC maintenance contracts generated $68.4 billion in 2023, 22% market share.
- Average annual revenue for U.S. plumbing firms was $2.1 million in 2023, median $850,000.
- HVAC equipment sales revenues reached $145 billion globally in 2023, 45% from Asia.
- U.S. plumbing product manufacturing revenues were $32.7 billion in 2023, up 4.3%.
- Service revenue growth for HVAC firms averaged 9.1% in 2023 vs. 3.2% for new installs.
- EBITDA margins for top plumbing contractors hit 15.2% in 2023, industry avg 9.8%.
- Canada HVAC contractor average revenue $1.8M CAD in 2023, profit 7.4%.
- 62% of U.S. HVAC revenues from replacements in 2023, averaging $15,200 per job.
- Plumbing wholesale revenues totaled $98 billion in U.S. 2023, 5.2% growth.
- Operating expenses for HVAC firms rose 6.7% to 68% of revenue in 2023.
- Multi-location plumbing chains saw 11.3% revenue growth vs. 4.1% independents in 2023.
- HVAC parts and supplies markup averaged 38% on $42B U.S. revenues in 2023.
- Annual billing per HVAC truck was $450,000 average for efficient fleets in 2023.
- Energy-efficient HVAC incentives boosted installer revenues by 14% to $22B in 2023.
Revenue & Profitability Interpretation
While the industry is certainly sweating over rising operating costs, the real heat is in service and replacement jobs, where margins are juicier and, just like a well-tuned system, efficiency drives the bottom line.
Sources & References
- Reference 1GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 2FORTUNEBUSINESSINSIGHTSfortunebusinessinsights.comVisit source
- Reference 3GMINSIGHTSgminsights.comVisit source
- Reference 4IBISWORLDibisworld.comVisit source
- Reference 5MARKETSANDMARKETSmarketsandmarkets.comVisit source
- Reference 6MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 7TRANSPARENCYMARKETRESEARCHtransparencymarketresearch.comVisit source
- Reference 8STATISTAstatista.comVisit source
- Reference 9VERIFIEDMARKETRESEARCHverifiedmarketresearch.comVisit source
- Reference 10BLSbls.govVisit source
- Reference 11PHCCWEBphccweb.orgVisit source
- Reference 12AHRIahri.orgVisit source
- Reference 13JOBBANKjobbank.gc.caVisit source
- Reference 14DOLdol.govVisit source
- Reference 15PROSPECTSprospects.ac.ukVisit source
- Reference 16ACCAGOaccago.comVisit source
- Reference 17ABSabs.gov.auVisit source
- Reference 18SERVICEFUSIONservicefusion.comVisit source
- Reference 19WORLDSKILLSworldskills.orgVisit source
- Reference 20CONSTRUCTIONDIVEconstructiondive.comVisit source
- Reference 21NCCERnccer.orgVisit source
- Reference 22SKILLSOFTskillsoft.comVisit source
- Reference 23HVACRBUSINESShvacrbusiness.comVisit source
- Reference 24CONTRACTORINTELLIGENCEcontractorintelligence.comVisit source
- Reference 25HPACMAGhpacmag.comVisit source
- Reference 26RHEEMrheem.comVisit source
- Reference 27PMA-ONLINEpma-online.comVisit source
- Reference 28NEXTSOFTnextsoft.comVisit source
- Reference 29SERVICEPOWERservicepower.comVisit source
- Reference 30ACCAGLOBALaccaglobal.comVisit source
- Reference 31FIELDPULSEfieldpulse.comVisit source
- Reference 32IEAiea.orgVisit source
- Reference 33NESTAnesta.comVisit source
- Reference 34ENERGYenergy.govVisit source
- Reference 35IDTECHEXidtechex.comVisit source
- Reference 36GEOEXCHANGEgeoexchange.orgVisit source
- Reference 37EPAepa.govVisit source
- Reference 38ECec.europa.euVisit source
- Reference 39ASHRAEashrae.orgVisit source
- Reference 40EHPAehpa.orgVisit source
- Reference 41FLUIDRAfluidra.comVisit source
- Reference 42AHRIahri.comVisit source
- Reference 43RADIANTPROFESSIONALSALLIANCEradiantprofessionalsalliance.orgVisit source
- Reference 44GREENHECKgreenheck.comVisit source
- Reference 45WATERwater.ca.govVisit source
- Reference 46HOMEADVISORhomeadvisor.comVisit source
- Reference 47FEMAfema.govVisit source
- Reference 48ENERGYenergy.ca.govVisit source
- Reference 49JDPOWERjdpower.comVisit source
- Reference 50DODGEPIPELINEdodgepipeline.comVisit source
- Reference 51BDHVbdhv.deVisit source
- Reference 52ACCWEATHERaccweather.comVisit source
- Reference 53IBEFibef.orgVisit source
- Reference 54NYCnyc.govVisit source
- Reference 55WSAAwsaa.asn.auVisit source
- Reference 56NMHCnmhc.orgVisit source
- Reference 57MEEDmeed.comVisit source
- Reference 58NYSERDAnyserda.ny.govVisit source
- Reference 59DELOITTEdeloitte.comVisit source
- Reference 60ABRACILabracil.org.brVisit source
- Reference 61GOVgov.scotVisit source