By StartBusinessByStatePublisher: Robert SmithResearch process
Editorial corrections verified September 15, 2026. Fixed 2026 edition: CBP 2023, population 2024, NES 2023, and business applications Aug-2025 through Jul-2026.
How big is the US HVAC contracting industry? As of Census County Business Patterns 2023, the United States has 111,207 employer establishments in this category employing 1,214,761 people, with combined annual payroll of $89.5 billion. This page compiles market size, state distribution, payroll measures, nonemployer activity where published, and broader-sector business applications — every number sourced to federal data, with the limits below.
For the latest monthly equipment numbers, see our tracker of air conditioner and heat pump shipments.
These statistics use Census NAICS 238220 — Plumbing, Heating, and Air-Conditioning Contractors. The category combines plumbing with heating and air-conditioning work; it cannot isolate HVAC-only establishments. Counts are employer establishments (business locations with paid employees), not firms and not every contractor.
The Census industry category (NAICS 238220) combines plumbing, heating, and air-conditioning contractors — it is not HVAC-only. Market-size tables cover employer establishments; one-person owner-operator shops without payroll are counted separately in the solo operators section below.
Key Hvac Contracting Industry Statistics
- There are 111,207 employer establishments in this Census category in the United States (County Business Patterns, 2023).
- Employer establishments are the minority form: 178,663 owner-operator shops operate as nonemployer businesses (2023 Census Nonemployer Statistics) — 1.6 for every employer establishment.
- Those establishments employ 1,214,761 people with combined annual payroll of $89.5 billion.
- Annual payroll divided by March employment averages $73,693 per employee per year (includes part-time staff and all occupations in the category — not an occupational wage or FTE salary). The average establishment has 10.9 employees and $805k in annual payroll.
- California has the most establishments of any state — 11,686, or 10.5% of the national total.
- Relative to population, Montana has the highest employer-establishment density (62.6 per 100,000 residents) and District of Columbia the lowest (5.3). Density is not the same as local opportunity or saturation of every competitor.
- Payroll per March employee is highest in Massachusetts ($91,449) and lowest in West Virginia ($55,494).
- The category accounts for 1.33% of all US employer establishments.
- Americans filed 550,108 business applications in the broader Construction sector (NAICS23) in the twelve months from Aug-2025 through Jul-2026 — a +7.3% change year over year (Census Business Formation Statistics). Those are sector-wide applications, not completed employer formations and not counts limited to this 6-digit industry.
- sole prop net profit by state
Turn HVAC market research into a business ready for work
Your service list, tools and crew shape the insurance you need. Review HVAC coverage options before you price your next installation or maintenance contract.
Market Size
For a company-based view alongside employer-location counts, see our service-business employee-size comparison. It uses 2022 full-year employer firms and separates small-firm prevalence from revenue share; plumbing and HVAC remain a combined category.
| Measure | Value |
|---|---|
| Employer establishments | 111,207 |
| Employees (March employment) | 1,214,761 |
| Annual payroll | $89.5 billion |
| Annual payroll / March employment | $73,693/year |
| Average employees per establishment | 10.9 |
| Average payroll per establishment | $805k/year |
| Share of all US employer establishments | 1.33% |
The Biggest States
| State | Establishments | Employees |
|---|---|---|
| California | 11,686 | 126,947 |
| Florida | 9,353 | 94,859 |
| Texas | 8,966 | 105,623 |
| New York | 7,061 | 65,999 |
| Pennsylvania | 4,154 | 44,585 |
Market size is not the same as local opportunity. Relative to population, Montana has the highest employer-establishment density (62.6 per 100,000 residents) while District of Columbia has the lowest (5.3). Density omits nonemployers and does not measure contracts, service radius, or competitors serving the same customers. We publish a separate screening index with its own methodology caveats: Best States to Start a Hvac Business.
Payroll by State
For a state-level workforce comparison, see summer cooling weather and pre-summer contractor jobs. The study combines June–August 2026 weather with Q1 2026 versus Q1 2025 private plumbing/HVAC payroll employment, including all occupations. It does not measure jobs created by the heat.
Add plumbing/HVAC injury and illness benchmarks to your workforce research. The 2024 BLS comparison retains the combined contractor category and explains the difference between total cases, work-disruption cases and insurance claims.
These figures are annual industry payroll divided by March employment for employer establishments in the category. They include part-time employees and all occupations on the payroll. They are not BLS occupational wage quotes, technician/stylist pay rates, or complete hiring costs.
| Highest payroll / March employment | Annual |
|---|---|
| Massachusetts | $91,449 |
| Washington | $89,508 |
| California | $85,543 |
| Alaska | $85,454 |
| Oregon | $85,283 |
| Lowest payroll / March employment | Annual |
|---|---|
| West Virginia | $55,494 |
| Oklahoma | $56,154 |
| New Mexico | $59,905 |
| Arkansas | $60,463 |
| Florida | $60,792 |
Solo Operators: The Nonemployer Side of the Industry
For state-level nonemployer establishment shares inside the combined plumbing/HVAC category and peer services (2023), see nonemployer share by state.
For private QCEW average annual pay and employees per establishment by state (2024), see employer pay and location size by state.
For plumbing/HVAC payroll employment change versus state unemployment rates (FRED × QCEW), see unemployment vs service hiring by state. For whether plumbing/HVAC payroll growth tracks state house-price booms (FRED HPI × QCEW), see home prices vs home-services employment. For OpenFEMA Public Assistance and Individual Assistance dollars by state (recovery context, not contractor revenue), see FEMA disaster dollars by state. Related: personal income vs business formation — BEA income growth vs Census applications by state.
The employer figures above are only part of the picture. The Census Bureau counts businesses with no paid employees separately, as nonemployers — and in this industry they are the majority: 178,663 owner-operator shops filed as nonemployer businesses in 2023, about 1.6 for every employer establishment. Together they took in $14.0 billion in receipts — an average of $78,389 per solo business per year.
States With the Most Owner-Operator Shops
| State | Nonemployer businesses | Avg annual receipts | Solo per employer establishment |
|---|---|---|---|
| Texas | 26,039 | $75,509 | 2.9 |
| Florida | 18,387 | $58,271 | 2.0 |
| California | 16,432 | $84,031 | 1.4 |
| New York | 8,900 | $67,499 | 1.3 |
| Georgia | 8,030 | $79,172 | 2.6 |
Solo operation is highest relative to employers in District of Columbia (3.5 nonemployers per employer establishment) and lowest in Washington (0.6), where a larger share of the industry runs on payroll.
How Much Do HVAC Businesses Make?
To estimate a specific commercial service agreement rather than infer a price from industry revenue, use our HVAC maintenance pricing worksheet and guide.
For a practical route from business planning to finding suitable building owners and facilities buyers, use our commercial HVAC maintenance contract guide.
The honest federal answer comes in two parts. For solo operators, the Census reports actual revenue: the average nonemployer HVAC business grossed $78,389 in annual receipts in 2023 — gross revenue before expenses, not take-home income. For employer establishments, the Census does not publish revenue at the state level, but payroll gives the scale: the average establishment carries $805k in annual payroll across 10.9 employees.
Where Owner-Operator Shops Gross the Most
| State | Avg annual receipts (solo) | Solo businesses |
|---|---|---|
| New Hampshire | $119,479 | 1,015 |
| Connecticut | $104,433 | 1,895 |
| Massachusetts | $102,610 | 3,980 |
| Wisconsin | $102,516 | 1,844 |
| Maine | $98,184 | 1,157 |
States with fewer than 1,000 nonemployer businesses excluded to avoid small-sample noise. Receipts are gross revenue as reported to the IRS, before any expenses.
New Business Formation
Opening or expanding a contracting business? Compare HVAC insurance coverage and quotes for the work you will sell, and use our LLC filing and business setup guide to organize formation. For a service vehicle, tools or larger equipment purchases, review the equipment financing options alongside your startup budget.
The Census Bureau tracks new business applications (Business Formation Statistics). In the twelve months from Aug-2025 through Jul-2026, Americans filed 550,108 applications in the Construction sector (NAICS23 — the broader 2-digit sector that contains this industry) — a +7.3% change from the prior twelve months. Applications are not completed employer formations, state LLC registrations, or measured growth in this 6-digit industry alone. State-by-state application counts, per-capita rates, and trends are on our business formation statistics page. For how new ventures fare once launched — 1-, 5-, and 10-year odds in every state — see business survival rates by state; for what they borrow to get started, SBA loan statistics. For insurance requirements state by state, see the HVAC business insurance guide.
Wondering whether other contractors have started using AI? In the Census Bureau’s latest business survey, 14.7% of specialty trade contractors (the group that includes HVAC) said they used AI in the last two weeks, up from 6.1% at the start of 2026. See specialty trade contractors’ AI use for the state-by-state numbers. To compare HVAC and other trade contractors with every other industry, see which industries use AI most.
Thinking about an AI assistant to answer calls or book jobs? Some states require you to tell customers they are talking to a bot. See AI chatbot laws by state.
Hiring for hands-on work has also held up better than hiring for office and tech jobs. See how trade job postings compare with tech jobs since ChatGPT came out, along with the government’s 10-year job outlook for HVAC techs, electricians and plumbers.
A lot of HVAC equipment and parts come from overseas. See which states rely most on imports hit by the 2026 tariffs.
Still setting up the business? See how to get your LLC set up.
Plan insurance around the HVAC jobs you take
Bring your work mix and staffing plans to the next step. Our HVAC insurance guide covers the main policy types and gives you a route to request a quote.
Frequently Asked Questions
How many HVAC business businesses are there in the US?
There are 111,207 employer establishments in this Census category in the United States as of the 2023 County Business Patterns, employing 1,214,761 people. The Census industry category (NAICS 238220) combines plumbing, heating, and air-conditioning contractors — it is not HVAC-only. Market-size tables cover employer establishments; one-person owner-operator shops without payroll are counted separately in the solo operators section below.
How big is the US HVAC contracting industry?
Measured by payroll, employer establishments in the category pay $89.5 billion in annual payroll across 1,214,761 employees — $73,693 when annual payroll is divided by March employment. That ratio is not an occupational wage quote or full-time-equivalent salary.
Which state has the most HVAC business businesses?
California leads with 11,686 employer establishments (10.5% of the US total), followed by Florida (9,353) and Texas (8,966).
How many self-employed owner-operator shops are there in the US?
The Census Bureau’s 2023 Nonemployer Statistics count 178,663 operations with no paid employees in this category — owner-operator shops operating alone — averaging $78,389 in annual receipts. That is about 1.6 solo businesses for every employer establishment.
How much does an HVAC business make?
For solo operators the Census reports actual revenue: the average nonemployer HVAC business grossed $78,389 in 2023 — gross receipts before expenses, not profit. Employer establishments are larger on payroll: the average establishment carries $805k in annual payroll across 10.9 employees; the Census does not publish their revenue at the state level.
Related: fuel costs for mobile HVAC fleets — observed EIA pump prices and a labeled service-van scenario.
A gas service pickup driven 20,000 miles a year costs about $5,971 in fuel at the U.S. price for the week of Sep 21, 2026. See regional prices and the trend since 2021 in diesel and gas prices by state.
Sources & Citation
| Data | Source | Vintage |
|---|---|---|
| Establishments, employment, payroll (NAICS 238220, Plumbing, Heating, and Air-Conditioning Contractors) | U.S. Census Bureau, County Business Patterns | 2023 |
| Business applications (broader sector NAICS23, not 6-digit industry formations) | U.S. Census Bureau, Business Formation Statistics | Aug-2025 through Jul-2026 |
| Solo operators (nonemployer businesses, NAICS 23822, Plumbing, Heating, and Air-Conditioning Contractors) | U.S. Census Bureau, Nonemployer Statistics | 2023 |
| State population (per-capita rates) | U.S. Census Bureau, Population Estimates | 2024 |
Definitions: CBP establishments, employment and payroll; BFS applications versus formations; NAICS industry scope. Business structures: SBA business-structure guidance.
You are welcome to cite these statistics with attribution and a link to this page. The editorial correction date does not mean the Census inputs were advanced past the fixed edition above.