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How big is the US HVAC industry? As of the latest Census County Business Patterns data, the United States has 111,207 employer HVAC business establishments employing 1,214,761 people, with a combined annual payroll of $89.5 billion. This page compiles the key statistics on the industry — market size, state-by-state distribution, wages, and new business formation — every number sourced directly to federal data.
The Census industry category (NAICS 238220) combines plumbing, heating, and air-conditioning contractors. The market-size tables cover employer establishments; one-person owner-operator shops without payroll are counted separately in the solo operators section below.
Key Hvac Industry Statistics
- There are 111,207 employer HVAC business establishments in the United States (Census County Business Patterns, 2023).
- Employer firms are the minority form: 178,663 owner-operator shops operate as nonemployer businesses (2023 Census Nonemployer Statistics) — 1.6 for every employer establishment.
- The industry employs 1,214,761 people with a combined annual payroll of $89.5 billion.
- Average pay works out to $73,693 per employee per year; the average establishment has 10.9 employees and carries $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 is the most saturated market (62.6 establishments per 100,000 residents) and District of Columbia the least (5.3).
- Pay is highest in Massachusetts ($91,449 per employee per year) and lowest in West Virginia ($55,494).
- The industry accounts for 1.33% of all US employer establishments.
- Americans filed 550,108 new business applications in the broader Construction sector in the twelve months from Aug-2025 through Jul-2026 — a +7.3% change year over year (Census Business Formation Statistics).
Market Size
| Measure | Value |
|---|---|
| Employer establishments | 111,207 |
| Employees | 1,214,761 |
| Annual payroll | $89.5 billion |
| Average pay per employee | $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 market opportunity: relative to population, Montana is the most saturated state (62.6 establishments per 100,000 residents) while District of Columbia is the thinnest (5.3). We rank every state on saturation, revenue proxies, labor cost, and formation momentum in the Best States to Start a Hvac Business index.
Wages by State
| Highest pay per employee | Annual |
|---|---|
| Massachusetts | $91,449 |
| Washington | $89,508 |
| California | $85,543 |
| Alaska | $85,454 |
| Oregon | $85,283 |
| Lowest pay per employee | 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
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 firm |
|---|---|---|---|
| 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 dominates most in District of Columbia (3.5 nonemployers per employer establishment) and least in Washington (0.6), where a larger share of the industry runs on payroll.
How Much Do HVAC Businesses Make?
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 firms, 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 Solo 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
The Census Bureau tracks new business applications weekly. In the twelve months from Aug-2025 through Jul-2026, Americans filed 550,108 applications in the Construction sector (the broader NAICS sector containing HVAC business businesses) — a +7.3% change from the prior twelve months. State-by-state application counts, per-capita rates, and trends are on our business formation statistics page, updated monthly. 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.
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Thinking about joining these numbers?
Every HVAC business in these statistics started with a business entity. Bizee files your LLC — you pick the package and pay the state fee, in any state.
Frequently Asked Questions
How many HVAC business businesses are there in the US?
There are 111,207 employer HVAC business establishments in the United States as of the 2023 Census County Business Patterns, employing 1,214,761 people. The Census industry category (NAICS 238220) combines plumbing, heating, and air-conditioning contractors. The 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 industry?
Measured by payroll, employer establishments in the industry pay $89.5 billion in annual wages across 1,214,761 employees — an average of $73,693 per employee per year.
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 HVAC business businesses with no paid employees — owner-operator shops operating alone — averaging $78,389 in annual receipts. That is about 1.6 solo businesses for every employer establishment in the industry.
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 firms are larger: the average establishment carries $805k in annual payroll across 10.9 employees; the Census does not publish their revenue at the state level.
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 | 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 |
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