Industry Statistics and Trends
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 0.2 % over the past five years, to reach an estimated $1.1bn in 2023.
Trends and Insights
The residential sector provided a massive boost for HVAC services
- With heightened demand for new housing throughout the period, HVAC franchises experienced greater demand for new unit installation and maintenance.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to decline over the next five years.
Trends and Insights
Elevated interest rates will depress the residential sector
- To fight the persistent inflation in the US economy, the Federal Reserve plans to keep the benchmark interest rates higher during the first half of the outlook period.
Biggest companies in the HVAC Service Franchises in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Aire Serv LLC | 148.2 | 7.0 | 4.7 | |
Linc Service LLC | 88.8 | 4.2 | 4.7 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including New construction HVAC installations, Existing structure HVAC installations (i.e. replacements) and HVAC maintenance and repairs. New construction HVAC installations is the largest segment of the HVAC Service Franchises in the US.
Trends and Insights
The need for new HVAC installations follows trends in the housing market
- The structures that often need new HVAC installations are new homes, so housing starts and the value of residential construction have the most influence on this segment.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
This industry operates franchised businesses that provide heating, ventilation and air-conditioning (HVAC) services to residential and commercial customers. IBISWorld’s Business Franchise collection focuses solely on the operation of franchised outlets and exclude nonfranchise data. These reports show the total number of franchise outlets, total franchise revenue and the average profit margin earned by franchisees. They also highlight the largest franchisors by market share.
What's included in this industry?
Products and services covered in the HVAC Service Franchises industry in the United States include HVAC maintenance and repairs, Indoor air quality services and HVAC installation .Companies
Companies covered in the HVAC Service Franchises industry in the United States include Aire Serv LLC and Linc Service LLC.Purchase this report to view all 2 major companies in this industry.
Related Terms
Related terms covered in the HVAC Service Franchises industry in the United States include .Industry Code
NAICS 23822 - HVAC Service Franchises in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The necessity of HVAC repair and maintenance will aid HVAC franchises. Despite falling demand for new HVAC systems.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Work from home has shifted the number of homes with HVAC systems. On the other hand, business have less use for office space with more workers at home.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Franchises are centered around areas with both business and residential activity. This makes California and Florida the perfect places for an HVAC franchise.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Large franchises take advantage of economies of scale. The more the top three major players increase the scope of their operations, the lower the cost will be, leading to hei...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
One Hour Heating & Air Conditioning makes up more than one-third of the industry, indicating that this is a highly concentrated industry.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Aire Serv LLC's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Linc Service LLC's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Aire Serv LLC, and factors influencing its performance in the industry
- Description and key data for Linc Service LLC, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Rising interest rates bring unwanted volatility. Expanding maintenance and repair services to new markets partially shields HVAC franchises from volatility.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Maintenance of HVAC systems is a required expenditure for households, so profit doesn't fluctuate much during recessions or expansions. Profit still fell somewhat during COVI...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the HVAC Service Franchises industry in the United States in 2025?
The market size of the HVAC Service Franchises industry in the United States is $1.1bn in 2025.
How many businesses are there in the HVAC Service Franchises industry in the United States in 2023?
There are 56 businesses in the HVAC Service Franchises industry in the United States, which has grown at a CAGR of 4.9 % between 2018 and 2023.
How may import tariffs affect the HVAC Service Franchises industry in the United States?
The HVAC Service Franchises industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the HVAC Service Franchises industry in the United States?
The HVAC Service Franchises industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the HVAC Service Franchises industry in the United States grown or declined over the past 5 years?
The market size of the HVAC Service Franchises industry in the United States has been declining at a CAGR of 0.2 % between 2018 and 2023.
What is the forecast growth of the HVAC Service Franchises industry in the United States over the next 5 years?
Over the next five years, the HVAC Service Franchises industry in the United States is expected to decline.
What are the biggest companies in the HVAC Service Franchises industry in the United States?
The biggest companies operating in the HVAC Service Franchises industry in the United States are Aire Serv LLC and Linc Service LLC
What does the HVAC Service Franchises industry in the United States include?
HVAC maintenance and repairs and Indoor air quality services are part of the HVAC Service Franchises industry in the United States.
Which companies have the highest market share in the HVAC Service Franchises industry in the United States?
The company holding the most market share in the HVAC Service Franchises industry in the United States is Aire Serv LLC.
How competitive is the HVAC Service Franchises industry in the United States?
The level of competition is high and increasing in the HVAC Service Franchises industry in the United States.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
