Plumbing, Heating and Air-Conditioning Contractors Market Report 2025

The plumbing, heating and air-conditioning contractors market size has grown strongly in recent years. It will grow from $1.61 trillion in 2024 to $1.72 trillion in 2025 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to construction and real estate boom, urbanization and population growth, building renovations and upgrades, government stimulus and incentive programs, energy efficiency concerns.

The plumbing, heating and air-conditioning contractors market size is expected to see strong growth in the next few years. It will grow to $2.2 trillion in 2029 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to continued urbanization and population growth, green building practices, renewable energy integration, government initiatives for energy efficiency, resilience and disaster preparedness. Major trends in the forecast period include workforce challenges and skilled labor shortage, electrification of HVAC systems, innovations in heat pump technology, remote monitoring and control, regulatory compliance and certification requirements.

The growth of the plumbing, heating, and air-conditioning contractors market is expected to receive a significant boost from the increasing demand for HVAC-equipped commercial and residential structures. Heating, ventilation, and air conditioning (HVAC) systems are crucial for controlling and distributing heated and cooled air in various structures, ranging from residences and workplaces to indoor stadiums. Plumbing, heating, and air-conditioning contractors play a pivotal role by providing installation and maintenance services for these systems, ensuring their efficiency and functionality. In May 2023, the European Heat Pump Association reported a substantial growth of nearly 38% in annual sales, with approximately 3 million units of heat pumps sold in Europe. The connected heat pumps in Europe reached around 20 million units, constituting 16% of residential and commercial buildings in the region. This surge in demand for HVAC-equipped structures is a key driver behind the growth of the plumbing, heating, and air-conditioning contractors’ market.

The anticipated growth in the construction industry is expected to drive the expansion of the plumbing, heating, and air-conditioning contractors market in the future. The construction industry involves the planning, designing, and building of various structures, infrastructure, and facilities, encompassing a range of processes and trades. Plumbing, Heating, and Air-Conditioning Contractors play a crucial role in construction by ensuring the proper installation and maintenance of essential systems within buildings. For example, the Office for National Statistics (ONS), a non-ministerial department in the UK, reported that annual new construction orders rose by 11.4% in 2022 compared to 2021, reaching a historic high of £80.837 billion ($102.16 billion). Thus, the growth in the construction sector is propelling the plumbing, heating, and air-conditioning contractors market forward.

Technological advancements have emerged as a significant trend in the plumbing, heating, and air-conditioning contractors market. Key players in the industry are focusing on the development of innovative technologies to enhance their market presence. For example, in October 2023, Carrier Global Corporation, a US-based provider of heating, ventilation, and air conditioning solutions, introduced single-stage split system air conditioners that comply with the forthcoming Department of Energy (DOE) minimum efficiency standards and testing protocols. These air conditioners are designed to improve energy efficiency while delivering dependable cooling solutions for residential clients. The launch of this product line highlights Carrier's dedication to innovation and sustainability, ensuring adherence to regulatory standards while meeting the increasing demand for energy-efficient cooling systems in the Southeast and Southwest regions of the United States.

Key companies in the plumbing, heating, and air-conditioning contractors market are prioritizing product innovation to offer unique features, such as 100% leak testing for effective plumbing installations. This process involves a quality assurance protocol in which each unit or product is rigorously tested to detect and resolve any potential leaks. For instance, in October 2024, Voltas, a company based in India that specializes in cooling and HVAC solutions, introduced its HVAC product lineup at ACREX 2024 in Noida. This new range is tailored for various commercial and industrial applications, focusing on energy efficiency and advanced technology. The latest HVAC systems incorporate state-of-the-art designs and components that boost performance while reducing environmental impact.

In January 2023, Comfort Systems USA Inc. acquired MEP Holding Co for an undisclosed amount. This acquisition aims to enhance Comfort Systems USA Inc.'s capabilities in off-site construction, pre-fabrication solutions, and clean room services in the USA. MEP Holding Co. is a US-based contractor providing plumbing, heating, and air-conditioning services, further strengthening Comfort Systems USA Inc.'s position in the market.

Major companies operating in the plumbing, heating and air-conditioning contractors market include Siemens Energy & Automation Inc., Honeywell International Inc., LG Corporation, Johnson Controls International, Lennox International Inc., Carrier Global Corporation, Daikin Industries Ltd., Electrolux Group, Fujitsu General Limited, Robert Bosch GmbH, Nortek Global HVAC, Dr. Energy Saver, The Dwyer Group, One Hour Heating & Air Conditioning, The Home Depot Inc., Watsco Inc., Trane Technologies plc, Air Pros LLC, Lifetime Heating, Cooling and Electric, Balanced Comfort Cooling Heating & Plumbing, Midwest Heating & Cooling, Kennon Heating & Air Conditioning, Radiant Plumbing & Air Conditioning, Holy City Heating and Air LLC, Old Dominion Mechanical LLC.

North America was the largest region in the plumbing, heating and air-conditioning contractors’ market in 2024. Asia-Pacific is expected to be the plumbing, heating, and air-conditioning contractors’ market's fastest-growing region in the forecast period. The regions covered in the plumbing, heating and air-conditioning contractors market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the plumbing, heating and air-conditioning contractors market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Plumbing, heating, and air-conditioning contractors are businesses primarily engaged in the installation and maintenance of plumbing, heating, and air conditioning systems. These contractors provide a range of services, encompassing both labor and parts, including new installations, alterations, additions, regular upkeep, and repairs.

The main types of plumbing, heating, and air-conditioning contractors include those specializing in heating, ventilation, and cooling systems. The heating aspect in this context refers to the equipment used to generate heat and maintain the internal warmth of a building. The services offered by these contractors cover consulting, installation, maintenance and repair, as well as upgrades or replacements. These services cater to a diverse clientele, including residential, commercial, and industrial end users, for both new construction and retrofit buildings.

The plumbing, heating and air-conditioning contractors market research report is one of a series of new reports that provides plumbing, heating and air-conditioning contractors market statistics, including plumbing, heating and air-conditioning contractors industry global market size, regional shares, competitors with plumbing, heating and air-conditioning contractors market share, detailed plumbing, heating and air-conditioning contractors market segments, market trends, and opportunities, and any further data you may need to thrive in the plumbing, heating and air-conditioning contractors industry. This plumbing, heating and air-conditioning contractors market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The plumbing, heating, and air-conditioning contractors market includes revenues earned by entities by providing plumbing services, emergency plumbing, plumbing repairs, and heating, ventilation, and air conditioning parts services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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