Market Size for HVAC business in 2026 [Example]

The Total Available Market (TAM) for the HVAC industry globally is estimated at around $240 billion annually. This is based on the total number of households and commercial buildings that require HVAC systems for heating, ventilation, and air conditioning, which totals approximately 120 million households and businesses worldwide. Each of these entities is estimated to spend an average of $2,000 per year on HVAC services and products.

The Serviceable Addressable Market (SAM) narrows down to the portion of the HVAC market that your business can realistically address. Assuming a focus on residential HVAC services and targeting urban areas, you can realistically reach around 24 million households. If each of these households spends around $2,000 annually on HVAC services, this yields an achievable market size of about $48 billion per year.

The Serviceable Obtainable Market (SOM) is where you start capturing customers. As a new HVAC business, aiming for a modest 0.005% of the SAM in your first year is realistic. Given the annual revenue potential per customer is approximately $2,000, capturing around 1,200 customers can result in an annual revenue of about $2.4 million.