Survey: HVAC Smart Tech Adoption at 76% with Homeowners

The report provides insights into what consumers seek in HVAC equipment and their purchasing behaviors. By paying attention to these insights, contractors can better prepare themselves to meet and exceed customer expectations. 

Energy Efficiency is #1 

HVAC buyers are skewing younger, according to the results, with those under 45 years old preferring smart, connected systems. They’re also more likely to research what they want online, often seeking energy-efficient systems and strong indoor air quality. 

“People are very concerned about their homes since the pandemic, and how clean is the air and how clean is the home,” said Steve Moon, CEO of Moon Air Inc. in Maryland. “[IAQ] is offered to HVAC companies, and most guys aren’t interested in it at all; they’re not getting involved, they’re not seeing the importance of it. And they’re left behind.” 

Homeowners are opting for high-efficiency HVAC units that reduce energy costs, according to the survey results. This includes interest in systems that use low-GWP refrigerants, which aligns well with the industry’s refrigerant transition. 

The report indicates heat pumps are gaining popularity due to their efficiency and ability to both heat and cool. Ductless systems are also on the rise, especially in homes with existing ductwork. Again, energy efficiency and flexibility play a role in this trend. 

Add this all up, and energy efficiency is where contractors should concentrate their efforts, whether it’s training on the latest equipment or emphasizing it in their marketing and sales presentations. 

“Energy efficiency used to be a ‘nice bonus.’ Now? It’s becoming part of the buying decision,” said Crystal Williams, founder of Lemon Seed Marketing. “But here’s where contractors miss the mark: Most companies market efficiency with technical specs and SEER ratings. Customers don’t buy numbers. They buy outcomes.”  

The desire for energy efficiency coincides with where the industry is heading. The report notes that HVAC is experiencing a “significant shift toward electrification,” with an emphasis on decarbonization.  

“Customers are looking for more than just an ‘energy-efficient system.’ They want lower utility bills, more consistent comfort, fewer breakdowns, quieter performance, healthier indoor air quality, and confidence that they’re making a smart, long-term investment in their home and family,” Williams said. 

It’s not always easy to manage, but when done right, it can pay off. Moon said his company serves three different states, each with its own rebate program that helps customers afford energy-efficient systems, but the effort is worthwhile. 

“There’s a bunch of hoops to jump through to be able to be a certified dealer and all the things to use these programs. But, man, they sell a lot of systems,” he said. 

Smart Tech and AI 

Fueling this desire for energy efficiency is the expectation of smart technology. Smart-home automation has increased from 58% in 2022 to 76% in 2025, and programmable thermostats are the most frequently recommended option by contractors at 58%. 

AI-driven HVAC systems can learn homeowner preferences and adjust settings automatically. This personalization can increase user satisfaction and increase the effectiveness of the systems that contractors install. 

“The introduction of smart thermostats, variable-speed compressors, and AI-driven climate control features is reshaping the landscape of the U.S. residential HVAC industry, setting the stage for continued expansion,” the report said. 

Smart thermostat adoption continues to rise, reaching 44% of households. This is up from 35% in 2022. Thermostat zoning is growing as well, primarily driven by zoning through a/c systems and mini-split systems. 

“The mini split world is just bursting. It is growing. And a lot of contractors still don’t even offer them,” Moon said. “It’s 40% of our business over here right now.” 

The main barrier to smart thermostat adoption is privacy concerns. Even when that is addressed, one-third of buyers still question its usefulness. Around 82% find it useful, down from 88% at its peak.  

Meanwhile, override behavior has risen, with 49% of users overriding settings either “all the time” or “often,” up from 28% in 2022. The report notes that 17% of homeowners said the installer didn’t explain their HVAC system to them, which could contribute to this issue. 

Consumer Behavior 

Homeowners are conducting more research, both into the technology they’re purchasing and how they go about selecting their HVAC provider. 

Around 77% of homeowners say they conduct research before making a purchase, an increase from 67% in 2022. When looking into purchases, 56% of respondents say they turn to the internet, followed by 34% who turn to contractors. The rest seek out family and friends for info. 

HVAC REPLACEMENT: Most HVAC purchases are due to breakdowns, followed by equipment age. Energy efficiency is also the leading benefit when customers select the equipment. (Courtesy of Decision Analyst)

Research is split between 79% for emergency purchases and 77% for planned purchases. This research occurs more often once a brand is selected (93%) versus the contractor (69%). 

Overall, 58% of homeowners say they select a contractor first. Prior personal experience is the most important reason when selecting a contractor, followed by reputation. That being the case, there’s been a 12-point shift toward brand-first decisions, with 37% saying the brand is their priority, not the contractor.  

This suggests marketing and visibility on both the contractor and manufacturer sides play a larger role in how consumers make their selections. 

Moon said that to stand out and grow, contractors will want to spend 8% to 9.5% of their gross revenue on marketing, and 10% to 12% to rapidly grow. If they’re a smaller contractor with fewer resources, they need to be creative with their marketing. 

“If you don’t have any money, then you need to spend time on your advertising. And that could be door knocking, hanging flyers at the Home Depot store, getting them into county fairs, street festivals, those kinds of things,” he said. “If you have the money, you can automate stuff through internet marketing and TV, radio, all the standard things.” 

The report shows 63% of customers in 2025 would select the same brand and contractor again, down from 80% in 2022.  

Purchasing Power 

HVAC purchases take customers an average of seven days to decide. Emergencies reduce that average to five days, while those who conduct online research average nine days. Branding has little impact on this timeline. 

HVAC companies and general contractors complete most new HVAC equipment acquisitions for homeowners at 86%. That remaining 13%, however, consists of online purchases, an increase from 5% in 2022. Of that 13%, 72% of the purchases are made by those 18 to 44 years old.  

Emergency HVAC purchases have risen from 44% in 2022 to 48% in 2025. The report attributes this increase to more families working from home, leading to greater awareness of issues when they arise. 

All of this points to a peculiar trend: more DIY installs are taking place. Most installs are still completed by professionals (80%), but this is a decline from 91% in 2022. 

“This indicates that younger homeowners may be more hands-on and cost-conscious, creating an opportunity for brands to offer hybrid support models that blend DIY resources with professional guidance,” the report said. 

Customers prefer financing and debit card options for their purchases, with 35% saying they use financing and 15% using debit cards. Cash or checks are down from 43% in 2022 to 34% in 2025. Emergency purchases tend to be financed in lieu of other methods.