NAICS 221330 Quarterly Industry Report
Steam and Air-Conditioning Supply
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 221330Sector: Utilities (22)Updated: Q1 2026
About This Report
This industry profile for Steam and Air-Conditioning Supply (NAICS 221330) draws on data from the Bureau of Labor Statistics[5], U.S. Census Bureau, and SBA size standards database[6]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, district energy analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Definition & Overview
Steam and Air-Conditioning Supply (NAICS 221330) encompasses establishments primarily engaged in providing steam, heated air, or cooled air through centralized systems serving communities or clusters of buildings per the U.S. Census Bureau[4]. District energy systems produce thermal energy at a central plant and distribute it through underground pipe networks to commercial buildings, hospitals, universities, government complexes, and industrial facilities. Steam distribution for heating, chilled water for cooling, and hot water for domestic use represent the primary service offerings.
About 41 companies employ roughly 2,415 workers, generating approximately $207 million in annual payroll per the Bureau of Labor Statistics[5]. District energy systems operate in major metropolitan areas including New York, Boston, Philadelphia, Indianapolis, Houston, and San Francisco. Consolidated Edison operates one of the largest commercial steam systems globally, serving roughly 1,700 buildings in Manhattan through 105 miles of underground steam pipe. Enwave Energy and Vicinity Energy (formerly Veolia North America district energy) rank among the top operators. Many university and hospital campus systems operate under this classification.
Per the SBA Table of Size Standards[6], the size standard is $30.0 million in average annual receipts. District energy systems achieve higher thermal efficiency than individual building boilers and chillers by operating large-scale equipment at optimal load factors. Combined heat and power (CHP) installations at district plants capture waste heat from electricity generation, achieving total fuel efficiency above 80 percent compared to roughly 33 percent for conventional electric generation. Underground pipe maintenance and replacement represent ongoing capital requirements, with steam pipe failures causing disruptions in dense urban environments.
What's Included in This Industry
- District steam generation and distribution
- Chilled water production for cooling
- Hot water distribution systems
- Central boiler plant operations
- Underground pipe network maintenance
- Combined heat and power generation
- Thermal energy storage operations
- Customer metering and billing
- System expansion and new connections
- Emergency response for pipe failures
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Utilities | 22 |
| Subsector | Utilities | 221 |
| Industry Group | Water, Sewage and Other Systems | 2213 |
| NAICS Industry | Steam and Air-Conditioning Supply | 22133 |
| National Industry | Steam and Air-Conditioning Supply | 221330 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 221310 | Water Supply and Irrigation Systems | Water Supply Systems share underground pipe distribution infrastructure with district energy, both delivering commodity services through pressurized pipe networks to customer building connections |
| 221122 | Electric Power Distribution | Electric Power Distribution serves the same commercial building customers as district energy, with some facilities switching between electric HVAC and district steam or chilled water based on cost |
| 221210 | Natural Gas Distribution | Natural Gas Distribution supplies fuel to district steam plants that burn gas in boilers, with gas delivery pricing directly affecting thermal energy production costs and customer rates |
| 221112 | Fossil Fuel Electric Power Generation | Fossil Fuel Electric Power Generation connects with CHP-equipped district plants that produce both electricity and useful thermal energy, achieving higher total fuel efficiency than separate generation |
| 237110 | Water and Sewer Line and Related Structures Construction | Water and Sewer Line Construction builds underground pipe networks including steam tunnels and chilled water distribution mains that district energy systems need for system expansion |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 15.1% | 14 |
| 2 | Minnesota | 12.9% | 12 |
| 3 | Pennsylvania | 9.7% | 9 |
| 4 | Maryland | 8.6% | 8 |
| 5 | Texas | 7.5% | 7 |
| 6 | New York | 6.5% | 6 |
| 7 | Michigan | 6.5% | 6 |
| 8 | Ohio | 4.3% | 4 |
| 9 | Arizona | 4.3% | 4 |
| 10 | Massachusetts | 4.3% | 4 |
% Of Establishments
0%
15%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What companies operate district energy systems?
Consolidated Edison operates Manhattan's steam system serving 1,700 buildings. Enwave Energy and Vicinity Energy rank among top operators. About 41 companies employ roughly 2,415 workers per the U.S. Census Bureau[4]. Many university and hospital campus systems also operate under this classification.
Where do district energy systems operate?
Major systems serve New York, Boston, Philadelphia, Indianapolis, Houston, San Francisco, and other metropolitan areas per the Bureau of Labor Statistics[5]. University campuses and hospital complexes also commonly operate district heating and cooling systems.
What is the SBA size standard for Steam Supply?
Per the SBA Table of Size Standards[6], NAICS 221330 has a size standard of $30.0 million in average annual receipts. This determines eligibility for SBA loans, federal contracting set-asides, and small business programs.
What NAICS codes are related to steam and cooling supply?
Related codes include NAICS 221310 (Water Supply), NAICS 221122 (Electric Distribution), NAICS 221210 (Gas Distribution), NAICS 238220 (HVAC Contractors), and NAICS 237110 (Pipe Construction) per the U.S. Census Bureau[4].
What is combined heat and power?
CHP installations generate electricity and capture waste heat for steam or hot water production at the same plant, achieving total fuel efficiency above 80 percent compared to about 33 percent for conventional electric-only generation.
What activities are included in NAICS 221330?
Core activities include steam generation, chilled water production, hot water distribution, boiler operations, underground pipe maintenance, CHP generation, thermal storage, customer metering, system expansion, and emergency pipe repair per the U.S. Census Bureau[4].
Can steam supply businesses get SBA loans?
Yes, firms meeting the $30.0 million size standard qualify for SBA 7(a) loans[7] covering boiler equipment, pipe replacement, and working capital. Campus and industrial park district systems are the most common small business applicants.
Why are district energy systems efficient?
Central plants operate large equipment at optimal load factors with higher thermal efficiency than individual building boilers per the Bureau of Labor Statistics[5]. Combined heat and power configurations capture waste heat that conventional generators reject, reaching over 80 percent total fuel usage.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Census Bureau census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA Table of Size Standards sba.gov
- [7]SBA 7(a) loans sba.gov
- [8]504/CDC loans sba.gov
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