Cultivating emerging business categories drives innovation, creates jobs, diversifies the economy, attracts investment, and positions Arizona as a forward-thinking hub for sustainable, long-term growth and opportunity. Here are 20 emerging business categories gaining traction in Arizona, with brief explanations and examples of local companies or initiatives in each sector:
DEEPER DIVE: Read all the Ranking Arizona Top 10 lists here
INDUSTRY INSIGHTS: Want more news like this? Get our free newsletter here
1. Electric Vehicle (EV) Manufacturing
Explanation: Arizona is becoming a national EV hub. Example: Lucid Motors manufactures luxury EVs in Casa Grande.
2. Battery and Energy Storage
Explanation: The state is investing in battery production and storage solutions. Example: American Battery Factory is developing a battery cell gigafactory in Tucson.
3. Semiconductor Manufacturing
Explanation: Arizona is central to America’s semiconductor resurgence. Example: TSMC (Taiwan Semiconductor) is building a $40B plant in Phoenix.
4. Aerospace and Space Tech
Explanation: Space innovation is expanding with commercial and defense applications. Example: Vector Launch develops small satellite launch systems in Tucson.
5. ClimateTech and Water Conservation
Explanation: Companies are tackling drought and climate issues. Example: Water Resource Technologies develops smart irrigation systems.
6. Bioscience and Biotech
Explanation: Arizona is investing in personalized medicine and diagnostics. Example: TGen (Translational Genomics Research Institute) leads genomics innovation in Phoenix.
7. Telehealth and Digital Healthcare
Explanation: Remote care services are growing rapidly. Example: eVisit, based in Mesa, offers virtual care platforms for providers.
8. Green Building and Sustainable Construction
Explanation: Demand is rising for eco-friendly design and LEED-certified construction. Example: Venn Construction integrates sustainability into commercial projects.
9. AgriTech and Urban Farming
Explanation: Innovative farming methods are emerging in cities. Example: Vertical Farming Arizona focuses on hydroponic urban agriculture.
10. Cannabis and CBD Wellness
Explanation: The legal cannabis market is booming statewide. Example: The Flower Shop operates dispensaries and cultivation centers.
11. Advanced Manufacturing and Automation
Explanation: Robotics and precision manufacturing are key to industrial growth. Example: Benchmark Electronics specializes in advanced product design and automation.
12. Drone Technology and Services
Explanation: Drones are used in logistics, mapping, and agriculture. Example: Airobotics, operating in Scottsdale, offers autonomous drone solutions.
13. Digital Marketing and Influencer Agencies
Explanation: Online branding and content creation are booming. Example: LaneTerralever is a top Phoenix-based digital marketing agency.
14. Craft Beverage and Microbreweries
Explanation: Local craft beer and spirits are in high demand. Example: Arizona Wilderness Brewing Co. champions sustainability and local ingredients.
15. E-commerce Fulfillment and Logistics
Explanation: Distribution hubs are expanding for online retail. Example: XPO Logistics operates fulfillment centers in greater Phoenix.
16. Cybersecurity and Data Centers
Explanation: With more tech companies, demand for cybersecurity and secure storage grows. Example: Iron Mountain operates one of the largest data centers in Phoenix.
17. AI and Machine Learning Startups
Explanation: AI applications in healthcare, finance, and retail are expanding. Example: Neolight, based in Scottsdale, uses AI to treat neonatal jaundice.
18. Wellness and Boutique Fitness
Explanation: Arizona’s health-conscious culture supports fitness innovation. Example: F45 Training and StretchLab locations are booming across the state.
19. EdTech and Workforce Training Platforms
Explanation: Education tech helps prepare the future workforce. Example: CampusLogic, based in Chandler, streamlines student financial aid processes.
20. Gaming and Esports
Explanation: Competitive gaming is growing, especially among younger residents. Example: Esports Arena Tempe and Arizona Esports League host live events and competitions.
