5 Local Business Sectors Poised for Explosive Growth in 2026

As the North American economy continues to adapt to post-pandemic consumer habits, one clear trend stands out: Service-based local businesses are thriving. Homeowners, pet owners and health-conscious consumers are spending more than ever on convenience and quality.

At the same time, technology and AI are reshaping how local entrepreneurs attract customers and operate efficiently. As this Entrepreneur article on AI and marketing explains, “AI won’t replace marketers; it will replace bad marketing.” The same logic applies to local services: The businesses that combine innovation, data and customer trust will win in 2026 and beyond.

Below are five local service business ideas backed by real market data that are poised to grow rapidly across North America in the coming year.

Related: 91 Service Business Ideas to Start Today

1. Home improvement and renovation services

The home improvement sector continues to be one of the most profitable service-based industries, as homeowners increasingly choose to remodel rather than relocate. Rising mortgage rates and the push for comfort and sustainability are driving steady demand.

• The North American home improvement market was valued at $301.5 billion in 2024 and is projected to reach $375.7 billion by 2033, according to Market Data Forecast.

• In the U.S., the market stood at $522 billion in 2023 and is expected to grow to $615 billion by 2029.

Home renovation, eco-friendly retrofits and aging-in-place modifications are among the fastest-growing categories. Entrepreneurs can succeed by focusing on niche services such as bathroom remodels, insulation upgrades or smart home integrations while using modern local SEO strategies to attract customers.

As outlined in this Entrepreneur article on the marketing formula fueling small-business success, consistent visibility and lead generation are key drivers of growth for local service companies.

2. Pet care and mobile grooming services

Pet ownership reached record highs during the pandemic, and the demand for quality care hasn’t slowed. Pet owners are now spending more on convenience and premium services, creating a booming market for entrepreneurs who can deliver mobile or personalized experiences.

• The North American pet services market was worth $6.8 billion in 2023 and is projected to hit $11.7 billion by 2030, growing at over 8% CAGR.

• Globally, the broader pet care industry is forecast to grow from $226.9 billion in 2023 to $340.7 billion by 2029.

Mobile grooming, pet daycare and subscription-based wellness plans are becoming standard in urban and suburban markets. Entrepreneurs can differentiate by combining online booking with local reviews and referral programs, turning pet care into a scalable neighborhood brand.

Related: A Locksmith Who Shows Up in 15 Minutes, Eco-Friendly Pest Control and Flat-Rate Plumbing Fees: America’s 15 Favorite Local Home Service Businesses

3. Smart-home installation and tech-support services

Smart-home technology is no longer limited to high-end homes. Devices like smart locks, connected thermostats and video doorbells are becoming household staples, yet most consumers still need help with installation and integration.

• The North American smart home market generated $35.7 billion in 2023 and is expected to reach $145.6 billion by 2030, representing a 22% CAGR.

• The smart home installation service market itself is projected to grow from $4.6 billion in 2024 to $22.8 billion by 2032.

This is a prime opportunity for small, mobile service providers. Offering installation, troubleshooting and subscription-based maintenance plans can deliver recurring revenue. Adding eco-upgrade options like smart thermostats or EV chargers also enhances long-term growth potential.

4. Wellness and in-home recovery services

Health and wellness have evolved from luxury to lifestyle, and many consumers now prefer professional services in the comfort of their homes. From massage therapy to physiotherapy and recovery-focused amenities like home saunas, this space is booming.

• The global home-services market, which includes wellness and therapeutic services, is expected to expand by $1 trillion between 2024 and 2029, with a 10.5% CAGR.

• Meanwhile, the wellness industry overall has surpassed $5 trillion globally, with continued growth projected across personal care and physical activity segments.

Entrepreneurs can tap into this by offering specialized in-home health and wellness experiences, mobile physiotherapy, recovery programs or home wellness installations. Partnering with local gyms, sports clinics or chiropractors can create strong referral networks.

Related: Small, Local Businesses Have a Competitive Advantage Over the Amazons and Ubers of the World, According to a New Report

5. Senior home-maintenance and “age-in-place” services

North America’s aging population is driving one of the most consistent and underserved local service trends: aging in place. Most seniors prefer to stay in their own homes, which means they need help with maintenance, accessibility and safety upgrades.

• The senior home-modification segment of the home-improvement industry is growing faster than average, as more than 77% of adults over 50 want to remain in their homes long-term.

• The home-services market supporting these upgrades is part of a sector expected to exceed $1 trillion by 2029.

Entrepreneurs can offer grab-bar installations, zero-threshold showers, lighting upgrades and smart-home safety systems tailored to older adults. As this demographic expands, these services will see steady, recession-resistant demand.

By 2026, local service businesses will thrive in industries that blend convenience, personalization and trust. Whether you’re installing smart-home systems or running a mobile pet spa, your success will depend on mastering digital visibility and operational efficiency.

As the North American economy continues to adapt to post-pandemic consumer habits, one clear trend stands out: Service-based local businesses are thriving. Homeowners, pet owners and health-conscious consumers are spending more than ever on convenience and quality.

At the same time, technology and AI are reshaping how local entrepreneurs attract customers and operate efficiently. As this Entrepreneur article on AI and marketing explains, “AI won’t replace marketers; it will replace bad marketing.” The same logic applies to local services: The businesses that combine innovation, data and customer trust will win in 2026 and beyond.