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Key Takeaways Service-based local businesses are thriving, and those that combine innovation, data and customer trust will win in 2026 and beyond.
Five local business sectors are poised for explosive growth across North America in 2026, including home improvement and renovation, pet care and mobile grooming, smart-home installation and more.
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.
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