An emerging industry is a newly recognized group of firms selling similar products/services to an identifiable set of customers. A emerging industry is either evolving from an established industry or coming in to existence from a new technology development or from a new business solution to meeting a need.

Emerging industries are characterized by few producers, underdeveloped markets, unclear technologies, and uncertain regulatory forces. The industry structure and company roles are not defined; there is a need for rapid learning (which is the key to success) and hence a need to experiment and change. The market is immature and potential customers need to become aware of the new product/service. The revenue model may change or evolve with experience.