What are the Top 10 Industries in Texas?


Texas is a large state with a diverse mix of industries. With the second-largest economy in the county, it’s no surprise that Texas has many thriving businesses. There are almost no limits to what can be found in this large state, which is known for its open spaces and friendly people. 

Here are the top 10 industries in Texas:

1. Agriculture

a combine harvester running on a farm

Texas agriculture is worth $106 billion and represents over 20 percent of the state’s economy. In 2014, Texas had the largest cattle inventory in the nation, with 6 million head of cattle. The state is also a leading producer of cotton, rice, and sorghum.

In 2017, Texas contributed nearly $25 billion to the economy of the US. [1]

Texas has a strong history with farming; in fact, it’s one of the oldest industries in our great state that has been around since Spanish settlers first arrived here in 1519!

2. Energy


Energy is one of the top industries in Texas. This state is home to 9 of America’s 50 largest refineries, which are responsible for processing about 60% of the nation’s total crude oil refining capacity. The Lone Star State also leads the country in wind energy production, producing over 13% of all electricity from wind farms across the US, and ranks second only to California when it comes to solar power generation.

In fact, the energy sector in Texas is valued at $172 billion and employs more than 292,000 people. [2]

3. Information Technology

Information Technology

The information technology industry is a major employer in Texas. It has been around for decades but continues to grow and evolve as technology changes. The IT industry includes software developers, hardware manufacturers, telecommunications providers, and other companies that deal with information management. These industries have become so diverse that they can no longer be classified under one category; instead, they must be divided into more specific fields such as IT services or computer systems design.

The state’s economy depends largely on this industry due to its high rate of growth compared with other states’ economies which are stagnant or declining in size. This is due to automation replacing human workers on assembly lines and other forms of laborious tasks previously performed by humans but now being done digitally via computers. 

For example, manual labor or machinery like forklift trucks at factories where goods were once made before computers became popularized throughout homes during the 1980s onward until today when most if not all companies selling consumer goods today use computers rather than using people – including those who work at stores where consumers go shopping such as Walmart Supercenter.

4. Health Care

Health Care

You may already know that Texas is the home of some of the largest health care companies in the world. These include MD Anderson, Baylor Health System, and UT Southwestern Medical Center, which have combined revenues exceeding billions of dollars annually. 

In fact, Texas has more healthcare-related jobs than any other state in the nation. You may not know that these large institutions often serve as incubators for smaller startups looking to create innovative solutions within this growing sector. For example:

  • UT Austin has been at the forefront of cutting-edge medical device research since 2001 when its Center for Biomedical Engineering was established. Nowadays, this research produces devices such as advanced pacemakers and drug delivery systems that make healthcare more efficient and effective.
  • Texas A&M Health Science Center has been around since 1999 with a mission to provide healthcare through education and research. Their work has resulted in numerous patents covering new technologies, including catheter guide wires used during angioplasty procedures to minimize the risk of clot formation.

5. Oil and Petroleum

Oil and Petroleum

The oil and petroleum industries are the top industries in Texas.

Texas is the most oil-producing state in the US, producing over 5 million barrels daily (BPD). In fact, it produced more oil than any other country except Saudi Arabia in 2018. The majority of that production comes from shale formations like the Permian Basin, which covers parts of New Mexico and West Texas. [3]

Texas also refines more crude oil than any other state, with over 1.2 million BPD of capacity across its 13 refineries (more than half of which are located along its Gulf Coast). That makes it not just one of America’s largest producers but also one of its largest refiners as well as consumers and exporters: roughly 43% of all gasoline consumed by Americans comes from Texas refineries. [4]

6. Entertainment

The entertainment industry is a large sector of the Texas economy. The state is home to many film studios, music and sports venues, and theme parks. In addition to the well-known areas in Austin and Dallas, film and music production companies are also located in Houston and San Antonio.

Four major professional sports teams play in Texas: the Dallas Cowboys (NFL), Houston Texans (NFL), San Antonio Spurs (NBA), and Dallas Mavericks (NBA). 

7. Transportation 

The word “transportation” has a number of meanings. For example, it may refer to the movement of people or goods from one place to another. It could also mean the systems that enable these movements—for example, air travel or railroads. But let’s focus on the modes of transportation that enable people and goods to move from one place to another.

As you might expect from a state with such a large population and so much economic activity, Texas has many different types of transportation services: cargo ships (including oil tankers), buses, trucks, freight trains (also known as “railroads”), and passenger trains (also known as “subways”). 

In fact, there are more railroads in Texas than anywhere else in North America! [5]

8. Banking and Financial Institutions

The financial services industry is one of the largest and most important sectors of the Texas economy. It is also a major employer, and its role as an economic driver has become even more important in recent years.

The state’s financial service sector comprises banking, insurance, accounting, and other professional services. The industry has been an important source of employment for many years, but it has grown at an especially rapid rate since the recession.

Many major banks and financial institutions are headquartered here, including JPMorgan Chase & Co., Wells Fargo & Co., and Bank of America Corp. These companies provide banking services to businesses and individuals throughout the United States as well as internationally through subsidiaries and branches around the world.

9. Defense

The defense industry is a big industry in Texas. The state is home to many defense contractors, who provide the military with everything from computer software to fighter jets. It’s also home to many military bases, including Fort Bliss and White Sands Missile Range. They employ thousands of Texans, as well as being home to many military veterans and their families.

The state’s military personnel are also an important part of the workforce. In 2017, 164,234 active-duty members of the armed forces lived in Texas. [6]

10. Tourism/Hospitality

Tourism is a major industry in Texas, and it has a far-reaching impact on the state. Tourism is also important for the state’s economy; most visitors who come to Texas stay overnight within its borders. Other tourism-related industries include restaurants, hotels, amusement parks/amusement rides, shows/concerts/festivals/exhibitions, etc., recreational vehicles & boat rentals services, etc. 

These sectors contribute to creating jobs for thousands of people across the state every year.

The tourism industry provides over $100 billion in revenue annually to the Texas economy. This includes spending by tourists and travelers, as well as the wages paid to employees who support this sector.

The tourism industry also helps preserve historic sites and landmarks through financial support from visitors who want access to them. This preserves these places for future generations so they can learn about their heritage too!

Also, tourism supports local businesses as tourists may also choose hotels or restaurants near their destination because they’re familiar with them from previous visits or recommendations from friends/family members who live nearby (which means those local businesses will benefit financially).


The Texas economy is vast and diverse, but there is still room for growth. Just like the population, these top 10 industries in Texas are also growing rapidly and will continue to do so as more people move here each year. So, if you’re looking for a job or want to open up your own business in Texas, these are some of the best industries to be involved in right now!


  1. https://www.usda.gov/media/blog/2019/07/17/texas-agriculture-growing-many-ways
  2. https://businessintexas.com/ceo-blog/texass-energy-sector-goes-beyond-oil-and-gas
  3. https://www.texastribune.org/2022/03/25/texas-permian-basin-oil-russia-invasion/
  4. https://www.wfaa.com/article/money/business/right-on-the-money/texas-producing-most-oil-in-country-and-using-the-most-gasoline-too/287-1721a3e0-f9d5-451a-b271-daa9cd856ade
  5. https://www.texasalmanac.com/articles/railroads-in-texas
  6. https://www.governing.com/archive/military-civilian-active-duty-employee-workforce-numbers-by-state.html
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