Santa Monica IT Services Provider Shares the Top Local Industries

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Santa Monica, California is known for its technology startups. However, the city’s economic development is not dependent on this sector. While tech startups aren’t the only thing powering Santa Monica, all Santa Monica industries still rely on technology to a certain degree.

“The right information technology solutions can help any industry through thick and thin. You can use them to enhance what already works and to help your business overcome challenges as it enters its next chapter.” – Neysa Lopez, Vice President of Operations at FTI Services

Like all modern businesses, any organization needs to utilize IT to stay current. However, Santa Monica faces additional financial pressure to leverage technology. Legal costs have increased, international tourism has dropped, and the January 2025 wildfires caused major damage that the city is still recovering from. To manage these financial pressures, both the municipal government and local businesses turn to technology to control costs and run operations more efficiently.

How can your Santa Monica business enhance efficiency? To help answer this question, this blog explores Santa Monica’s biggest industries, including those growing despite financial challenges, and explains how the right Santa Monica IT service provider can support them all.

The 4 Biggest Industries in Santa Monica, California

1. Medical Services

The healthcare sector employs 10,160 people, which equals 11.9% of Santa Monica’s total workforce. Two large medical centers support most of these jobs. UCLA Medical Center, Santa Monica, employs 4,010 people. Providence Saint John’s Health Center employs 2,026 people. These hospitals serve the region while providing stable employment for thousands of residents.

2. Hospitality

Even though Santa Monica’s transient occupancy tax (TOT) revenue stream has decreased by 10%, there is still a strong tourism and hospitality industry. The sector still includes 505 businesses and employs 12,470 people, which equals 14.6% of all jobs in the city. Visitors spend about $916.6 million each year in the local economy through hotels, dining, and entertainment.

3. Legal Services

In 2025, law firms reported a 13% increase in profits. In 2026, these firms face pressure to change how they charge for their work. So, many are moving away from billing by the hour and toward value-based pricing. This approach focuses on results and efficiency instead of time spent on tasks.

4. Retail

Santa Monica’s retail sector includes 557 businesses and employs 7,421 people. These workers earn about $556 million in total payroll each year. Although, many traditional storefronts have struggled in recent years, evidenced by how nearly 16% of downtown retail spaces remain vacant. However, this is also a sign of how many retail businesses now use a new operating model that focuses on online and mobile sales.

3 Emerging Santa Monica Industries to Keep on Your Radar

1. Bio-Innovation

This industry combines biology and artificial intelligence. Scientists use AI to study molecules and help design new medicines faster and more accurately. Companies such as Kite, a Gilead company, and Neogene Therapeutics now operate in Santa Monica.

Santa Monica College supports this growth through a new biotechnology training program that prepares students for these jobs. In late 2025, the state provided $23.92 million to help this field create 10,000 local jobs by 2030.

2. Green Infrastructure

Santa Monica wants to reach carbon neutrality by 2050. To support this goal, the city started a program called the Mass Timber Accelerator in December 2025. Mass timber is a way to build using large pieces of engineered wood instead of concrete and steel.

This type of wood releases about 40% less carbon than traditional building materials. It also allows builders to finish projects faster. The city set aside $115,000 to encourage developers to use mass timber in new apartment buildings. This funding helps make sustainable construction more attractive and affordable.

3. Immersive Advertising & Gaming

While media has long been part of Santa Monica, there is currently a significant shift from traditional content ownership to “content interaction” underway. The video game industry is now valued at $273 billion globally, projected to grow to a value of $656 billion by 2033, and is the key driver of much of this change. This includes companies such as Activision and Snap Inc. that are based in Santa Monica.

Advertising is changing as well. Brands now spend more money placing ads where people already shop online, such as eCommerce websites, mobile shopping apps, and digital storefronts, than they do on traditional television advertisements.

Santa Monica attracts skilled workers in media and technology, so many companies see the city as a center for digital and interactive media. Because of this, companies choose Santa Monica when they buy, sell, or merge with other media businesses.

The Technology Needs of All Santa Monica Industries

1. California Privacy Mandates

On January 1, 2026, updated California Consumer Privacy Act (CCPA) regulations formally went into effect. These regulations require businesses to display “Mandatory Opt-Out Confirmation” by providing a toggle or signal to consumers that their request to stop the sale or sharing of personal information has been honored.

The newest version of CCPA also introduced a requirement called “Symmetry in the Opt-Out Process.” That means that companies must make opting out of data sharing just as easy as opting in. This change is to prevent the use of design tricks that confuse or mislead consumers during the opt-out process.

2. Zero-Trust Mandates

Under the CPRA framework, businesses must complete yearly cybersecurity audits to measure how well their security programs work. Companies must submit certifications to the state starting in 2028. The immediate priority is Zero Trust architecture, which requires constant identity checks for every user and device.

3. Energy Reporting

Building Performance Standards take effect across Santa Monica in 2026. Businesses in every sector must now use IoT energy monitoring to meet these rules. Local mandates require companies to report building energy use each year through a process called benchmarking. IoT sensors and machine learning tools track HVAC systems, lighting, and industrial equipment in real time.

How The Top Industries in Santa Monica Use Managed IT Services

*Medical Services*	Provide 24/7 network and server monitoring so patient records stay available Support HIPAA compliance with MDR and SIEM services Manage on-site and off-site backups for business continuity and ransomware recovery Deliver vCIO planning for AI triage tools and Clinical Copilots Build secure telehealth systems using Microsoft 365 Support remote patient monitoring devices and wearable technology
*Hospitality*	Design and manage high-performance guest Wi-Fi networks Separate guest networks from PoS and property systems for PCI DSS compliance Support keyless entry and intelligent access control systems Monitor reservation platforms to reduce downtime during peak seasons Manage smart-room IoT systems for energy efficiency Maintain digital systems such as smart TVs and payment platforms
*Legal Services*	Run cybersecurity audits and risk assessments to protect legal data Manage Microsoft 365 tools like SharePoint and Teams for secure document sharing Support zero data retention controls for AI legal tools Handle IT procurement and asset management for staff hardware and software Provide onboarding and offboarding access control Guide firms with vCIO services for billing and time tracking systems
*Retail*	Build cloud or hybrid systems for PoS reliability and remote inventory access Support multi-location inventory and eCommerce synchronization Provide automatic backups and disaster recovery planning Manage firewalls and network segmentation for payment protection Support digital signage and in-store advertising networks Deliver 24/7 helpdesk support for self-checkout and mobile payment tools
*Bio-Innovation*	Host and migrate research systems to Azure or AWS Support high-performance computing for genomics and drug discovery Deploy IDS, IPS, and vulnerability management to protect research data Install network cabling and lab infrastructure for connected equipment Manage IoT sensors and automated lab systems Support compliance with local digital monitoring and permitting tools
*Green Infrastructure*	Manage IoT devices for smart building systems and micro-grids Support energy monitoring and peak usage prediction tools Provide virtual desktops for architects and engineers in the field Run compliance checks for LEED and Green Key certifications Store and protect environmental performance data Support reporting for investors and insurance partners
*Immersive Advertising & Gaming*	Protect digital assets with SOC, SIEM, and cloud email security Support secure collaboration between creative teams and partners Manage high-bandwidth infrastructure for streaming and VR content Scale systems during game or campaign launches Provide vCIO guidance for AI ad targeting and content automation Support platforms for shared production and distribution projects

Choose an IT Services Provider in Santa Monica Who Understands All Local Industries

Santa Monica businesses have a lot on their plates, regardless of industry. You likely need support to manage rapid technological changes while staying competitive locally. A trusted Santa Monica IT services provider can help you navigate these challenges efficiently and strategically.

FTI Services can help. We have worked with Californian businesses from a wide variety of sectors, and we’d be happy to help yours! Reach out today to get started!