While markets are exchanges of common goods or services, Industries are clusters of markets that contribute to the production of goods or services. The Auto Industry, for example, consists of markets for rubber, steel and electronics that each introduce a necessary component in the manufacturing of an automobile. Similarly, the Entertainment Industry entails markets for acting, film, construction and script-writing that are combined in unique ways to form plays, movies and documentaries.
The Range and Scales of Industries
Depending on the final good or service in question, an Industry can be a relatively simple or complex system of production. In fact, it's very often the case that the industries of modern conveniences consist of nearly countless production steps, each revolving around a particular market of course. Take, for example, a light-bulb; its assembly depends upon the proliferation of mining tools, the mining of metals, the accumulation of coal to burn in ovens for glass-blowing, and the construction of refineries that process metallic ores, just to name a few! All told, the making of a light-bulb from scratch is almost unimaginable, and such is the case for most every other industry in the world with very few exceptions.
It's difficult to tell exactly when the first industries emerged, although we do have archaeological evidence that points to industries as old as 10,000 B.C., namely the industry of brick-making. Starting off as the hand-mixing and drying of mud and grass, brick-making has now evolved to the point where heavy machineries do most of the work in supplying the world of this literal building block. Similar ancient industries that are still around today include farming, fishing and wood cutting, all of which have changed to remarkably advanced versions of themselves.
Industries generally form in one of two ways:
2) From government demand (such as weapons and security services)
This is not to say, however, that an industry must be exclusive to one source or another. One can, for example, imagine weapon and security industries existing in a purely free-market economy. Likewise, money and food can both be produced through state control. The only major differences are regarding the level of voluntary exchange in each production step and their consequential manifestations in economic growth and efficiency.