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Urbanization in Mediterranean Europe has occurred in recent decades with expansion of residential, commercial and industrial settlements into rural landscapes outside the traditional metropolitan boundaries. Industrial expansion in peri-urban contexts was particularly intense in Southern Europe. Based on these premises, this work investigates residential and industrial settlement dynamics in the Valencian Community, Spain, between 2005 and 2015, with the aim to clarify the role of industrial expansion in total urban growth in a paradigmatic Mediterranean region. Since the early 1990s, the Valencian industrial sector developed in correspondence with already established industrial nodes, altering the surrounding rural landscape. Six variables (urban hierarchy, discontinuous settlements, pristine land under urban expansion, isolated industrial settlements, within- and out-of-plan industrial areas) were considered with the aim at exploring land-use change. Empirical results indicate a role of industrial development in pushing urban sprawl in coastal Valencia. A reflection on the distinctive evolution of residential and industrial settlements is essential for designing new planning measures for sustainable land management and containment of urban sprawl in Southern Europe. A comparative analysis of different alternatives of urban development based on quantitative assessment of land-use change provides guidelines for local development and ecological sustainability.