Arizona may not have passed recreational marijuana last month, but the state’s medical market is booming.

A new study conducted by New Frontier Data and Arcview Market Research, which calls itself the cannabis “Big Data and Analytics Authority," says the industry is expected to reach $367 million in sales this year and close to $700 million by 2020.

Furthermore, the study claims that total could have been much higher had voters chosen to legalize recreational pot.

“If the adult use measure had passed, the combined medical and adult use market in Arizona by 2020 would have 1.2 billion dollars, of which the adult portion of that would have been $758 million," said John Kagia, one of the firm's lead researchers.

Arizona was the only one of five states to reject recreational legalization last month. But at a growth rate of 17 percent annually, Kagia still calls the state’s medical marijuana industry ‘robust.'

EDITOR'S NOTE: The article has been modified to include Arcview Market Research among those who conducted the study.