Businesses to the economy are like oxygen to humans—a lifeline. The business has been one of the oldest and most widespread sources of income for people and governments too. Hundreds and thousands of businesses are classified into categories according to the nature of products or services they produce. In business terms, this categorization is called business industries.
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What Is An Industry?
An industry is a combination of multiple businesses producing similar or related products, services, or raw materials.
According to macroeconomics, it is a segment of a country’s economy that produces services, goods, or raw materials of similar nature.
For example, if we talk about the sports industry, it includes all the organizations, enterprises, corporations, etc., who directly or indirectly promote, facilitate or organize any event, activity, or business focusing on sports.
Generally, industry classification requires any business to generate a dominant portion of its income from those particular industry-related activities. It is important to note that a single business entity may fall into two different business industries simultaneously.
Types Of Business Industries
There are more than 15 types of business industries in the world right now, and the marketing tutor is going to list as many as possible. Let’s give you a knowledge-loaded ride!
Even the industries are further classified according to their role or importance in an economy; the transport industry is one of the largest business industries in the world. The primary objective of the transportation industry is the movement or transportation of goods, humans, and animals.
Currently, there are three main modes of transportation
- Land (railway and road)
The transport industry is a major part of any economy. The transport industry currently constitutes 17% of the United States GDP, and the USA also holds the record for the largest railway network in the world—250,000 kilometers.
The global transport industry was valued at $700 billion back in 2018.
The aerospace or aviation industry is one of the most advanced but relatively less-spread business sectors. Aerospace or aviation basically deals with the production and manufacturing of aircrafts and similar cutting-edge devices that can travel inside and outside the earth’s atmospheric area.
The aerospace industry basically serves other private and government bodies such as airlines, the military, NASA, etc. You must be thinking, why is it a relatively less-spread industry? That’s because the aviation industry is only spread in almost 50 countries. In other words, 50 countries own one or more aerospace production units/corporations.
The aerospace industry was valued at $838 billion in 2017.
The agriculture industry is certainly one of the oldest business sectors in the history of mankind. As a matter of fact, agriculture is a source of employment for more than 1 billion people on the planet, making it the second-largest global employer.
However, agriculture has seen dramatic growth in the last 50 years or so due to technological advancements such as fertilizers, pesticides, and genetic modification to create hybrid agricultural products.
The history of agriculture goes 10,000 to 15000 years back, and it is still the largest part of many economies in Asia and Africa.
The current worth of the agriculture industry is over $1.3 trillion.
Computer or commonly known as the IT industry is indeed the most prolific business sector that has seen unparalleled growth in the 21st century, and the future seems brighter.
The IT sector includes corporations or enterprises that deal in manufacturing or developing everything related to computers, such as software, applications, operating systems, databases, and anything that is related to computers.
IT is an integral part of almost all other business sectors. Whether it is telecommunication, healthcare, education, data management, or engineering, you cannot keep IT out of them. It won’t be wrong to say that computers are an important part of our lives.
The computer industry was valued at $5 trillion in 2019.
The telecommunication industry, just like the computer industry, is one of the fastest-growing industries of the 21st century. The telecommunication sector basically consists of businesses involved in providing communication channels. Major contributors in the telecom sector include internet service providers, satellite companies, and wireless operators.
Common communication channels include text messaging, audio and video calls, digital communication apps, the internet, etc. Apart from that, the telecom sector is deeply integrated with other business sectors, and it won’t be wrong to say that it is the backbone of all other business arenas.
The telecommunication industry was valued at $1.4 trillion in 2017.
If we are to make a list of industries that are a part of any economy in the world, the education industry will undoubtedly be among that list. The education industry includes any or all types of educational institutes, ministries, governing bodies, and individuals directly or indirectly connected to the education sector.
Just like other business sectors, the education industry has been revolutionized with the advent of technology. Educational institutes are shifting to digital channels (e-learning), using the internet as a medium of communication.
The education industry is a prime example of globalization as students can study in universities in cross-border or cross-continent universities by enrolling in their online courses or degrees.
The education industry was valued at $4.4 trillion in 2013.
The construction sector includes designing, creating/building, and maintaining the domestic and government-owned infrastructure. It is important to note that construction is a complex process that includes the involvement of other disciplines such as engineering and logistics.
The construction industry has three major subcategories;
- Heavy constructions, e.g., roads, bridges, etc.
- General construction includes commercial and residential real estate such as houses, apartments, shopping malls, etc.
- Specialized construction deals with tools and types of equipment necessary for construction purposes.
Although the construction industry dates back hundreds and thousands of years ago, it has been revolutionized by the technological advancements in the 20th century.
The construction industry was valued at $8,452 billion in 2018.
The electronics industry is one of the biggest industries that has been growing at an unprecedented rate. Producing, selling, and marketing electronics and electrical products, especially consumer electronics, are all part of the electronic industry.
Also, the electronic industry employs a huge number of technicians and electrical engineers who take care of designing, testing, and production of these commercial and domestic electronics.
Currently, the electronic industry primarily focuses on artificial-intelligence-based goods and is working towards the development of smart cars and wireless charging.
What’s more, the electronic sector has been observing a CAGR (compound annual growth rate) of 5.4% since 2015.
An increase in the demand for consumer electronics is primarily because of the outbreak of the pandemic as employees and students have transitioned to digital working and learning.
Industrial and engineering designs are closely linked with the manufacturing sector. On a global scale, the industry processes raw materials into the final products either using machinery or labor force.
These finished goods are subsequently transported and sold to other manufacturers for further processing into more specialized commodities, or they are sold to the retailers directly.
The transportation equipment industry, food industry, paper industry, petroleum industry, and wood industry fall under the umbrella of manufacturing industries.
Plus, the manufacturing sector employs both the educated as well as the labor force of a country. It is one of the major sectors of the economy as it contributed almost 16% of the GDP (gross domestic product) globally in 2018.
What’s more, globally, the market for manufacturing and process control is predicted to grow at a CAGR of almost 6.3%, from $86.7 billion to a whopping $117.5 billion as of 2025.
The energy sector is responsible for the production as well as the sale of energy that includes a variety of processes, such as the extraction of the fuel, refining, manufacturing, marketing, and selling.
The renewable energy industry and non-renewable energy are the two parts of the energy sector. The energy industry includes different sectors, such as the electrical power industry, the gas industry, the coal industry, the petroleum industry, and the nuclear power industry.
Such types of business industries play a crucial role in the development of any nation. Also, these energy sources are finite and will be depleted soon in the future. Hence, the industry needs to carry out extensive research for alternative energy resources.
Wind, hydroelectric, and solar energy are a few examples of alternative energy sources. Moreover, developed and developing nations are spending a lot of money to increase the usage of alternative energy sources.
The global EaaS (energy as a service) market is expected to expand from $64.2 billion to $124.1 billion by 2028, growing at a CAGR of 9.9%.
It is one of the most highly research-based sectors that discover, develop, market, and distribute drugs. On a global scale, it is one of the most significant industries and relies heavily on constant and innovative research.
The pharmaceutical sector is responsible for developing and manufacturing medications to treat animals and humans. Also, some drugs can address the symptoms of diseases.
What’s more, these kinds of firms are highly regulated. Also, did you know that the pharmaceutical market in the US accounts for almost 45% of the pharmaceutical market globally?
Plus, the outbreak of the pandemic has increased the demand for vaccines. Merck & Co, Johnson & Johnson, and Pfizer are some of the best pharmaceutical firms in the world.
Also, the medical device sector that specializes in medical devices, implants, and surgical equipment is another branch of the pharmaceutical sector.
The healthcare sector is a conglomeration of various sectors that provide therapeutic, diagnostic, curative, and preventive care.
The primary purpose of this sector is to restore and maintain people’s health. Also, it is one of the rapidly expanding and largest industries that takes more than 10% of the GDP.
What’s more, this is one of the most promising sectors for entrepreneurs and investors; even the government of every country invests a lot in this specific area.
The sector has multiple disciplines and is run by a team of specialists that put emphasis on the unique needs of each patient.
Both public and private companies provide such services. Also, several voluntary organizations provide services free of cost to the needy population.
Also, there is a prediction that healthcare spending might reach over $10 trillion globally by the end of 2022.
The food sector is a conglomeration of numerous businesses that work together and are responsible for supplying food to the population.
For food production, the industry needs a large amount of raw material that it directly gets from the agriculture sector. Hence, we can say that the food industry relies heavily on the agrarian sector.
Also, several food additives and chemicals are added to the food products after processing to keep the taste and preserve them for a long period.
Since people seek “ready-to-go” food items in today’s fast-paced digital world, the food sector has expanded exponentially in the last decade.
Also, globally the food market has welcomed a revenue of almost $8.27 trillion in 2021, an increase of over $500 billion from 2020.
Many companies have sprung up in response to the growing demand for packaged and processed foods, and almost all types of food are now available in packets, from curry to instant noodles and whatnot.
Also, food services, known as food technology and catering, are vital aspects of the food sector.
Also, food technology entails R&D to produce more ready-to-go food.
The entertainment sector is one of the multibillion-dollar businesses. Furthermore, it encompasses a plethora of entertainment sub-sectors. The audience and the entertainer form the core part of this particular sector.
Albeit the entertainment sector has always been a part of human society for ages, the entertainment business we know or see today has recently become commercialized.
Also, the sector has grown at a breakneck speed in the last century. Plus, the entertainment industry contributes significantly to the GDP of any country.
For instance, soccer teams, including Brazil, France, and Belgium, bring in a lot of money (as a part of revenue) for their respective countries.
The sector also employs a large number of people, catering to the need for employment. Also, people’s entertainment methods have evolved in recent years.
People don’t have to work as hard to get into the spotlight as they once did. Now, people have the opportunity to entertain the audience by putting up videos on YouTube and other related platforms.
Plus, the digital platform has also aided in the industry’s exponential growth. Also, the availability of internet video streaming services such as Amazon Prime and Netflix has also altered how people engage with TV shows and movies.
The music industry is one of the vital components of the business world. The industry consists of companies, musicians, lyricists, composers, and producers.
Tech has dramatically changed the music industry; gone are the days when people used to buy DVDs and CDs.
The emergence of the internet has taken over other media platforms. People now can listen to their favorite music online regardless of their location.
With the advent of the Digital Music Industry, people have so many options to choose from; music is now available on several online platforms, including Spotify, Soundcloud, etc.
Also, the digital music market welcomed a revenue of almost $28.2 billion globally as of 2021.
World Wide Web Industry
It is a type of industry that has dominated all other kinds of industries. The World Wide Web is a collection of resources and documents that can be accessed using their URLs.
People can access such resources and documents using web browsers, including Yahoo, Internet Explorer, Google, etc. The web was Tim Berners-Lee in 1989. However, it took almost a decade for his invention to gain popularity.
The advent of the web has drastically altered the world we live in and has opened the doors for new opportunities in numerous business fields. For instance, from running an online business to interacting with the customers and business partners at every level.
Today, the World Wide Web comprises educational sites, governmental sites, eCommerce stores, entertainment, and whatnot.
News Media Industry
It is one of the most integral industries as it delivers the news to the general public as well as to a particular target audience.
The news media sector encompasses all, from traditional print media (newspapers, etc.) to the internet (podcasts, blogs, online newspapers, etc.) to broadcast news (radio, TV).
Washington Posts and The New York Times are the two most famous newspapers that are available online as well as in paper form. However, social media platforms have taken the media news sector to a whole new level.
Twitter, Facebook, YouTube, etc., are a few social media platforms that provide instant access to the latest happenings.
The mining sector refers to the process of extracting rich metals, minerals, and other geological resources from the surface of the earth across the globe.
Also, the mining sector attempts to provide materials that can’t be produced via agricultural activities or generated reliably in the laboratory.
Extracted metals are also used for jewelry making and commercial purposes. Also, the mining sector takes part in trading and producing such metals.
What’s more, each country invests heavily in the exploration of a viable location to extract metals. Albeit work safety has increased over the years, the mining sector causes environmental problems, which, in turn, is a global concern.
The hospitality sector encompasses a wide range of service-related subcategories. Event organizing, food, lodging, transportation, travel, amusement parks, beauty centers, gyms, etc., are all the services that fall under the category of this industry.
Hence, the industry is a highly customer-oriented marketplace and primarily focuses on customer satisfaction.
The industry is unique in that it thrives exclusively on people’s “desires” rather than “needs,” as the healthcare sector does.
For example, Airbnb is one of the top hospitality online services that is famous for providing the most affordable lodging in any country. The service is available on both the platforms, mobile apps as well as the website.
Would you like us to cover some industries in more detail? Share your thoughts in the comment section if you would like us to cover the ins and outs of your favorite industry.