World industries drive the global economy collectively transacting almost USD $70 trillion annually. An industry is a group of companies that perform similar functions, it can also to refer to all company groups, or the production of an economic good within an economy.
The size of various industies vary by country, level of development, and demand in each region. This section of EconomyWatch.com introduces all the major industries and classification systems, together with key industry data.
Industries can be categorized in the following ways:
Offering Based Industry Classification
- Does the industry provide products, services, or a mix of both products and services?
Production Based Industry Classification
- Does the industry rely more on natural resources, human capital or financial capital? Industries can also be described as resource-intensive, labour-intensive or capital-intensive?
Classifying Industries by Sector
- Is the industry in the primary, secondary or tertiary sector?
Primary Industry: The agricultural, farming and fisheries businesses come under this head.
Secondary Industry: The industries that utilize machines, factories or human labor to convert raw materials into a processed final product. The manufacturing industries, or heavy industry, are typical examples of Secondary Industry types.
Tertiary Industry: Services-based industries are known as tertiary industries. Retail, food & beverage and professional services are examples of Tertiary Industry
Classifying Industries by Size
Is the industry a small-scale or cottage indutry, a Small & Medium Business (SMB or SME) industry, or a global industry dominated by Multi-National Corporations (MNCs)?
Target Market Classification
Is the industry export-oriented and international, or domestic market focused?
Is the market fragmented, with many small 'mom and pop' businesses, or is it consolidated, with rounds of mergers and acquisitions leading to a few dominant players?
The financial, banking and insurance industries, underpin all other world industries, as we have seen during the Financial Crisis. As a result, they deserve special focus.