Businesses to the economy are like oxygen to humans – a lifeline. This profession is the oldest and most widespread source of income for people and governments alike. Hundreds and thousands of businesses are classified into categories based on the nature of the products or services they produce. In business terms, this classification is called business industry.
What is industry?
An industry is a combination of several businesses that produce the same 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 organizations, enterprises, corporations, etc., which directly or indirectly promote, facilitate or organize any event, activity or business that focuses on sports.
Generally, industry classification requires any business to generate a major portion of its income from that particular industry-related activity. It is important to note that a single business entity can be in two different business industries at the same time.
Types of Business Enterprises
There are currently more than 15 types of business industries in the world and Marketing Tutor is going to list as many as possible. Let us give you a ride full of knowledge!
Industries are also classified according to their role or importance in the economy; The transportation 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, people, and animals.
Currently, there are three main modes of transportation
- the air
- Land (rail and road)
Transport industry is a major part of any economy. The transportation industry currently accounts for 17% of United States GDP, and the USA also holds the record for the world’s largest rail network – 250,000 kilometers.
Aerospace or aviation industry is one of the most advanced but relatively less spread business sectors. Aerospace or aviation is basically concerned with the design and manufacture of aircraft and similar sophisticated equipment that can travel in and out of the Earth’s atmospheric region.
The aerospace industry basically serves other private and government organizations such as airlines, military, NASA, etc. You may be wondering, why is this a relatively small industry? Because the aviation industry is spread over only 50 countries. In other words, 50 countries own one or more aerospace manufacturing units/corporations.
The aerospace industry was valued at $838 billion in 2017.
The agricultural industry is 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, technological advances such as fertilizers, pesticides, and genetic modification to produce hybrid agricultural products have led to dramatic growth in agriculture over the past 50 years.
Agriculture dates back 10,000 to 15,000 years ago and is still the largest part of many economies in Asia and Africa.
The current value of the agriculture industry is over $1.3 trillion.
Computers or commonly known as IT industry is indeed one of the most prolific business sectors that has seen tremendous growth in the 21st century and the future is bright.
The IT sector includes corporations or enterprises that produce or develop everything related to computers, such as software, applications, operating systems, databases, and anything else related to computers.
IT is an integral part of all other business sectors. Be it telecom, healthcare, education, data management or engineering, you cannot keep IT away from them. It will not be wrong to say that computer is an important part of our life.
The computer industry was valued at $5 trillion in 2019.
Like the computer industry, the telecommunications 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 to the telecommunications sector include Internet service providers, satellite companies, and wireless operators.
Common communication channels include text messaging, audio and video calls, digital communication apps, internet, etc. Apart from that, it would not be wrong to say that the telecom sector is deeply integrated with other business sectors, and is its backbone. of all other business sectors.
The telecom industry was valued at $1.4 trillion in 2017.
If one were to make a list of industries that are part of any economy in the world, the education industry would undoubtedly be on the list. The education industry includes any or all types of educational institutions, ministries, administrative bodies and individuals directly or indirectly connected with the education sector.
Like other business sectors, the education industry has also been revolutionized by the advent of technology. Educational institutions are turning 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 at 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 the design, construction/construction and maintenance of domestic and government-owned infrastructure. It is important to note that construction is a complex process that involves other disciplines such as engineering and logistics.
The construction industry has three major subcategories;
- Heavy dams, e.g., roads, bridges, etc.
- General construction includes commercial and residential real estate such as houses, apartments, shopping malls, etc.
- Special construction deals with the types of tools and equipment required for construction purposes.
Although the construction industry dates back hundreds and thousands of years, technological advances in the 20th century have revolutionized it.
The construction industry was valued at $8,452 billion in 2018.
The electronics industry is one of the largest industries that is growing at an unprecedented rate. The manufacturing, sales, and marketing of electronics and electrical products, especially consumer electronics, are all part of the electronics industry.
Also, the electronics industry employs a large number of technicians and electrical engineers who look after the designing, testing and manufacturing of these commercial and home electronics.
Currently, the electronics industry is mainly focused on artificial-intelligence-based products and is working on the development of smart cars and wireless charging.
What’s more, the electronics sector is witnessing a CAGR (compound annual growth rate) of 5.4% since 2015.
The increase in demand for consumer electronics is primarily due to the pandemic outbreak as employees and students shift to digital work and education.
Industrial and engineering designs are closely related to the manufacturing sector. Globally, industry processes raw materials into final products using machinery or labor.
These finished goods are then transported and sold to other manufacturers for further processing into more specialized goods, or they are sold directly to retailers.
Transport equipment industry, food industry, paper industry, petroleum industry and wood industry come under the umbrella of manufacturing industries.
Moreover, the manufacturing sector provides employment to both the educated as well as the labor force of the country. It is one of the major sectors of the economy as it contributed nearly 16% to the global GDP (Gross Domestic Product) in 2018.
What’s more, globally, the production and process control market is projected to grow from $86.7 billion to $117.5 billion by 2025 at a CAGR of nearly 6.3%.
The energy sector is responsible for the production as well as the sale of energy which includes various processes, such as fuel extraction, refining, production, marketing and sales.
Renewable energy industry and non-conventional energy are two parts of energy sector. Energy industry includes various sectors like electric power industry, gas industry, coal industry, petroleum industry and nuclear power industry.
Such business enterprises play an important role in the development of any nation. Also, these energy sources are limited and will soon run out in the future. Therefore, industries need to conduct extensive research for alternative energy resources.
Wind, hydroelectric and solar energy are some examples of alternative energy sources. Moreover, developed and developing nations are spending a lot of money to increase the use 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%.
One of the most research-based fields is the discovery, development, sale and distribution of drugs. Globally, it is one of the most significant industries and relies heavily on continuous and innovative research.
The pharmaceutical sector is responsible for developing and manufacturing medicines to treat animals and humans. Also, some medications can address the symptoms of the disease.
What’s more, these types of companies are highly regulated. Also, did you know that the pharmaceutical market in the US accounts for nearly 45% of the global pharmaceutical market?
Moreover, the outbreak of epidemics has increased the demand for vaccines. Merck & Co, Johnson & Johnson, and Pfizer are the best pharmaceutical companies in the world.
Also, the medical device sector is another branch of the pharmaceutical sector that specializes in medical devices, implants and surgical instruments.
The healthcare sector is a group of different areas that provide therapeutic, diagnostic, curative and preventive care.
The primary purpose of this field is to restore and maintain people’s health. Also, it is one of the fastest expanding and largest industries which accounts for more than 10% of the GDP.
What’s more, it is one of the most promising areas for entrepreneurs and investors; Every country’s government also invests heavily in this particular sector.
The field encompasses many disciplines and is run by a team of specialists who focus on the specific needs of each patient.
Both public and private companies offer such services. Also, many NGOs provide free services to the needy.
Also, global healthcare spending is expected to exceed $10 trillion by the end of 2022.
The food sector is a group of numerous businesses that work together and are responsible for providing food to the population.
For food production, the industry needs a large amount of raw material which it gets directly from the agricultural sector. Therefore, we can say that the food industry is heavily dependent on the agricultural sector.
Also, many food additives and chemicals are added to foods after processing to preserve flavor and prolong shelf life.
As people look for “ready-to-go” foods in today’s fast-paced digital world, the food sector has expanded rapidly over the past decade.
Also, the global food market has welcomed a revenue of nearly $8.27 trillion in 2021, which is more than $500 billion compared to 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 curries to instant noodles and whatnot.
Also, food technology and food services known as catering are important aspects of the food sector.
Also, food technology includes R&D to produce more ready-made food.
The entertainment industry is one of the billion-dollar businesses. Moreover, it includes entertainment sub-sectors. Spectators and enthusiasts form the core of this niche.
Although the entertainment industry has been a part of human society for ages, the entertainment industry as we know or see it today has only recently become commercialized.
Also, the field has been progressing very fast in the last century. Also, the entertainment industry contributes significantly to the GDP of any country.
For example, soccer teams including Brazil, France and Belgium bring in a lot of money (as a share of revenue) for their respective countries.
This sector provides employment to a large number of people, fulfilling 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 used to. Now, people have the opportunity to entertain the audience by posting videos on YouTube and other related platforms.
Also, digital platforms have also helped the exponential growth of the industry. Also, the availability of internet video streaming services like Amazon Prime and Netflix has also changed how people engage with TV shows and movies.
The music industry is an important part of the business world. The industry includes companies, musicians, songwriters, composers and producers.
Tech has radically changed the music industry; Gone are the days when people used to buy DVDs and CDs.
The rise of the Internet has taken over other media platforms. People can now listen to their favorite music online regardless of their location.
With the advent of the digital music industry, people have many options to choose from; Music is now available on many online platforms, including Spotify, Soundcloud, etc.
Also, the digital music market welcomed nearly $28.2 billion in revenue globally by 2021.
world wide web industry
It is a type of industry that has dominated all other types 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. Webb was Tim Berners-Lee in 1989. However, it took almost a decade for his invention to gain popularity.
The advent of the web has radically changed the world we live in and opened doors to new opportunities in many business fields. For example, from running an online business to interacting with customers and business partners at every level.
Today, the World Wide Web includes educational sites, government sites, ecommerce stores, entertainment and more.
News media industry
It is one of the most integral industries as it conveys news to the general public as well as to specific target audiences.
The news media sector includes everything from traditional print media (newspapers, etc.) to Internet (podcasts, blogs, online newsletters, etc.) news broadcasts (radio, TV).
The Washington Post and The New York Times are two of the most popular 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 some of the social media platforms that provide instant access to the latest developments.
Mining refers to the process of extracting rich metals, minerals and other geological resources from the earth’s surface around the world.
Also, the mining sector seeks to provide materials that cannot be produced through agricultural activities or reliably produced in the laboratory.
Extracted metals are used for making jewelery and also for commercial purposes. Also, the mining sector participates in the trade and production of such metals.
What’s more, every country invests heavily in finding a viable location to extract ore. Although work safety has improved over the years, the mining sector creates environmental problems, which are a global concern.
The hospitality sector includes a wide range of service-related subcategories. Event Organisation, Food, Accommodation, Transport, Travel, Amusement Parks, Beauty Centres, Gyms etc. All these services fall under the category of this industry.
Hence, the industry is a highly customer oriented market and primarily focuses on customer satisfaction.
This industry is unique because it thrives on people’s “needs” rather than just “wants” like the healthcare sector.
For example, Airbnb is one of the top hospitality online services known for providing the most affordable accommodation in any country. The service is available on both platforms, mobile apps as well as website.
Want us to cover some industries in more detail? Share your thoughts in the comments section if you want us to cover the ins and outs of your favorite industry.