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Industry classification or industry taxonomy is a type of
economic taxonomy An economic taxonomy is a system of classification of economic activity, including products, companies and industries. Some economists believe that the study of economic policy demands the use of a taxonomic/classificatory approach.Day, A.C.L. (1955 ...
that classifies companies, organizations and traders into industrial groupings based on similar production processes, similar products, or similar behavior in financial markets. National and international statistical agencies use various industry-classification schemes to summarize economic conditions.
Securities analyst A financial analyst is a professional, undertaking financial analysis Financial analysis (also referred to as financial statement analysis or accounting analysis or Analysis of finance) refers to an assessment of the viability, stability, and profi ...
s use such groupings to track common forces acting on groups of companies, to compare companies' performance to that of their peers, and to construct either specialized or diversified portfolios.


Sectors and industries

Economic activities Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. ...
can be classified in a variety of ways. At the top level, they are often classified according to the
three-sector theory The three-sector model in economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (econom ...
into sectors:
primary Primary or primaries may refer to: Arts, entertainment, and media Music Groups and labels * Primary (band), from Australia * Primary (musician), hip hop musician and record producer from South Korea * Primary Music, Israeli record label Works * ...
(extraction and agriculture),
secondary Secondary is an adjective meaning "second" or "second hand". It may refer to: * Secondary (chemistry), term used in organic chemistry to classify various types of compounds * The group of (usually at least four) defensive backs in gridiron football ...
(manufacturing), and
tertiary Tertiary ( ) is a widely used but obsolete term for the Period (geology), geologic period from 66 million to 2.6 million years ago. The period began with the demise of the non-bird, avian dinosaurs in the Cretaceous–Paleogene extincti ...
(services). Some authors add
quaternary The Quaternary ( ) is the current and most recent of the three period (geology), periods of the Cenozoic era (geology), Era in the geologic time scale of the International Commission on Stratigraphy (ICS). It follows the Neogene Period and spans ...
(knowledge) or even
quinary Quinary (base-5 or pental) is a numeral system with 5 (number), five as the base (exponentiation), base. A possible origination of a quinary system is that there are five finger, digits on either hand. In the quinary place system, five numerals, ...
(culture and research) sectors. Over time, the fraction of a society's activities within each sector changes. Below the economic sectors are more detailed classifications. They commonly divide economic activities into industries according to similar functions and markets and identify businesses producing related products. Industries can also be identified by product, such as:
construction industry Construction is a general term meaning the art and science to form Physical object, objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Pre ...

construction industry
,
chemical industry The chemical industry comprises the companies A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal personality, legal or a mixture of both, with a spe ...
,
petroleum industry The petroleum industry, also known as the oil industry or the oil patch, includes the global processes of hydrocarbon exploration, exploration, extraction of petroleum, extraction, oil refinery, refining, Petroleum transport, transporting (often ...
,
automotive industry The automotive industry comprises a wide range of and s involved in the , , , , and of s. It is one of the world's largest by . The automotive industry does not include industries dedicated to the of following delivery to the end-user, such ...
, electronic industry,
power engineering Power engineering, also called power systems engineering, is a subfield of electrical engineering that deals with the generation, transmission, distribution, and utilization of electric power Electric power is the rate, per unit time, at whic ...
and power manufacturing (such as gas or wind turbines),
meatpacking industry The meat packing industry handles the slaughtering, processing, packaging Packaging is the art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, eva ...
,
hospitality industry The hospitality industry is a broad category of fields In mathematics Mathematics (from Ancient Greek, Greek: ) includes the study of such topics as quantity (number theory), mathematical structure, structure (algebra), space (geometry), and ...
,
food industry The food industry is a complex, global network of diverse businesses that supplies most of the food consumed by the World population, world's population. The term food industries covers a series of industrial activities directed at the producti ...
,
fish industry The fishing industry includes any industry or activity concerned with taking, culturing, processing, preserving, storing, transporting, marketing or selling fish or fish products. It is defined by the Food and Agriculture Organization The Foo ...
,
software industry The software industry includes businesses for development Development or developing may refer to: Arts *Development hell, when a project is stuck in development *Filmmaking#Development, Filmmaking, development phase, including finance and bud ...
,
paper industry Image:InternationalPaper6413.jpg, frame, International Paper is the world's largest pulp and paper maker. The pulp and paper industry comprises companies that use wood as raw material and produce Pulp (paper), pulp, paper, paperboard and other cell ...
,
entertainment industry Entertainment is a form of activity that holds the attention and Interest (emotion), interest of an audience or gives pleasure and delight. It can be an idea or a task, but is more likely to be one of the activities or events that have develo ...
,
semiconductor industry The semiconductor industry is the aggregate of companies engaged in the design A design is a plan or specification for the construction of an object or system or for the implementation of an activity or process, or the result of that plan or s ...
,
cultural industry A cultural industry (sometimes used synonymously with '' creative industries'')], (Meeting on the Place and Role of Cultural Industries in the Cultural Development of Societies). Montreal, QC: United Nations. . In other words, this industry is one t ...
, and
poverty industry The terms poverty industry or poverty business refer to a wide range of money-making activities that attract a large portion of their business from the poverty, poor. Businesses in the poverty industry often include payday loan centers, pawnbroker, ...
.
Market Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland and Sweden Art, entertainment, and media Films *Market (1965 film), ''Market'' (1965 ...
-based classification systems such as the
Global Industry Classification StandardThe Global Industry Classification Standard (GICS) is an industry taxonomy Industry classification or industry taxonomy is a type of economic taxonomy that organizes companies into industrial groupings based on similar production processes, similar ...
(GICS), the
Industry Classification Benchmark The Industry Classification Benchmark (ICB) is an industry classification Industry classification or industry taxonomy is a type of economic taxonomy An economic taxonomy is a system of classification of economic activity, including products, compa ...
(ICB) and The Refinitiv Business Classification (TRBC) are used in
finance Finance is a term for the management, creation, and study of money In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the left corn ...

finance
and
market research Market research is an organized effort to gather information about target markets A target market is a group of customers within a business Business is the activity of making one's living or making money by producing or buying and selling ...

market research
.


List of classifications

A wide variety of taxonomies is in use, sponsored by different organizations and based on different criteria. 1The NAICS Index File lists 19745 rubrics beyond the 6 digits which are not assigned codes.


See also

*
Economic sector Image:Economic sectors and income.JPG, 250px, Percentages of a country's economy made up by different sectors. Countries with higher levels of socio-economic development tend to have proportionally less of their economies operating in the primary a ...
* Economic industry *
Product classificationProduct classification or product taxonomy is a type of economic taxonomyAn economic taxonomy is a system of classification of economic activity, including products, companies and industries. Some economists believe that the study of economic policy ...


References


Further reading

* * * Bernard Guibert, Jean Laganier, and Michel Volle, "An Essay on Industrial Classifications", ''Économie et statistique'' 20 (February 1971
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