What is a Business Industry?
The business industry is an integral part of commerce as it promotes the economic development of a country. There are numerous types of business industries that have been set up for commercial purposes and work together for the growth and expansion of a country.
The term business industry refers to a specific cluster of manufacturing firms that are involved in the production of similar goods or similar business activities. The business industries include private and public companies that have set up their business to achieve profits.
Understanding Business Industries
Industries and sectors are the backbone of an economy and are made up of various businesses that are a part of either production or distribution of similar sources, goods or services. Every business belongs to at least one or more than one industry or sector.
An important element of the business is the type of goods or services it is involved in or the market it caters to. These activities decide the types of business industries and sectors a business belongs to.
The sector is divided into three categories: the primary sector, secondary sector and tertiary sector where the primary sector deals in production and harvesting of natural resources, the secondary sector deals in conversion and processing of basic materials into finished goods and the tertiary sector provides support services necessary for the functioning of both primary and secondary sectors.
The industry is primarily divided into five categories manufacturing, extractive, construction, service and genetic where the manufacturing industry converts raw material into the final product, extractive industry is involved in extraction, exploration and usage of non-renewable natural resources, construction industry deals with repairing, building and maintaining structures, service industry provides services to customers and genetic industry deals in the reproduction of species with selling purposes.
Types of Business Industries
There are numerous types of business industries in an economy. A detailed overview is given below to understand each of them
1. Agriculture Industry
The agriculture industry is one of the oldest types of business industries as agriculture and farming have been an important part of every human being since earlier times. Individuals used to barter their surplus goods for other products and this marked the beginning of the agriculture industry. With time the products, services and businesses involved in this industry started growing at an admirable rate making this sector a force to reckon with.
Most of the goods of the agricultural industry are part of the primary industry as these are raw materials that can be used to make finished goods. Other important agricultural products are food and fibre which are in great demand all over the world.
Agriculture is an important element of both developed countries and developing countries like India, China, the United States and Brazil whose various businesses are dependent upon this industry.
The agriculture industry is a primary source of food, income and employment all over the world as demand for agricultural commodities is at an all-time high. This industry also offers employment to development technicians, farm labourers, veterinarians, bio technicians, scientists and researchers.
Currently, the global agriculture industry is worth 2.4 trillion USD employing nearly one billion people. The topmost agricultural company is Cargill with an annual turnover of 114 billion USD followed by ADM and Bayer.
2. Aviation Industry
The aviation industry is one of the most important types of business industries segmented by several sub-sectors. The covid-19 pandemic in the year 2020 had a disastrous impact on this sector which is on the road to recovery once again.
The aviation industry is divided into commercial aviation, general aviation and military aviation. Although the passenger flights were halted this business sector saw a growth in demand for business jets and helicopters for transportation of cargo charter operations, medical supplies, VIP transport and rescue operations of people who were stranded in other countries.
The military aviation industry is still as strong as before because the governments of developed countries did not cancel their procurements.
The manufacturing companies belonging to the aviation industry have put the onus on developing newer generation aircraft which will offer better safety and fuel efficiency. The forecast for this sector is strong as it is an important element of the economy.
3. Aerospace Industry
Innovation, new technologies and solutions, expansion and growth opportunities, evolving business models, increased digital and operational efficiencies and new markets have helped the aerospace industry to remain one of the most lucrative types of business industries in the world.
Macroeconomic trends suggest that the aerospace business sector is an indicator of the progress made by developed countries in technology and science because manufacturing aerospace components and systems is a very challenging job that only a few countries are equipped to handle.
On a global scale, the aerospace business sector is working on three key areas satellite trends, launch industry and new technology. The companies are capturing data and information that could change the way how the world operates.
This service sector is dominated by the Aerospace Industries Association (AIA) since the year 1919 along with the European Association of Aerospace Industries (AECMA) and the Society of Japanese Aerospace Companies (SJAC). Currently, the United States has the largest number of companies in the global aerospace industry that supply aerospace components to various businesses and industries all over the world.
4. Construction Industry
The construction industry is one of the secondary types of business industries that takes the help of various raw materials in maintaining, constructing, building and designing the infrastructure.
This industry includes three key categories of sub-sectors general construction which deals in building commercial real estate and residential complexes, heavy construction that deals in construction of roads, railway tracks and bridges and specialized construction that deals in the construction of wooden and electrical things required in building construction.
New technologies and innovation like Building Information Modeling (BIM) has helped in the modernization of the construction industry. Skyscrapers have become an important part of modern construction. As construction is a multi-step process, various other industries related to this sector are on the rise as well.
5. Food Industry
One of the ever-growing types of business industries that has seen stable growth over the years is the food industry. This business sector is expecting annual growth of 4.79% (CAGR 2022-2027) with estimated revenues amounting to 8.7 trillion USD.
The food industry acts as an umbrella for other industries as various small businesses and service sectors are responsible for supplying food in the global market. Its dependence on the agriculture industry is utmost as the raw materials or the basic items that need to prepare the food comes from this business sector.
The food industry is often considered one of the complex industries as it is highly diversified. It includes food production, farming, distribution through transport industry, retail, packaging, preservation and catering etc. Associated businesses with the food industry are the fast-food industry, retail food industry and hotels and restaurants sector.
6. News Media Industry
The news media industry is one of the major types of business industries that has an impact on a global scale. It is the news media that broadcast the news and make aware of the happenings to the people all over the world.
Important media platforms are podcasts, websites, online blogs, radio, television and newspapers and social media platforms are YouTube, Instagram and Facebook. Some of the most popular newspapers are the Washington Posts and The New York Times which have achieved cult status in the news media industry. Most newspapers have started their apps that help people to read information online.
7. World Wide Web Industry
The World Wide Web industry has been a dominant force over other types of business industries. It is the web that gathers resources and documents from all over the world and the online users who can access them via web browsers. The web page includes links, audio, videos, images and texts that are a great help to the users.
The web helps in sending emails, making videos as well as audio calls and sharing images. People run their businesses online with help of the web industry. The web includes online stores, government websites, entertainment services and informative websites that are a great help to people all over the world
The World Wide Web is a network that has been designed with HTML and can be accessed with help of HTTP. It was designed by Tim Berners-Lee and was considered an innovation ahead of its time. Notable associations related to the web sector are the International Web Association (IWA) and the International Association of Employment Web Sites (IAEWS).
8. Manufacturing Industry
The manufacturing industries are associated with the primary sector as it deals with converting raw materials into finished products. Industries associated with the manufacturing sector include the petroleum industry, wood industry, paper industry, e-commerce, transportation equipment industry, apparel industry, electrical equipment industry, textile mill industry and food industry.
Wholesale trade is an important part of the manufacturing industry which lays the basic groundwork for the secondary sector by supplying the basic raw materials. Leading companies in the manufacturing sector are Apple Inc, Volkswagen Group and Toyota Group etc.
9. Pharmaceutical Industry
The global pharmaceutical industry is a research-based business sector that is involved in distributing, manufacturing and developing medications and drugs that can be bought as prescription drugs or can be self-administered. This sector is highly regularized as any misuse can harm the people.
An important element of the pharmaceutical industry is the medical device industry that is involved in surgical equipment’s implants and medical devices. The pharma sector also cooperates with biotechnology companies in the discovery and development of drugs.
The United States dominates the global pharmaceutical market followed by Japan, China, France and Spain etc.
10. Education Industry
The education industry includes the institutions of the education system like universities, college and schools that helps in learning skills and knowledge in various fields.
The education industry is divided into two categories public and private where the former is funded by the government and the latter privately by either a single person or a group of people.
The education system has become very advanced because of the availability of online courses besides the traditional education institutes. Other alternative types of learning besides e-learning include homeschooling and informal learning
11. Energy Industry
The energy industry is considered quite critical to a nation because of its wide application in various sectors. This industry deals in the production and sale of energy and is involved in various operations like refining, fuel extraction, manufacturing and marketing.
The energy sector is divided into two categories the renewable energy industry and the non-renewable energy industry. Associated businesses with the energy industry are the electrical power industry, nuclear power industry, petroleum industry, gas industry and coal industry.
The natural energy sources are limited and this is why countries are putting their onus on alternate energy sources like hydroelectric energy, wind energy and solar energy.
As the energy sector has become an important element of industrial societies the control and ownership of energy resources plays an important role in global politics. Leading countries based on generated energy from renewable sources are the United States, China, Russia and Germany etc.
12. Mining Industry
The mining industry deals in the extraction and location of metals, valuable minerals and other geological resources from the earth’s surface as well as trading and production of metals. This industry is also involved in the location and exploration of geological deposits like reef, seam, lode, vein or ore body.
The mining sector is focused on offering raw materials that cannot be obtained with help of agricultural activities. These materials are used in the metallurgical and chemical industry for commercial use and jewellery making.
Notable associations associated with mining are ICMM or International Council on Mining and Metals and NMA or National Mining Association.
13. Entertainment Industry
The entertainment industry is an integral part of the business sector that is involved in entertaining people. It is a huge sector with lots of sub-sectors belonging to various types of business industries.
The entertainment industry is responsible for commercializing entertainment. Some of the richest people are part of this service sector.
The people involved in this sector take the help of various modes of entertainment to earn extra money. Some entertainment mediums are television, radio, theatre and cinema although the current favourites of the masses are online platforms like Amazon Prime Video, Netflix, Hotstar and YouTube.
Nearly one-third of the global entertainment sector belongs to the United States entertainment industry. Some of the largest companies by revenue belonging to this service are Disney, Time Warner and Viacom etc.
14. Electronics Industry
The electronics industry has seen huge advancements since its inception. Nations depend on these types of business industries to take them forward. This sector deals in producing, marketing and selling electronic and electrical devices and related services.
The electronics industry produces electronic devices for domestic and commercial use like washing machines, air conditioners, television, circuit board, smartphones and several AI-based goods. This sector is responsible for producing advanced electronic equipment for the future and is working on wireless charging, smart cars and ad-hoc networks.
These types of business industries engage technicians and electronics engineers who are responsible for manufacturing, designing and testing electronic devices. This sector also carries out services like repairs, maintenance and assisting in the installation process.
15. Hospitality Industry
The hospitality sector is an important element of the service sector which is one of the major types of business industries. Customer satisfaction is the main objective of this sector as it offers services and social assistance to its customers
The hospitality industry has three broad categories like travel and tourism, food and beverage and accommodations. The services include travelling, transportation, amusement parks, beauty centres, gyms, event planning, meals and lodging.
The hospitality sector with an estimated worth in billions employs innumerable people like bartenders, managers, cooks, porters, housekeepers, servers and receptionists.
16. Transport Industry
The transport industry as the name suggests is involved with the transportation of human beings, animals and goods in and across national boundaries. The modes of transport are air through aeroplanes and cargo planes, water through ships and land through railways and road.
The transport sector is an integral part of a nation’s economy as it helps in economic growth and development. The sector includes business operations, vehicles and infrastructure.
These types of business industries include the largest logistics companies like XPO Logistics Inc and UPS Supply Chain Solutions. Notable associations related to the transport sector are American Transportation Research Institute (ATRI) and American Trucking Association (ATA).
17. Health Care Industry
The health care industry is one of the most important types of business industries in a country as it offers diagnostic, remedial, therapeutic, curative, rehabilitative and preventive services to the people. The objective of this sector is the physical and mental health and well-being of the people.
The health care sector is one of the fastest-growing sectors with a need for lots of money. It has great potential for entrepreneurs and investors. The health care industries include both public and private companies as well as voluntary organizations that offer services free of cost.
The estimated worth of the sector is nearly 10.059 trillion in the year 2022 with countries like the United States involved in the highest health care spending. Some of the largest companies by revenues associated with the health care sector are UnitedHealth Group, Cardinal Health and Mckesson Corporation.
18. Telecommunication Industry
The telecommunication industry is one of those types of business industries that includes a broad category of fields within the information technology and communication sectors. It includes various businesses that keep worldwide communication open via mobile phones, cable, wireless or internet.
It is the telecommunication industry that has allowed people and businesses to communicate using video, audio and words from and to every nook and corner of the world. There are various other industries based on this service sector.
The leading companies in this business industry are internet service providers, satellite companies and wireless operators. The telecommunication industry has several sub-sectors like domestic telecommunication services, communication equipment, mobile ad-hoc network, wireless communication services, systems, processing products and foreign communication services. It is because of this sector that the vision of cars without drivers has become a possibility.
19. Computer Industry or the Information Technology Industry
The 20th and 21st century belongs to information technology or the computer industry that has seen immense growth and development since its inception. Internet services are the backbone of the corporate world as they help various businesses, industries and sectors to evolve and grow continuously.
The information technology industry puts the onus on manufacturing computer components, creating networking infrastructures, developing and designing computer hardware and software and various services. This is the digital era where jobs, personal lives, professional lives, sectors and various large and small businesses all are dependent upon information technology for survival.
The information technology sector is a part of the service industry that takes the help of computers to manage information by storing, manipulating, transmitting and retrieving data. This sector includes various businesses and technologies operating on information like e-commerce, electronics, telecommunication, internet, television, mobile device and emerging fields like robotics.
Some of the best information technology companies with the highest revenues are of American origin like Apple Inc, IBM and Dell Technologies. Other leading companies in the information technology sector are Samsung Electronics of South Korea, Huawei of China and Hitachi of Japan.
If you are looking for an indicator of the economic and technological development of a country then look no further than the various types of business industries it has. Macroeconomic trends suggest that the business sector ensures efficient production to meet varying consumer demands.
It is an undisputed fact that it is the industry players and the business sector who adapt, maintain, design and streamline goods and services to promote economic growth and development of a nation.
Table of Contents
- What is a Business Industry?
- Understanding Business Industries
- Types of Business Industries
- 1. Agriculture Industry
- 2. Aviation Industry
- 3. Aerospace Industry
- 4. Construction Industry
- 5. Food Industry
- 6. News Media Industry
- 7. World Wide Web Industry
- 8. Manufacturing Industry
- 9. Pharmaceutical Industry
- 10. Education Industry
- 11. Energy Industry
- 12. Mining Industry
- 13. Entertainment Industry
- 14. Electronics Industry
- 15. Hospitality Industry
- 16. Transport Industry
- 17. Health Care Industry
- 18. Telecommunication Industry
- 19. Computer Industry or the Information Technology Industry