An industry is a group or classification of companies that engage in similar business activities, producing related goods or services

. It represents a subset of the economy where businesses share common characteristics, such as the type of products they make or the services they provide

. For example, the automotive industry includes companies that manufacture and sell cars, while the pharmaceutical industry focuses on producing medications

. Industries are typically grouped into broader categories called sectors, which encompass multiple related industries. For instance, manufacturing is a sector that contains various industries like automobile manufacturing and electronics production

. The classification of industries helps investors, economists, and governments analyze economic activity, compare companies, and understand market dynamics

. Industries can also be categorized by the nature of their economic activities, such as:

• Primary industries: Extract raw materials (e.g., mining, agriculture)

• Secondary industries: Process raw materials into finished goods (e.g., factories producing vehicles)

• Tertiary industries: Provide services rather than goods

Overall, an industry is a way to organize businesses that produce similar products or services, facilitating economic analysis and investment decisions

Summary

• Industry = group of companies with similar business activities or products

• Industries are subsets of larger sectors

• Examples: automotive, pharmaceutical, hospitality industries

• Used for economic analysis, investment, and comparison

• Classified by primary activity: raw material extraction, manufacturing, services

This definition aligns with standard classification systems like the North American Industry Classification System (NAICS) and the Global Industry Classification Standard (GICS)