Difference Between Industry vs Sector
Industry and Sector these are two terms which are commonly used in Economy. The economy of any country can be analyzed by the Sectors and Industries. Many people think that Industry vs Sector is synonyms of each other. But this is not true. These terms cannot be used interchangeably. There is a huge difference in both the terms. These differences we will be discussing in this Industry vs Sector article.
A sector is a broader term. Every economy of a country is divided into Sectors. A sector is a group of business or Industry which share the similar characteristics of business activities. In other words, a group of industry which share the similar classification of business activities are defined as Sector. The sector can be called as a subset of the Economy. Broadly, a sector is broken down into 4 parts, which are described as below:
- Primary Sector: This sector includes all the activities which are linked to earth, environment. For example, all the industry which is related to Agriculture, Forestry, quarrying, mining will come under Primary Sector.
- Secondary Sector: This sector comprised of manufacturing activity. All the activities which produce the product will come under this sector. For example, cotton is used for making clothes, steel is used for making car etc.
- Territory Sector: This sector is the service sector. Industries which provides services will be covered under this sector. For example, courier service, food delivery service, tax consultancy, medical services Etc.
- Quaternary Sector: All the other activities like education, research, intellectual activities are grouped under this Sector.
Hence, it can be said that Sector gives you bird’s eye view of the economy. It is more general in nature. If a person wants to discuss more particular about the economy, then he/she should move to the next hierarchy that is INDUSTRY.
The industry is a narrower term. A sector can be broken down to Industry. Let’s first understand what is Industry? An answer to this is “Industry means a group of companies which are into the same/similar business or production of a same/similar product or providing same/similar kind of service”. In simple words, Industry is formed by a group of companies or firm which are performing similar kind of business operations. The industry is a more specific term. It gives you more specific results or analysis of the economy or market. There are many Industries in the economy and there is no such standard classification of Industry like sectors. Examples of Industries are Automotive Industry, Software Industry, Education Industry, Defense Industry, Leather Industry, Healthcare Industry etc. This means that when we are talking about the software industry, we are talking about the companies which are providing services related to software’s, like designing software, servicing software etc. The industry is a subset of Sector. Hence, industry further breaks down the sector and provide a detailed grouping of Economy.
Head to Head Comparison between Industry vs Sector (Infographics)
Below is the top 7 difference between Industry vs Sector
Key Differences between Industry vs Sector
Let us discuss some of the major differences between Industry vs Sector.
- The sector is the group of industry which share common characteristics of business activities whereas Industry is a group of companies which are into similar business or products
- While analyzing, Sector gives the view on how the business activities in a sector are performing and with regards to Industry, it gives the view of how companies in a particular industry are performing.
- Sector gives very Broad view of the Economy whereas Industry gives Narrow view of Economy
- A sector is more general in nature whereas Industry is more specific in nature.
- A sector is broken into four parts i.e Primary, Secondary, Territory, Quaternary whereas Industry has no specific number of classification, similar product or business of companies forms Industry
- An economy is a breakdown into Sectors and Sectors are further breakdown into Industry. Hence, the sector will come after the Economy and Industry come after Sector.
Industry vs Sector Comparison Table
Let’s look at the top 7 Comparison between Industry vs Sector
|The Basis of Comparison Between Sector vs Industry||
|Meaning||A sector is the group of industry which share common characteristics of business activities||The industry is a group of companies which are into similar business or products|
|Scope||Broader View||Narrower View|
|Classification||Four Classification||No such Classification|
|Hierarchy||Ranks second after Economy||Ranks after Sector|
|Analysis View||Generalized View||Specific View|
|Grouping||Group of Industry||Group of Companies|
|Example||Primary Sector includes all the business activities which are linked to the environment or earth, for example, agriculture, fishery, mining, energy||Healthcare Industry, software industry, defense industry, construction industry, finance industry,|
Conclusion – Industry vs Sector
Hence, it can be concluded from the above that there is a huge difference between the Industry vs Sector. both are different with regards to the scope. The sector has a larger scope whereas industry has a restricted scope. Both Industry vs Sector terms are used by the analyst for their analysis of the Stock Market and Economy of the country.
This has a been a guide to the top difference between Industry vs Sector Here we also discuss the Industry vs Sector key differences with infographics and comparison table. You may also have a look at the following articles to learn more.