Industry and classification systems
Industry classification systems are used to categorize economic activities in a structured way and are used differently depending on the purpose, region and application context. In addition to widely known standards, there are other taxonomies that are used in statistics, regulation, index construction or professional data platforms.
The parallel use of several systems is common and explains why companies can be assigned to different sectors or industries depending on the data source. The following overview provides a compact, purely factual overview of selected classification approaches.
Standard Industrial Classification (SIC)
Standard Industrial Classification
SIC is a historically evolved classification system that was originally developed in the USA for the statistical recording of economic activities. Companies are classified in four digits based on their primary economic activity. Although SIC has been replaced by more modern systems in many areas, it is still used today - especially in older data sets, regulatory documentation or long-term time series analyses where consistency over decades is relevant.
North American Industry Classification System (NAICS)
North American Industry Classification System NAICS was introduced as the successor to SIC and is now the authoritative standard for the USA, Canada and Mexico. The system is more closely aligned with modern economic structures and allows for finer differentiation, particularly in the service and technology sectors. NAICS is primarily used for official statistics, economic analyses and regulatory purposes and plays a more indirect role in international capital market comparisons.
Industry Classification Benchmark (ICB)
Industry Classification Benchmark The ICB is primarily used in the environment of European stock exchanges and index providers. It structures companies hierarchically into industries, supersectors, sectors and subsectors. ICB is particularly widespread in the context of FTSE indices, where it serves as a consistent classification system for market segments without explicitly aiming to make investment statements.
Refinitiv Business Classification (TRBC)
Refinitiv Business Classification TRBC is a proprietary classification system from Refinitiv and is primarily used in professional data and analysis platforms. The focus is on a very granular mapping of operational business areas, which makes the system particularly suitable for in-depth company, peer and competitor analyses.
Bloomberg Industry Classification System (BICS)
Bloomberg Industry Classification System BICS is Bloomberg's proprietary classification model. It is used within the Bloomberg terminals to classify companies according to their actual operational focus. The system is dynamic and is regularly adapted to reflect structural changes in business models in a timely manner.
All of these systems pursue different objectives - from official statistics and stock market segmentation to data-driven company analysis. Their parallel existence explains why companies can appear to be classified differently depending on the context, without this representing a contradiction.
What you need to know: Industry classifications in comparison
| Classification system | Publisher / carrier | Primary purpose | Geographic focus | Granularity | Typical Contexts of use | Characteristic features |
|---|---|---|---|---|---|---|
| GICS® (Global Industry Classification Standard) | MSCI / S&P Dow Jones Indices | Capital market and index structuring | Global | Medium to high (4 levels) | Indices, ETF structures, market analyses, sector comparisons | Capital market-oriented, globally established, consistent index logic |
| SIC (Standard Industrial Classification) | U.S. Office of Management and Budget | Official Bureau of Economic Statistics (historical) | USA (historically used internationally) | Low to medium | Long-term time series, older data sets, regulatory legacy | High historical comparability, limited representation of modern business models |
| NAICS (North American Industry Classification System) | U.S. Census Bureau | Economic & Official Statistics | U.S., Canada, Mexico | High (6-digit) | Authority statistics, economic research, regulation | Modern economic structure, strongly service-oriented |
| ICB (Industry Classification Benchmark) | FTSE Russell | Stock market and index segmentation | Global (more Europe) | Medium to high | European indices, Market reports, stock market segmentation | Proximity to European stock market structures, index-related |
| TRBC (Refinitiv Business Classification) | Refinitiv | Data & company analysis | Global | Very high | Professional research platforms, Peer analyses | Strongly operational, high level of detail |
| BICS (Bloomberg Industry Classification System) | Bloomberg | Internal data structuring | Global | High | Bloomberg Terminal, Market & company analyses | Dynamic adaptation to business models, proprietary |
The simultaneous existence of several classification systems reflects different objectives - from official statistics and index construction to data-driven company analysis. Differing sector classifications are therefore context-related and should not be understood as a contradiction in terms of content.
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GICS Eleven Core & GICS Eleven Family & Friends are based on the GICS sector classifications as a structural classification principle.
