English Lexicon

Capital-Intensive Industry

/ˈkæpɪtl ɪnˈtɛnsɪv ˈɪndəstri/
nounCEFR B2 (Upper)Top #1500 frequency
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Comprehensive Definitions & Senses

2 senses
As noun
  1. 1

    An industry that requires a large amount of capital investment to produce goods or services.

    "The automobile manufacturing sector is a prime example of a capital-intensive industry due to the high costs of machinery and technology."
  2. 2

    A sector characterized by high fixed costs and significant investment in physical assets.

    "Oil extraction is considered a capital-intensive industry because of the extensive infrastructure needed for drilling and refining."

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Antonyms & Contrasting Words (1)

Linguistic Origin & Historical Etymology

The term 'capital-intensive' combines 'capital', derived from the Latin 'capitale', meaning 'head' or 'principal', and 'intensive', from the Latin 'intensivus', meaning 'to stretch'. The phrase 'capital-intensive industry' emerged in the 20th century to describe sectors requiring substantial financial investment for production.

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