What is a 'Mature Industry'

A mature industry is an industry which has passed both the emerging and the growth phases of industry growth. Earnings and sales grow slower in mature industries than in growth and emerging industries.

Mature Industry



As can be seen above, the third phase is the mature industry phase.

BREAKING DOWN 'Mature Industry'

A mature industry may be at its peak or just past it. While earnings may be stable, growth prospects are few and far between.

Mature industries are characterized by low price to earnings ratios (P/E) and high dividend yields.

RELATED TERMS
  1. Emerging Industry

    A group of companies in a line of business formed around a new ...
  2. Life Cycle

    The course of events that brings a new product into existence ...
  3. Industry Life Cycle Analysis

    A form of fundamental analysis involving the process of making ...
  4. Industry Lifecycle

    A concept relating to the different stages an industry will go ...
  5. Current Maturity

    The interval between the present date and the maturity date of ...
  6. Growth Industry

    A sector of the economy experiencing a higher-than-average growth ...
Related Articles
  1. Investing

    Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  2. Investing

    How Do I Calculate Yield To Maturity Of A Zero Coupon Bond?

    Yield to maturity is a basic investing concept used by investors to compare bonds of different coupons and times until maturity.
  3. Investing

    Explaining Industry

    The term industry refers to a classification of companies that share similar business activities.
  4. Investing

    Capital Intensive Companies: What Are The Pros & Cons for Investors?

    Learn about the pros and cons of investing in capital-intensive industries. Find out how barriers to entry and mature industries impact investment outlook.
  5. Trading

    Market Cycles: The Key To Maximum Returns

    You need to understand the various phases of the market cycle to avoid bubbles and make the best investments.
  6. Investing

    What’s the Difference Between Duration & Maturity?

    We look at the meaning of two terms that often get confused, duration and maturity, to set the record straight.
  7. Insights

    Industries That Will Never Go Away

    A list of industries that will not perish anytime soon, as they provide and feed our basic needs.
  8. Investing

    How To Evaluate Bond Performance

    Learn about how investors should evaluate bond performance. See how the maturity of a bond can impact its exposure to interest rate risk.
  9. Investing

    Growth Investing: 3 Tips to Consider

    Learn the basics of growth investing, and discover three tips for avoiding the risk of losing money while employing a growth investment strategy.
RELATED FAQS
  1. What developed countries have the largest proportion of industrial companies?

    Examine the industrial sector in developed countries, and learn about the shift in manufacturing production to emerging market ... Read Answer >>
  2. What happens during the consolidation phase of an investor's life cycle?

    Unlike the accumulation phase – where emphasis is placed on growing wealth – the consolidation phase is a balance between ... Read Answer >>
  3. What types of corporations would be expected to have higher growth rates than more ...

    Understand factors that contribute to certain corporations growing at higher rates than other corporations to the benefit ... Read Answer >>
  4. What is the difference between yield to maturity and the yield to call?

    Determining various the various yields that callable bonds can provide investors is an important factor in the bond purchasing ... Read Answer >>
  5. When phase of the economic cycle tends to be strongest for companies in the retail ...

    Learn why retail's cyclical nature leads it to perform best during periods of expansion and how savvy investors use sector ... Read Answer >>
  6. What happens during the spending/gifting phase of an investor's life cycle?

    The final phase(s) in an investor's life cycle is the spending/gifting phase, during which wealth accumulated over many years ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center