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capital-intensive
/ˈkæpɪtl ɪnˈtɛnsɪv/
requiring large investments of money
The semiconductor industry is highly capital-intensive.
It requires significant financial investment to establish and operate.
Finance
technical
Requiring substantial investment in physical or financial capital to operate or produce goods/services.
Manufacturing plants are often capital-intensive due to the cost of machinery and infrastructure.
They require large upfront investments in equipment and facilities.
Renewable energy projects like wind farms are capital-intensive but have low operating costs.
They need significant initial funding but are cheaper to maintain.
Often contrasted with labor-intensive industries, which rely more on human labor than capital.
Collocations
capital-intensive industrya sector requiring large financial investmentscapital-intensive processa method or operation needing significant funding
Antonyms
Related Phrases
Pro Tip
Industry Context
This term is often used to describe sectors like manufacturing, energy, or technology, where large upfront investments are needed.
Contrast with Labor-Intensive
While capital-intensive industries focus on machinery and infrastructure, labor-intensive ones rely more on human workers.
Gold Rule
Economic Analysis
Capital-intensive industries typically have high startup costs but lower marginal costs per unit produced.
Word Origin
From 'capital' (financial assets) + 'intensive' (requiring concentrated effort/resources). Coined in economic and business contexts.
Usage Notes
Common in discussions about industry economics, business models, and investment strategies. Often used to describe sectors like manufacturing, infrastructure, or technology.
Word Breakdown
capital
financial or physical assets used in production
root-intensive
requiring concentrated effort or resources
suffixEnglish Dictionary