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What Changed in the NAICS 2022 Revision? A Sector-by-Sector Breakdown

NAICS gets updated every five years, and the 2022 revision was the biggest in over a decade. If you have not checked your code since 2017 — or if you work in technology, healthcare, e-commerce, cannabis, or renewable energy — there is a real chance your classification changed.

We updated the entire trueNAICS platform for the 2022 revision and reprocessed millions of company classifications through Veridion's AI engine. Here is what we found when we dug into the changes.

Why NAICS Revisions Happen

The economy evolves faster than any classification system can keep up with. In the five years between the 2017 and 2022 revisions, the pandemic permanently shifted healthcare delivery to telehealth, cannabis became legal in most US states, cloud computing went from growing to dominant, and entire business models emerged around the gig economy and direct-to-consumer e-commerce.

The Economic Classification Policy Committee (ECPC) — with representatives from the US, Canada, and Mexico — reviews the entire NAICS structure every cycle and adjusts codes to reflect how the economy actually works. The 2022 revision was finalized after years of research and a public comment period.

The Numbers

The 20 sectors and the basic six-digit hierarchy stayed the same. But within that framework:

  • 29 new six-digit codes were created for activities that previously lacked a specific classification
  • 20 six-digit codes were retired and merged into other codes
  • Hundreds of existing codes had their titles, definitions, or index entries updated
  • Sector 51 (Information) saw the most structural reorganization

The net result is a slight increase in the total number of codes, but more importantly, a much better fit between the codes and the businesses they classify.

Sector-by-Sector Changes

Information (Sector 51) — The Biggest Overhaul

This sector absorbed the most changes, which makes sense — it covers software, data, media, and telecommunications, all of which transformed since 2017.

Software Publishers (511210) received updated definitions that explicitly acknowledge cloud delivery models. The 2017 definition was written in an era when software meant shipping a box or downloading a binary. The 2022 definition recognizes that the same code covers SaaS companies delivering software through a browser. This does not change the code number, but it changes how classification decisions are made for companies on the boundary.

Data Processing, Hosting, and Related Services were reorganized to better distinguish between companies that process data, companies that host infrastructure, and companies that provide cloud computing platforms. The growth of AWS, Azure, and GCP forced clearer boundaries.

Streaming and digital content distribution codes were updated to reflect that most media consumption has shifted from broadcast and physical to streaming. Codes related to film, music, and publishing distribution were adjusted to accommodate digital-first businesses.

Manufacturing (Sectors 31-33) — Targeted Consolidation

Manufacturing did not see a structural overhaul, but specific subsectors were updated:

  • Legacy codes for production methods that are now functionally identical were merged. If the Census Bureau had maintained separate codes for two manufacturing processes that modern factories treat as interchangeable, those codes were consolidated.
  • Food manufacturing was updated to better classify plant-based protein products, functional foods, and specialty manufacturing operations that did not fit neatly into 2017 categories.
  • Pharmaceutical manufacturing definitions were refined to account for the growth of biologics, biosimilars, and contract development and manufacturing organizations (CDMOs) that did not exist at scale when the 2017 codes were written.

Construction (Sector 23) — Clean Energy Focus

The construction sector saw targeted definitional updates:

  • Renewable energy installation — Solar panel installation, wind turbine construction, and energy storage system installation received clearer classification guidance. The 2017 codes often forced these businesses into generic electrical contractor or general construction categories.
  • Green building practices, energy-efficient construction methods, and new building technologies were reflected in updated code descriptions across specialty trade contractors.

Retail Trade (Sectors 44-45) — E-Commerce Reality

The 2017 codes were written when most retail still had a physical component. The 2022 revision acknowledges that many businesses are online-only:

  • Definitions across retail subsectors were updated to explicitly cover e-commerce operations. This affects how online-only retailers are classified versus omnichannel businesses.
  • The blurring line between manufacturers selling direct-to-consumer and traditional retailers was addressed with updated classification guidance.

Health Care (Sector 62) — Post-Pandemic Updates

The pandemic accelerated changes in healthcare delivery that the ECPC had already been tracking:

  • Telehealth and virtual care received clearer classification treatment. Providers that deliver care primarily through video consultations are now more precisely classified rather than being lumped with traditional office-based practices.
  • Outpatient care codes were refined to capture the ongoing shift from inpatient to ambulatory settings, including outpatient surgery centers and urgent care facilities that operate differently from traditional hospitals.

Emerging Sectors

Three areas that cut across traditional sector boundaries received notable attention:

Cannabis. The 2017 codes had no coherent way to classify cannabis businesses because the industry was in legal limbo. The 2022 revision provides clearer paths for cannabis cultivation (Agriculture), processing (Manufacturing), and retail (Retail Trade), though classification still varies by the primary activity.

Gig economy. Platform-based businesses that connect independent contractors with customers — ride-sharing, food delivery, freelance marketplaces — received updated classification guidance. The challenge is that these companies often do not fit neatly into existing industry definitions.

Renewable energy. Beyond construction (covered above), codes related to solar and wind electricity generation, battery storage, and clean energy consulting were clarified across Sectors 22 (Utilities), 23 (Construction), and 54 (Professional Services).

What This Means for Your Business

For the majority of businesses, the 2022 revision did not change their primary six-digit code. Most codes carried over unchanged from 2017. But you should check if any of these apply to you:

You are in technology or software. If your business sits anywhere near the boundary between software publishing, SaaS, data hosting, and cloud platforms, the updated Sector 51 definitions may affect how your business should be classified.

You are in healthcare. If you deliver care through telehealth, operate an outpatient facility, or run a healthcare practice that has shifted significantly toward virtual delivery, review whether your 2022 code reflects your actual care model.

You operate in cannabis, renewable energy, or e-commerce. These are the areas where new codes were introduced or existing codes were substantially redefined.

Your specific code was merged or split. If your 2017 code was one of the 20 that were retired, you need to identify the 2022 equivalent.

How to Check

Use the trueNAICS search to look up your current code. Every code on the platform reflects the 2022 revision, so if your old code was retired, the search will guide you to the current equivalent. For company-specific verification, Company Search shows what NAICS code Veridion's AI classification assigns based on current evidence.

Impact on Contracting and SBA

If you hold government contracts or plan to bid:

  • All new solicitations use 2022 codes. If you are bidding under a 2017 code that was split, the solicitation's NAICS code may differ from what you are used to.
  • SBA size standards are pegged to specific codes. When a code was split, the SBA set new standards for each resulting code. When codes were merged, the surviving code received an updated standard. Check that your size certification is still valid.
  • SAM.gov profiles should list 2022 codes. If your profile still references 2017 codes, update it — especially for codes in affected sectors.

Impact on Insurance

Insurance carriers adopted the 2022 revision on different timelines. Some updated immediately; others still reference 2017 codes in their underwriting systems. If you see a discrepancy between your current NAICS code and what appears on your insurance application, raise it with your agent. A more specific 2022 code that better matches your operations could mean more accurate — and potentially lower — premiums.

Impact on Data and Research

For analysts working with multi-year datasets, the 2022 revision creates discontinuities. Revenue, employment, and establishment data collected under 2017 codes is not directly comparable to 2022 data for any code that was split, merged, or redefined. The Census Bureau publishes concordance tables for this purpose — use them when building time-series comparisons.

Looking Ahead to 2027

The next revision is expected in 2027, and based on the pace of change in AI, digital assets, and the creator economy, it will likely bring significant updates to Sectors 51, 52, and 54. The ECPC has already begun its review process.

In the meantime, 2022 is the standard. Every government form, insurance application, SBA registration, and data analysis should reference 2022 codes.

Verify Your Code Now

If you have not checked your NAICS code since the 2022 revision took effect, take two minutes:

trueNAICS uses the complete 2022 revision across every tool on the platform.

What Changed in the NAICS 2022 Revision? A Sector-by-Sector Breakdown | trueNAICS