The majority of physicists do not work in academia, but rather in environments such as industry and government. According to a report issued by the American Physical Society in 2016, an estimated 12.6% of the U.S. economy can be ascribed directly to the practice of industrial physics. In 2017 IUPAP established the Working Group on Physics in Industry to help the Union strengthen its connections with these physicists and, through these connections, improve the use of physics for sustainable development.

In 2021 IUPAP became a Swiss association with a set of articles that included the new category of Corporate Associate Members (here put the corresponding link) to allow commercial companies or international research organizations that have a special relationship with the field of physics or scientific research to be part of IUPAP. In 2025, the IUPAP GA approved the creation of the position of Vice President at Large on Physics Outside Academia in the Executive Council and the transformation of WG16 into a Standing Committee on Physics Outside Academia to be chaired by the corresponding Vice President. By placing this structure in direct contact with the EC it is expected that the initiatives related to physics outside academia will grow and increase their impact.