In physical cosmology, structure formation describes the creation of galaxies, galaxy clusters, and larger structures via gravitational and hydrodynamic processes operating on cosmological inhomogeneities. The universe, as is now known from observations of the cosmic microwave background radiation, began in a hot, dense, nearly uniform state approximately 13.8 billion years ago. However, looking at the night sky today, structures on all scales can be seen, from stars and planets to galaxies. On even larger scales, galaxy clusters and sheet-like structures of galaxies are separated by enormous voids containing few galaxies. Structure formation applies models of gravitational instability to small ripples in mass density to predict these shapes.

The modern Lambda-CDM model is successful at predicting the observed large-scale distribution of galaxies, clusters and voids; but on the scale of individual galaxies there are many complications due to highly nonlinear processes involving baryonic physics, gas heating and cooling, star formation and feedback. Understanding the processes of galaxy formation is a major topic of modern cosmology research, both via observations such as the Hubble Ultra-Deep Field and via large computer simulations.

Structure formation began some time after recombination, when the early universe cooled enough from expansion to allow the formation of stable hydrogen and helium atoms. At this point the cosmic microwave background(CMB) is emitted; many careful measurements of the CMB provide key information about the initial state of the universe before structure formation. The measurements support a model of small fluctuations in density, critical seeds for structures to come.

In this stage, some mechanism, such as cosmic inflation, was responsible for establishing the initial conditions of the universe: homogeneity, isotropy, and flatness. Cosmic inflation also would have amplified minute quantum fluctuations (pre-inflation) into slight density ripples of overdensity and underdensity (post-inflation).

The early universe was dominated by radiation; in this case density fluctuations larger than the cosmic horizon grow proportional to the scale factor, as the gravitational potential fluctuations remain constant. Structures smaller than the horizon remained essentially frozen due to radiation domination impeding growth. As the universe expanded, the density of radiation drops faster than matter (due to redshifting of photon energy); this led to a crossover called matter-radiation equality at ~ 50,000 years after the Big Bang. After this all dark matter ripples could grow freely, forming seeds into which the baryons could later fall. The particle horizon at this epoch induces a turnover in the matter power spectrum which can be measured in large redshift surveys.

The universe was dominated by radiation for most of this stage, and due to the intense heat and radiation, the primordial hydrogen and helium were fully ionized into nuclei and free electrons. In this hot and dense situation, the radiation (photons) could not travel far before Thomson scattering off an electron. The universe was very hot and dense, but expanding rapidly and therefore cooling. Finally, at a little less than 400,000 years after the 'bang', it became cool enough (around 3000 K) for the protons to capture negatively charged electrons, forming neutral hydrogen atoms. (Helium atoms formed somewhat earlier due to their larger binding energy). Once nearly all the charged particles were bound in neutral atoms, the photons no longer interacted with them and were free to propagate for the next 13.8 billion years; we currently detect those photons redshifted by a factor 1090 down to 2.725 K as the Cosmic Microwave Background Radiation (CMB) filling today's universe. Several remarkable space-based missions (COBE, WMAP, Planck), have detected very slight variations in the density and temperature of the CMB. These variations were subtle, and the CMB appears very nearly uniformly the same in every direction. However, the slight temperature variations of order a few parts in 100,000 are of enormous importance, for they trace variations in the density that were the early "seeds" from which all subsequent complex structures in the universe ultimately developed.

After the first matter condensed, the radiation traveled away, leaving a slightly inhomogeneous dark matter subject to gravitational interaction. The interaction eventually collapses the dark matter into "halos" that then attracts the normal or baryonic matter, primarily hydrogen. As the density of hydrogen increases due gravitational attraction, stars ignite, emitting ultraviolet light that re-ionizes any surrounding atoms. The gravitational interaction continues in hierarchical structure formation: the smaller gravitationally bound structures such as the first stars and stellar clusters form, then galaxies, followed by groups, clusters and superclusters of galaxies.

Dark matter plays a crucial role in structure formation because it feels only the force of gravity: the gravitational Jeans instability which allows compact structures to form is not opposed by any force, such as radiation pressure. As a result, dark matter begins to collapse into a complex network of dark matter halos well before ordinary matter, which is impeded by pressure forces. Without dark matter, the epoch of galaxy formation would occur substantially later in the universe than is observed.