Digital Circular Economy Market

[464 Pages Report] The digital circular economy market is experiencing exponential growth, with projections indicating a substantial expansion in market size from USD 2.2 billion in 2023 to USD 6.7 billion by 2028. This significant growth is expected to occur at a CAGR of 24.3% over the forecast period (2023–2028). The market shift is driven by a confluence of factors, such as technological advancements, particularly in the areas of IoT, blockchain, and data analytics, which play a pivotal role in optimizing resource usage and promoting sustainability. Rising environmental consciousness among consumers and stringent regulatory frameworks further propel the market's expansion, as businesses seek sustainable solutions to meet evolving demands. The shift towards digital platforms for product lifecycle management and the increasing collaboration between businesses to create closed-loop systems are also driving forces, fostering a dynamic landscape where economic growth aligns seamlessly with environmental stewardship.

Technology Roadmap of Digital Circular Economy Market

The digital circular economy market report covers the technology roadmap, with insights into the short-term and long-term developments.

• Short-term (1–5 years):
  • Circular Economy Software Adoption: Adopting specialized software for resource management, including resource tracking, product lifecycle analysis, and waste stream optimization.
  • IoT Integration: Incorporating IoT devices and sensors for real-time resource monitoring and data collection.
  • AI and Machine Learning for Resource Optimization: Utilizing AI and machine learning for predictive analytics, demand forecasting, and resource efficiency improvement.
  • Blockchain for Transparency: Implementing blockchain technology to enhance transparency and traceability in supply chains and circular material flows.
  • Circular Material Tracking: Using technology to track the lifecycle of materials, including recyclability and remanufacturing potential.
  • Sustainable Packaging Design Software: Adopting software for designing environmentally friendly packaging and reducing single-use plastics.
• Long-term (5+ years):
  • Circular Design Tools: Integrating circular design software for the creation of products and systems with circular economy principles.
  • Autonomous Circular Systems: Developing autonomous systems and robotics for resource recovery, recycling, and remanufacturing with minimal human intervention.
  • Circular Economy Certification: Establishing global standards and certifications for circular economy practices to ensure compliance and consumer trust.
  • Sustainable Product Lifecycle Management: Implementing software for managing product lifecycles with a focus on sustainability and end-of-life considerations.
  • Renewable Energy Integration: Advancing renewable energy integration into operations and supply chains to reduce environmental impact.
  • Carbon Capture and Utilization Technologies: Employing technologies to capture and utilize carbon emissions, contributing to circularity and sustainability.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

Market Dynamics

Driver: Surge in E-waste awareness is fueling the digital circular economy market growth

The surge in e-waste awareness is propelling significant growth in the digital circular economy market. As individuals and businesses become increasingly conscious of the environmental impact of electronic waste, there is a growing shift towards sustainable practices. This heightened awareness not only fosters responsible disposal of electronic devices but also drives the demand for innovative solutions within the digital circular economy. Companies that embrace eco-friendly practices and contribute to the recycling and refurbishing of electronic products are positioned to thrive in this evolving market, creating a win-win scenario for both the environment and the economy.

Restraint: Legacy linear thinking is hindering the growth of digital circular economy evolution

The evolution of circular business models is encountering a roadblock in the form of legacy linear thinking. As industries grapple with the imperative to embrace sustainability, traditional linear approaches are proving to be hindrances. The inertia of ingrained practices often resists the paradigm shift towards circularity, impeding the adoption of eco-friendly and resource-efficient business models. Overcoming this hurdle requires a fundamental mindset shift, acknowledging that the linear take-make-dispose model is no longer tenable. Businesses that break free from legacy thinking and embrace circularity not only contribute to a more sustainable future but also position themselves as leaders in a rapidly evolving economic landscape.

Opportunity: The flourishing market for refurbished electronics presents a compelling business opportunity

In the ever-evolving landscape of consumer electronics, the flourishing market for refurbished devices presents a compelling business opportunity. As sustainability gains prominence in consumer choices, the demand for high-quality, pre-owned electronics is on the rise. The refurbished electronics market not only offers budget-friendly alternatives to consumers but also contributes significantly to reducing electronic waste. Entrepreneurs entering this space have the chance to tap into a growing circular economy market, providing eco-conscious consumers with reliable and affordable electronic options. Embracing the trend of refurbished electronics aligns not only with economic considerations but also with the broader ethos of environmental responsibility, making it a win-win scenario for both businesses and conscientious consumers alike.

Challenge: Navigating volatile consumer preferences in a rapidly shifting market

A significant challenge impeding the growth of the digital circular economy market revolves around the intricacies of consumer behavior and awareness. Despite the increasing global emphasis on sustainability, a substantial portion of consumers remains uninformed or hesitant about adopting circular practices. The lack of awareness regarding the benefits of circular economy models, including the potential cost savings and environmental advantages, poses a considerable hurdle. Additionally, there exists a perception challenge, with some consumers associating refurbished or recycled products with lower quality. Overcoming these barriers requires a multifaceted approach, involving targeted educational campaigns, transparent communication about product quality, and collaborative efforts from industry stakeholders to establish and promote the credibility of circular practices. Addressing these challenges is paramount for fostering widespread acceptance of circular economy principles and unlocking the full potential of the digital circular economy market.

Digital Circular Economy Market Ecosystem

By offering, Product Lifecycle Management (PLM) software segment to account for a larger market size during forecast period

PLM software plays a pivotal role in the digital circular economy market by optimizing and streamlining the various stages of a product's life cycle. PLM software facilitates the seamless integration of circular economy principles into product development, production, and end-of-life processes. It allows businesses to track and manage product information, collaborate across different departments, and make informed decisions throughout the entire product life cycle. This is particularly crucial in the digital circular economy, where the emphasis is on designing products that are durable, easily repairable, and recyclable. Another key aspect of PLM in the digital circular economy is the ability to manage and optimize the use of materials. PLM systems enable companies to make informed decisions about the selection and sourcing of materials, ensuring that they align with circular economy goals such as recyclability and reduced environmental impact.

By technology, IoT segment to hold the largest market share during the forecast period

In the digital circular economy, IoT facilitates the creation of "smart" and interconnected products that contribute to circular principles. Smart sensors embedded in products enable continuous monitoring of usage patterns, performance metrics, and maintenance needs. This data-driven approach allows for predictive maintenance, reducing the likelihood of unexpected failures and extending the lifespan of products. Furthermore, IoT enables the concept of product-as-a-service (PaaS) models within the circular economy. Instead of traditional ownership, businesses can provide services based on the actual usage of products. This shift encourages longevity, repairability, and upgradability, aligning with circular economy principles by promoting the idea of access over ownership.

In waste management, IoT technologies enhance recycling processes by enabling smart sorting and tracking of materials. This not only improves the efficiency of recycling operations but also enhances the quality of recycled materials, contributing to a closed-loop system.

By application, digital resale & reuse segment to register the fastest growth rate during the forecast period

Digital resale platforms have gained immense popularity, offering consumers the opportunity to extend the life cycle of their possessions by selling or exchanging them. These platforms provide a convenient and accessible way for individuals to find new homes for their used items, reducing the overall demand for new products and minimizing the environmental impact associated with manufacturing. Key features of digital resale and reuse platforms include user-friendly interfaces, secure payment systems, and mechanisms for verifying the condition of pre-owned items. These platforms often leverage advanced algorithms to match buyers and sellers efficiently, enhancing the overall user experience and promoting widespread adoption.

Moreover, the concept of digital reuse goes beyond traditional resale. It includes platforms and applications that enable consumers to rent or lease products for temporary use, emphasizing access over ownership. This shift towards a "sharing economy" model promotes the efficient utilization of resources, as multiple users can benefit from the same product throughout its life cycle.

By region, Europe to hold the largest market size during the forecast period

Europe has emerged as the leading region in the digital circular economy market due to a combination of proactive regulatory initiatives, a strong commitment to sustainability, and a robust technological infrastructure. The European Union (EU) has been at the forefront of implementing policies that promote circular economy principles, encouraging the efficient use of resources and the reduction of environmental impact. One of the key drivers of Europe's leadership in the digital circular economy is the Circular Economy Action Plan, introduced by the European Commission. This ambitious strategy sets clear targets for waste reduction, recycling, and resource efficiency, creating a conducive environment for businesses to embrace circular practices. The regulatory framework encourages innovation and the adoption of digital technologies to optimize resource use and minimize waste.

Furthermore, European consumers exhibit a heightened awareness and commitment to sustainable living, driving demand for products and services aligned with circular economy principles. This demand has spurred the growth of digital platforms facilitating product resale, sharing, and reuse, contributing to the region's leadership in the digital circular economy market.

Europe's well-established technological infrastructure also plays a crucial role. The region boasts advanced digital capabilities, facilitating the integration of technologies such as the Internet of Things (IoT), artificial intelligence, and blockchain into circular economy practices. These technologies enhance transparency in supply chains, enable efficient recycling processes, and support the development of smart, connected products that align with circular principles.

Key Market Players

The digital circular economy solution and service providers have implemented various types of organic and inorganic growth strategies, such as new product launches, product upgrades, partnerships, and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. Some major players in the digital circular economy market include SAP (Germany), Oracle (US), Landbell Group (Germany), Anthesis Group (UK), and IBM (US) along with other key players such as iPoint Systems (Germany), Rheaply (US), One Click LCA (Finland), and Lenzing (Austria).

Want to explore hidden markets that can drive new revenue in Digital Circular Economy Market?

Unlock Insights

Scope of the Report

This research report categorizes the digital circular economy market based on offering, technology, application, vertical, and region

By Offering:

• Software
  • Supply Chain Management (SCM) Software
    • Sustainable Sourcing Software
    • IoT & Sensor Integration Software
    • Compliance & Reporting Software
  • Product Lifecycle Management (PLM) Software
    • Eco-Design & Prototyping Software
    • Circular Manufacturing Software
    • Sustainable Material Selection Software
  • Blockchain And Traceability Software
    • Product Traceability Software
    • Sustainability Certification Software
    • Supply Chain Transparency Software
  • Circular Design And Prototyping Software
    • Circular Design & Lifecycle Assessment Software
    • Digital Prototyping & Simulation Software
    • Sustainable Material Modeling Software
  • 3D Printing Software
    • 3D Printing Process Optimization Software
    • Customized Product Design Software
  • Sharing & Machining Software
    • Resource Sharing Software
    • Digital Marketplaces
    • Product Life Extension Software
    • Recovery & Recycling Software
  • Other Software
• Services
  • Circular Economy Strategy Consulting Services
  • Sustainability & Environmental Consulting Services
  • Supply Chain Optimization Services
  • Product-as-a-Service
  • Recycling & Regulatory Compliance Services
  • Other Services

By Technology:

• Blockchain And Distributed Ledger Technology (DLT)
  • Blockchain-Based Supply Chain
    • Supply Chain Transparency
    • Provenance Tracking
    • Smart Contracts For Resource Transactions
  • Dlt-Enabled Asset Tokenization
    • Tokenized Asset Management
    • Digital Tokens For Circular Economy Products
    • Token Exchange Platforms
• IoT
  • IoT-Enabled Product Monitoring
    • Remote Product Health Monitoring
    • Condition-Based Maintenance
    • Product Usage Analytics
  • Smart Recycling Bins & Waste Management
    • Smart Waste Collection Scheduling
    • Recycling Sorting Automation
    • Iot-Enhanced Recycling Centers
• AI & ML
  • Predictive Maintenance And Quality Control
    • Predictive Equipment Maintenance
    • Quality Assurance Algorithms
    • Anomaly Detection
  • Demand Forecasting
    • Predictive Demand Models
    • Inventory Optimization
    • Production Planning
• AR & VR
  • AR For Design And Prototyping
  • Augmented Product Design
  • Virtual Prototyping
  • Interactive Design Collaboration
• VR-Based Training
  • Virtual Employee Training
  • Safety Training Simulations
  • Remote Expert Assistance
• Cloud Computing
  • Cloud-Based Resource Planning
  • Cloud-Based Circular Supply Chain Platforms
• Big Data Analytics
  • Resource Utilization Analytics
  • Circular Economy Performance Metrics
  • Circular Economy Data Platforms
  • Data Integration And Management
  • Advanced Circular Analytics
• Other Technologies

By Application:

• Supply Chain And Materials Tracking
  • Product Lifecycle Traceability
  • Circular Supply Chain Optimization
  • Eco-Friendly Transportation Management
• Resource Optimization And Efficiency
  • Resource Allocation And Utilization
  • Energy And Water Management
  • Waste Reduction And Recycling Efficiency
• Digital Resale And Reuse
  • Online Resale Marketplaces
  • Product Exchange Networks
  • Circular Product Certification
• Reverse Logistics And Remanufacturing
  • Collection And Sorting Services
  • Remanufacturing And Refurbishment
  • Waste-To-Resource Conversion
• Circular Economy Reporting And Compliance
  • Circular Economy Performance Reporting
  • Sustainability Certifications Management
  • Regulatory Compliance
• Circular Waste Management And Recycling
  • Waste Sorting And Recycling Apps
  • Circular Waste-To-Energy Solutions
  • Advanced Recycling Technologies
• Smart Material Selection & Testing
  • Material Analytics & Selection
  • Material Performance Testing
  • Circular Materials R&D
• Other Applications

By Vertical:

• Consumer Electronics
  • Circular Electronics Design
  • Electronics Reuse And Refurbishment
  • E-Waste Recycling And Recovery
  • Others
• IT & Telecom
  • Circular IT Equipment Management
  • Data Center Efficiency
  • Telecom Network Sustainability
  • Others
• Automotive
  • Circular Auto Manufacturing
  • Remanufacturing And Auto Parts Reuse
  • End-Of-Life Vehicle Recycling
  • Others
• Manufacturing
  • Circular Manufacturing Processes
  • Material And Resource Efficiency
  • Sustainable Supply Chain Management
  • Others
• Construction And Building
  • Sustainable Building Design
  • Construction Materials Recycling
  • Building Demolition And Deconstruction
  • Others
• Healthcare And Medical Devices
  • Medical Device Life Extension
  • Hospital Waste Management
  • Circular Healthcare Equipment
  • Others
• Energy & Utilities
  • Renewable Energy Integration
  • Efficient Utility Operations
  • Grid Management And Sustainability
  • Others
• Chemicals And Materials
  • Circular Materials R&D
  • Chemical Recycling
  • Material Reuse And Upcycling
  • Others
• Fashion & Apparel
  • Sustainable Fashion Design
  • Clothing Rental And Resale
  • Textile Recycling And Upcycling
  • Others
• Other Verticals

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Singapore
  • Australia & New Zealand (ANZ)
  • Rest of Asia Pacific
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Turkey
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America

Recent Developments:

• In October 2023, SAP upgraded its SAP Responsible Design and Production Suite. The latest version of SAP Responsible Design and Production includes updated EPR reporting capability to support the enhanced reporting and integration with multiple ERP with non-harmonized identifiers, augmenting its digital circular economy capabilities.
• In October 2023, Honeywell and GranBio Technologies partnered together to co-produce carbon-neutral sustainable aviation fuel (SAF) from biomass residues at a US-based demonstration plant. Honeywell aims to leverage its renewable energy expertise in generating SAF for strengthening its position as a major circular economy vendor across aerospace and aviation sector.
• In September 2023, Capgemini acquired HDL Design House, a leading silicon design and verification services provider. The synergy between silicon services and digital circular economy is profound, as advanced silicon design plays a pivotal role in optimizing resource usage and fostering sustainability. This acquisition equips Capgemini to offer innovative solutions that align seamlessly with circular economy practices, reinforcing its commitment to driving sustainable digital transformations in the evolving business landscape.
• In June 2023, SAP and Versuni announced a global partnership focused on sustainability and circular economy. With the SAP Sustainability Control Tower software, a digital tool for ESG management based on real-time data, Versuni will be able to promote holistic management by setting goals, monitoring progress, and gaining insights from data, generating robust and auditable ESG reports, as well as improvement actions.
• In April 2023, Cisco and Leonardo entered into a strategic MoU, aimed at boosting cooperation between Cisco and Leonardo in various areas. Both entities will be co-developing solutions in sustainable technology fields such as the green transition and sustainable solutions for logistics and transportation markets.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst