Digital Product Passport Market - Global Forecast to 2030
The digital product passport market is currently witnessing remarkable growth, with projections indicating a substantial increase in market size. Estimates suggest a notable expansion from its value of USD XX.X billion in 2024 to USD XX.X billion by 2030, reflecting a robust CAGR of XX.X% over the forecast period. The demand for digital product passports (DPPs) is propelled by its indispensable role in gathering and disseminating comprehensive product information throughout its lifecycle. The digital product passports contain key attributes centered on sustainability, environmental impact, and recyclability, which act as a driving force. By capturing data across various stages of the supply chain, from raw material sourcing to manufacturing processes, digital product passports encourage collaboration and unveil unforeseen benefits for stakeholders. This positions them as a crucial factor in fostering the adoption of a sustainable consumption model.
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Market Dynamics
Driver: Growing potential to offer supply chain transparency boosts the demand for market
The potential to provide supply chain transparency and a growing focus on a circular economy fuels the widespread adoption of digital product passports. These passports play a crucial role in fostering a circular economy by endowing consumers with information regarding sustainability, environmental impact, and recyclability. It facilitates decision-making throughout product life cycles, ensuring alignment with circular economy principles. Furthermore, digital product passports promote sustainable production and consumption practices, delivering vital product-related information and creating new business opportunities for economic actors.
Restraint: Various international data privacy and security regulations hinder the growth of the market
Regulatory complexities and interoperability challenges hinder the growth of digital product passports (DPP). Varied international data privacy and security regulations create compliance obstacles, limiting seamless adoption. Additionally, the need for standardized protocols and interoperability between different systems poses hurdles for universal implementation, preventing the widespread integration of digital product passports across industries. Overcoming these regulatory and interoperability challenges is crucial to unlocking the full potential of digital product passports, ensuring a harmonized and secure environment for the digital representation and tracking of physical products throughout their lifecycles.
Opportunity: Transformative impact of digital technologies to enhance transparency and sustainability
Integrating digital technologies such as blockchain and digital twins propels the adoption of digital product passports (DPPs), signifying a paradigm shift in transparency and sustainability practices across industries. Digital product passports meticulously craft a digital replica of physical products, systematically documenting their entire lifecycle, including events, transactions, and sustainability metrics. This amalgamation ensures an immutable record fortified by blockchain's robust security and data integrity features. Beyond documentation, digital product passports are poised to become instrumental in advancing circular economy initiatives, mitigating the need for new resource extraction. Positioned as a tool for consumer empowerment, digital product passports facilitate informed decision-making by providing verifiable insights into product claims.
Challenge: Integrating digital product passports into existing system for enhanced supply chain efficiency
Integrating digital product passports (DPPs) with existing business systems poses a significant challenge for businesses. This entails addressing complexities related to data asymmetry, standardization gaps, and the imperative for collaborative models. Overcoming obstacles such as knowledge gaps, information silos, and ensuring data privacy, security, and compliance are critical aspects requiring strategic solutions. Successful integration mandates the establishment of standardized frameworks, the promotion of collaborative business models, and the implementation of robust data security measures. Tackling these challenges demands industry-wide coordination, encompassing the development of common frameworks and incentive structures for efficient data sharing. This effort is pivotal for the widespread adoption of digital product passports, marking a transformative era in supply chain transparency and consumer empowerment.
Digital Product Passports Market Ecosystem
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By offering, digital product passport software segment to account for a significant market size during the forecast period.
The digital product passport software segment is poised to dominate the market. Digital product passport software has become significant in supply chain management, responding to the need for transparency and compliance with evolving regulations. Companies such as PSQR, iPoint-Systems, LyondellBasell, and Spherity have spearheaded the development of sophisticated software that facilitates the creation and management of digital product passports. These passports serve as a comprehensive, trusted source for compliance data, offering insights into product sustainability, environmental impact, and social responsibility. Leveraging cutting-edge blockchain technology, these software enable end-to-end traceability, ensuring the entire product lifecycle is recorded and accessible. The integration of such software supports companies in adhering to regulatory requirements, fostering transparency, and advancing sustainable practices, ultimately contributing to the paradigm shift towards a circular economy and responsible product management.
By application, supply chain management to account for a significant market size during the forecast period.
Digital product passports revolutionize supply chain management by offering unprecedented transparency and traceability. These passports automate compliance with regulatory standards, ensuring adherence to environmental, safety, and ethical norms. The digital product passport (DPP) meticulously documents a product's lifecycle, encompassing raw materials, manufacturing processes, and final goods. Companies leveraging digital product passport software enable end-to-end traceability, facilitating circular economy initiatives and sustainable practices. This application empowers businesses to efficiently manage and communicate critical aspects of product information, fostering a transparent, accountable, and resilient global supply chain ecosystem.
By region, Asia Pacific is set to experience rapid growth rate during the forecast period.
The Asia Pacific region is experiencing a surge in the adoption of digital product passports, driven by a strategic focus on transparency, traceability, and enhanced consumer engagement. Leveraging advanced technologies such as blockchain and QR codes, these passports provide a comprehensive digital record detailing a product's entire lifecycle, including origin, manufacturing specifics, and environmental footprint. Governments and enterprises across Asia recognize the potential for heightened consumer confidence, mitigated counterfeiting risks, and streamlined supply chain operations. With an increasing awareness of sustainability and the desire for informed purchasing decisions, the region embraces digital product passports as a transformative tool for fostering responsible consumption and enhancing the overall product experience.
Key Market Players
The digital product passport software and service providers have implemented various 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 of the players in the digital product passport market include Ipoint Systems (Germany), DNV (Norway), PSQR (Denmark), Qliktag (US), Billion Group (UK), Narravero (Germany), Optel Group (Canada), Lyondellbasell (US), Protokol (Netherlands), Circularise (Netherlands), Cirpass (France), The Id Factory (Italy) .
Recent Developments:
- In January 2024, Circularise, a blockchain platform, completed a trial with the Japan Circular Economy Partnership (J-CEP), AMITA Corporation, and Marubeni Corporation, creating digital product passports (DPPs) to track and verify the lifecycle of plastic bottle caps, contributing to the fight against plastic pollution. The initiative has the potential to transform the recycling industry and drive a shift towards a circular economy.
- In October 2022, iPoint Systems GmbH joined the CIRPASS consortium, funded by the European Commission, to contribute to developing European Digital Product Passports. The initiative aims to create a unified approach, define a strategy, and establish governance for cross-sector Digital Product Passports.
- In October 2022, Circularise and LyondellBasell and partners Neste, QCP, Uponor, and Samsonite are collaborating on a digital product passport (DPP) prototype. Using Circularise's traceability software, the digital product passport creates a unique digital record detailing a product's environmental impact and changes in its lifecycle, supporting circular economy processes.
- In January 2022, iPoint Systems GmbH and BASF partnered to establish a standardized approach for calculating product carbon footprints (PCFs) in the chemical industry. Aligned with the European Green Deal and Circular Economy Action Plan, this partnership facilitates transparent product carbon footprint reporting, supporting industry-wide sustainability goals through Digital Product Passports (DPPs).
- In February 2021, iTrazo and PSQR partnered to offer a global digital traceability solution for industries. Integrating PSQR’s track and trace repository, iTrazo adapts its platform to meet diverse traceability requirements, addressing the growing demand for transparency and accountability in supply chains, particularly in the food sector.
Frequently Asked Questions (FAQ):
What is digital product passport?
Digital Product Passports (DPP) are designed to collect comprehensive data about a product and its supply chain, fostering transparency across entire value chains. Proposed by the European Commission, DPPs aim to share information, including raw material extraction, production, and recycling, enabling a better understanding of materials, products, and their environmental impact. The ultimate goal is to enhance transparency and unlock circularity in product lifecycles.
What is the total CAGR expected to be recorded for the digital product passport market during 2024-2030?
The digital product passport market is expected to record a CAGR of XX.X% from 2024-2030.
Which are the major growth enablers catalyzing the digital product passport market?
The digital product passport market is experiencing growth due to regulatory adherence, consumer insistence on transparency, supply chain optimization, circular economy alignment, technological advancements, and government support. These enablers drive the market to develop new solutions and strategies to address the needs of businesses and consumers.
Which are the top three digital product passport applications prevailing in the market?
Supply chain management, circular economy, and regulatory compliance and reporting are among the top digital product passport applications in terms of adoption.
Who are the key vendors in the Digital product passport market?
Some major players in the Digital product passport market include Ipoint Systems (Germany), DNV (Norway), PSQR (Denmark), Qliktag (US), Billion Group (UK), Narravero (Germany), Optel Group (Canada), Lyondellbasell (US), Protokol (Netherlands), Circularise (Netherlands), Cirpass (France), The Id Factory (Italy). .
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Growth opportunities and latent adjacency in Digital Product Passport Market