Market Overview
The Global Digital Circular Economy Market is expected to reach a value of
USD 2.3 billion in 2023, and it is further anticipated to reach a market value of
USD 17.1 billion by 2032 at a
CAGR of 25.2%.
The circular economy for digital devices consists of various interconnected processes, forming loops within the device's life cycle, which focuses on preserving devices as valuable resources for as long as possible. While the value may decrease over time, regenerative processes like refurbishment & recycling restore or repurpose them. These practices ensure sustainability, whether by meeting new user needs or recovering valuable materials and minimizing environmental impact.
Key Takeaways
- By Technology, IoT in 2023 & is anticipated to dominate throughout the forecasted period.
- In addition, AI & ML are expected to have significant growth over the forecasted period.
- By Offering, Software takes the lead & drives the market in 2023.
- Further, By Application, Supply Chain & Material Tracking segment accounts for a major revenue share in 2023
- Europe has a 35.7% share of revenue in the Global Digital Circular Economy Market in 2023
Market Dynamic
The growth of the Global Digital Circular Economy Market is driven by the increasing awareness & concern for environmental sustainability, compelling businesses to adopt circular economy principles, as technology development, mainly in IoT, AI, and
blockchain, equip companies with important tools for efficient resource management & waste reduction.
Further, government regulations & incentives serve as an extra catalyst, pushing companies to integrate circular practices into their operations, as the growing demand for eco-friendly products & consumers' preference for sustainable brands contributes significantly to the market's expansion. Also, collaboration among industries & the development of business models focused on the circular economy play pivotal roles in fueling the growth of the digital circular economy market.
However, the market also encounters challenges, as initial investments for adopting digital technologies & circular economy principles build financial hurdles for some businesses. Further, standardization issues & the lack of universally accepted metrics for circularity restrain the measurement & comparison of circular initiatives.
Research Scope and Analysis
By Offering
Software solutions are essential in the Global Digital Circular Economy Market as they lead the market in 2023, providing the technological backbone for sustainable practices. Circular economy software provides tools for product lifecycle management, supply chain optimization, and waste reduction, which allows businesses to track, analyze, and manage resources effectively, supporting a more sustainable approach. From resource planning to eco-design, these applications help organizations incorporate circular economy principles into their operations, driving innovation & environmental responsibility.
Further, the services segment is also anticipated to have significant growth in the market in the coming years, complementing software by offering expertise and support in implementing sustainable practices. Consultancy services guide businesses in adopting circular economy strategies, allowing alignment with environmental goals. In addition, service providers offer assistance in areas like supply chain optimization, waste reduction, & eco-friendly product design, which play a crucial role in helping companies navigate the complexities of transitioning to a circular economy, promoting responsible & sustainable business practices.
By Technology
The Internet of Things (IoT) as technology leads the market in 2023, as it plays a transformative role in the Global Digital Circular Economy Market. IoT technologies include the tracking & monitoring of products & materials throughout their lifecycle, allowing efficient resource management. Smart sensors immersed in products collect data on usage, condition, and environmental impact, supporting transparency and traceability, which optimizes processes, minimizes waste, & enhances the circularity of products. Further, from intelligent supply chain management to live product monitoring, IoT applications contribute highly to creating a more sustainable & resource-efficient circular economy.
Moreover, Artificial Intelligence (AI) &
Machine Learning (ML) are integral in driving the market over the forecasted period, as these technologies analyze large datasets, providing insights that guide decision-making for sustainable practices. AI & ML algorithms optimize resource usage, predict product lifespan, & enhance recycling processes, which allow predictive maintenance, reducing waste & contributing to the circular economy's efficiency and creating a more resilient and eco-friendly global economy.
By Application
In the Global Digital Circular Economy Market, the supply chain & material tracking solutions as an application lead the market in 2023, as they are fundamental components of reshaping sustainable practices. Advanced technologies facilitate transparent & traceable supply chains, allowing the efficient management of resources throughout their lifecycle. Digital tools, like blockchain & IoT sensors, allow live monitoring of materials, products, & their environmental impact, which enhances visibility, enabling businesses to make informed decisions that align with circular economy principles. Supply chain digitization optimizes processes, reducing waste & improving resource efficiency.
Also, Material tracking systems support data analytics to monitor & manage the flow of materials, allowing better recycling practices and reducing the environmental footprint. By incorporating these digital solutions, companies can not only meet the need for a circular economy but also support transparency, accountability, and sustainability across their entire supply chain.
By End User
The consumer electronic sector is a key driver in the Global Digital Circular Economy Market, driving transformation towards sustainable practices, as fast technological developments lead to shorter product lifecycles, the sector experiences challenges related to electronic waste. To address this, businesses in consumer electronics are highly adopting digital circular economy strategies, which include product design for recyclability, implementation of reverse logistics for effective product recovery, & the integration of digital technologies like IoT for tracking & recycling electronic components.
By holding these circular economy principles, the consumer electronics industry not only contributes to waste reduction but also promotes responsible consumption, resource efficiency, and the creation of a more sustainable & environmentally conscious market.
The Digital Circular Economy Market Report is segmented on the basis of the following:
By Offering
By Technology
- Blockchain & Distributed Ledger Technology
- IoT
- AI & ML
- AR & VR
- VR-Based Training
- Cloud Computing
- Others
By Application
- Supply Chain & Material Tracking
- Resource Optimization & Efficiency
- Digital Resale & Reuse
- Reverse Logistics & Remanufacturing
- Circular Economy Reporting & Compliance
- Circular Waste Management & Recycling
- Smart Material Selection & Testing
- Others
By End User
- Consumer Electronics
- IT & Telecom
- Automotive
- Manufacturing
- Construction And Building
- Others
Regional Analysis
Europe leads the global digital circular economy market with a share of 35.7% in 2023, as the region prioritizes environmental consciousness, encouraging businesses to adopt circular economy principles. Further, EU initiatives promote resource efficiency, waste reduction, & eco-friendly practices. Also, governments and industries collaborate to create a conducive ecosystem for circular economy technologies, influencing global trends. As a leader in sustainable development, Europe highly contributes to shaping the trajectory of the digital circular economy, setting standards for responsible and eco-conscious business practices worldwide.
Moreover, the Asia Pacific is also experiencing significant growth, as the region is experiencing a rapid expansion of innovative technologies, as countries like China, Japan, and India, are actively installing digital solutions to tackle environmental challenges. China, in particular, is committed to sustainability, employing digital technologies for resource monitoring. Japan, known for its tech prowess, adopts circular economy principles in smart manufacturing, while India uses digital tools to enhance waste-to-energy processes & recycling initiatives.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The competitive landscape of the Global Digital Circular Economy Market is dynamic, marked by the presence of various players competing to establish themselves, as the major factors influencing competition include technological innovation, sustainability focus, & the ability to provide comprehensive solutions. Further, companies engage in strategic collaborations, product enhancements, & market expansion to gain a competitive edge, as the evolving market demands a balance between technological expertise, sustainability initiatives, & effective market positioning for sustained success in the digital circular economy landscape.
In September 2023, Capgemini acquired HDL Design House, a prominent provider of silicon design & verification services, which enhances Capgemini's capability to deliver advanced solutions that integrate seamlessly with the principles of the circular economy.
Some of the prominent players in the global Digital Circular Economy Market are:
- SAP
- Capgemini
- IBM
- Oracle
- KPMG
- PwC
- Siemens
- Cisco Systems
- Lanbell Group
- Anthesis Group
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Digital Circular Economy Market
The COVID-19 pandemic & the associated economic recession left a discernible impact on the Global Digital Circular Economy Market, as the uncertainties and financial constraints resulting from the pandemic led to a temporary slowdown in the adoption of digital circular economy practices, with some businesses giving importance to immediate survival. However, as the world adapts to the new normal, there is a higher recognition of the resilience & sustainability benefits offered by the digital circular economy.
Further, the crisis has also accelerated digital transformation trends, causing companies to explore innovative & sustainable solutions. However, the initial challenges, of the pandemic have highlighted the importance of building a resilient & environmentally conscious economy, thereby contributing to the long-term growth and development of the digital circular economy market.
Recent Developments
- In April 2023, Cisco and Leonardo unveiled a strategic Memorandum of Understanding (MoU) to enhance collaboration, by creating solutions in sustainable technology, mainly in areas like the green transition & sustainable solutions for logistics and transportation markets, which aims to support innovation & address challenges in these environmentally friendly sectors.
- In October 2023, Honeywell & GranBio Technologies announced a partnership to produce carbon-neutral sustainable aviation fuel (SAF) at a demonstration plant in the US, using biomass residues, as integrating Honeywell's expertise in renewable energy, the partnership focuses on establishing a significant presence as a circular economy vendor in the aerospace and aviation sector, contributing to sustainable practices in the industry.
- In October 2023, SAP enhanced its SAP Responsible Design & Production Suite, introducing a new version, which features improved EPR reporting capabilities, mainly designed to assist enhanced reporting & integration with multiple ERPs using non-harmonized identifiers, which strengthen SAP's digital circular economy capabilities, emphasizing its commitment to facilitating responsible design & production practices across different business processes.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 2.3 Bn |
| Forecast Value (2032) |
USD 17.1 Bn |
| CAGR (2023-2032) |
25.2% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Offering (Software and Services), By Technology
(Blockchain & Distributed Ledger Technology, IoT, AI
& ML, AR & VR, VR-Based Training, Cloud Computing,
and Others), By Application (Supply Chain & Material
Tracking, Resource Optimization & Efficiency, Digital
Resale & Reuse, Reverse Logistics &
Remanufacturing, Circular Economy Reporting &
Compliance, Circular Waste Management &
Recycling, Smart Material Selection & Testing, and
Others), By End User (Consumer Electronics, IT &
Telecom, Automotive, Manufacturing, Construction
And Building, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
SAP, Capgemini, IBM, Oracle, KPMG, PwC, Siemens,
Cisco Systems, Lanbell Group, Anthesis Group, and
Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Digital Circular Economy Market size is estimated to have a value of USD 2.3 billion in 2023
and is expected to reach USD 17.1 billion by the end of 2032.
Europe has the largest market share for the Global Digital Circular Economy Market with a share of
about 35.7% in 2023.
Some of the major key players in the Global Digital Circular Economy Market are SAP, Capgemini, IBM,
and many others.
The market is growing at a CAGR of 25.2 percent over the forecasted period.