Digital Circular Economy Market

Industry Overview

The global Digital Circular Economy Market size is estimated at USD 3.59 billion in 2024 and is expected to be valued at USD 4.52 billion by the end of 2025. The industry is projected to grow, reaching USD 14.35 billion by 2030, with a CAGR of 26% between 2025 and 2030. 

The industry includes a dynamic and evolving market that revolves around sustainability approach and combines digital technologies with the principles of circular economy. Companies leverage digital tools such as IoT, blockchain, AI, and big data analytics to drive sustainable operations, improve supply chain transparency, and foster collaborative ecosystems. This approach emphasizes on extending product lifecycles, promoting recycling, and resource-sharing while minimizing environmental impact and operational costs. 

This digital economy spans across industries such as manufacturing, automotive and transportation to offer transformative solutions that enhance sustainability, reduce waste, and optimize resources. Furthermore, it reduces the waste generation by prompting the reuse of industrial products and materials that contribute to a more efficient and sustainable waste management system.

Rising Electronic Waste Generation Propels the Market Growth

The rapid proliferation of digital and AI-powered technologies is fueling a dramatic surge in global electronic waste driving the digital circular economy market growth. According to the Global E Waste Monitor 2024, global e-waste reached 62 million tonnes in 2022 (roughly 7.8 kg per person), but only 22.3% was properly collected and recycled. 

Alarmingly, e-waste volumes are increasing by about 2.6 million tonnes annually, and if current trends persist, the total will escalate to 82 million tonnes by 2030—a more than 30% jump. The rise of AI hardware alone could contribute another 1.2–5 million tonnes by the same year. This tidal wave of e-waste underscores an urgent need for advanced recycling technologies and sustainable policies that can keep pace with the relentless influx of electronic devices. 

The Increasing Integration of IoT Devices Thrives the Market Growth

The increasing integration of Internet of Things (IoT) devices across various industries including manufacturing and construction and building materials enables real-time data collection and monitoring that drives the digital circular economy market demand. 

According to a report by 5G Americas, the number of IoT subscriptions accounted to 3.3 billion globally and is expected to reach 5 billion by 2028. Therefore, the rise in integration of advanced technologies including IoT boost the market as it enables predictive maintenance offering advanced analytics and supports sustainable circular economy practices.

Growing Automotive Sales Globally Promotes the Growth of the Market

The growing automotive sales globally leads to higher vehicle productions, consumption that eventually results in waste generation. This accelerates the adoption of digital circular economy practices in the industry that drives the need for efficient resource management, recycling and innovative business models.  

As per the data published in International Energy Agency (IEA), the global car sale rose to approx. 80 million in 2024. This rise in number subsequently increases the automotive waste generation that boost the demand for digital solutions for efficient recycling and refurbishments of vehicle components.

High Upfront Costs are Hindering the Widespread Adoption of Digital Circular Solutions

Major restraint on the digital circular economy market expansion is the high initial implementation and infrastructure costs required to deploy advanced platforms (IoT, blockchain, AI) and integrate them with existing systems. These upfront investments covering software licenses, hardware upgrades, consulting and compliance can be prohibitive for many small and medium sized enterprises, slowing widespread adoption.

Blockchain Technology is Revolutionizing Supply Chain Transparency and Traceability

The integration of blockchain technology for greater transparency and accountability in supply chain creates ample growth opportunity for the market in future. The integration of blockchain technology into supply chains presents a formidable growth opportunity for the circular economy.  

Blockchain delivers a secure, decentralized ledger that meticulously records every step in the supply chain, from sourcing raw materials to delivering finished products. This immutable record ensures materials are ethically sourced, reused, and recycled, dramatically enhancing transparency and traceability. 

A staggering 83% of companies using blockchain report significant traceability gains, and food producers leveraging platforms like IBM Food Trust can trace product origins in seconds instead of weeks. Beyond traceability, blockchain optimizes logistics and cost efficiency through smart contracts, which automate deliveries, payments, and compliance holdings enabling faster, more secure, and cost-effective product delivery. This technology also enhances products traceability, improves coordination and aids access to financing.  

Market Segmentation and Scope of the Study

The digital circular economy market report is segmented on the basis of offerings, technology, enterprise size, applications, industry vertical and region. On the basis of offerings, the market is divided into software and services. On the basis of technology, the market is segmented into blockchain & distributed ledger technology, internet of things (IoT), artificial intelligence & machine learning (AI/ML), augmented reality/virtual reality (AR/VR), VR-based training, cloud computing, big‑data analytics and emerging & others. On the basis of enterprise size, the market is divided into large enterprises and small & medium enterprises (SMEs).  On the basis of applications, the market is divided into supply chain & material tracking, resource optimization & efficiency, digital resale & reuse, reverse logistics & remanufacturing, & others. On the basis of industry vertical, the market is segmented into consumer electronics, energy & utilities, chemicals & materials, fashion & apparel, smart cities & infrastructure, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Europe currently commands the largest digital circular economy market share, a position it is expected to maintain throughout the forecast period. This dominance is underpinned by a strong policy landscape, marked by significant government investments, public–private partnerships, and robust research funding. 

A key example is the UK Research and Innovation’s National Interdisciplinary Circular Economy Research (NICER) programme, which between 2021 and 2025 has committed USD 30.5 million to establishing a national Circular Economy Hub, five specialised research centres, and collaborative R&D competitions leaving USD 1.75 million in remaining awards associated with its Innovate UK challenge.  

These integrated efforts, supported by councils such as AHRC, BBSRC, ESRC, EPSRC, NERC and Innovate UK alongside Defra, reflect Europe’s strategic emphasis on weaving digital innovation including IoT systems, data analytics, and AI into established circular-economy frameworks. By channelling targeted investment into infrastructure, research networks, and stakeholder collaboration, Europe is reinforcing its leadership in the digital circular economy space and driving sustained market growth.

Moreover, ongoing research advancements by institutions including Imperial college London for the development of digital technologies such as IoT systems, AI-driven analytics, and blockchain solutions are advancing the digital circular economy. For example, in July 2024, Imperial College, London launched I3-Lab lab dedicated to research in the circular economy and develop digital tools that promotes sustainable economic models while reducing waste and environmental impact. 

These innovations facilitate the implementation of more effective circular economy practices such as improved recycling process and better resource efficiency. Consequently, this drives market growth by promoting broader adoption of digital solutions and fosters sustainable economic practices across various industries such as automotives, manufacturing, and others.

On the other hand, Asia Pacific stands out as the fastest growing, driven by a convergence of factors that go well beyond just the surge in automotive production. China alone manufactured a record 31.28 million vehicles in 2024 up 3.7% from the previous year with new energy vehicles (NEVs) comprising over 40% of that total. 

This has propelled automakers to adopt digital lifecycle tracking, IoT, and AI for improved resource recovery and waste reduction. Additionally, governments across the region, including China, Japan, and ASEAN nations are implementing circular economy roadmaps and extended producer responsibility (EPR) policies, further stimulating digital adoption. 

Asia-Pacific’s advanced digital infrastructure, such as widespread 5G, smart city platforms, and AI integration also provides a strong foundation for real-time monitoring and predictive analytics. These combined factors position Asia-Pacific as a leader in the digital circular economy, rapidly scaling sustainable industrial practices through technology-led transformation.

Furthermore, frequent upgrades in electronic devices and accelerating global digitization have led to a steep rise in e waste, reinforcing the need for effective disposal and recycling solutions. According to India’s Ministry of Environment, Forest and Climate Change, e waste generation reached 1,601,155 metric tons in 2021–2022, a surge of 19% over the previous year. Building on this trend, the United Nations’ Global E waste Monitor reports that global e waste hit a record 62 million tons in 2022, and has climbed an estimated 8.3% to approximately 62.5 million tons in 2024, with only around 22–22.5% formally recycled. This imbalance generation growing nearly five times faster than documented recycling underscores the urgency for advanced digital recycling platforms, AI-driven material recovery systems, and stronger regulatory frameworks. 

Additional drivers include shortened product lifecycles, planned obsolescence, limited repair options, and the rise of AI hardware requiring frequent upgrades. Together, these factors are accelerating the adoption of sophisticated e waste management solutions to mitigate environmental harm and reclaim valuable resources.

Strategic Analysis Adopted by Key Players

Between 2024 and 2025, the digital circular economy industry witnessed notable advancements in supply chain and sustainability technologies. Enhanced cloud-based platforms now offer improved planning, logistics, and real-time data integration, enabling greater transparency and efficiency across product lifecycles.

• In 2024, Oracle introduced enhancements to its Cloud SCM and Fusion Cloud Sustainability modules: Cloud SCM brought improved planning, logistics and user-experience tools, while Fusion Cloud Sustainability helped businesses capture and analyse sustainability data at no extra cost. 

• Notably, in 2024 SAP added extended-producer-responsibility (EPR) and plastic-tax compliance features specific to the EU and The Netherlands. Strategic integration with S/4HANA and global regulations enhances its appeal cementing SAP as a leader in sustainable product design and lifecycle compliance. It actively positions itself as enabling regenerative business practices with strong regulatory alignment.

• Furthermore, in May 2024, IBM unveiled its Environmental Intelligence platform at THINK 2024, now in public preview. Additional APIs and tools, including geospatial insights co-developed with NASA, further refined the suite by late 2024. These recent AI-driven enhancements underpin IBM's strategy to integrate environmental data into real-time supply chain and enterprise operations strengthening IBM’s position in climate-aware circularity.

• For fiscal 2024, Cisco reached 96% incorporation of circular-design principles across new product and packaging lines. It also advanced its Cisco Green Pay financing and hardware takeback programs to support reuse and remanufacturing efforts. These initiatives emphasize Cisco’s integrated push product design, customer incentives, and financial mechanisms to scale circularity across its ecosystem.

Key Benefits

• The report provides quantitative analysis and estimations of the market from 2025 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the current and future digital circular economy market trends to depict prevalent investment pockets in the sector.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Digital Circular Economy Market Key Segments

By Offerings

• Software

  • Supply Chain Management (SCM)

    • Sustainable Sourcing Software

    • IoT & Sensor Integration Software

    • Compliance & Reporting Software

  • Product Lifecycle Management (PLM)

    • Eco-Design & Prototyping Software

    • Circular Manufacturing Software

    • Sustainable Material Selection Software

  • Circular Design & Prototyping

    • Circular Design & Lifecycle Assessment Software

    • Digital Prototyping & Simulation Software

    • Sustainable Material Modeling Software

  • Blockchain and Traceability Software

    • Product Traceability Software

    • Sustainability Certification Software

    • Supply Chain Transparency Software

  • Sharing & Machining Software

    • Resource Sharing Software

    • Digital Marketplaces

    • Product Life Extension Software

    • Recovery & Recycling Software

  • Asset Management / Infrastructure Lifecycle

  • Reporting & Compliance Tools

  • Resale & Reuse Platforms (marketplaces)

  • 3D Printing Software

    • 3D Printing Process Optimization Software

    • Customized Product Design Software

• Services

  • Consultancy & Integration

  • Managed Services & Support

  • SaaS (waste-management–focused, compliance tools)

  • Recycling & Regulatory Compliance Services

  • Others

By Technology

• Blockchain & Distributed Ledger Technology (DLT)

  • Blockchain-Based Supply Chain

    • Supply Chain Transparency

    • Provenance Tracking

    • Smart Contracts for Resource Transactions

  • DIt-Enabled Asset Tokenization

    • Tokenized Asset Management

    • Digital Tokens for Circular Economy Products

    • Token Exchange Platforms

• Internet of Things (IoT)

  • Token Exchange Platforms

    • Remote Product Health Monitoring

    • Condition-Based Maintenance

    • Product Usage Analytics

  • Smart Recycling Bins & Waste Management

    • Smart Waste Collection Scheduling

    • Recycling Sorting Automation

    • lot-Enhanced Recycling Centers

• Artificial Intelligence & Machine Learning (AI/ML)

  • Predictive Maintenance and Quality Control

    • Predictive Equipment Maintenance

    • Quality Assurance Algorithms

    • Anomaly Detection

  • Demand Forecasting

    • Predictive Demand Models

    • Inventory Optimization

    • Production Planning

• Augmented Reality / Virtual Reality (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

• Emerging & Others

By Enterprise Size

• Large Enterprises

• Small & Medium Enterprises (SMEs) 

By Applications

• Supply chain & material tracking

  • Product Lifecycle Traceability

  • Circular Supply Chain Optimization

  • Eco-Friendly Transportation Management

• Resource optimization & efficiency

  • Resource Allocation and Utilization

  • Energy And Water Management

  • Waste Reduction and Recycling Efficiency

• Digital resale & reuse

  • Online Resale Marketplaces

  • Product Exchange Networks

  • Circular Product Certification

• Reverse logistics & remanufacturing

  • Collection and Sorting Services

  • Remanufacturing And Refurbishment

  • Waste-To-Resource Conversion

• Circular‑economy reporting & compliance

  • Circular Economy Performance Reporting

  • Sustainability Certifications Management

  • Regulatory Compliance

• Circular waste management & 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

• Predictive maintenance & digital twin operations

• Smart‑grid integration

• Others

By Industry Vertical

• Consumer electronics    

• IT & telecom    

• Automotive    

• Manufacturing    

• Construction & building    

• Healthcare & medical devices    

• Energy & utilities    

• Chemicals & materials    

• Fashion & apparel    

• Smart cities & infrastructure    

• Others    

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Oracle Corporation

• SAP SE

• IBM

• Accenture

• Cisco Systems

• Siemens AG

• Capgemini

• Microsoft Corporation

• Alphabet Inc. (Google Cloud)

• Dassault Systèmes

• KPMG International Ltd.

• Rubicon Technologies LLC 

• Landbell Group 

• Amazon Web Services, Inc. 

• Cumulocity

Report Scope and Segmentation