What Is The Current and Historic Market Size Analysis Of The Digital Circular Economy Market?
The digital circular economy market has seen considerable growth due to a variety of factors.
• The market size of the digital circular economy has seen a rapid escalation over the past few years. The market, which was evaluated at $2.9 billion in 2024, is projected to amplify to $3.72 billion in 2025, marking a compound annual growth rate (CAGR) of 28.2%.
Factors contributing to this historical period growth include a heightened consumer demand for transparency, an increase in accessible green finance, a surge in the demand for sustainable packaging solutions, an incremental corporate demand for metrics, and a heightened focus on circular design principles.
What Are The Predictions for The Digital Circular Economy Market in the Coming Years?
The digital circular economy market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for significant expansion in the digital circular economy market in the years ahead. The anticipated market size is forecasted to rise to $9.99 billion by 2029 with a compound annual growth rate (CAGR) of 28.0%.
Factors driving this exceptional growth during the forecast period include decreases in costs, a transition towards circular supply chains, a surge in start-up investments, a strengthened focus on resource efficiency, and an enlarging sharing economy. Key trends predicted for this period are the integration of AI and IoT technologies, the creation of digital twins, advancements in predictive maintenance, smart grid technologies, and innovations in robotics technologies.
Which Drivers Are Accelerating Growth In The Digital Circular Economy Market?
The digital circular economy market is projected to flourish in light of heightened awareness around electronic waste, also known as e-waste. This includes any electrical or electronic equipment, such as computers, smartphones or appliances that are outdated or have exhausted their usefulness. The focus on e-waste results from growing environmental concerns and extensive educational efforts to illuminate the detrimental impact of improper electronic waste disposal. The digital circular economy seeks to curb e-waste by endorsing the repair, reuse, and recycling of electronic devices hence reducing waste and preserving resources. As an example, the Global E-Waste Monitor 2024, a report by the United Nations Institute for Training and Research based in Switzerland highlighted that if nations managed to increase their e-waste collection and recycling rates to 60% by 2030, the subsequent benefits like reduced human health risks would overwhelmingly outweigh costs by over US $38 billion. Consequently, the uptick in E-waste awareness is propelling the expansion of the digital circular economy market.
What Are The Core Segments Of The Global Digital Circular Economy Market?
The digital circular economymarket covered in this report is segmented –
1) By Offering: Software, Services
2) By Technology: Blockchain And Distributed Ledger Technology, Internet Of Things (IoT), Artificial Intelligence (AI) And Machine Learning (ML), Virtual Reality (VR) And Augmented Reality (AR), Virtual Reality (VR)-Based Training, Cloud Computing, Other Technologies
3) By Application: Supply Chain And Material Tracking, Resource Optimization And Efficiency, Digital Resale And Reuse, Reverse Logistics And Remanufacturing, Circular Economy Reporting And Compliance, Circular Waste Management And Recycling, Smart Material Selection And Testing, Other Applications
4) By End User: Consumer Electronics, Information Technology (IT) And Telecom, Automotive, Manufacturing, Construction And Building, Other End Users
Subsegments:
1) By Software: Circular Economy Management Platforms, Resource Tracking Software, Waste Management and Recycling Software, Product Lifecycle Management (PLM) Tools
2) By Services: Consulting Services, Implementation Services, Data Analytics and Reporting Services, Maintenance and Support Services
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What Trends Are Shaping The Digital Circular Economy Market?
Major businesses in the digital circular economy market are using strategic collaborations to speed up the shift towards a circular economy. Strategic collaborations imply a process where firms utilize one another's assets and capabilities to gain shared benefits and triumphs. For example, in June 2023, SAP SE, a software firm from Germany, forged a partnership with Versuni, a Dutch company specializing in the design and sale of household devices, to concentrate on sustainability and the circular economy. Through SAP's sustainability control tower software, a digital ESG management tool built on real-time data, the corporation is capable of endorsing comprehensive management by establishing objectives, tracking advancement, and deriving conclusions from data, thereby developing comprehensive and verifiable ESG reports as well as action plans for enhancement.
Who Are the Key Players In The Digital Circular Economy Market?
Major companies operating in the digital circular economy market are:
• Apple Inc.
• Samsung Electronics Co. Ltd.
• Microsoft Corporation
• Dell Technologies Inc.
• Bosch GmbH
• Hitachi Ltd.
• Siemens AG
• Sony Group Corporation
• Lenovo Group Limited
• General Electric Company
• International Business Machines Corporation
• Panasonic Holdings Corporation
• LG Corporation
• Cisco Systems Inc.
• Oracle Corporation
• Schneider Electric SE
• Honeywell International Inc.
• Fujitsu Limited
• SAP SE
• Mitsubishi Electric Corporation
• ABB Ltd.
• Hewlett Packard Enterprise Company
• Nokia Corporation
• Capgemini SE
• Koninklijke Philips N.V.
• STMicroelectronics NV
• Infineon Technologies AG
What Are The Regional Insights Into The Digital Circular Economy Market?
Europe was the largest region in the digital circular economy market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital circular economy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
