Digital Circular Economy Market Size, Share, Growth & Industry Analysis, By Offering, By Technology, By Application, By Vertical and Regional Analysis, 2025-2032

Market Definition

Digital circular economy solutions enable organizations to track, manage, and optimize the lifecycle of products, materials, and resources through digital technologies. They integrate data-driven tools to enhance transparency, efficiency, and decision-making across supply chains. 

These solutions support applications such as resource optimization, reverse logistics, and compliance reporting, helping organizations minimize waste and maximize value recovery. They are used across industries, including manufacturing, retail, and logistics, to improve sustainability performance and operational resilience while aligning with environmental and regulatory goals.

Digital Circular Economy Market Overview

The global digital circular economy market size was valued at USD 3,152.0 million in 2024 and is projected to grow from USD 3,806.8 million in 2025 to USD 17,191.4 million by 2032, exhibiting a CAGR of 24.03% over the forecast period. 

This growth is attributed to the increasing deployment of digital solutions that enable organizations to track, manage, and optimize the lifecycle of products and materials. The rising adoption of technologies such as blockchain, Internet of Things, and artificial intelligence for supply chain transparency and resource optimization is fueling market growth across manufacturing, retail, and logistics sectors.

Key Market Highlights:

• The digital circular economy industry size was valued at USD 3,152.0 million in 2024.
• The market is projected to grow at a CAGR of 24.03% from 2024 to 2032.
• North America held a market share of 34.82% in 2024, valued at USD 1,097.5 million.
• The services segment garnered USD 1,742.4 million in revenue in 2024.
• The internet of things (IoT) segment is expected to reach USD 6,491.9 million by 2032.
• The supply chain and materials tracking segment is anticipated to witness the fastest CAGR of 24.95% over the forecast period.
• The consumer electronics segment garnered USD 904.6 million in revenue in 2024.
• Europe is anticipated to grow at a CAGR of 23.88% through the projection period.

Major companies operating in the digital circular economy market are SAP SE, Software GmbH, IBM, Landbell Group, Anthesis Group Ltd., Dassault Systèmes, KPMG, Capgemini, iPoint-systems gmbh, Rheaply, Lenzing AG, Circularise, Foreverhold Ltd, Accenture, and Schneider Electric.

Increasing focus by governments on regulatory compliance and by industries on minimizing waste and improving resource efficiency is accelerating the demand for circular economy solutions. Additionally, advancements in data analytics, cloud-based platforms, and government policies promoting sustainability are further contributing to the market's growth

• In March 2025, Aramco Digital and Diversys Software partnered to support Saudi Arabia’s circular economy initiatives. The collaboration focuses on deploying digital platforms and analytics to improve waste tracking, recovery, and reuse across industries.

Market Driver

Rising Emphasis on Optimizing Resource Utilization

The growth of the digital circular economy market is propelled by the rising need for sustainable resource management and the increasing pressure on organizations to minimize waste across industries. Digital waste is rising faster than collection and recycling capacities can handle. 

According to UNCTAD, Waste from screens and small IT equipment grew by 30% between 2010 and 2022, amounting to 10.5 million tons. Inadequate disposal practices are contributing to increased pollution, along with environmental and health risks. Expanding global production, higher consumption levels, and stricter environmental standards are placing significant demand on businesses to adopt solutions that ensure efficient use of materials and reduce environmental impact.

More enterprises are deploying digital technologies such as blockchain, Internet of Things, and artificial intelligence to enable real-time tracking, predictive insights, and transparency across product lifecycles. This enhances operational efficiency while simultaneously supporting regulatory compliance, cost savings, and improved sustainability performance. 

The shift toward circular business models, including remanufacturing, product-as-a-service, and reverse logistics, is further supported by growing government initiatives and corporate sustainability commitments. The rising demand for advanced digital circular solutions is fueling market expansion.

Market Challenge

Complexity in Integrating Legacy Systems

The complexity in integrating legacy systems presents a significant challenge to the growth of the digital circular economy market, particularly among organizations operating with outdated IT infrastructures and supply chain platforms. Existing systems lack compatibility with modern technologies such as blockchain, Internet of Things, and artificial intelligence, creating barriers to the seamless deployment of circular economy solutions.

Integration often requires costly upgrades, extensive customization, and prolonged implementation timelines, which increase operational risks and slow digital transformation efforts. These factors limit scalability, reduce return on investment, and discourage enterprises from adopting advanced circular practices.

To overcome these challenges, companies are increasingly investing in modular platforms, cloud-based architectures, and interoperability frameworks that simplify integration with existing infrastructures. Such approaches aim to reduce complexity, improve efficiency, and accelerate the adoption of digital circular economy solutions across industries.

Market Trend

Expansion of Blockchain for Transparency

The expansion of blockchain for transparency is shaping the digital circular economy market by enabling secure, tamper-proof, and verifiable records across product and material lifecycles. Blockchain technology eliminates data manipulation risks and ensures accurate traceability of resources, allowing organizations to demonstrate compliance with sustainability regulations while strengthening accountability within supply chains.

Unlike conventional tracking methods, blockchain offers significant advantages for industries managing complex, global operations where multiple stakeholders are involved in production, distribution, and recycling. These systems facilitate seamless data sharing, improve trust between partners, and support efficient reverse logistics for material recovery.

Digital Circular Economy Market Report Snapshot

Market Segmentation

• By Offering (Software and Services): The services segment earned USD 1,742.4 million in 2024 due to rising demand for consulting, integration, and managed services that support the deployment of digital circular solutions.
• By Technology (Blockchain and Distributed Ledger Technology (DLT), Internet of Things (IoT), AI and ML, Big Data Analytics, Digital Twins, and Others Technologies): The internet of things (IoT) segment held 33.88% of the market in 2024, due to its ability to enable real-time monitoring, tracking, and optimization of resource flows across supply chains.
• By Application (Supply Chain and Materials Tracking, Resource Optimization and Efficiency, Reverse Logistics and Remanufacturing, Circular Economy Reporting and Compliance, Waste and Recycling Management, and Others): The supply chain and materials tracking segment is projected to reach USD 5,247.6 million by 2032, owing to increasing demand for end-to-end visibility, transparency, and traceability across global production and distribution networks.
• By Vertical (Consumer Electronics, Automotive, Construction and Building, IT&Telecom, Manufacturing, Healthcare and Medical Devices, and Other Verticals): The consumer electronics segment is anticipated to grow at a CAGR of 25.43% through the projection period, owing to rising adoption of circular models for e-waste management, component reuse, and sustainable product lifecycle practices.

Digital Circular Economy Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America digital circular economy market share stood at 34.82% in 2024, valued at USD 1,097.5 million. This dominance is due to the region’s strong regulatory environment, widespread adoption of sustainability practices, and early integration of digital platforms that enable efficient resource management. 

The presence of leading technology providers that are actively investing in blockchain, Internet of Things, and artificial intelligence, is enhancing transparency and efficiency across supply chains. These advancements are contributing to the region’s market growth.

Additionally, in North America, increasing corporate commitments to circular business models are driven by strict government regulations on waste management, extended producer responsibility laws, and sustainability reporting requirements. These factors are accelerating the adoption of digital circular solutions, including reverse logistics and product lifecycle management, across industries. 

The increasing role of public-private collaborations in developing recycling infrastructure and waste management initiatives is further accelerating regional growth. Moreover, advancements in cloud-based platforms, data analytics, and interoperability frameworks are enabling continuous innovation, improving scalability, and supporting the long-term expansion of the digital circular economy across North America.

Europe is poised for significant growth at a CAGR of 23.88% over the forecast period. This growth is attributed to the implementation of comprehensive sustainability policies, strict carbon reduction targets, and growing government pressure on industries to transition toward circular production models. 

The region’s strong manufacturing base, coupled with increasing adoption of digital platforms for material tracking, recycling, and product lifecycle management is driving demand for advanced solutions.

Government initiatives supporting eco-design of products, sustainable manufacturing processes, waste minimization, and extended producer responsibility are further accelerating adoption. 

Additionally, collaborations among enterprises, technology providers, and research institutions, along with advancements in cloud-based platforms and artificial intelligence-driven analytics for material tracking, resource optimization, and supply chain management, are improving operational efficiency and scalability, supporting growth in the digital circular economy.

Regulatory Frameworks

• In the European Union, the Ecodesign for Sustainable Products Regulation (ESPR) regulates product design, durability, repairability, and recyclability. It establishes sustainability requirements across product lifecycles and introduces the Digital Product Passport to enhance transparency and traceability in circular value chains.
• In Australia, the Circular Economy Act 2023 (Australian Capital Territory) regulates product repairability, reusability, and recyclability. It establishes frameworks for banning harmful products and mandates food waste collection, supporting digitally enabled circular resource systems.
• In the U.S., the National Recycling Strategy (2021) regulates recycling system modernization and waste management. It emphasizes digital tracking, data standardization, and public-private collaboration to improve material recovery and support circular economy adoption.

Competitive Landscape

Companies operating in the digital circular economy market are strengthening their presence by advancing technology capabilities, diversifying solution portfolios, and pursuing strategic collaborations. Key players are heavily investing in research and development to enhance lifecycle tracking, interoperability, real-time analytics, and data security.

They are also introducing advanced solutions such as blockchain-enabled traceability systems, Internet of Things-based resource monitoring, and artificial intelligence-driven optimization tools to address the rising complexity of global supply chains.

• In March 2025, India hosted the 12th High-Level Regional 3R and Circular Economy Forum in Jaipur, where policymakers, industry leaders, and partners from across Asia-Pacific adopted the “Jaipur Declaration 2025–2035” and launched the Cities Coalition for Circularity (C-3). Under the CITIIS 2.0 program, agreements worth USD 216.87 million  were signed to advance integrated waste management and climate action in 18 Indian cities.

Top Companies in Digital Circular Economy Market

• SAP SE
• Software GmbH
• IBM
• Landbell Group
• Anthesis Group Ltd.
• Dassault Systèmes
• KPMG
• Capgemini
• iPoint-systems gmbh
• Rheaply
• Lenzing AG
• Circularise
• Foreverhold Ltd
• Accenture
• Schneider Electric

Recent Developments:

• In June 2024, Ericsson and TOMRA partnered to combine reverse vending and connected recycling technology, improving waste traceability and enabling businesses to turn waste into value. Their solution was showcased at HPE’s Discover event in Las Vegas.
• In May 2024, Flex acquired FreeFlow to strengthen its reverse logistics and digital circular economy services. FreeFlow’s B2B marketplace helps manage surplus and returned inventory, while the deal expands Flex’s post-sale capabilities in refurbishment, repair, asset recovery, and recycling across multiple sectors.