Press release
Digital Circular Economy Market Set for Explosive Growth to US$ 13.84 Billion by 2032, Led by Europe's 36% Market Share | Key Players - SAP, Oracle, IBM
The Digital Circular Economy Market reached US$ 2.34 billion in 2024 and is expected to reach US$ 13.84 billion by 2032, growing with a CAGR of 24.88% during the forecast period 2025-2032.Market growth is driven by escalating demand for sustainable resource management, regulatory mandates on waste reduction and recycling (e.g., EU Circular Economy Action Plan), and corporate ESG commitments amid climate pressures. Advancements in AI, IoT, and blockchain for tracking materials, rising investments in circular supply chains, and expanding adoption in industries like electronics, plastics, and textiles are further accelerating market expansion.
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Key Industry Developments
United States:
✅ January 2026: IBM launched an advanced AI-driven platform for circular supply chain optimization, integrating blockchain and IoT to enable real-time material tracking and automated remanufacturing workflows for enterprise clients.
✅ December 2025: NIST advanced R&D on interoperable digital product passports, standardizing data frameworks for resource recovery and compliance in manufacturing sectors.
✅ November 2025: SAP enhanced its GreenToken software with ML algorithms for predictive waste minimization, supporting reverse logistics in consumer goods industries.
Asia Pacific / Japan:
✅ January 2026: Circularise completed deployment of blockchain-based digital passports in Japan, partnering with Panasonic and Toyota for plastics traceability under METI guidelines.
✅ December 2025: METI and Nikkei BP unveiled AI-enabled circular economy reporting tools, projecting market growth through digital design standards and regulatory integration.
✅ October 2025: EU-Japan Centre introduced IoT platforms during Digital Solutions Mission, fostering cross-border tech for smart recycling and material reuse in Tokyo.
Strategic Mergers and Acquisitions:
✅ TOMRA deepened its digital waste-management capabilities by acquiring an 80% stake in c-trace and a 25% share in PolyPerception in 2025, enhancing AI-powered waste flow recognition and circular tracking technologies.
✅ Flex strengthened reverse logistics and circular economy services with its May 2024 acquisition of FreeFlow (extended impacts into 2025), advancing asset disposition for electronics and new sustainability revenue streams.
Key Players:
SAP | Oracle | Landbell Group | Anthesis Group | IBM | iPoint-systems GmbH | Rheaply | One Click LCA Ltd. | LENZING AG | KPMG International Limited
Strategic Leadership Report: Top 5 Players in Digital Circular Economy Market 2026
-SAP SE: Launched the SAP Responsible Design and Production solution in late 2025, enabling circular product lifecycle management with AI-driven material passports and traceability to optimize reuse, recycling, and compliance across supply chains.
-Oracle Corporation: Introduced the Circular Supply Chain module within Oracle SCM Cloud in early 2026, featuring blockchain-enabled asset tracking and predictive analytics for waste reduction, supporting closed-loop material flows and regulatory reporting.
-Landbell Group: Rolled out the Circular Economy Compliance Platform in 2025, integrating EPR services with digital product registries to streamline take-back programs, recycling quotas, and producer responsibility for electronics and packaging.
-Anthesis Group: Deployed the AVA Digital Sustainability Platform's latest Circular Economy toolkit in 2026, offering scenario modeling for resource efficiency, product-as-a-service designs, and Scope 3 emissions tracking to accelerate business model transitions.
-IBM: Enhanced the IBM Envizi ESG Suite with circular economy accelerators in 2025, providing AI-powered circularity scoring, supply chain mapping, and generative design tools for sustainable materials innovation and waste minimization.
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Market Drivers and Key Trends:
-Digital Transformation: AI, IoT, and blockchain integration optimize waste management, supply chains, and product lifecycles for resource efficiency and circularity.
-Regulatory Mandates: Stringent ESG policies and government incentives accelerate adoption of digital platforms for sustainability compliance and emissions reduction.
-Resale Platforms Surge: Digital marketplaces and peer-to-peer apps boost reuse, reverse logistics, and condition-based pricing, minimizing waste and enhancing profitability.
-Eco-Conscious Demand: Rising consumer preference for sustainable products drives smart labeling, sharing economy models, and transparent circular consumption via digital trust systems.
-Market Challenges: High implementation costs for legacy system upgrades, data interoperability issues, and regulatory complexities around digital genetic resources hinder scalability.
Regional Insights:
-Europe: 36% (Largest share, driven by strong technological infrastructure and sustainability commitments).
-Asia Pacific: 28% (Fastest growing, fueled by government initiatives, urbanization in China and India, and digital platforms for resale and recycling).
-North America: 34.8% (Supported by regulatory frameworks, sustainability practices, and early digital integration).
Market Opportunities & Challenges: Digital Circular Economy Market 2026
-Opportunities: A "Digital Resale Surge" is accelerating via AI-blockchain platforms; the resale/reuse segment forecasts a 25%+ CAGR through 2030. EU Circular Digital Passport mandates and US EPA smart waste grants unlock scalable IoT traceability for ESG investors targeting refurbished electronics and fashion.
-Challenges: Interoperability gaps in fragmented blockchain networks inflate integration costs, while consumer distrust in refurbished quality demands verified digital passports. Success hinges on mastering reverse logistics AI amid volatile Scope 3 regulations.
-Strategic Verdict: High-margin circular marketplaces and remanufacturing SaaS are the core growth drivers for 2026.
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Market Segmentation Analysis:
-By Offering: Software Leads with Robust Platforms
Software dominates at 45% market share in 2024, providing analytics, tracking, and optimization tools for resource loops in digital ecosystems.
Hardware follows at 30%, including sensors and IoT devices for real-time waste monitoring and collection.
Services claim 25%, offering consulting, implementation, and maintenance to enable circular transitions.
-By Technology: Blockchain Tops for Traceability
Blockchain holds 40% share, ensuring transparent supply chains and provenance verification in reuse/recycling.
AI/ML captures 30%, powering predictive analytics for waste reduction and material matching.
IoT and Big Data split 20% and 10%, with IoT enabling connectivity and Big Data fueling insights.
-By Application: Waste Management Prevails on Volume
Waste management leads at 50%, digitizing collection, sorting, and upcycling to cut landfill use.
Sustainable Supply Chains take 30%, optimizing reverse logistics and remanufacturing.
Resource Recovery accounts for 20%, focusing on digital marketplaces for secondary materials.
-By End-User: Manufacturing Dominates Industrial Scale
Manufacturing commands 55% share, adopting platforms for circular production and zero-waste goals.
Consumer Goods follow at 25%, emphasizing product-as-service models.
Government and Retail split 15% and 5%, with government via policy tools and retail through e-waste programs.
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