Digital Circular Economy Market (2035): AI & ML, Digital Product Passports & Supply Chain Tracking Growth in United States Expansion

DataM Intelligence has released a new research report titled "Digital Circular Economy Market Size 2026". The report delivers in-depth insights into key market dynamics, including regional growth trends, market segmentation, CAGR projections, and the revenue performance of leading industry players. It also highlights major growth drivers shaping the market landscape. Designed to provide a clear and comprehensive perspective, the report offers a detailed view of the current market size in terms of both value and volume, along with emerging opportunities and the overall development outlook of the global Digital Circular Economy market.

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Recent Key Developments - United States & North America
✅ September 2026: NIST published new research identifying digital threads, systems modeling, interoperability, and measurable circularity metrics as key technical gaps for circular manufacturing. The work highlights the need to connect product information across design, manufacturing, use, recovery, and reuse rather than treating circularity as a standalone recycling activity.

✅ July 2026: NIST released the TLB-R reference model for lithium-based traction battery recovery, providing a structured framework for mapping battery recovery activities. The model addresses traceability and recovery of critical materials from traction batteries, supporting more standardized digital approaches to battery circularity.

✅ September 2026: U.S. manufacturing research increasingly shifted toward digital-thread infrastructure for circular production, with NIST highlighting the need for interoperable standards and common measurement methods so manufacturers can track products and materials across multiple lifecycle stages. This creates a more practical role for digital twins, lifecycle databases, and connected product records in circular-economy operations.

Recent Key Developments - Europe & Asia-Pacific
✅ August 2026: The European Commission launched the Digital Product Passport Registry and testing environment, moving DPP implementation from policy development toward operational deployment. The registry will store unique product identifiers and support product categories covered under the Ecodesign for Sustainable Products Regulation, including batteries, textiles, steel and aluminium, tyres, furniture, ICT and energy-related products.

✅ September 2026: Japan's Ministry of the Environment opened a new program to demonstrate recycled-material supply chains for critical metals, including collection, transportation, dismantling, crushing, sorting and other processing steps. The program is designed to connect manufacturers with recycling industries and improve the reliability of recycled-material supply in terms of both quality and volume.

✅ September 2026: South Korea moved toward a more structured closed-loop paper-carton recycling system, with producers, recyclers, packaging manufacturers and industry organizations signing an agreement to improve collection and recycling. Separate collection at apartment complexes is planned to begin voluntarily in October 2026, ahead of nationwide implementation from January 2027.

Recent Key Developments - Digital Circularity, Traceability & Technology
✅ July-September 2026: Digital Product Passport infrastructure advanced from standards development toward implementation. The European Commission published harmonized DPP standards covering areas such as unique identifiers, interoperability, data carriers, APIs, data exchange protocols and data storage, creating a technical foundation for machine-readable circularity information.

✅ September 2026: China introduced a new 2026-2030 circular-economy plan that calls for stronger digital capabilities across resource-recycling networks, while targeting more organized collection, second-hand transactions, remanufacturing and recycled-material utilization. The plan also sets a 2030 target of approximately 5.1 billion tonnes of annual recycled-resource utilization and an 8 trillion yuan circular-economy industry output.

✅ September 2026: Digitalization of circular-economy operations expanded beyond industrial supply chains into reuse and reverse logistics. Australia introduced National Device Reuse Principles for government ICT equipment, creating a common framework for identifying, securely transferring, donating and reusing surplus devices rather than sending them directly into disposal pathways.

Recent Key Developments - New Circular Business & Digital Models
✅ August-September 2026: Circular-economy systems are increasingly shifting toward verified product and material data, with digital product passports, traceability records and interoperable data platforms being positioned to support repair, reuse, remanufacturing and recycling. The European DPP framework specifically requires product data to be interoperable, machine-readable, structured and transferable through open data-exchange networks.

✅ September 2026: India's World Circular Economy Forum 2026 placed digital traceability and technology-enabled recycling clusters among the practical areas being explored for scaling circular value chains, particularly for plastics and MSMEs. The associated accelerator program focused on using digital systems to improve transparency in the movement and processing of waste and recycled materials.

List of Key Players 2026:
SAP SE, IBM Corporation, Capgemini SE, Dassault Systèmes SE, Cisco Systems, Inc. and Oracle Corporation

Company Evaluation
Leading technology and enterprise software companies such as SAP, IBM, Dassault Systèmes and Oracle are strengthening their presence through sustainability software, AI-enabled analytics, lifecycle management, cloud platforms and digital tools supporting circular supply chains.

Specialized companies such as iPoint-systems, Rheaply and ONE CLICK LCA are developing solutions for material traceability, resource exchange, lifecycle assessment and environmental reporting, while KPMG and Capgemini are expanding digital circular economy consulting and transformation services.

Growth Forecast Projected 2026:
The Global Digital Circular Economy Market will reach US$ 3.54 billion in 2026, up from US$ 2.84 billion in 2025, and is projected to reach US$ 25.73 billion by 2035, registering robust growth at a CAGR of 24.67% during the forecast period from 2026 to 2035.

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M&A / Strategic Activity
Recent strategic partnerships, ecosystem initiatives, and commercial developments shaping the Digital Circular Economy Market:

SAP SE - Circularity data and enterprise sustainability integration
SAP continues to connect sustainability and circular-economy data with enterprise processes, including material traceability, product lifecycle information, emissions accounting, and supply-chain management. The shift is important because circularity data is increasingly being treated as operational business data rather than a standalone sustainability report.

Catena-X - Expansion of interoperable circularity infrastructure
Catena-X is developing standardized data-sharing infrastructure for automotive companies, with EcoPass/Digital Product Passport, circularity, product carbon footprint, and traceability operating as connected use cases. Its DPP work is moving beyond simply storing product information toward data verification, validation, and lifecycle traceability.

DENSO - Digital battery passport deployment through Catena-X
In April 2025, DENSO became the first Japan-headquartered company certified by Catena-X for the EcoPass use case. DENSO is developing a battery-passport application designed to exchange product and lifecycle information securely with approved stakeholders. This is notable because the Catena-X model is extending European-style circularity data infrastructure into Japanese automotive supply chains.

Productsup & Protokol - Product-data integration for DPP creation
In May 2025, Productsup and Protokol announced an integration that allows existing product data managed through Productsup to be used for creating Digital Product Passports. The approach addresses a practical implementation problem: companies can reuse existing product information instead of building a completely separate DPP data workflow.

EPAM & Institute of Digital Fashion - Consumer-facing circularity infrastructure
In 2025, EPAM and the Institute of Digital Fashion announced a collaboration combining Digital Product Passports with RFID/NFC, blockchain authentication, and AI-enabled data analytics. The initiative goes beyond regulatory disclosure by linking product identity with authentication, resale, repair, maintenance, and customer engagement.

Catena-X - SME access to circular data infrastructure
Catena-X has also been working to reduce the implementation burden for smaller suppliers. Its €23 million Data Space Accelerator, launched in 2026, includes Digital Product Passport, product-carbon-footprint, traceability, and circular-economy use cases. Catena-X says standardized interfaces can allow certificates and compliance information to be uploaded once and shared with relevant partners.

New Product/Platform Launches & Deployments
Recent deployments are moving digital circular-economy solutions from sustainability dashboards toward product-level identification, traceability, and automated data exchange.

European Commission - EU Digital Product Passport Registry
In July 2026, the European Commission launched the Digital Product Passport Registry together with a testing environment. The registry provides the EU-level infrastructure for registering unique product identifiers and associated metadata, while the underlying product data remains decentralized with economic operators or DPP service providers.

This is a major change for the digital circular economy because DPP infrastructure is moving from a policy concept toward an operational system connected to customs, market surveillance, manufacturers, recyclers, repairers, and other value-chain participants.

AWS - Sustainability Data Fabric and AI-enabled DPP workflows
AWS has been developing a Sustainability Data Fabric approach for Digital Product Passports, using cloud data infrastructure and AI agents to harmonize supplier information, automate compliance checks, and prepare product-level sustainability data. AWS specifically identifies data integration and verification as major implementation challenges.

dpp.cloud / sqanit - Direct PIM-to-DPP workflow
dpp.cloud launched as a dedicated Digital Product Passport offering in 2025 using sqanit's existing QR and digital-twin infrastructure. Its integration with Akeneo PIM allows product information to flow directly from product-information systems into DPP creation, reducing duplicate data entry.

Axopar & Aura Blockchain Consortium - Product identity for boats
In March 2026, Axopar introduced an NFC-enabled Digital Product Passport for its boats in partnership with Aura Blockchain Consortium. Each boat receives a digital identity that also functions as a certificate of ownership, demonstrating how DPP technology is moving into high-value durable goods where provenance, authentication, ownership and lifecycle information can have commercial value beyond compliance.

DigiProd Pass & Sourcebynet - Furniture DPP pilot
DigiProd Pass and Sourcebynet began a strategic pilot in 2025 to place Digital Product Passports on selected furniture products and demonstrate the technology at the Furniture Fair in Shanghai. The deployment represents an early expansion of DPP infrastructure into furniture and Asian supply chains.

R&D & Technological Advancements
AI-assisted sustainability data harmonization
AI is increasingly being applied to the difficult part of circular-economy digitization: converting fragmented supplier, product, material and lifecycle information into structured data. AWS is exploring agentic AI for supplier-data harmonization and automated DPP compliance workflows.

Digital Product Passports moving toward machine-readable infrastructure
The European Commission's DPP framework is being supported by standards covering unique identifiers, interoperability, data carriers, APIs, data-exchange protocols and data storage. Six related harmonized standards were already available by July 2026.

Verification and validation of circularity data
Catena-X is working on data verification and validation because simply collecting circularity information does not guarantee that the information is trustworthy. Its DPP expert group is updating data models and developing mechanisms for validating information against evolving regulatory requirements.

Product-level digital identity and lifecycle tracking
Digital identifiers are becoming a practical bridge between physical products and digital records. GS1's work connects internationally standardized identifiers and data carriers with DPP requirements, enabling B2B, B2G and B2C access to product information.

Digital twins and lifecycle intelligence
Digital twins are increasingly being connected with circular-design and lifecycle-management workflows. The objective is shifting from simply monitoring equipment performance to retaining information about materials, components, maintenance, replacement, reuse and end-of-life pathways.

Reverse-value-chain data
A notable technological shift is the development of data models specifically for the reverse value chain. ITU-T is studying how DPP information can support reuse, repair and recycling while making product information more understandable to consumers and useful to downstream actors.

Digital circularity meets LCA
Digital platforms are increasingly connecting product data with lifecycle assessment rather than treating environmental reporting as a separate process. This enables companies to compare environmental impacts across sourcing, manufacturing, use and end-of-life stages and use the results in product and material decisions. DataM's market scope specifically identifies smart material selection/testing, resource optimization, supply-chain tracking and circular reporting as applications.

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Segments Covered in the Global Digital Circular Economy Market:
By Offering
The market is segmented into services and software. Software holds a significant share due to rising use of digital platforms for resource tracking, waste analytics, supply chain visibility, and sustainability reporting. Services are growing with demand for consulting, implementation, integration, and managed solutions.

By Technology
The market includes AI & ML, AR & VR, Big Data Analytics, Blockchain, Cloud Computing, IoT, and others. AI & ML represent a significant segment, supporting resource optimization, predictive maintenance, waste sorting, and data-driven strategies. IoT is growing through real-time asset and material monitoring, while Blockchain, Big Data, and Cloud Computing improve traceability and transparency.

By Application
The market covers circular economy reporting and compliance, circular waste management and recycling, digital resale and reuse, resource optimization and efficiency, reverse logistics and remanufacturing, smart material selection & testing, and supply chain and material tracking. Resource optimization and efficiency represent a major segment, driven by efforts to reduce material use, waste, and operating costs. Digital waste management and supply chain tracking are also gaining adoption.

By End-User
The market is segmented into automotive, construction & building, consumer electronics, energy & utilities, healthcare & medical devices, IT & telecom, manufacturing, and others. Manufacturing represents a significant segment due to demand for resource efficiency, waste reduction, production optimization, and sustainable supply chains. Automotive is also expanding through reuse, recycling, remanufacturing, and lifecycle management.

By Region
North America - 34% Share
North America leads due to strong digital technology adoption, corporate sustainability initiatives, and investments in AI, IoT, cloud, and data analytics.

Europe - 28% Share
Europe is supported by stringent environmental regulations and circular economy policies focused on recycling, resource efficiency, and product lifecycle management.

Asia-Pacific - 30% Share
Asia-Pacific is expanding rapidly due to large-scale manufacturing, digital transformation, rising waste management needs, and investments in smart technologies across China, Japan, South Korea, and India.

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