The digital product passport software market enables recording and sharing of valuable product details and sustainability credentials of a product throughout its lifecycle. Digital product passport solutions help manufacturers collect information related to material composition, geographic origin, energy and water consumption during manufacturing, and end-of-life handling instructions of a product digitally. This ensures circularity and aids in sustainability efforts by manufacturers. The growing focus on reducing carbon footprint and achieving sustainability goals is driving demand for digital product passport software.

The Global Digital Product Passport Software Market is estimated to be valued at US$ 991.8 Mn in 2024 and is expected to exhibit a CAGR of 26% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the digital product passport software are Billon Group Ltd, CIRCULARISE, CIRPASS, Det Norske Veritas Group, iPoint-systems GmbH, Kezzler AS, LyondellBasell Industries Holdings B.V., Narravero GmbH, OPTEL GROUP, Protokol, PSQR, Qliktag Software Inc., Scantrust SA, Spherity GmbH, and THE ID FACTORY SRL. These players are focusing on developing innovative blockchain-based digital solutions to provide traceability of components and materials across supply chains.

The rapidly growing circular economy is fueling demand for Digital Product Passport Software Market Growth solutions that provide traceability of materials and components. Strict regulations regarding e-waste recycling and reduction of carbon footprint are encouraging manufacturers to adopt digital product passports. Digital passports help manufacturers comply with regulations and achieve sustainability targets.

Technological advancements such as IoT, AI, blockchain, and digital twin technologies are enabling the development of advanced digital product passport solutions. These solutions can track materials in real-time throughout complex supply chains, enhance traceability, and help assess environmental impact of products across their lifecycles.

Market Trends

Adoption of blockchain technology - Major players in the market are developing blockchain-based digital product passport solutions to securely record & share information throughout the product lifecycle. Blockchain ensures transparency and traceability which is important for sustainability goals.

Focus on circular economy - With the growing focus on sustainability and circularity, manufacturers are adopting digital solutions to track resources and facilitate recycling/reuse. Digital passports help enable circular business models and economic growth.

Market Opportunities

Development of industry-specific/application-specific solutions - Opportunities exist for players to develop tailored digital passport solutions for different industries like chemicals, electronics, automotive etc. based on their unique requirements.

Integration with IoT and smart products - Combining digital passports with IoT and smart product capabilities can further improve traceability, optimize supply chains, and enhance circularity efforts. This presents major growth potential.

Impact of COVID-19 on Digital Product Passport Software Market Growth

The COVID-19 pandemic significantly impacted the growth of the digital product passport software market in the initial phases. Nationwide lockdowns halted business operations and disrupted supply chains across industries globally. Organizations faced difficulties to adapt to the changing environment due to travel restrictions and shifted focus towards ensuring health and safety of employees and continuity of essential services.

However, the market resumed growth in the post-pandemic scenario as industries gradually reopened with COVID protocols. The crisis accelerated digital transformation initiatives of enterprises. Organizations increasingly adopted digital product passports to streamline information management, ensure supply chain visibility and control, and facilitate contactless operations. Software solutions enabled capturing, managing and exchanging product data electronically to support remote working environments. Regulatory bodies also emphasized on digitization to strengthen compliance and traceability of goods amid the pandemic. The market is estimated to grow at a sustainable pace in the forecast period due to ongoing technological advancements and integration of Industrial Internet of Things (IIoT).

Growth of Digital Product Passport Software Market in Europe

Europe has traditionally been one of the largest markets for digital product passport software in terms of value, primarily driven by stringent regulations across industries. Countries like Germany, France, UK and Italy contribute majorly to the regional market revenues. The European Commission introduced policies like EcoDesign directive to promote energy efficiency and sustainability. Industries utilized digital solutions to comply with evolving standards on green public procurement, chemical substance restrictions and circular economy initiatives. Additionally, the presence of leading market players boosts technological innovations and adoption rates within Europe. However, Asia Pacific is expected to witness fastest growth through the forecast period with expanding electronics and automotive industries in countries such as China, India, Japan and South Korea increasingly focusing on product traceability and lifecycle management.

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