How do IoT solutions enable circular economy business models?

The transition from linear economy to circular economy (CE) business models represents a paradigm shift towards sustainability, including resource and material efficiency, reduced negative environmental impacts and minimised leakages from a circular system. The current twin transition refers to green transition (sustainability) and digital transition (digitalisation). In the manufacturing industry, the Internet of Things (IoT) emerges as a catalyst in this transformation, offering connectivity and real-time data and enabling improved monitoring, optimisation and management of operations. Utilisation of IoT promotes implementation of circularity actions, that is, optimises resource use, extends product lifecycles and facilitates recovery and reuse of materials.