Circular Economy Market- Global Industry Growth and Trend Analysis

Global Circular Economy Market Overview

Circular Economy Market Size Was Valued at USD 3.1 Trillion in 2023 and is Projected to Reach USD 6.3 Trillion by 2032, Growing at a CAGR of 8.20 % From 2024-2032.

The concept of a circular economy was not originated by a single person. Although the concept underlying it was first discussed in the middle of the twentieth century, the phrase itself is mostly a 21st-century invention. A circular economy, also known as circularity or CE, is a production and consumption model that prioritizes sharing, renting, reusing, repairing, and recycling already-existent goods and resources for as long as possible. By putting a focus on the design-based implementation of the model's three guiding principles, CE seeks to address issues including climate change, biodiversity loss, waste, and pollution. the three guiding principles of a circular economy, including reducing waste and pollution, recycling goods and materials, and restoring nature.

The expansion of the circular economy market is primarily ascribed to strict rules for waste reuse and recycling, enhanced material circulation, and low landfill waste volumes, which are fueled by accelerated digitization, decarbonization, efficiency gains, and cost optimization. The building as material banks (BAMBs) concept, chemical recycling of plastic waste, decarbonization, AI-based smart sorting, emerging solutions for the recycling of cardboard and paper packaging waste, the digital sustainability of supply chains, circular economies for the recycling of used oil, chemical recycling of plastic waste, and circular economies for the disposal of IT assets are important investment areas and top trends in 2022 (ITAD).

Market Dynamics And Factors For Circular Economy Market

Drivers:

Hastening Digitalization, Decarbonization, Increased Efficiency, And Cost Optimization

• The Circular Economy Market is propelled by the convergence of digitalization, decarbonization, increased efficiency, and cost optimization. Digitalization fosters innovative solutions, enabling the tracking and optimization of resources throughout their lifecycle. This facilitates the transition from a linear 'take-make-dispose' model to a circular one, where products are designed for longevity, reuse, and recycling.
• Decarbonization efforts drive the adoption of sustainable practices, reducing emissions and mitigating climate change impacts. Increased efficiency ensures optimal resource utilization, minimizing waste generation and maximizing value creation. Cost optimization strategies prioritize resource efficiency, driving down production costs and enhancing competitiveness.
• Together, these factors create a conducive environment for the Circular Economy Market to thrive. Businesses recognize the economic and environmental benefits of adopting circular practices, leading to a surge in investments and initiatives. Governments and policymakers play a crucial role in facilitating this transition through supportive policies, incentives, and regulations.

Restraints:

Lack Of Regulations Governing Legal Competition Among Companies

• The absence of robust regulations governing fair competition among companies presents a significant restraint for the Circular Economy Market. Circular economy principles aim to minimize waste and maximize resource efficiency by promoting the reuse, recycling, and regeneration of products and materials. However, without clear guidelines ensuring fair competition, companies may resort to unsustainable practices such as greenwashing or undercutting prices at the expense of environmental and social standards.
• Inadequate regulations can lead to market distortions where companies prioritize short-term gains over long-term sustainability goals. This can deter investment in circular economy initiatives and innovation, as companies may perceive compliance with environmental standards as a competitive disadvantage. Moreover, without regulatory oversight, there's a risk of monopolistic behavior or unfair market practices that hinder smaller players from entering and thriving in the circular economy market.

Opportunity:

The Market Create Opportunity to Protect Human Health, Biodiversity and Reduce Emissions

• The Circular Economy Market presents a unique opportunity to safeguard human health, preserve biodiversity, and mitigate emissions. By emphasizing the reuse, recycling, and repurposing of resources, this market fosters sustainable practices that benefit both the environment and society.
• By extending the lifespan of products through repair, refurbishment, and remanufacturing, we can minimize the need for raw materials, thereby curbing habitat destruction and preserving biodiversity. Additionally, by encouraging the use of renewable energy sources and efficient transportation methods, the Circular Economy Market helps to reduce harmful emissions, mitigating the impacts of climate change and improving air quality.
• The market incentivizes innovation in eco-friendly materials and production processes, spurring the development of safer, healthier products. This not only protects human health but also promotes responsible consumption patterns that prioritize longevity and sustainability.

Challenges:

Poor Environmental Awareness On The Part of Suppliers And Clients

• The poor environmental awareness among suppliers and clients poses significant challenges to the circular economy market. Suppliers often prioritize cost efficiency and short-term gains over sustainability practices, leading to the production of goods with high environmental footprints and limited recyclability. Similarly, clients may not be well-informed about the importance of choosing eco-friendly products or may prioritize convenience and affordability over sustainability.
• This lack of awareness creates a vicious cycle where unsustainable practices persist throughout the supply chain, hindering the adoption of circular economy principles. Additionally, without demand for recycled or refurbished products, suppliers may not invest in developing more sustainable alternatives, further perpetuating the problem.

Regional Analysis In Circular Economy Market

• Europe has emerged as a dominant force in the global Circular Economy Market, showcasing exemplary leadership and innovation. Through stringent regulations, ambitious targets, and proactive policies, European nations have fostered an environment conducive to circularity across industries. The European Union's Circular Economy Action Plan serves as a comprehensive roadmap, outlining strategies to minimize waste generation, maximize resource efficiency, and promote sustainable consumption and production practices.
• European businesses have embraced circularity as a core principle, driving the development of innovative technologies and business models. From recycling and remanufacturing to product redesign and waste-to-energy solutions, European companies are at the forefront of circular innovation. Collaborative initiatives between public and private sectors further accelerate progress, fostering knowledge sharing and facilitating investments in circular projects.
• Consumers in Europe increasingly prioritize sustainability, demanding eco-friendly products and services. This shift in consumer behavior incentivizes businesses to adopt circular practices, creating a virtuous cycle of sustainability-driven innovation and market growth. Moreover, Europe's circular economy leadership extends beyond its borders through international partnerships and initiatives, inspiring global action towards a more sustainable future.

Top Key Players Covered In The Circular Economy Market

• Covanta Holding Corporation
• Hitachi Zosen Corporation
• Suez Environment S.A Clean Harbors Inc
• The Savola Group
• IKEA Food
• Remondis AG and Co. Kg
• Waste Management Inc
• Biffa Group
• Daiseki Co. Ltd
• Cisco
• Levi Strauss
• H&M Group
• Advanced Disposal Services
• Veolia Environment S.A, and Other Major Players

Key Industry Developments:

• In October 2023, SAP upgraded its SAP Responsible Design and Production Suite. The latest version of SAP Responsible Design and Production includes updated EPR reporting capability to support the enhanced reporting and integration with multiple ERP with non-harmonized identifiers, augmenting its digital circular economy capabilities.
• In October 2023, Honeywell and GranBio Technologies partnered together to co-produce carbon-neutral sustainable aviation fuel (SAF) from biomass residues at a US-based demonstration plant. Honeywell aims to leverage its renewable energy expertise in generating SAF for strengthening its position as a major circular economy vendor across aerospace and aviation sector.
• In September 2023, Capgemini acquired HDL Design House, a leading silicon design and verification services provider. The synergy between silicon services and digital circular economy is profound, as advanced silicon design plays a pivotal role in optimizing resource usage and fostering sustainability. This acquisition equips Capgemini to offer innovative solutions that align seamlessly with circular economy practices, reinforcing its commitment to driving sustainable digital transformations in the evolving business landscape.
• In June 2023, SAP and Versuni announced a global partnership focused on sustainability and circular economy. With the SAP Sustainability Control Tower software, a digital tool for ESG management based on real-time data, Versuni will be able to promote holistic management by setting goals, monitoring progress, and gaining insights from data, generating robust and auditable ESG reports, as well as improvement actions.
• In April 2023, Cisco and Leonardo entered into a strategic MoU, aimed at boosting cooperation between Cisco and Leonardo in various areas. Both entities will be co-developing solutions in sustainable technology fields such as the green transition and sustainable solutions for logistics and transportation markets.

Chapter 1: Introduction
 1.1 Research Objectives
 1.2 Research Methodology
 1.3 Research Process
 1.4 Scope and Coverage
  1.4.1 Market Definition
  1.4.2 Key Questions Answered
 1.5 Market Segmentation

Chapter 2:Executive Summary

Chapter 3:Growth Opportunities By Segment
 3.1 By Waste Management
 3.2 By Industry

Chapter 4: Market Landscape
 4.1 Porter's Five Forces Analysis
  4.1.1 Bargaining Power of Supplier
  4.1.2 Threat of New Entrants
  4.1.3 Threat of Substitutes
  4.1.4 Competitive Rivalry
  4.1.5 Bargaining Power Among Buyers
 4.2 Industry Value Chain Analysis
 4.3 Market Dynamics
  4.3.1 Drivers
  4.3.2 Restraints
  4.3.3 Opportunities
  4.5.4 Challenges
 4.4 Pestle Analysis
 4.5 Technological Roadmap
 4.6 Regulatory Landscape
 4.7 SWOT Analysis
 4.8 Price Trend Analysis
 4.9 Patent Analysis
 4.10 Analysis of the Impact of Covid-19
  4.10.1 Impact on the Overall Market
  4.10.2 Impact on the Supply Chain
  4.10.3 Impact on the Key Manufacturers
  4.10.4 Impact on the Pricing

Chapter 5: Circular Economy Market by Waste Management
 5.1 Circular Economy Market Overview Snapshot and Growth Engine
 5.2 Circular Economy Market Overview
 5.3 Electronic Waste
  5.3.1 Introduction and Market Overview
  5.3.2 Historic and Forecasted Market Size (2016-2028F)
  5.3.3 Key Market Trends, Growth Factors and Opportunities
  5.3.4 Electronic Waste: Geographic Segmentation
 5.4 Food Waste
  5.4.1 Introduction and Market Overview
  5.4.2 Historic and Forecasted Market Size (2016-2028F)
  5.4.3 Key Market Trends, Growth Factors and Opportunities
  5.4.4 Food Waste: Geographic Segmentation
 5.5 Plastic Recycling
  5.5.1 Introduction and Market Overview
  5.5.2 Historic and Forecasted Market Size (2016-2028F)
  5.5.3 Key Market Trends, Growth Factors and Opportunities
  5.5.4 Plastic Recycling: Geographic Segmentation
 5.6 Clothing & Textile
  5.6.1 Introduction and Market Overview
  5.6.2 Historic and Forecasted Market Size (2016-2028F)
  5.6.3 Key Market Trends, Growth Factors and Opportunities
  5.6.4 Clothing & Textile: Geographic Segmentation
 5.7 Wood Recycling
  5.7.1 Introduction and Market Overview
  5.7.2 Historic and Forecasted Market Size (2016-2028F)
  5.7.3 Key Market Trends, Growth Factors and Opportunities
  5.7.4 Wood Recycling: Geographic Segmentation
 5.8 Glass Recycling
  5.8.1 Introduction and Market Overview
  5.8.2 Historic and Forecasted Market Size (2016-2028F)
  5.8.3 Key Market Trends, Growth Factors and Opportunities
  5.8.4 Glass Recycling: Geographic Segmentation

Chapter 6: Circular Economy Market by Industry
 6.1 Circular Economy Market Overview Snapshot and Growth Engine
 6.2 Circular Economy Market Overview
 6.3 Textile
  6.3.1 Introduction and Market Overview
  6.3.2 Historic and Forecasted Market Size (2016-2028F)
  6.3.3 Key Market Trends, Growth Factors and Opportunities
  6.3.4 Textile: Geographic Segmentation
 6.4 Construction
  6.4.1 Introduction and Market Overview
  6.4.2 Historic and Forecasted Market Size (2016-2028F)
  6.4.3 Key Market Trends, Growth Factors and Opportunities
  6.4.4 Construction: Geographic Segmentation
 6.5 Automotive
  6.5.1 Introduction and Market Overview
  6.5.2 Historic and Forecasted Market Size (2016-2028F)
  6.5.3 Key Market Trends, Growth Factors and Opportunities
  6.5.4 Automotive: Geographic Segmentation
 6.6 Logistics
  6.6.1 Introduction and Market Overview
  6.6.2 Historic and Forecasted Market Size (2016-2028F)
  6.6.3 Key Market Trends, Growth Factors and Opportunities
  6.6.4 Logistics: Geographic Segmentation
 6.7 Furniture
  6.7.1 Introduction and Market Overview
  6.7.2 Historic and Forecasted Market Size (2016-2028F)
  6.7.3 Key Market Trends, Growth Factors and Opportunities
  6.7.4 Furniture: Geographic Segmentation
 6.8 Oil & Gas
  6.8.1 Introduction and Market Overview
  6.8.2 Historic and Forecasted Market Size (2016-2028F)
  6.8.3 Key Market Trends, Growth Factors and Opportunities
  6.8.4 Oil & Gas: Geographic Segmentation

Chapter 7: Company Profiles and Competitive Analysis
 7.1 Competitive Landscape
  7.1.1 Competitive Positioning
  7.1.2 Circular Economy Sales and Market Share By Players
  7.1.3 Industry BCG Matrix
  7.1.4 Heat Map Analysis
  7.1.5 Circular Economy Industry Concentration Ratio (CR5 and HHI)
  7.1.6 Top 5 Circular Economy Players Market Share
  7.1.7 Mergers and Acquisitions
  7.1.8 Business Strategies By Top Players
 7.2 COVANTA HOLDING CORPORATION
  7.2.1 Company Overview
  7.2.2 Key Executives
  7.2.3 Company Snapshot
  7.2.4 Operating Business Segments
  7.2.5 Product Portfolio
  7.2.6 Business Performance
  7.2.7 Key Strategic Moves and Recent Developments
  7.2.8 SWOT Analysis
 7.3 HITACHI ZOSEN CORPORATION
 7.4 SUEZ ENVIRONMENT S.A CLEAN HARBORS INC
 7.5 THE SAVOLA GROUP
 7.6 IKEA FOOD
 7.7 REMONDIS AG AND CO. KG
 7.8 WASTE MANAGEMENT INC.
 7.9 BIFFA GROUP
 7.10 DAISEKI CO. LTD
 7.11 CISCO
 7.12 LEVI STRAUSS
 7.13 H&M GROUP
 7.14 ADVANCED DISPOSAL SERVICES
 7.15 VEOLIA ENVIRONMENT S.A
 7.16 OTHER MAJOR PLAYERS

Chapter 8: Global Circular Economy Market Analysis, Insights and Forecast, 2016-2028
 8.1 Market Overview
 8.2 Historic and Forecasted Market Size By Waste Management
  8.2.1 Electronic Waste
  8.2.2 Food Waste
  8.2.3 Plastic Recycling
  8.2.4 Clothing & Textile
  8.2.5 Wood Recycling
  8.2.6 Glass Recycling
 8.3 Historic and Forecasted Market Size By Industry
  8.3.1 Textile
  8.3.2 Construction
  8.3.3 Automotive
  8.3.4 Logistics
  8.3.5 Furniture
  8.3.6 Oil & Gas

Chapter 9: North America Circular Economy Market Analysis, Insights and Forecast, 2016-2028
 9.1 Key Market Trends, Growth Factors and Opportunities
 9.2 Impact of Covid-19
 9.3 Key Players
 9.4 Key Market Trends, Growth Factors and Opportunities
 9.4 Historic and Forecasted Market Size By Waste Management
  9.4.1 Electronic Waste
  9.4.2 Food Waste
  9.4.3 Plastic Recycling
  9.4.4 Clothing & Textile
  9.4.5 Wood Recycling
  9.4.6 Glass Recycling
 9.5 Historic and Forecasted Market Size By Industry
  9.5.1 Textile
  9.5.2 Construction
  9.5.3 Automotive
  9.5.4 Logistics
  9.5.5 Furniture
  9.5.6 Oil & Gas
 9.6 Historic and Forecast Market Size by Country
  9.6.1 U.S.
  9.6.2 Canada
  9.6.3 Mexico

Chapter 10: Europe Circular Economy Market Analysis, Insights and Forecast, 2016-2028
 10.1 Key Market Trends, Growth Factors and Opportunities
 10.2 Impact of Covid-19
 10.3 Key Players
 10.4 Key Market Trends, Growth Factors and Opportunities
 10.4 Historic and Forecasted Market Size By Waste Management
  10.4.1 Electronic Waste
  10.4.2 Food Waste
  10.4.3 Plastic Recycling
  10.4.4 Clothing & Textile
  10.4.5 Wood Recycling
  10.4.6 Glass Recycling
 10.5 Historic and Forecasted Market Size By Industry
  10.5.1 Textile
  10.5.2 Construction
  10.5.3 Automotive
  10.5.4 Logistics
  10.5.5 Furniture
  10.5.6 Oil & Gas
 10.6 Historic and Forecast Market Size by Country
  10.6.1 Germany
  10.6.2 U.K.
  10.6.3 France
  10.6.4 Italy
  10.6.5 Russia
  10.6.6 Spain
  10.6.7 Rest of Europe

Chapter 11: Asia-Pacific Circular Economy Market Analysis, Insights and Forecast, 2016-2028
 11.1 Key Market Trends, Growth Factors and Opportunities
 11.2 Impact of Covid-19
 11.3 Key Players
 11.4 Key Market Trends, Growth Factors and Opportunities
 11.4 Historic and Forecasted Market Size By Waste Management
  11.4.1 Electronic Waste
  11.4.2 Food Waste
  11.4.3 Plastic Recycling
  11.4.4 Clothing & Textile
  11.4.5 Wood Recycling
  11.4.6 Glass Recycling
 11.5 Historic and Forecasted Market Size By Industry
  11.5.1 Textile
  11.5.2 Construction
  11.5.3 Automotive
  11.5.4 Logistics
  11.5.5 Furniture
  11.5.6 Oil & Gas
 11.6 Historic and Forecast Market Size by Country
  11.6.1 China
  11.6.2 India
  11.6.3 Japan
  11.6.4 Singapore
  11.6.5 Australia
  11.6.6 New Zealand
  11.6.7 Rest of APAC

Chapter 12: Middle East & Africa Circular Economy Market Analysis, Insights and Forecast, 2016-2028
 12.1 Key Market Trends, Growth Factors and Opportunities
 12.2 Impact of Covid-19
 12.3 Key Players
 12.4 Key Market Trends, Growth Factors and Opportunities
 12.4 Historic and Forecasted Market Size By Waste Management
  12.4.1 Electronic Waste
  12.4.2 Food Waste
  12.4.3 Plastic Recycling
  12.4.4 Clothing & Textile
  12.4.5 Wood Recycling
  12.4.6 Glass Recycling
 12.5 Historic and Forecasted Market Size By Industry
  12.5.1 Textile
  12.5.2 Construction
  12.5.3 Automotive
  12.5.4 Logistics
  12.5.5 Furniture
  12.5.6 Oil & Gas
 12.6 Historic and Forecast Market Size by Country
  12.6.1 Turkey
  12.6.2 Saudi Arabia
  12.6.3 Iran
  12.6.4 UAE
  12.6.5 Africa
  12.6.6 Rest of MEA

Chapter 13: South America Circular Economy Market Analysis, Insights and Forecast, 2016-2028
 13.1 Key Market Trends, Growth Factors and Opportunities
 13.2 Impact of Covid-19
 13.3 Key Players
 13.4 Key Market Trends, Growth Factors and Opportunities
 13.4 Historic and Forecasted Market Size By Waste Management
  13.4.1 Electronic Waste
  13.4.2 Food Waste
  13.4.3 Plastic Recycling
  13.4.4 Clothing & Textile
  13.4.5 Wood Recycling
  13.4.6 Glass Recycling
 13.5 Historic and Forecasted Market Size By Industry
  13.5.1 Textile
  13.5.2 Construction
  13.5.3 Automotive
  13.5.4 Logistics
  13.5.5 Furniture
  13.5.6 Oil & Gas
 13.6 Historic and Forecast Market Size by Country
  13.6.1 Brazil
  13.6.2 Argentina
  13.6.3 Rest of SA

Chapter 14 Investment Analysis

Chapter 15 Analyst Viewpoint and Conclusion