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.
Global Circular Economy Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2017 to 2022 |
Market Size in 2023: |
USD 3.1 Tr. |
Forecast Period 2024-32 CAGR: |
8.20% |
Market Size in 2032: |
USD 6.3 Tr. |
Segments Covered: |
By Waste Management |
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By Industry |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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Chapter 1: Introduction
ā1.1 Research Objectives
ā1.2 Research Methodology
ā1.3 Research Process
ā1.4 Scope and Coverage
āā1.4.1 Market Definition
āā1.4.2 Key Questions Answered
ā1.5 Market Segmentation
Chapter 2:Executive Summary
Chapter 3:Growth Opportunities By Segment
ā3.1 By Waste Management
ā3.2 By Industry
Chapter 4: Market Landscape
ā4.1 Porter's Five Forces Analysis
āā4.1.1 Bargaining Power of Supplier
āā4.1.2 Threat of New Entrants
āā4.1.3 Threat of Substitutes
āā4.1.4 Competitive Rivalry
āā4.1.5 Bargaining Power Among Buyers
ā4.2 Industry Value Chain Analysis
ā4.3 Market Dynamics
āā4.3.1 Drivers
āā4.3.2 Restraints
āā4.3.3 Opportunities
āā4.5.4 Challenges
ā4.4 Pestle Analysis
ā4.5 Technological Roadmap
ā4.6 Regulatory Landscape
ā4.7 SWOT Analysis
ā4.8 Price Trend Analysis
ā4.9 Patent Analysis
ā4.10 Analysis of the Impact of Covid-19
āā4.10.1 Impact on the Overall Market
āā4.10.2 Impact on the Supply Chain
āā4.10.3 Impact on the Key Manufacturers
āā4.10.4 Impact on the Pricing
Chapter 5: Circular Economy Market by Waste Management
ā5.1 Circular Economy Market Overview Snapshot and Growth Engine
ā5.2 Circular Economy Market Overview
ā5.3 Electronic Waste
āā5.3.1 Introduction and Market Overview
āā5.3.2 Historic and Forecasted Market Size (2016-2028F)
āā5.3.3 Key Market Trends, Growth Factors and Opportunities
āā5.3.4 Electronic Waste: Geographic Segmentation
ā5.4 Food Waste
āā5.4.1 Introduction and Market Overview
āā5.4.2 Historic and Forecasted Market Size (2016-2028F)
āā5.4.3 Key Market Trends, Growth Factors and Opportunities
āā5.4.4 Food Waste: Geographic Segmentation
ā5.5 Plastic Recycling
āā5.5.1 Introduction and Market Overview
āā5.5.2 Historic and Forecasted Market Size (2016-2028F)
āā5.5.3 Key Market Trends, Growth Factors and Opportunities
āā5.5.4 Plastic Recycling: Geographic Segmentation
ā5.6 Clothing & Textile
āā5.6.1 Introduction and Market Overview
āā5.6.2 Historic and Forecasted Market Size (2016-2028F)
āā5.6.3 Key Market Trends, Growth Factors and Opportunities
āā5.6.4 Clothing & Textile: Geographic Segmentation
ā5.7 Wood Recycling
āā5.7.1 Introduction and Market Overview
āā5.7.2 Historic and Forecasted Market Size (2016-2028F)
āā5.7.3 Key Market Trends, Growth Factors and Opportunities
āā5.7.4 Wood Recycling: Geographic Segmentation
ā5.8 Glass Recycling
āā5.8.1 Introduction and Market Overview
āā5.8.2 Historic and Forecasted Market Size (2016-2028F)
āā5.8.3 Key Market Trends, Growth Factors and Opportunities
āā5.8.4 Glass Recycling: Geographic Segmentation
Chapter 6: Circular Economy Market by Industry
ā6.1 Circular Economy Market Overview Snapshot and Growth Engine
ā6.2 Circular Economy Market Overview
ā6.3 Textile
āā6.3.1 Introduction and Market Overview
āā6.3.2 Historic and Forecasted Market Size (2016-2028F)
āā6.3.3 Key Market Trends, Growth Factors and Opportunities
āā6.3.4 Textile: Geographic Segmentation
ā6.4 Construction
āā6.4.1 Introduction and Market Overview
āā6.4.2 Historic and Forecasted Market Size (2016-2028F)
āā6.4.3 Key Market Trends, Growth Factors and Opportunities
āā6.4.4 Construction: Geographic Segmentation
ā6.5 Automotive
āā6.5.1 Introduction and Market Overview
āā6.5.2 Historic and Forecasted Market Size (2016-2028F)
āā6.5.3 Key Market Trends, Growth Factors and Opportunities
āā6.5.4 Automotive: Geographic Segmentation
ā6.6 Logistics
āā6.6.1 Introduction and Market Overview
āā6.6.2 Historic and Forecasted Market Size (2016-2028F)
āā6.6.3 Key Market Trends, Growth Factors and Opportunities
āā6.6.4 Logistics: Geographic Segmentation
ā6.7 Furniture
āā6.7.1 Introduction and Market Overview
āā6.7.2 Historic and Forecasted Market Size (2016-2028F)
āā6.7.3 Key Market Trends, Growth Factors and Opportunities
āā6.7.4 Furniture: Geographic Segmentation
ā6.8 Oil & Gas
āā6.8.1 Introduction and Market Overview
āā6.8.2 Historic and Forecasted Market Size (2016-2028F)
āā6.8.3 Key Market Trends, Growth Factors and Opportunities
āā6.8.4 Oil & Gas: Geographic Segmentation
Chapter 7: Company Profiles and Competitive Analysis
ā7.1 Competitive Landscape
āā7.1.1 Competitive Positioning
āā7.1.2 Circular Economy Sales and Market Share By Players
āā7.1.3 Industry BCG Matrix
āā7.1.4 Heat Map Analysis
āā7.1.5 Circular Economy Industry Concentration Ratio (CR5 and HHI)
āā7.1.6 Top 5 Circular Economy Players Market Share
āā7.1.7 Mergers and Acquisitions
āā7.1.8 Business Strategies By Top Players
ā7.2 COVANTA HOLDING CORPORATION
āā7.2.1 Company Overview
āā7.2.2 Key Executives
āā7.2.3 Company Snapshot
āā7.2.4 Operating Business Segments
āā7.2.5 Product Portfolio
āā7.2.6 Business Performance
āā7.2.7 Key Strategic Moves and Recent Developments
āā7.2.8 SWOT Analysis
ā7.3 HITACHI ZOSEN CORPORATION
ā7.4 SUEZ ENVIRONMENT S.A CLEAN HARBORS INC
ā7.5 THE SAVOLA GROUP
ā7.6 IKEA FOOD
ā7.7 REMONDIS AG AND CO. KG
ā7.8 WASTE MANAGEMENT INC.
ā7.9 BIFFA GROUP
ā7.10 DAISEKI CO. LTD
ā7.11 CISCO
ā7.12 LEVI STRAUSS
ā7.13 H&M GROUP
ā7.14 ADVANCED DISPOSAL SERVICES
ā7.15 VEOLIA ENVIRONMENT S.A
ā7.16 OTHER MAJOR PLAYERS
Chapter 8: Global Circular Economy Market Analysis, Insights and Forecast, 2016-2028
ā8.1 Market Overview
ā8.2 Historic and Forecasted Market Size By Waste Management
āā8.2.1 Electronic Waste
āā8.2.2 Food Waste
āā8.2.3 Plastic Recycling
āā8.2.4 Clothing & Textile
āā8.2.5 Wood Recycling
āā8.2.6 Glass Recycling
ā8.3 Historic and Forecasted Market Size By Industry
āā8.3.1 Textile
āā8.3.2 Construction
āā8.3.3 Automotive
āā8.3.4 Logistics
āā8.3.5 Furniture
āā8.3.6 Oil & Gas
Chapter 9: North America Circular Economy Market Analysis, Insights and Forecast, 2016-2028
ā9.1 Key Market Trends, Growth Factors and Opportunities
ā9.2 Impact of Covid-19
ā9.3 Key Players
ā9.4 Key Market Trends, Growth Factors and Opportunities
ā9.4 Historic and Forecasted Market Size By Waste Management
āā9.4.1 Electronic Waste
āā9.4.2 Food Waste
āā9.4.3 Plastic Recycling
āā9.4.4 Clothing & Textile
āā9.4.5 Wood Recycling
āā9.4.6 Glass Recycling
ā9.5 Historic and Forecasted Market Size By Industry
āā9.5.1 Textile
āā9.5.2 Construction
āā9.5.3 Automotive
āā9.5.4 Logistics
āā9.5.5 Furniture
āā9.5.6 Oil & Gas
ā9.6 Historic and Forecast Market Size by Country
āā9.6.1 U.S.
āā9.6.2 Canada
āā9.6.3 Mexico
Chapter 10: Europe Circular Economy Market Analysis, Insights and Forecast, 2016-2028
ā10.1 Key Market Trends, Growth Factors and Opportunities
ā10.2 Impact of Covid-19
ā10.3 Key Players
ā10.4 Key Market Trends, Growth Factors and Opportunities
ā10.4 Historic and Forecasted Market Size By Waste Management
āā10.4.1 Electronic Waste
āā10.4.2 Food Waste
āā10.4.3 Plastic Recycling
āā10.4.4 Clothing & Textile
āā10.4.5 Wood Recycling
āā10.4.6 Glass Recycling
ā10.5 Historic and Forecasted Market Size By Industry
āā10.5.1 Textile
āā10.5.2 Construction
āā10.5.3 Automotive
āā10.5.4 Logistics
āā10.5.5 Furniture
āā10.5.6 Oil & Gas
ā10.6 Historic and Forecast Market Size by Country
āā10.6.1 Germany
āā10.6.2 U.K.
āā10.6.3 France
āā10.6.4 Italy
āā10.6.5 Russia
āā10.6.6 Spain
āā10.6.7 Rest of Europe
Chapter 11: Asia-Pacific Circular Economy Market Analysis, Insights and Forecast, 2016-2028
ā11.1 Key Market Trends, Growth Factors and Opportunities
ā11.2 Impact of Covid-19
ā11.3 Key Players
ā11.4 Key Market Trends, Growth Factors and Opportunities
ā11.4 Historic and Forecasted Market Size By Waste Management
āā11.4.1 Electronic Waste
āā11.4.2 Food Waste
āā11.4.3 Plastic Recycling
āā11.4.4 Clothing & Textile
āā11.4.5 Wood Recycling
āā11.4.6 Glass Recycling
ā11.5 Historic and Forecasted Market Size By Industry
āā11.5.1 Textile
āā11.5.2 Construction
āā11.5.3 Automotive
āā11.5.4 Logistics
āā11.5.5 Furniture
āā11.5.6 Oil & Gas
ā11.6 Historic and Forecast Market Size by Country
āā11.6.1 China
āā11.6.2 India
āā11.6.3 Japan
āā11.6.4 Singapore
āā11.6.5 Australia
āā11.6.6 New Zealand
āā11.6.7 Rest of APAC
Chapter 12: Middle East & Africa Circular Economy Market Analysis, Insights and Forecast, 2016-2028
ā12.1 Key Market Trends, Growth Factors and Opportunities
ā12.2 Impact of Covid-19
ā12.3 Key Players
ā12.4 Key Market Trends, Growth Factors and Opportunities
ā12.4 Historic and Forecasted Market Size By Waste Management
āā12.4.1 Electronic Waste
āā12.4.2 Food Waste
āā12.4.3 Plastic Recycling
āā12.4.4 Clothing & Textile
āā12.4.5 Wood Recycling
āā12.4.6 Glass Recycling
ā12.5 Historic and Forecasted Market Size By Industry
āā12.5.1 Textile
āā12.5.2 Construction
āā12.5.3 Automotive
āā12.5.4 Logistics
āā12.5.5 Furniture
āā12.5.6 Oil & Gas
ā12.6 Historic and Forecast Market Size by Country
āā12.6.1 Turkey
āā12.6.2 Saudi Arabia
āā12.6.3 Iran
āā12.6.4 UAE
āā12.6.5 Africa
āā12.6.6 Rest of MEA
Chapter 13: South America Circular Economy Market Analysis, Insights and Forecast, 2016-2028
ā13.1 Key Market Trends, Growth Factors and Opportunities
ā13.2 Impact of Covid-19
ā13.3 Key Players
ā13.4 Key Market Trends, Growth Factors and Opportunities
ā13.4 Historic and Forecasted Market Size By Waste Management
āā13.4.1 Electronic Waste
āā13.4.2 Food Waste
āā13.4.3 Plastic Recycling
āā13.4.4 Clothing & Textile
āā13.4.5 Wood Recycling
āā13.4.6 Glass Recycling
ā13.5 Historic and Forecasted Market Size By Industry
āā13.5.1 Textile
āā13.5.2 Construction
āā13.5.3 Automotive
āā13.5.4 Logistics
āā13.5.5 Furniture
āā13.5.6 Oil & Gas
ā13.6 Historic and Forecast Market Size by Country
āā13.6.1 Brazil
āā13.6.2 Argentina
āā13.6.3 Rest of SA
Chapter 14 Investment Analysis
Chapter 15 Analyst Viewpoint and Conclusion
Global Circular Economy Market |
|||
Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2017 to 2022 |
Market Size in 2023: |
USD 3.1 Tr. |
Forecast Period 2024-32 CAGR: |
8.20% |
Market Size in 2032: |
USD 6.3 Tr. |
Segments Covered: |
By Waste Management |
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By Industry |
|
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By Region |
|
||
Key Market Drivers: |
|
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Key Market Restraints: |
|
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Key Opportunities: |
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Companies Covered in the report: |
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Frequently Asked Questions :
The forecast period in the Circular Economy Market research report is 2024-2032.
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.
The Circular Economy Market is segmented into Waste Management, Industry, and region. By Waste Management, the market is categorized into Electronic Waste, Food Waste, Plastic Recycling, Clothing & Textile, Wood Recycling, and Glass Recycling. By Industry, the market is categorized into Textile, Construction, Automotive, Logistics, Furniture, Oil & Gas. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).
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.
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.