Abstract
This report is part of a broader project aimed at transitioning Danish industry towards a circular and resilient economy, with a skilled workforce. The Danish Business Authority (DBA) is the beneficiary, and the project is funded by the EU through the Technical Support Instrument (TSI). The project is implemented by Trinomics and the Technical University of Denmark (DTU), in cooperation with the European Commission.
This deliverable explores how product and service use data can support Circular Economy (CE) initiatives by extending product lifespans, increasing capacity utilisation, reducing material and energy consumption, and fostering circular business models across various industrial sectors (construction, manufacturing, environmental technologies and bio-solutions) emphasising their current focus areas and the potential for technological advancements to drive further progress.
Targeted at businesses and policymakers, it aims to bridge corporate and regulatory efforts to accelerate the transition from linear to circular practices. The research methodology employed a three-phase approach:
- Phase I consisted of a Systematic Literature Review (SLR) of academic papers and reports.
- Phase II involved an empirical study, including case company analysis, interviews, and an industrial workshop.
- Phase III consolidated findings through gap analysis and benchmarking to formulate and evaluate policy recommendations.
The report provides (1) a comprehensive consolidation of initiatives and best practices from academic literature; (2) an analysis of barriers and drivers for data collection, sharing, and use in industry, as well as best practices; and (3) actionable policy recommendations to promote data-driven circular strategies.
Best practices for use phase data collection, sharing and utilisation (Phase I)
The findings underline the importance of technology in enabling circularity across industries. By leveraging emerging technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Big Data Analytics (BDA) and Digital twin, sectors can not only address current challenges but also unlock new opportunities to lead in the circular economy transition. In the construction sector, the focus is on extending product lifespans, optimising resource and energy efficiency, and fostering circular business models. Current technologies such as Building Information Modelling (BIM), Material Passports (MPs), IoT, AI, and Digital twins are instrumental. Future opportunities include predictive maintenance and Smart grid integration to expand circular practices. The manufacturing sector prioritises resource and material efficiency alongside capacity utilisation. Technologies like IoT, BDA, and Digital Product Passports (DPP) are widely used. Expanding into areas such as energy efficiency and predictive maintenance offers significant potential for further circular advancements. The environmental technologies sector focuses on improving capacity utilisation, energy efficiency, and material efficiency. Digital twins, Smart grids, and advanced data analysis tools like Data Envelopment Analysis (DEA) are enabling current progress. Opportunities lie in Blockchain and material passports to support circular business model innovation. In the bio-solutions sector, resource efficiency and capacity utilisation are key priorities. BDA and IoT play a central role, while future advancements can be driven by adopting AI, Digital twins, and expanded IoT applications.
Other sectors are addressing circularity through efforts to extend product lifetime and optimise material efficiency. Predictive maintenance and the integration of IoT and Smart grids hold significant potential for advancing circular business practices and energy efficiency.
Drivers, barriers and best practices for use phase data collection, sharing and utilisation
The report highlights key factors driving and hindering the collection, sharing and utilisation of use phase data in advancing CE.
Among the drivers, economic considerations play a significant role, as companies seek to reduce downtime, lower maintenance costs, extend product lifespans, and achieve greater optimisation and automation. Expanding revenue streams through post-product sales and customer-focused services, such as remote support and performance-based models, further underscores the economic potential of use phase data. Collaboration across sectors and value chains enhances collective value, fostering innovation and improving outcomes for all stakeholders. Digital tools are pivotal in advancing circularity, enabling design optimisation, improving future product generations, and facilitating value chain collaborations, such as quality assessments of used products. These efforts link digitalisation with sustainability goals, creating new opportunities for innovation. Additionally, legislative frameworks, including the Corporate Sustainability Reporting Directive (CSRD) and DPP, are crucial drivers, mandating data collection and transparency to ensure compliance and promote circular economy goals. However, several barriers impede progress. Companies often struggle with cost-benefit trade-offs, as the value proposition of digital solutions and data remains unclear. Concerns
over data security and a lack of trust between stakeholders further complicate data-sharing efforts. Market maturity also presents challenges, with limited digitalisation readiness, inadequate industry standards, and difficulties in identifying critical data points, particularly for smaller enterprises. Legislative barriers add another layer of complexity, with restrictive data-sharing regulations, inconsistent legal interpretations across regions, and the absence of unified agreements on data collection. Overcoming these challenges is essential to unlocking the full potential of use phase data, enabling industries to innovate, improve efficiency, and accelerate the adoption of circular economy strategies.
Policy Recommendations to promote data sharing and Circular Economy goals
The policy recommendations aim to enhance use phase data collection, sharing and utilisation to advance CE practices across key areas: data and standards, business models, technology development, and circular strategies.
- Data and standards: recommendations focus on establishing consistent data-sharing processes, improving accessibility and transparency, and unifying legislation across borders. Initiatives include standardising data-sharing contracts, creating centralised data spaces for benchmarking, and leveraging frameworks like the DPP to streamline data exchange and enhance security.
- Business models and value propositions: recommendations encourage innovation through regulation, promote awareness of the link between circular principles and cost-efficiency, and support the creation of value propositions from use phase data. Strategies include mandating life cycle monitoring services, showcasing successful circular solutions, and leveraging data-driven insights to enhance product performance and customer satisfaction.
- Technology development and industry maturation: recommendations aim to support companies, especially small and medium-sized enterprises (SMEs), in adopting digital solutions and exploring circular practices. Actions include financial assistance for digital initiatives, early testing of DPPs, and providing education on data sharing and cybersecurity to empower businesses with the skills needed for sustainable innovation.
- Circular strategies and upskilling: emphasis is placed on setting national CE targets linked to use phase data, raising awareness of circular design principles, and investing in future workforce skills. This involves integrating circular economy concepts into education, upskilling teachers, and introducing specialised programmes in business and digital technologies to prepare industries for long-term CE success.
These comprehensive measures aim to remove barriers, foster collaboration, and drive progress towards a more sustainable and resilient economy through effective use phase data management
This deliverable explores how product and service use data can support Circular Economy (CE) initiatives by extending product lifespans, increasing capacity utilisation, reducing material and energy consumption, and fostering circular business models across various industrial sectors (construction, manufacturing, environmental technologies and bio-solutions) emphasising their current focus areas and the potential for technological advancements to drive further progress.
Targeted at businesses and policymakers, it aims to bridge corporate and regulatory efforts to accelerate the transition from linear to circular practices. The research methodology employed a three-phase approach:
- Phase I consisted of a Systematic Literature Review (SLR) of academic papers and reports.
- Phase II involved an empirical study, including case company analysis, interviews, and an industrial workshop.
- Phase III consolidated findings through gap analysis and benchmarking to formulate and evaluate policy recommendations.
The report provides (1) a comprehensive consolidation of initiatives and best practices from academic literature; (2) an analysis of barriers and drivers for data collection, sharing, and use in industry, as well as best practices; and (3) actionable policy recommendations to promote data-driven circular strategies.
Best practices for use phase data collection, sharing and utilisation (Phase I)
The findings underline the importance of technology in enabling circularity across industries. By leveraging emerging technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Big Data Analytics (BDA) and Digital twin, sectors can not only address current challenges but also unlock new opportunities to lead in the circular economy transition. In the construction sector, the focus is on extending product lifespans, optimising resource and energy efficiency, and fostering circular business models. Current technologies such as Building Information Modelling (BIM), Material Passports (MPs), IoT, AI, and Digital twins are instrumental. Future opportunities include predictive maintenance and Smart grid integration to expand circular practices. The manufacturing sector prioritises resource and material efficiency alongside capacity utilisation. Technologies like IoT, BDA, and Digital Product Passports (DPP) are widely used. Expanding into areas such as energy efficiency and predictive maintenance offers significant potential for further circular advancements. The environmental technologies sector focuses on improving capacity utilisation, energy efficiency, and material efficiency. Digital twins, Smart grids, and advanced data analysis tools like Data Envelopment Analysis (DEA) are enabling current progress. Opportunities lie in Blockchain and material passports to support circular business model innovation. In the bio-solutions sector, resource efficiency and capacity utilisation are key priorities. BDA and IoT play a central role, while future advancements can be driven by adopting AI, Digital twins, and expanded IoT applications.
Other sectors are addressing circularity through efforts to extend product lifetime and optimise material efficiency. Predictive maintenance and the integration of IoT and Smart grids hold significant potential for advancing circular business practices and energy efficiency.
Drivers, barriers and best practices for use phase data collection, sharing and utilisation
The report highlights key factors driving and hindering the collection, sharing and utilisation of use phase data in advancing CE.
Among the drivers, economic considerations play a significant role, as companies seek to reduce downtime, lower maintenance costs, extend product lifespans, and achieve greater optimisation and automation. Expanding revenue streams through post-product sales and customer-focused services, such as remote support and performance-based models, further underscores the economic potential of use phase data. Collaboration across sectors and value chains enhances collective value, fostering innovation and improving outcomes for all stakeholders. Digital tools are pivotal in advancing circularity, enabling design optimisation, improving future product generations, and facilitating value chain collaborations, such as quality assessments of used products. These efforts link digitalisation with sustainability goals, creating new opportunities for innovation. Additionally, legislative frameworks, including the Corporate Sustainability Reporting Directive (CSRD) and DPP, are crucial drivers, mandating data collection and transparency to ensure compliance and promote circular economy goals. However, several barriers impede progress. Companies often struggle with cost-benefit trade-offs, as the value proposition of digital solutions and data remains unclear. Concerns
over data security and a lack of trust between stakeholders further complicate data-sharing efforts. Market maturity also presents challenges, with limited digitalisation readiness, inadequate industry standards, and difficulties in identifying critical data points, particularly for smaller enterprises. Legislative barriers add another layer of complexity, with restrictive data-sharing regulations, inconsistent legal interpretations across regions, and the absence of unified agreements on data collection. Overcoming these challenges is essential to unlocking the full potential of use phase data, enabling industries to innovate, improve efficiency, and accelerate the adoption of circular economy strategies.
Policy Recommendations to promote data sharing and Circular Economy goals
The policy recommendations aim to enhance use phase data collection, sharing and utilisation to advance CE practices across key areas: data and standards, business models, technology development, and circular strategies.
- Data and standards: recommendations focus on establishing consistent data-sharing processes, improving accessibility and transparency, and unifying legislation across borders. Initiatives include standardising data-sharing contracts, creating centralised data spaces for benchmarking, and leveraging frameworks like the DPP to streamline data exchange and enhance security.
- Business models and value propositions: recommendations encourage innovation through regulation, promote awareness of the link between circular principles and cost-efficiency, and support the creation of value propositions from use phase data. Strategies include mandating life cycle monitoring services, showcasing successful circular solutions, and leveraging data-driven insights to enhance product performance and customer satisfaction.
- Technology development and industry maturation: recommendations aim to support companies, especially small and medium-sized enterprises (SMEs), in adopting digital solutions and exploring circular practices. Actions include financial assistance for digital initiatives, early testing of DPPs, and providing education on data sharing and cybersecurity to empower businesses with the skills needed for sustainable innovation.
- Circular strategies and upskilling: emphasis is placed on setting national CE targets linked to use phase data, raising awareness of circular design principles, and investing in future workforce skills. This involves integrating circular economy concepts into education, upskilling teachers, and introducing specialised programmes in business and digital technologies to prepare industries for long-term CE success.
These comprehensive measures aim to remove barriers, foster collaboration, and drive progress towards a more sustainable and resilient economy through effective use phase data management
| Original language | English |
|---|
| Place of Publication | Kgs. Lyngby |
|---|---|
| Publisher | Technical University of Denmark |
| Number of pages | 141 |
| Publication status | Published - 2025 |
Bibliographical note
REFORM/2021/OP/0006-01The project was funded by the European Union via the Technical Support Instrument, managed by the European Commission Reform and Investment Task Force.
This report was produced with the financial support of the European Union. Its contents are the sole responsibility of the author(s). The views expressed herein can in no way be taken to reflect the official opinion of the European Union.
