Circular economy

Technology also drives the circular transition. Circular economy is a response to the growing demand for raw materials. It is a development strategy increasing prosperity while reducing and optimising resource consumption.

Business has so far been locked-in to the linear model of production and consumption, previously satisfied only through the purchase of durable goods. Sharing and shared responsibility models are now taking hold. As product owners, companies will be responsible for their products from design to final disposal. The obligation to recycle now falls on the producer and the consumer.

Product-as-a-Service (PaaS) will facilitate recycling and fits into the circular economy model, while additionally lowering the cost of satisfying needs. Instead of buying durable goods, we will pay to use them with the support of digital tools.