The Global Digital Product Passport Software Market is estimated to be valued at US$ 991.8 Mn in 2024
Digital product passport software allows manufacturers, suppliers, and retailers to record critical information about a product, its components, materials and supply chain journey on a digital platform. Such software helps verify product authenticity and trace its origins throughout its lifecycle. With growing concerns around product safety, sustainability and counterfeiting, governments across various regions are introducing mandates that require manufacturers to implement digital product passports for specific products and materials. For instance, the European Union’s Waste Framework Directive mandates product passports for electronics and batteries by 2024 and 2026 respectively. Similarly, in China the Extended Producer Responsibility policy requires manufacturers to adopt digital tools to manage recyclability information of their products. This growing regulatory push is anticipated to drive increased adoption of digital product passport software in the coming years.
The Global Digital Product Passport Software Market is estimated to be valued at US$ 991.8 Mn in 2024 and is expected to exhibit a CAGR of 26% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Digital Product Passport Software are Billon Group Ltd, CIRCULARISE, CIRPASS, Det Norske Veritas Group, iPoint-systems GmbH, Kezzler AS, LyondellBasell Industries Holdings B.V., Narravero GmbH, OPTEL GROUP, Protokol, PSQR, Qliktag Software Inc., Scantrust SA, Spherity GmbH, and THE ID FACTORY SRL. These players are focusing on collaborations and partnerships to expand their product offerings and global presence.
In terms of opportunities, stringent regulations around sustainable product design and end-of-life management are expected to boost demand for digital tools that help organizations demonstrate regulatory compliance. Additionally, Digital Product Passport Software Market Size can help brands build trust with environmentally-conscious consumers by providing transparent information.
The market is also anticipated to witness increased global expansion as cross-border trade laws evolve to recognize electronic certification provided via digital passports. Large international corporations operating across supply chains spanning multiple countries are expected to invest significantly to digitize product data exchange with partners and customers.
Market drivers: Increasing government mandates requiring product passports for sustainability is a key driver. Growing consumer demand for transparency in supply chains and commitment to circular economy is also propelling the market forward.
Market restraints: Data privacy and security concerns pose a challenge. Lack of universal standards for digital product passport data formats and interpretation is another restraint that needs to be addressed. Interoperability between different software solutions is an issue inhibiting global scale-up.
Segment Analysis
The digital product passport software market can be segmented into cloud and on-premises. The cloud segment is dominating as cloud-based solutions offer various advantages such as scalability, cost-effectiveness, and remote access from any connected device or browser without software installation. Cloud deployment facilitates collaboration and reduces IT infrastructure and service costs for businesses. Hence, more companies are opting for SaaS-based digital product passport solutions.
Global Analysis
Regionally, North America is expected to dominate the digital product passport software market during the forecast period. This is due to stringent regulations for transparent product identification and traceability. The growing adoption of industry 4.0 technologies across industries such as manufacturing, automotive, consumer goods will also fuel market growth in the region. Several government initiatives and projects to track materials and products across their lifecycle are also boosting the North American market. Asia Pacific is expected to witness the fastest growth during the forecast period owing to rising awareness about sustainable materials and a circular economy. China, Japan, and India are emerging as highly lucrative markets in the Asia Pacific region due to rapid industrialization.
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