The traditional “take-make-waste” model is being replaced by the Circular Economy, where products are designed to be reused, refurbished, or recycled. The backbone of this shift is the Internet of Things (IoT). By embedding sensors into high-value assets—from industrial motors to consumer electronics—companies can track the health and location of items in real-time.
IoT-enabled circularity involves:
- Predictive Refurbishment: Sensors alert manufacturers when a part is nearing failure, allowing for replacement before the entire device becomes scrap.
- Product-as-a-Service: Companies like Philips now sell “lighting” rather than lightbulbs, using IoT to maintain ownership and ensure hardware is returned for recycling at end-of-life.
- Material Passports: Digital identities for products that list their material composition, making recycling facilities more efficient.