Digital enablers of the circular economy : a systematic review of applications, barriers, and future directions

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Pourrahimian, Parinaz and Seyedzadeh, Saleh and Arabi, Behrouz and Kahani, Daniel and Lotfian, Saeid (2026) Digital enablers of the circular economy : a systematic review of applications, barriers, and future directions. Journal of Manufacturing and Materials Processing, 10 (4). 112. ISSN 2504-4494 (https://doi.org/10.3390/jmmp10040112)

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Abstract

This systematic review examines how digital technologies enable circular economy (CE) transitions across sectors and value chains. Analysing 266 peer-reviewed publications (2016–2025), we develop a comprehensive taxonomy of digital enablers—including IoT, AI, blockchain, cloud computing, additive manufacturing, and digital platforms—and map their applications to circular strategies such as reuse, remanufacturing, and recycling. Our findings reveal that data-driven technologies dominate CE implementation, with 89% of studies involving data collection, storage, analysis, or sharing functions. IoT emerges as the foundational technology for real-time tracking and monitoring, while AI and big data analytics optimise circular processes and predict maintenance needs. Blockchain ensures traceability and trust in circular supply chains, and cloud computing provides scalable infrastructure for collaboration. Manufacturing (41%) and construction (15.5%) are the most studied sectors, with strong European research leadership reflecting policy drivers such as Digital Product Passports. We identify three impact types: enabling (process optimisation), disruptive (business model innovation), and facilitating (ecosystem collaboration). Key barriers include technical complexity, organisational resistance, high implementation costs, and regulatory gaps. The review concludes with recommendations for integrated, multi-stakeholder approaches to realise a digitally enabled circular economy.

ORCID iDs

Pourrahimian, Parinaz, Seyedzadeh, Saleh, Arabi, Behrouz, Kahani, Daniel and Lotfian, Saeid ORCID logoORCID: https://orcid.org/0000-0001-8542-933X;
CORE (COnnecting REpositories)