Digital Technologies: Description, Classification, and Links to Circular Economy

Laura Piedra‐Muñoz, Eva M. García‐Granero, Raphael Ricardo Zepon Tarpani and Alejandro Gallego‐Schmid

Business Strategy and the Environment, 2025, vol. 34, issue 6, 6612-6639

Abstract: Digital technologies (DTs) and circular economy (CE) are currently two topics that are expected to contribute significantly to sustainable development, and digitization is generally considered a key enabler of CE. However, most studies only cover the most known Industry 4.0 technologies, and very limited research detailing how DTs can support the implementation of CE is available. The first objective of this paper is to fill these gaps by offering an overview of 24 key DTs enablers to CE, thanks to a systematic literature discussion and the development of the DATE (Digital Architecture Type) classification. The second goal is to analyze how these DTs can specifically contribute to the CE strategies of narrowing, slowing, closing, and regenerating. The results demonstrate that DTs can provide a wealth of information regarding production and consumption chains, from micro to global levels. Real‐time diagnostics and forecasting can be obtained for efficient service provision, component lifespan extension and better design practices, besides improved remanufacturing, recycling, and refurbishment approaches. To inform future research, significant gaps in the literature and new research initiatives are addressed.

Date: 2025
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