Circular Economy Solutions Market

Circular Economy Solutions Market Size

The global circular economy solutions market size was estimated at USD 2.7 trillion in 2024. The market is expected to grow from USD 2.9 trillion in 2025 to USD 5.8 trillion in 2034, at a CAGR of 8.2%, according to latest report published by Global Market Insights Inc.

The adoption of circular economy solutions and practices such sustainability, across the world are primarily driven by the mandates and regulations of the regional as well as international government bodies and associations. According to the European Union’s Circular Economy Action Plan, all the packaging needs to be manufactured with recyclable or reusable properties by 2030. Similarly, the United States’ Inflation Reduction Act (2022) incentivizes sustainable manufacturing practices. These policies aim to align industries with Environmental, Social, and Governance (ESG) goals while addressing climate change and resource efficiency challenges.

To align with such mandates, companies like Tetra Pak and Mitsubishi Chemicals are actively showing commitment, Tetra Pak for instance are working towards an eco-systems involving 100% renewable energy by 2030, while Mitsubishi Chemical is investing in chemical recycling technologies to reduce plastic waste. These initiatives have gained momentum since 2021, as regulatory frameworks and consumer awareness around sustainability continue to grow.

To reduce the supply chain disruption caused by limitation of resources and improving the efficiency processes, companies are increasingly pushing for circular models to improve business practices as well as production efficiency. According to the World Economic Forum, global material demand is expected to double by 2060, while the International Energy Agency (IEA) reported a 30% increase in raw material prices between 2020 and 2023. These challenges are prompting companies to recover, reuse, and recycle materials to ensure operational resilience.

To address the scarcity of resources, various manufacturers like Bosch and Tomra system are actively working on new systems and innovation. Currently Bosch has implemented a closed loop system for recycling for their processes that involved production, while Tomra Systems who specialize in recycling as well as advanced sorting are optimizing their material recovery processes. These trends have particularly prominent since 2021, with business trying to reduce the risk involved with resource shortage and increasing costs within the ecosystem.

Circular Economy Solutions Market Trends

The circular economy solutions industry is focusing on process improvement as well as innovation in sustainability across industries.

• With the objective of enhancing sustainability and operational capacity, companies are moving away from traditional processes to processes that emphasize recovery, reuse and wastage reduction. According to the Ellen MacArthur Foundation, the adoption of secondary raw materials and remanufactured components has risen by 30% globally since 2020. Further, governments and associations, such as the European Union through its Circular Economy Action Plan, are guiding manufacturers towards mandatory material recovery and traceability. 
  
• With the help of AI and IoT, predictive maintenance and lifecycle tracking is made possible which companies like ENEO and Li Industries are using to improved their systems. According to the World Economic Forum, 2024- over the past years there is a 40% growth within the digital circular platform, improving the marketplace for refurbished goods as well as for spare parts and shared services. Such practices are increasing the rate of adoption for circular economy solutions.
  

Circular Economy Solutions Market Analysis:

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Based on solution type, the circular economy solutions market is segmented waste management & recycling, remanufacturing & refurbishment services, product-as-a-service (PaaS) models, industrial symbiosis & resource exchange and digital traceability & data platforms. The waste management & recycling segment held the dominant market share, generating a revenue of USD 1 trillion in 2024.

The waste management and recycling systems are the most mature and scalable entry points for industries and municipalities alike for the circular solutions for resource management. Companies such as Bosch and BASF are actively involving circular models within their operations, using new sorting solutions as well logistic models. Regulatory frameworks, such as the European Union’s Circular Economy Action Plan (2020), have further accelerated this trend, enabling faster adoption compared to less-developed segments.

• The adoption of circular economy solutions continues to gain traction, driven by collaboration between governments, associations, and manufacturers. The World Business Council for Sustainable Development (WBCSD) estimate that circular economy practices could unlock $4.5 trillion in economic benefits by 2030. This growing momentum highlights the critical role of circular solutions in addressing global sustainability challenges.
  
• Currently companies like Carbios, are innovating in this market, they are expected to open their first industrial-scale PET recycling plant in late 2025, demonstrating the commitment to advancing resource recovery technologies. Circularise has also introduced new solutions such as blockchain-based transparency tools, enabling manufacturers to track materials and ensure sustainable sourcing. These innovations align with increasing government regulations and industry standards aimed at achieving measurable environmental impact.
  
• In attempts at decreasing the dependency towards virgin materials and minimizing the energy efficiency, the remanufacturing and refurbishment service segments are growing this is supported by different regulatory bodies The United States Environmental Protection Agency (EPA) highlights that remanufacturing in the automotive sector alone saves approximately 85% of the energy required to produce new parts, thus such practices deliver significant cost savings for producers and consumers.
  

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Based on application, the circular economy solutions market is segmented into construction & built environment, plastics & packaging, electronics & electrical equipment, textiles & apparel, food & agriculture, automotive & transportation, others (including agriculture). The construction & built environment held the largest share, accounting for 26.4% of the circular economy solutions market share in 2024.

• Manufacturing processes across construction industries are continuously generating waste as well as consuming raw materials, this creates a huddle in circular economy practices, further driving the market. The mandate by the European Union’s Circular Economy Action Plan expects the construction and demolition waste products be recyclable by at least 70%, while Japan’s Construction Material Recycling Law enforces material reuse in building projects. For example, Mitsubishi Chemical is developing innovative sustainable materials to support modular and circular construction practices.
  
• Technological advancements are further accelerating the sector’s transformation, companies such as Tomra Systems are deploying AI-driven sorting technologies to enhance material recovery, With urbanization expected to reach 68% of the global population by 2050, the demand for circular construction solutions is set to grow, reinforcing the sector’s leadership in the market.
  
• Whilst the electronics & electrical equipment held 20.1% of the market share due to the increasing adoption of sustainable practices, such as recycling and refurbishing, to reduce electronic waste. Additionally, advancements in technology and growing consumer awareness about environmental impacts have further driven the demand for this segment.
  

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In 2024, the U.S contributed significantly to the circular economy solutions market growth in North America, accounting for 77.1% share in the region.

• This is due to the growing sustainability awareness among U.S. consumers and businesses creating a strong demand for circular solutions. The adoption of ESG frameworks, green building certifications, and extended producer responsibility (EPR) policies has further fueled interest in services ranging from waste management to product-as-a-service models. This shift reflects a broader commitment to sustainable practices across industries.
  
• With the presence of global manufacturers and technology leaders like BASF, Bosch, Tetra Pak, Tomra Systems, and Veolia, who are driving innovation in recycling, remanufacturing, and sustainable packaging further creates an ecosystem of growth within the market. Collaborations and the presence of a wide startup ecosystems are further accelerating advancements in material recovery systems, digital traceability, and closed-loop supply chains.
  

Asia Pacific circular economy solutions market in 2024 is the fastest growing region and is expected to grow at 8.9% during the forecast period.

• The Asia Pacific region's growth is primarily driven by increasing government policies promoting circular economies, rising corporate investments in sustainable solutions, and heightened consumer awareness of environmental issues. These factors position the Asia Pacific region as a key player in advancing circular economy initiatives.
  

Europe circular economy solutions market is the largest region in this market is expected to grow at 8.4% during the forecast period.

• The region’s growth is attributed to its strong commitment to sustainability, stringent environmental regulations, and increasing adoption of innovative waste management practices. Additionally, the European Union's policies promoting resource efficiency and recycling have significantly contributed to the expansion of the market in the region.
  

Circular Economy Solutions Market Share

The top companies in the circular economy solutions industry include SUEZ, Bosch, Tetra Pak, Tomra Systems and Mitsubishi Chemical, collectively hold a share of 2% in the market. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions, facility expansions & collaborations, to expand their service portfolios, extend their reach to a broad customer base, and strengthen their market position

SUEZ leads the transition to a circular economy by integrating advanced waste recovery systems with digital platforms that improve traceability, optimize resource use, and reduce emissions. Through innovative solutions like “SludgeAdvanced” and blockchain-enabled traceability, SUEZ enables municipalities and industries to adopt closed-loop models that align with climate objectives and regulatory requirements. Its regional partnerships and resource centres promote community engagement and scalable reuse ecosystems. 

Bosch drives innovation in the circular economy by using AI, IoT, and blockchain into material flow systems, helping in the predictive resource management and transparent lifecycle tracking. Its expertise in smart remanufacturing and reverse logistics supports modular product design and end-of-life recovery across various industrial sectors. By combining digital twin technology with eco-design principles, Bosch helps clients minimize waste, extend product lifespans, and meet evolving ESG standards. 

Tetra Pak pioneers sustainable packaging by creating recyclable, plant-based cartons and investing in global recycling infrastructure. Through partnerships with startups and local governments, it transforms used cartons into new materials for construction and consumer goods. Its connected packaging systems and lifecycle analytics tools empower brands to align with low-carbon objectives while enhancing transparency and consumer engagement. 

Circular Economy Solutions Market Companies

Major players operating in the circular economy solutions industry are:

• BASF 
• Bosch 
• Carbios 
• Circularise 
• Cylib 
• ENEOS 
• Li Industries
• Mitsubishi Chemical 
• Refinverse
• SUEZ 
• Tetra Pak
• Tomra Systems
• Trinseo 
• Umicore 
• Veolia 
  

Tomra Systems helps in the transformation toward a circular economy through innovative sensor-based sorting and reverse vending technologies. Its AI-powered systems enable precise recovery of materials such as plastics, metals, textiles, and wood, promoting high-quality recycling and reuse. By utilizing advanced platforms like “GAINnext” and scalable deposit return infrastructure, Tomra supports cities and industries in creating closed-loop ecosystems.

Mitsubishi Chemical utilizes circularity into its core operations by advancing technologies for plastic and carbon recycling, including “Hydro-PRT” for chemical recycling and biomass-based materials. Through collaborations with ENEOS, Mura Technology, and global sustainability coalitions, the company delivers low-carbon solutions for packaging, interiors, and industrial applications. Its Circular Economy Department fosters innovation across industries, enabling efficient material flow and lifecycle optimization.

Circular Economy Solutions Industry News

• In September 2025, Cylib secured a major grant to expand its lithium-ion battery recycling facility in Dormagen, Germany. This development aligns with Europe’s commitment to sustainability by advancing battery material recovery and promoting circular supply chains in the e-mobility market. The initiative underscores Cylib’s role in supporting the region’s transition to greener energy solutions.
  
• In February 2025, Carbios received funding to establish the world’s first industrial-scale PET bio recycling plant in France. The facility will utilize enzyme-based technology to break down PET waste into reusable monomers, enabling circularity in plastic packaging and textiles. This project highlights Carbios’ innovative approach to addressing global plastic waste challenges.
  
• In July 2025, ENEOS and Mitsubishi Chemical completed a cutting-edge chemical recycling plant in Ibaraki, Japan. The facility employs “Hydro-PRT” technology to convert plastic waste into oil, contributing to the production of certified circular feedstock. This milestone reflects their commitment to advancing sustainable recycling technologies and reducing plastic waste.
  
• In April 2025, Circularise launched blockchain-based digital product passports for Samsonite’s circular luggage line. These passports enhance transparency and traceability of materials, supporting circular design principles in consumer goods. This innovation demonstrates Circularise’s dedication to driving sustainability and accountability in product lifecycles.
  
• In October 2024, SUEZ acquired a 20% stake in Renault Group’s circular economy platform, “The Future Is NEUTRAL”. This strategic investment aims to scale automotive recycling and strengthen closed-loop systems across Europe. The partnership underscores SUEZ’s commitment to fostering sustainability in the automotive industry.
  

The circular economy solutions market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Trillion) (from 2021-2034, for the following segments:

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Market, By Solution Type

• Waste management & recycling
  • Advanced sorting & separation systems 
  • Chemical recycling & depolymerization
  • Material recovery facilities (MRF) & processing
  • Organic waste processing & biogas generation
  • Electronic waste (E-waste) recovery
• Remanufacturing & refurbishment services
  • Automotive component remanufacturing
  • Electronics & IT equipment refurbishment
  • Industrial machinery & equipment restoration
  • Aerospace & defense component recovery
• Product-as-a-service (PaaS) models 
  • Equipment leasing & performance contracting
  • Mobility-as-a-service & shared transportation
  • Lighting-as-a-service & energy performance
  • Packaging-as-a-service & reusable container
• Industrial symbiosis & resource exchange
  • Waste-to-energy integration systems
  • By-product exchange & material matching platforms
  • Eco-industrial park development
  • Carbon capture, utilization & storage (CCUS) integration
• Others (digital traceability & data platforms etc.)

Market, By Platforms Type

• Product & material exchanges
• Reuse & resale marketplaces
• Sharing platforms
• Circular supply chain networks
• Others (sustainable logistics platforms etc.)

Market, By Application

• Construction & built environment
• Plastics & packaging
• Electronics & electrical equipment
• Textiles & apparel 
• Food & agriculture
• Automotive & transportation
• Others (agriculture etc.)

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE