Digital Product Passport (DPP) Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Digital Product Passport (DPP) Market size was estimated at USD 189.9 million in 2024 and is projected to reach USD 2,923 million in 2031 at a CAGR of 47.78 % during the forecast period 2025-2031.

The Digital Product Passport (DPP) market refers to the development and integration of digital systems that provide detailed, accessible, and traceable information about a product’s lifecycle, from manufacturing to disposal. These digital passports are designed to enable transparency and efficiency in supply chains, offering consumers, businesses, and regulators data on a product’s origin, composition, maintenance, and recycling potential. DPPs are typically implemented using technologies such as blockchain, IoT, and cloud computing to securely store and share product data, making it available at any point in the product’s journey.

The scope of the DPP market is vast, with applications spanning industries like manufacturing, retail, electronics, automotive, and fashion. By offering consumers clear information about the sustainability, safety, and ethics of the products they purchase, DPPs promote transparency and trust in the marketplace. In addition to consumer benefits, DPPs help businesses comply with regulations, track product performance, and optimize maintenance services, reducing waste and improving product lifecycle management. This broad applicability makes the market crucial for industries focused on sustainability, innovation, and regulatory compliance.

Current trends in the DPP market reflect an increasing emphasis on sustainability and circular economy principles. As governments and organizations push for stricter regulations on waste reduction, recycling, and product traceability, DPPs are becoming an essential tool for ensuring compliance with environmental standards. Moreover, the rise of eco-conscious consumers who demand more sustainable and ethical products is driving the adoption of digital passports as a way to verify claims about materials, sourcing, and end-of-life processes. Another trend is the growing use of blockchain technology to enhance data security and ensure the integrity of the product’s history.

The drivers of the DPP market are primarily fueled by the global push for sustainability, stricter regulations on waste management, and the increasing need for transparency in product supply chains. The adoption of digital solutions in industries seeking greater efficiency and consumer trust is also accelerating the market’s growth. Additionally, advancements in digital technologies such as IoT, blockchain, and AI are enabling more robust and accessible systems for tracking and managing product data. As businesses recognize the value of DPPs in improving their sustainability practices and meeting regulatory requirements, the demand for digital product passports is expected to continue growing.

Delvens Industry Expert's Standpoint

Experts in the Digital Product Passport (DPP) Market highlight several key trends driving growth and innovation. The Digital Product Passport (DPP) market involves systems that provide detailed, traceable information about a product’s lifecycle, offering benefits like transparency, sustainability, and regulatory compliance. It spans industries such as manufacturing, retail, automotive, and fashion, with growing demand driven by eco-conscious consumers and stricter environmental regulations. The market is fueled by advancements in technologies like blockchain, IoT, and cloud computing, which enable secure and accessible product data sharing. As businesses seek to improve product lifecycle management and meet sustainability goals, the DPP market is expanding, becoming a key tool for promoting transparency, reducing waste, and enhancing consumer trust.

Market Portfolio

Key Findings

• The DPP software segment is expected to hold the largest market share, driven by its critical role in managing product lifecycle data across supply chains. These software solutions are central to digital product passports (DPPs), offering essential features such as data integration, blockchain-based traceability, and real-time analytics. Industries like automotive, electronics, and textiles rely on DPP software to meet sustainability requirements set by the European Union’s Ecodesign for Sustainable Products Regulation (ESPR). Additionally, DPP software provides flexibility and scalability, enabling businesses to tailor solutions according to their industry needs and product complexity. Its ability to automate compliance and support decision-making further strengthens its position as the market leader, as companies increasingly prioritize transparency and operational efficiency.

• The circular economy segment is projected to experience the highest growth rate during the forecast period as industries increasingly adopt sustainable practices aimed at reducing waste and improving resource efficiency. DPPs support circularity by offering comprehensive data about a product's lifecycle, including material composition, origin, and end-of-life options like recycling or refurbishment. This level of transparency helps businesses recover valuable materials, reduce environmental impact, and comply with regulations such as the EU’s Circular Economy Action Plan. Moreover, DPPs facilitate the growth of secondary markets for recycled and refurbished goods, driving circularity and creating new revenue streams. As consumer demand for sustainable production and consumption rises, DPPs are becoming essential to achieving the goals of a circular economy.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Europe region is projected to hold the largest market share. Factors such as increasing demand for traceability, sustainability initiatives, regulatory compliance, enhanced supply chain transparency, circular economy adoption, digitalization of industries, and consumer awareness on product origins and life cycles have triggered the Digital Product Passport (DPP) Market in the region.

Regional Analysis

Europe to Dominate the Market

• In North America, the United States leads the DPP market, largely due to the country’s strong focus on digitalization and sustainability. The demand for digital product passports is growing as businesses seek more efficient ways to track product lifecycles, reduce waste, and comply with stricter environmental regulations. Regulatory pressures, particularly those related to waste management and recycling, have been key drivers. The integration of DPPs into existing systems like supply chains and retail platforms is becoming more commonplace as companies realize the value of traceability in enhancing consumer trust and meeting sustainability goals.

• Europe is at the forefront of adopting Digital Product Passports, largely driven by the EU’s push for a circular economy. The region’s commitment to environmental sustainability and waste reduction has made the DPP an essential tool for manufacturers, retailers, and regulators. The EU has introduced several legislative measures encouraging the implementation of product passports, which makes it easier to track a product’s environmental impact and lifecycle. Countries like Germany and the Netherlands are particularly active in promoting DPP adoption, and businesses in these regions are increasingly recognizing the value of DPPs in meeting consumer demand for transparency and eco-consciousness.

• The Asia-Pacific region is rapidly catching up in the adoption of DPPs, with China and Japan being major players. The region’s large manufacturing sector is driving the demand for digital passports to streamline supply chains and improve product accountability. As consumer awareness about sustainability and product traceability grows, companies in this region are starting to invest in technologies that enable the creation and management of digital product passports. The rapid digital transformation in countries like China, India, and Japan, combined with increasing consumer demand for sustainability, positions the region for significant growth in the DPP market.

Competitive Landscape

• AVL
• Eviden
• Spherity
• Siemens
• 3E
• DNV
• Optel Group
• Circulor
• PSQR
• Billon Group
• Narravero
• EON
• Protokol

Recent Developments

• In December 2024, Spherity acquired Xylene, a provider of supply chain transparency and sustainability solutions. This acquisition reflects the ongoing consolidation of the digital product passport industry, highlighting the growing demand for integrated solutions that ensure transparency and traceability in global supply chains.
• In November 2024, Siemens officially unveiled its Battery Passport Platform at the 7th China International Import Expo (CIIE). Developed in collaboration with Sunwoda, the platform offers a comprehensive solution to track the lifecycle carbon footprint of battery products, fostering transparency and sustainability in the battery industry.
• In September 2024, 3eco Exchange launched its Digital Product Passport Library, which aims to provide transparent and accessible product information for consumers. This initiative supports sustainable consumption by offering detailed product histories, certifications, and usage guidelines.
• In July 2024, Eviden, in collaboration with the IOTA Foundation, introduced a blockchain-based digital passport solution. This system enhances compliance with EU regulations and promotes sustainability by securely tracking the production, use, and recycling of batteries.

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Report Scope