IoT and the Circular Economy: Reducing Waste through Connectivity

The Internet of Things (IoT) is poised to transform the circular economy by enabling greater connectivity across products, components, and materials. As we connect more devices and objects to the internet, track their locations and usage in real-time, and analyze data to optimize systems, we can significantly increase reuse, remanufacturing, and recycling. The result is less waste, more sustainable production and consumption, and ultimately a healthier planet.

How IoT Improves Circular Production and Design

During production, IoT sensors can track materials, components, and products across the supply chain. This allows companies to ensure quality, prevent losses, and improve circular design. For example:

• RFID tags on parts and products enable tracking through production and distribution. Companies can identify weaknesses in the chain that lead to waste or losses.

• Sensors that monitor production processes can catch errors early and prevent waste. If thresholds are exceeded, (e.g. temperature in molding plastic parts), companies can improve quality control.

• Data analytics gives designers visibility into how products are used. This allows them to design for durability, reuse, and recycling from the start.

By improving production oversight, IoT enables more efficient material use, higher quality components, and products optimized for circularity.

Optimizing Use Phase with IoT Connectivity

The use phase presents huge opportunities to reduce waste through IoT monitoring. For example:

• Predictive maintenance sensors in products detect issues before failure. This prevents discards and enables repair over replacement.

• Usage tracking helps optimize products for sharing platforms. It improves asset utilization rates, preventing overproduction.

• Automated reordering of product consumables (e.g. printer ink, refrigerator water filters) based on actual usage prevents overstock and waste.

• Remote diagnostics enables some repairs and maintenance to be performed remotely. This avoids technician trips and component swaps that generate emissions and waste.

By improving product use oversight, IoT enables intensified utilization, fewer discards, and optimization of resource flows.

Enhancing Recycling and Remanufacturing with IoT

End-of-life processes like recycling and remanufacturing can also be enhanced using IoT. For example:

• Material tags on components can inform sorting at recycling facilities. This increases separation accuracy for higher quality recycled materials.

• Disassembly automation using IoT-guided robots can improve efficiency in remanufacturing. Products are optimally taken apart based on data.

• component histories stored on IoT devices track manufacturing traits. Remanufacturers can select the best parts for reuse based on actual usage data.

• Inventory management is improved using IoT monitoring. Remanufacturing facilities can track component stocks and availability in real-time. This prevents overstock and production of unneeded new parts.

By providing data throughout the lifecycle, IoT improves the economics and viability of activities like recycling and remanufacturing.

Challenges to Address

Some key challenges around implementing IoT for the circular economy include:

• Interoperability – IoT devices and platforms need connectivity and data standards to share information across companies.

• Security – Preventing hacking incidents that could disrupt supply chains or compromise consumer privacy.

• Cost – Sensors and integration must reach cost levels feasible for mass deployment.

• Power – Ensuring IoT devices have adequate battery life or energy harvesting.

• Cooperation – Companies must be willing to share and utilize IoT data to enable system-level circular benefits.

The Future with IoT

Looking ahead, integrating IoT across supply chains, production facilities, and consumer products promises a massive optimization of resource use. Shared data can help improve circular design, maintenance, collection and production practices. With improved economics, connecting products and components with IoT represents an enabler for the circular economy. This connectivity will be key to reducing waste, retaining value, and improving global sustainability.