Home Technology Digital Product Passport Software Market Size, Share Report, 2032

Digital Product Passport Software Market Size, Share & Trends Analysis Report By Offering (Solution, Services), By Deployment Mode (On-Premises, Cloud-Based), By Industry Vertical (Manufacturing, Retail, Healthcare, Automotive, Electronics, Food & Beverage, Energy, Other Verticals) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRTE56432DR
Last Updated : Oct 04, 2024
Author : Straits Research
Starting From
USD 1850
Buy Now

Digital Product Passport Software Market Size

The global digital product passport software market size was valued at USD 155.33 million in 2023. It is projected to reach USD 1,099.8 million by 2032, growing at a CAGR of 24.3% during the forecast period (2024-2032).

Digital Product Passport Software is an advanced technology solution that enables the management and verification of a product's entire life cycle through a digital passport system. This system stores and tracks detailed information about the product, including its origin, materials used, manufacturing processes, and compliance with industry standards. It ensures end-to-end traceability by integrating data from various stages of production, logistics, and the supply chain. The software plays a crucial role in enhancing transparency, allowing businesses to meet sustainability goals, report on environmental impact, and ensure ethical sourcing practices.

Additionally, it supports regulatory compliance by providing accurate and verifiable data, which is essential in industries with stringent regulations, such as automotive, electronics, and consumer goods. Its applications extend to circular economy initiatives, helping companies reduce waste, optimize recycling processes, and promote the reuse of resources. This comprehensive approach to product data management fosters efficiency, trust, and accountability across industries, enabling businesses to improve their sustainability efforts while maintaining regulatory and consumer demands.

Digital Product Passport Software Market Trends

Increasing Focus on Sustainability and Circular Economy Initiatives

One of the key trends driving the market is the rising focus on sustainability and the adoption of circular economy practices. As companies strive to minimize their environmental footprint, digital product passports are increasingly being used to track, monitor, and report the complete lifecycle of products—from raw material sourcing to end-of-life disposal.

This shift is largely influenced by stringent environmental regulations and growing consumer demand for transparency in product origin, manufacturing practices, and recyclability. Digital passports not only ensure compliance with these regulations but also facilitate more efficient management of end-of-life products by streamlining processes for recycling, refurbishing, and reusing materials.

  • For example, in the electronics industry, where e-waste is a major concern, digital product passports enable manufacturers to trace the use of rare earth metals and ensure proper disposal or recycling. This improves resource efficiency and reduces environmental harm, aligning with circular economy goals. Companies like Philips and H&M are already leveraging digital passports to track sustainability metrics, enhance recycling processes, and meet consumer expectations for responsible production.

Digital Product Passport Software Market Growth Factors

Growing Need for Regulatory Compliance and Product Authentication

The increasing demand for regulatory compliance and product authentication is a key driver for the growth of the Digital Product Passport Software Market. Governments and industry regulators are imposing stricter requirements to ensure product safety, quality, and full lifecycle transparency. Digital product passports address these needs by providing secure, verifiable, and easily accessible information about a product’s origin, composition, and compliance with industry standards. This not only mitigates the risk of non-compliance but also strengthens consumer confidence by offering proof of authenticity and quality.

A notable example is the European Union’s Digital Product Passport initiative, part of its Circular Economy Action Plan, which aims to mandate detailed reporting on a product’s environmental impact, recyclability, and potential for reuse. This initiative is set to enhance sustainability by requiring manufacturers to disclose critical data, from raw materials to end-of-life processes. As similar regulations emerge across industries and regions, the demand for robust digital product passport solutions will grow, accelerating market expansion as companies seek to comply with evolving standards and foster greater transparency.

Restraining Factors

High Implementation Costs and Integration Challenges

One of the major restraints in the global market is the high cost of implementation and the complexities of system integration. Deploying digital product passport systems often requires substantial investment in advanced technology, infrastructure upgrades, and specialized software. Moreover, companies face challenges in integrating these systems with existing supply chains, manufacturing, and data management platforms, which can create interoperability issues. This is particularly problematic for smaller businesses and organizations with limited resources, as they may struggle to justify the high upfront costs and lack the technical expertise required for smooth integration.

Market Opportunities

Increasing Investment in Smart Manufacturing and Industry 4.0 Technologies

The growing investment in smart manufacturing and Industry 4.0 technologies is creating substantial opportunities for the digital product passport software market. These technologies, which prioritize automation, real-time data analytics, and interconnected systems, are perfectly aligned with the capabilities of digital product passports.

As manufacturers transition toward more advanced, data-driven production environments, there is a rising demand for solutions that can provide comprehensive, traceable product information across the entire supply chain. Digital product passports enable real-time tracking of materials, production processes, and compliance data, enhancing operational efficiency and supporting seamless integration with smart factory systems.

  • For example, in the automotive industry, the integration of digital product passports with smart manufacturing systems allows for the precise tracking of components, ensuring each part meets regulatory standards and sustainability goals. Companies like Siemens and Bosch are investing heavily in Industry 4.0 solutions that incorporate digital product passports to streamline production, optimize resource use, and improve transparency throughout the supply chain.

As more industries adopt these technologies, the demand for digital product passport solutions is expected to grow, unlocking new market opportunities.

Study Period 2020-2032 CAGR 24.3%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 155.33 million
Forecast Year 2032 Forecast Year Market Size USD 1,099.8 million
Largest Market North America Fastest Growing Market Europe
Talk to us
If you have a specific query, feel free to ask our experts.

Regional Insights

North America: Dominant region with 36.8% market share

The North American market size was valued at $57.1 billion in 2023, holding a dominant 36.8% market share, is projected to maintain the largest share in the Digital Product Passport Software Market. This dominance stems from the region’s advanced technological infrastructure and a robust regulatory environment. For instance, the U.S. and Canada have implemented stringent regulations for product traceability and sustainability, driving the adoption of digital product passports to meet these requirements.

The region's emphasis on innovation is evident in the substantial investments made by leading technology providers such as IBM and Microsoft. These companies are spearheading advancements in digital product passport technology, integrating it with blockchain and IoT to enhance transparency and traceability. For example, IBM’s Food Trust blockchain network, used for tracking food products, showcases how digital product passports can streamline supply chains and boost consumer trust.

Moreover, the strong e-commerce sector in North America, exemplified by platforms like Amazon and Walmart, necessitates efficient product tracking and compliance solutions. The growing focus on sustainability, driven by both consumer demand and regulatory pressures, is further propelling market growth. Companies are increasingly adopting digital product passports to demonstrate their commitment to environmental responsibility and to comply with new green regulations.

Europe: Fastest growing region with the highest CAGR 23.4%

Europe, commanding a substantial 23.4% market share, plays a crucial role in the Digital Product Passport Software Market. This prominence is largely attributed to the region’s rigorous regulatory landscape and a strong emphasis on sustainability. European nations are actively enforcing policies that mandate enhanced product traceability and transparency. For example, the European Union’s Green Deal and the Circular Economy Action Plan are pushing for more sustainable and transparent product lifecycles, significantly driving the demand for digital product passports.

The European market is also characterized by a robust commitment to circular economy principles. Countries like Germany and the Netherlands are leading initiatives that integrate digital product passports to track products throughout their entire lifecycle, promoting recycling and reducing waste. The adoption of these technologies helps meet EU regulations and supports broader environmental goals.

Moreover, Europe is at the forefront of digital transformation in product management. The integration of blockchain technology is a notable trend, as it provides a secure and immutable ledger for product information. For instance, the European Commission is exploring blockchain solutions to enhance the traceability of goods in various sectors, from pharmaceuticals to food products.

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports


Segmentation Analysis

By Offering

Solutions lead the market due to their crucial role in managing and verifying product information. These solutions encompass software platforms designed for data collection, management, and reporting. They are essential for ensuring accurate product information and compliance with regulations. Services, which include consulting, implementation, and support, complement these solutions by offering expertise and assistance, making deployment and operation more effective. While solutions drive market growth, services play a supportive role, ensuring that organizations can maximize the benefits of their digital product passport systems.

By deployment mode

On-premises solutions provide organizations with greater control over their data and infrastructure, though they require significant upfront investments and ongoing maintenance. In contrast, cloud-based solutions offer scalability, flexibility, and reduced capital expenditure. This makes them particularly attractive for businesses looking to quickly implement and scale their digital passport systems without the burden of managing physical infrastructure. Cloud-based solutions are gaining traction due to their ability to support rapid deployment and adaptability in a dynamic market.

By industry vertical

Manufacturing and retail are the largest adopters, driven by complex supply chains and stringent regulatory requirements. The healthcare sector uses digital passports to track medical devices and pharmaceuticals, ensuring compliance and safety. The automotive industry leverages these systems to authenticate and monitor automotive parts, enhancing reliability and regulatory adherence. Each vertical benefits from improved product traceability, information management, and regulatory compliance, underscoring the market's diverse applications and growth potential.

Market Size By Offering

Market Size By Offering
  • Solution
  • Services

  • List of key players in Digital Product Passport Software Market

    1. IBM Corporation
    2. SAP SE
    3. Oracle Corporation
    4. Microsoft Corporation
    5. Billon Group Ltd
    6. CIRCULARISE
    7. CIRPASS
    8. Det Norske Veritas Group
    9. Siemens AG
    10. iPoint-systems GmbH
    11. Kezzler AS
    12. LyondellBasell Industries Holdings B.V.
    13. Narravero GmbH
    14. OPTEL GROUP
    15. Protokol
    16. PSQR
    17. Qliktag Software Inc.
    18. Scantrust SA
    19. Spherity GmbH
    20. THE ID FACTORY SRL

    Digital Product Passport Software Market Share of Key Players

    Digital Product Passport Software Market Share of Key Players

    Recent Development

    • June 2024 - IBM and SAP announced a strategic partnership to integrate their digital product passport solutions. This collaboration aims to enhance supply chain transparency and regulatory compliance by combining IBM’s blockchain expertise with SAP’s extensive enterprise resource planning capabilities.
    • March 2024: Siemens introduced a new version of its digital passport software, featuring advanced traceability functionalities and improved support for regulatory compliance. This update enhances the software’s ability to manage complex supply chains and adhere to evolving regulatory standards.

    Analyst Opinion

    As per our analyst, the market is undergoing swift evolution, propelled by the growing demands for transparency, regulatory adherence, and technological progress. The rising emphasis on sustainability, combined with the integration of IoT and blockchain technologies, is reshaping the future landscape of digital passports. Companies that leverage cutting-edge technologies and provide scalable, adaptable solutions are likely to emerge as leaders in this dynamic sector. With industries increasingly prioritizing product traceability and compliance, the demand for advanced digital passport systems is anticipated to experience substantial growth.


    Digital Product Passport Software Market Segmentations

    By Offering (2020-2032)

    • Solution
    • Services

    By Deployment Mode (2020-2032)

    • On-Premises
    • Cloud-Based

    By Industry Vertical (2020-2032)

    • Manufacturing
    • Retail
    • Healthcare
    • Automotive
    • Electronics
    • Food & Beverage
    • Energy
    • Other Verticals

    Frequently Asked Questions (FAQs)

    How big is the digital product passport software market?
    The global digital product passport software market size was valued at USD 155.33 million in 2023. It is projected to reach USD 1,099.8 million by 2032, growing at a CAGR of 24.3% during the forecast period (2024-2032).
    Europe has the highest growth in the global market.
    Key verticals adopting the market include: IBM Corporation, SAP SE, Oracle Corporation, Microsoft Corporation, Billon Group Ltd, CIRCULARISE, CIRPASS, Det Norske Veritas Group, Siemens AG, iPoint-systems GmbH, Kezzler AS, LyondellBasell Industries Holdings B.V., Narravero GmbH, OPTEL GROUP, Protokol, PSQR, Qliktag Software Inc., Scantrust SA, Spherity GmbH, THE ID FACTORY SRL.
    Growing Need for Regulatory Compliance and Product Authentication is the key driver for the growth of the global market.
    Increasing Investment in Smart Manufacturing and Industry 4.0 Technologies is one of the upcoming key trends in the global market.


    We are featured on :