**London**: The Digital Product Passport market is projected to grow from USD 185.9 million in 2024 to USD 1,780.5 million by 2030, driven by regulatory pressures and consumer demand for transparency in industries like textiles and electronics, particularly within the EU and Asia Pacific.
The Digital Product Passport (DPP) market is anticipated to experience significant growth, expanding from USD 185.9 million in 2024 to USD 1,780.5 million by 2030, at a compound annual growth rate (CAGR) of 45.7%, according to a report by MarketsandMarkets™. This surge is primarily attributed to increasing regulatory pressures, technological advancements, and heightened consumer expectations for transparency and sustainability across various industries.
Digital Product Passports are emerging as essential components of sustainability and circular economy strategies. Global efforts, particularly within the European Union, are mandating extensive lifecycle tracking for numerous sectors, including automotive electronics, textiles, and electronics. Legislative frameworks such as the Ecodesign for Sustainable Products Regulation (ESPR) are pivotal in pushing these initiatives forward. The importance of DPPs is underscored by their capability to provide immutable documentation of goods, enhancing supply chain visibility and compliance with region-specific regulations. This aspect is critical in industries where authenticity is paramount, such as pharmaceuticals and luxury goods.
The distribution segment is predicted to register the fastest growth within the DPP market, driven by the complexity of modern global supply chains and the pressing need for real-time traceability. Companies are increasingly relying on DPPs to tackle problems related to counterfeiting and to optimise their inventory management processes, thereby bolstering consumer trust through verified sourcing data. The DPP approach is especially significant in the fashion and textiles sector, which is expected to dominate the market in terms of user share. Leading brands like Stella McCartney and Adidas have already adopted DPPs to meet rigorous transparency demands and to promote sustainable practices.
Furthermore, the Asia Pacific region is set to emerge as the second largest market for DPPs. This growth is fuelled by increasing export requirements and a stronger focus on sustainability in manufacturing, with countries like China, Japan, and South Korea at the forefront. The use of blockchain technology in these regions for tracking materials in industries like electronics and automotive illustrates the broader commitment to sustainability and compliance with international standards. As European regulations become increasingly stringent, Asian companies are embracing DPP systems to maintain market access and enhance their reputation.
The major players in the DPP market include established companies like Siemens and 3E, as well as innovative startups like Circularise and The ID Factory. Collectively, these organisations are shaping the future of supply chain digitization and demonstrating the growing significance of supplier relationships in achieving digital transformation and driving revenue in this evolving landscape.
Source: Noah Wire Services
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