The digital product passport software market allows tracking of product lifecycle data and supply chain transparency through a digital interface. Digital product passport software provides product documentation digitally using tools like QR codes, barcodes or RFID tags to track critical information from design, sourcing and manufacturing to distribution, use and end-of-life management. This enables consumers and enterprises to make informed decisions regarding materials used, carbon footprint, compliance with regulations and repair/reuse potential.
The Global Digital Product Passport Software Market is estimated to be valued at US$ 991.8 Mn in 2024 and is expected to exhibit a CAGR of 26% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the digital product passport software market are Billon Group Ltd, CIRCULARISE, CIRPASS, Det Norske Veritas Group, iPoint-systems GmbH, Kezzler AS, LyondellBasell Industries Holdings B.V., Narravero GmbH, OPTEL GROUP, Protokol, PSQR, Qliktag Software Inc., Scantrust SA, Spherity GmbH, and THE ID FACTORY SRL. The growing awareness regarding sustainability and transparency in supply chains is driving increased demand for digital product passport software. Major companies are also expanding globally to offer digital product passport services in different geographies and industries to improve visibility into their product networks.
Market Key Trends
Blockchain integration is a key trend being observed in the Digital Product Passport Software Market Demand. Blockchain allows distributed tracking of product information by all stakeholders involved securely and transparently without centralized control. When integrated with digital passports, it ensures data authenticity, traceability and immutability of records. This is improving trust for consumers in certification and claims about products.
Porter’s Analysis
Threat of new entrants: Low barrier of entry with availability of open source software.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and competition in the market.
Bargaining power of suppliers: Suppliers have low bargaining power as there are many substitutions available for suppliers to change.
Threat of new substitutes: Low threat of new substitutes as digital product passports require specialized software solutions.
Competitive rivalry: High as there are many players offering similar software.
Geographical Regions
North America region is expected to hold the largest share in terms of value and was valued at US$ 346.1 Mn in 2024 owing to presence of major companies and technological advancements in the region. Asia Pacific region is expected to witness highest CAGR over the forecast period due to rapid growth of manufacturing sector in countries such as China and India.
Europe region accounted for second largest market share in 2024 and is expected to grow at CAGR of 25% during the forecast period. Countries such as Germany, U.K. and France are early adopters of digital technologies and contribute significantly to the regional market growth.
The Middle East and Africa region is estimated to provide lucrative opportunities for providers of digital product passport software owing to increasing industrialization in countries such as South Africa, GCC and Saudi Arabia. Presence of manufacturing facilities of automotive and chemicals industries drives the demand in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
