Circular economy in the manufacturing sector: Digital transformation and sustainable practices

Abstract

The transition from a linear economy to a circular economy (CE) represents a profound shift in resource management practices, emphasizing sustainability and waste reduction as core principles. This review paper explores how digital transformation technologies, including Internet of Things (IoT), artificial intelligence (AI), blockchain, and big data, are integrated with circular economy principles within the manufacturing sector. It examines their roles in promoting sustainable manufacturing practices by optimizing resource use, improving efficiency, and reducing environmental impact. Through a comprehensive review of current literature and case studies, this paper elucidates the benefits, challenges, and future directions of adopting a circular economy approach in manufacturing, highlighting opportunities for innovation and sustainable growth.