Digital Product Passport Market Report Scope & Overview:

The Digital Product Passport Market was valued at USD 185 million in 2023 and is expected to reach USD 1211.4 million by 2032, growing at a CAGR of 23.24% from 2024-2032.

The Digital Product Passport (DPP) market is witnessing steady adoption across industries like textiles, electronics, automotive, and packaging, driven by increasing circular economy regulations. Regulatory mandates for product traceability are particularly strong in the EU, with other regions gradually catching up. The market is also seeing a growing shift from centralized systems to blockchain-based DPP platforms for enhanced transparency and security. Additionally, consumer awareness and engagement with DPP-enabled products are rising, especially in Europe, as sustainability and product origin become key purchasing factors. Emerging trends in reports include AI integration for real-time product data validation and interoperability standards shaping cross-border DPP frameworks.

​The U.S. Digital Product Passport market is poised for substantial growth, with projections indicating an increase from approximately USD 51.9 million in 2023 to USD 332.6 million by 2032, reflecting a compound annual growth rate (CAGR) of 22.93% . This expansion is driven by factors such as heightened regulatory focus on supply chain transparency, consumer demand for sustainable products, and the integration of advanced technologies like blockchain and IoT for real-time product tracking . Industries including automotive, electronics, and fashion are increasingly adopting DPP solutions to meet compliance requirements and enhance brand trust . Looking ahead, the U.S. market is expected to continue its upward trajectory, supported by technological advancements and a growing emphasis on circular economy practices .

Digital Product Passport Market Dynamics

Driver

• Stringent regulatory mandates for product traceability are accelerating DPP adoption, especially in the EU and sustainability-driven sectors.

The primary driver for the Digital Product Passport market is the increasing implementation of regulatory frameworks aimed at enhancing product traceability and circular economy practices. The European Union’s Circular Economy Action Plan and upcoming Ecodesign for Sustainable Products Regulation (ESPR) mandate the use of DPPs for industries like textiles, electronics, and batteries. These mandates push businesses to adopt transparent, data-driven systems for recording a product’s lifecycle details. Beyond compliance, companies also leverage DPPs to strengthen brand reputation, meet sustainability targets, and improve operational efficiency. This regulatory push is expected to accelerate adoption rates across developed markets and progressively influence global trade standards.

Restraint

• High implementation costs and complex multi-source data management pose significant barriers to widespread DPP deployment, particularly for SMEs.

One of the significant restraints hindering the growth of the DPP market is the high cost of system implementation, coupled with challenges in managing complex, multi-source product data. Small and medium-sized enterprises (SMEs) particularly struggle with investing in blockchain-based platforms, RFID systems, and IoT integrations required for comprehensive DPP infrastructure. Additionally, standardizing data formats and ensuring compatibility across supply chain stakeholders remain difficult, especially in industries with fragmented supplier ecosystems. These operational and financial barriers slow down mass-market adoption, creating a divide between large corporations with digital infrastructure capabilities and smaller players with limited resources for compliance initiatives.

Opportunity

• Rising consumer demand for transparent, ethical, and sustainable products is creating strong market opportunities for DPP-enabled solutions.

An exciting market opportunity lies in the growing consumer demand for transparent and sustainable product sourcing. Modern consumers, particularly Millennials and Gen Z, increasingly value ethical production, product provenance, and environmental responsibility. Digital Product Passports enable brands to meet these expectations by providing accessible, verified information on a product’s origin, material composition, environmental impact, and repair or recycling options. Retailers and manufacturers adopting DPPs can leverage this transparency as a competitive differentiator, building trust and customer loyalty. As awareness grows, consumer-driven demand is expected to spur adoption in sectors like fashion, electronics, and food packaging, further expanding the DPP market.

Challenge

• The lack of standardized global frameworks and interoperability issues limits seamless DPP implementation across international supply chains.

A persistent challenge for the Digital Product Passport market is the absence of globally harmonized standards for data collection, management, and sharing. While regions like the EU are leading regulatory efforts, discrepancies in compliance requirements across markets create complexities for international brands. Additionally, interoperability issues between various digital platforms, blockchain networks, and IoT devices hinder seamless data exchange across supply chains. Without standardized protocols and universally accepted data taxonomies, it becomes difficult for manufacturers and retailers to implement scalable, multi-market DPP solutions. Addressing this challenge requires collaboration between regulators, industry consortia, and technology providers to develop uniform global frameworks.

Digital Product Passport Market Segmentation Analysis

By Component

The software segment dominated the Digital Product Passport market in 2023 and accounted for 62% of revenue share, due to increasing enterprise investments in blockchain, cloud-based traceability platforms, and integrated product lifecycle management systems. Industries like electronics, automotive, and textiles rely heavily on advanced software to capture, store, and verify product data throughout the value chain. The growing demand for regulatory compliance, real-time data visualization, and seamless integration with existing ERP and SCM systems further fuels this segment. It’s projected to maintain its lead, supported by innovations in AI-driven analytics and decentralized data architectures by 2032.

The services segment is expected to register the fastest CAGR in the Digital Product Passport market, driven by the rising need for implementation, integration, consulting, and managed services. As businesses transition from legacy systems to DPP-enabled digital ecosystems, demand for expert guidance on regulatory compliance, data standardization, and multi-platform interoperability is growing. Managed services for system monitoring, upgrades, and data security are gaining traction as enterprises seek operational efficiency and risk mitigation. This segment will experience rapid growth through 2032 as SMEs and global brands alike seek scalable, customized deployment models.

By Lifecycle

In 2023, the end-of-life segment dominated the Digital Product Passport market, accounting for a significant revenue share as governments and industries prioritized sustainable waste management, recycling, and circular economy practices. With regulations like the EU’s ESPR mandating detailed tracking of product disposal, recycling processes, and material recovery, enterprises are increasingly adopting DPP solutions to ensure compliance and reduce environmental footprints. Growing consumer demand for transparency around product disposal and eco-friendly practices further boosts this segment. It is expected to maintain its leading market share through 2032, supported by rising investments in digital recycling infrastructure and resource optimization systems.

The product design segment is expected to register the fastest CAGR in the Digital Product Passport market, driven by the growing emphasis on sustainable product development and regulatory mandates for material traceability from inception. Integrating DPP frameworks at the design stage enables manufacturers to select recyclable, ethically sourced materials and embed lifecycle data from the start. This proactive approach supports circular business models and streamlines downstream compliance. With industries like fashion, electronics, and automotive adopting eco-design standards, this segment will witness significant growth through 2032, as brands prioritize product transparency and responsible innovation.

By Organization Size

In 2023, the large-enterprises segment dominated the Digital Product Passport market and accounted for 63% of revenue share due to their significant financial resources, complex global supply chains, and greater exposure to stringent regulatory requirements. Multinational corporations in sectors like automotive, electronics, and apparel are early adopters of DPP solutions to enhance product traceability, improve brand reputation, and achieve sustainability targets. These enterprises invest in blockchain, IoT, and cloud-based systems for end-to-end product data management. The segment is expected to maintain its lead through 2032, driven by corporate ESG mandates, advanced infrastructure, and the increasing emphasis on digital sustainability reporting.

The SMEs segment is expected to register the fastest CAGR in the Digital Product Passport market, driven by regulatory pressure and the growing demand for supply chain transparency among smaller brands. Cloud-based, subscription-driven DPP solutions are making adoption more accessible for SMEs, helping them meet compliance requirements without heavy upfront investments. Rising consumer preference for ethical, transparent, and sustainable products is also encouraging small businesses to integrate DPP frameworks. As regulatory frameworks extend to mid-market and niche sectors, SMEs will increasingly adopt scalable, affordable digital product passport services, fueling rapid market growth through 2032.

By Application

The regulatory compliance segment dominated the Digital Product Passport market in 2023 and accounted for significant revenue share, driven by increasing global regulations requiring product traceability and sustainability practices. The European Union’s Circular Economy Action Plan, along with other global mandates like the U.S. SEC’s transparency requirements, are pushing companies to adopt DPP solutions. These systems enable businesses to track, record, and report product data in compliance with industry standards. The segment is expected to maintain dominance through 2032 as governments enforce stricter eco-design, recycling, and waste management laws, compelling businesses to adopt comprehensive DPP systems.

The sustainability segment is expected to register the fastest CAGR in the Digital Product Passport market as businesses increasingly integrate eco-friendly practices into their operations. DPPs facilitate sustainable product design, material sourcing, and end-of-life recycling by providing full lifecycle visibility. With growing consumer demand for ethical and sustainable products, companies in industries like fashion, electronics, and automotive are adopting DPP solutions to meet environmental targets and improve their ESG performance.

By Vertical

The automotive segment is the leading market in terms of digital product passport, driven by the use of complex global supply chains, strict regulatory requirements, and a greater emphasis on sustainability. The automotive sector embraces DPP solutions to improve product traceability, parts lifecycle management, and compliance with regulations like the EU’s End-of-Life Vehicle Directive. Moreover, automotive manufacturers are incorporating DPPs to track recycled materials and monitor compliance with sustainability goals.

The textiles and apparel segment substantiates the fastest-growing CAGR in the Digital Product Passport market, as this segment is driven by the increasing consumer awareness for transparency in sourcing, production methods, and environmental impact. New Era of Fashion Transparency Fashion brands are leveraging DPPs to inform consumers about materials, manufacturing processes, and sustainability practices. Regulatory pressures, including in the EU and California, are also spurring the industry to track and disclose product lifecycle data.

Regional Landscape

North America dominated the Digital Product Passport market in 2023 and accounted for 36% of revenue share, primarily driven by strong regulatory frameworks, high consumer demand for sustainable and transparent products, and the presence of major corporations adopting advanced technologies. The U.S., in particular, is leading the charge with initiatives aimed at improving product traceability, enhancing sustainability, and meeting regulatory compliance.

The Asia Pacific region is expected to register the fastest CAGR in the Digital Product Passport market, driven by rapid industrialization, government-driven sustainability initiatives, and increasing consumer demand for ethical products. Countries like China, Japan, and India are adopting DPP solutions in industries like automotive, textiles, and electronics. As sustainability regulations become stricter and consumer awareness grows, APAC markets are embracing digital product passport technologies.

Key Players

The major key players along with their products are

• IBM - IBM Blockchain

• SAP - SAP Digital Product Passport

• Provenance - Provenance Blockchain Platform

• Everledger - Everledger’s Digital Ledger for Product Traceability

• Oracle - Oracle Blockchain Platform

• Siemens - Siemens Xcelerator

• Microsoft - Microsoft Azure Blockchain Service

• Honeywell - Honeywell Forge for Industrial

• VeChain - VeChain ToolChain

• Schneider Electric - EcoStruxure Resource Advisor

• Blockverify - Blockverify Platform

• SourceMap - SourceMap Traceability Software

• Circularise - Circularise Blockchain for Supply Chain Transparency

• Systech - Systech Serialization Solutions

• Zebra Technologies - Zebra Data Capture Solutions

Recent Developments

• In April 2024, IBM announced the launch of IBM Blockchain for Supply Chain, a platform designed to enhance product traceability and transparency across global supply chains. This solution leverages IBM's Hyperledger Fabric to provide immutable records of product journeys, supporting industries such as pharmaceuticals and electronics in meeting regulatory compliance and sustainability goals.​

• In March 2024, SAP introduced the SAP Digital Product Passport, a solution aimed at enabling manufacturers to create and manage digital representations of their products throughout their lifecycle. This platform integrates with SAP's existing enterprise resource planning systems to streamline product data management and support circular economy initiatives.​

• In February 2024, Provenance launched a new version of its blockchain-based platform that allows brands to share verified product information with consumers. The updated platform includes enhanced features for tracking product origins and sustainability credentials, empowering consumers to make informed purchasing decisions.​