General opportunities and threats
Summary table
| Threats | Opportunities |
| Dependence on costly technologies | Europe positioned as leader of the circular economy |
| Limited access to funding for small companies | Massive adoption of technological innovations (IoT, AI) |
| Reduction in critical raw materials | Simplification of regulations in order to foster innovation |
| Widening inequalities between companies | Introduction of the digital product passport |
Threats for industry in general
- Dependence on costly technologies: The technological innovations needed to accelerate the transition to the circular economy, such as AI, IoT or blockchain, are expensive to implement. This creates a dependence of companies on cutting-edge technologies, raising barriers to entry for smaller structures or less developed countries. This situation risks slowing the spread of these technologies.
- Limited access to funding for small companies: While large companies manage to raise funds to finance their transition to circular models based on advanced technologies, SMEs struggle to access this funding, which is often reserved for players that are already well established or heavily subsidised. This limits their ability to innovate and keep pace with market developments.
- Reduction in critical raw materials: Companies' increased dependence on rare raw materials, in particular those needed for digital technologies (lithium, cobalt), creates a risk for industries that fail to secure their supplies. Shortages of these critical resources can cause production delays and cost increases, endangering the viability of linear models.
- Widening inequalities between companies: Companies with the financial means to invest in technological innovation dominate the market, while smaller companies, often unable to keep pace, see their competitiveness decline. This accentuates inequalities between economic players and can lead to market concentration.
Opportunities for industry in general
- Europe positioned as leader of the circular economy: By investing massively in new technologies, Europe can position itself as a global leader in the circular economy. Companies that quickly incorporate innovations such as AI, IoT and blockchain into their industrial processes can take advantage of this strategic position to capture new markets, particularly in high value-added industries.
- Massive adoption of technological innovations: Technologies such as AI, IoT and blockchain make it possible to maximise the efficiency of production and supply chains, thereby optimising the use of resources. Companies that adopt these technologies can better manage their materials, reduce their costs and improve their competitiveness on international markets.
- Simplification of regulations in order to foster innovation: The European Union and other international bodies can adapt their regulations in order to facilitate innovation in circular sectors. This simplification allows companies to accelerate their investment in research and development (R&D), reducing the administrative barriers that often hold back new initiatives.
- Introduction of the digital product passport: This passport enables complete traceability of materials and products throughout their life cycle. Companies that adopt this tool can guarantee the quality of recycled materials, strengthen transparency towards consumers and improve their brand image. It also fosters a more circular economy, in which materials are reintroduced more efficiently into production chains.