June 19, 2024
Digital Product Passport Software Market

Digital Product Passport Software Market is Estimated to Witness High Growth

The digital product passport software market offers product identification and documentation solutions for manufacturers across industries. The software enables end-to-end tracking of materials and components used in production, certificate uploads, product labeling, and lifecycle management on a centralized digital platform. With growing concerns around transparency in supply chains and sustainable manufacturing practices, digital product passports are being increasingly adopted by companies to enhance traceability.

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 key opportunities in the Digital Product Passport Software Market Size include surge in demand for transparency in material and component sourcing from industrial sectors like aerospace, automotive and manufacturing. Adoption of blockchain technologies by software vendors is also opening new opportunities for enhanced traceability.

Technological advancements like IoT integration, 3D scanning, AR/VR, AI and blockchain are helping users digitally map physical assets and embedding critical information. This is improving data accuracy, reducing verification time and ensuring authentic products reach end customers.

Market drivers

Stringent regulations around restrictive substances and conflict minerals are necessitating transparent documentation of supply chains. Sustainability initiatives to measure carbon footprint and optimize resource usage are also boosting demand. Digital passports further help achieve circular economy goals by enabling data-driven product repair, reuse and remanufacturing. The software helps address these issues and comply with evolving ESG standards.

Current challenges in the Digital Product Passport Software Market

Digital product passports are in their infancy stage currently and face many challenges. Adoption of digital passports across supply chains is low currently due to lack of universal standards. Manufacturers find it challenging to integrate legacy systems with new digital passport software. Ensuring data security and privacy is another major concern for companies dealing with sensitive product data. Different regulations in different regions also pose compliance challenges. Overall awareness and education is still lacking among stakeholders about benefits of digital passports.

SWOT Analysis

Strength: Digitization of passports enables easy tracking of products and materials. It makes supply chain more transparent and sustainable.

Weakness: Initial costs involved and need for technological upgrade can be prohibitive for some companies. Dependence on internet connectivity can be an issue.

Opportunity: Growing focus on sustainability and circular economy present huge market potential. Governments are also promoting digital passports.

Threats: Lack of common global standards risks fragmentation. Cyber threats to sensitive data stored on passports need to be properly mitigated.

Geographical regions with high market concentration

The European region currently accounts for the largest share in terms of value due to stringent regulations. Countries like Germany, U.K., France etc have enacted laws promoting use of product passports. North America is another major region driven by initiatives aimed at supply chain visibility and circularity.

Fastest growing region

Asia Pacific region is expected to be the fastest growing market during the forecast period. This can be attributed to growing electronics and smartphone manufacturing base in countries like China, India, Vietnam etc. Government support for Industry 4.0 and smart manufacturing will fuel adoption of digital passport software in Asia Pacific.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it