Digital Product Passport Market Size, Share, Forecast & Trends Size - By Component (Software, Services), Deployment Mode (Cloud-based, On-premises), Organization Size, End-use Industry (Consumer Electronics, Textile & Apparel, Automotive) - Global Forecast to 2035

Digital Product Passports Transform Global Supply Chains with Enhanced Traceability Sustainability and Regulatory Compliance

The digital product passport market size was estimated to be USD 338 million in 2025 and is expected to reach USD 7,847 million by 2035, growing at the rate of 37.0% CAGR from 2025-2035.

The digital product passport market is experiencing growth as international regulations and corporate sustainability objectives align. DPPs are digital records that monitor product origin, composition, lifecycle, and environmental impact. The European Union’s Ecodesign for Sustainable Products Regulation (ESPR) requires Digital Product Passports (DPPs) for textiles, electronics, and batteries commencing in 2026, prompting early adoption across sectors. In 2024, more than 150 companies participated in the EU’s CIRPASS consortium to test DPP frameworks for electronics and apparel. Companies such as H&M and Decathlon are currently experimenting with Digital Product Passports (DPPs) to achieve circular economy objectives. The World Economic Forum indicates that 54% of global supply chain executives are allocating resources towards traceability tools to achieve ESG objectives. As digital infrastructure evolves and blockchain, RFID, and cloud platforms integrate, Digital Product Passports (DPPs) are increasingly vital for product transparency, regulatory adherence, and consumer interaction.

Competitive Scenario and Insights

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The competitive environment encompasses technology companies, sustainability platforms, and industry coalitions. IBM, SAP, and Circularise are at the forefront of blockchain-based Digital Product Passport solutions for traceability and compliance. Circularise has collaborated with Porsche and BASF to initiate a pilot program for Digital Product Passports (DPPs) in automotive plastics. SAP introduced its Green Token platform to facilitate ESG data sharing throughout supply chains. Startups such as Aectual and Everledger are gaining prominence in the fashion and jewellery industries. Vendors are concentrating on interoperability, secure data transmission, and integration with ERP and PLM systems.

Recent Developments

Circularise Expands Automotive Blockchain Pilot with Porsche and BASF to Enhance Plastics Traceability and Circular Economy Goals

• In 2024, Circularise expanded its digital product passport pilot with Porsche and BASF to encompass additional automotive components. The blockchain-based system monitors material provenance, carbon emissions, and recyclability. Preliminary findings indicate a 22% enhancement in traceability throughout supply chains. The project advances EU circular economy objectives and establishes a benchmark for automotive compliance.

SAP’s Green Token Platform Advances Secure ESG Data Sharing Across Global Supply Chains with Tokenized Digital Passports

• In 2024, SAP's Green Token platform achieved significant enterprise adoption, facilitating secure ESG data exchange among suppliers. The platform employs tokenised digital passports to monitor product provenance, emissions, and ethical sourcing. Organisations utilising Green Token experienced a 30% decrease in audit preparation duration. The solution is being implemented in the mining, chemical, and consumer goods industries.

Key Market Drivers

1. Government Regulations Like EU ESPR Accelerate Adoption of Digital Product Passports Across Multiple Industries: Government regulations are a principal catalyst for DPP adoption across various industries. The EU's ESPR requires DPPs for essential product categories commencing in 2026, with pilot programs currently in progress. In 2024, the European Commission introduced a Digital Product Passport (DPP) prototype for batteries in accordance with the Battery Regulation, mandating the collection of lifecycle data and carbon footprint monitoring. The regulation affects more than 800 million battery units each year, compelling manufacturers to digitise product information. Comparable initiatives are arising in Canada and Japan, where traceability is associated with import compliance and recycling incentives.
2. ESG Commitments Drive Demand for Traceable Product Data to Support Transparency, Circularity, and Reporting: Corporate ESG commitments are increasing the demand for digital product passports to monitor environmental impact. In 2024, Unilever declared that 80% of its product lines would incorporate DPPs by 2026 to enhance transparency and circularity. The company employs QR codes and blockchain technology to disseminate product lifecycle information to consumers. A McKinsey survey revealed that 63% of global executives deem traceability crucial for attaining sustainability objectives. DPPs are increasingly pivotal to ESG reporting, consumer confidence, and brand distinction.
3. Growing Consumer Preference for Verified Sustainability Credentials Boosts Digital Product Passport Implementation in Retail: Consumers are progressively seeking transparency at the product level, particularly in the sectors of fashion, electronics, and food. In 2024, a survey conducted by IBM revealed that 71% of global consumers are prepared to pay a premium for products possessing verified sustainability credentials. Retailers are integrating Digital Product Passports (DPPs) into product labels and mobile applications. H&M initiated a pilot program utilising Digital Product Passports (DPPs) to convey garment origin, material composition, and care instructions, thereby enhancing customer engagement and minimising returns. This trend is proliferating across e-commerce platforms and physical retail establishments.

Key Market Restraints

1. Fragmented Data Formats and Lack of Industry Standards Hinder Cross-Sector Digital Product Passport Interoperability: Diverse sectors employ distinct taxonomies, complicating interoperability. In 2024, the EU's CIRPASS consortium reported that 47% of companies encounter integration challenges stemming from inconsistent data structures. This impedes deployment and heightens dependence on middleware and manual mapping. Initiatives are in progress to establish unified schemas; however, implementation is still inconsistent.
2. Expensive Integration and Training Costs Limit Digital Product Passport Adoption Among Small and Mid-Sized Enterprises: Implementing digital product passports necessitates investment in hardware, software, and training. For small and medium-sized enterprises, these expenses can be excessive. A 2024 survey conducted by the European Innovation Council revealed that 39% of small manufacturers identified cost as the principal obstacle to the adoption of Digital Product Passports. RFID tagging, cloud subscriptions, and blockchain integration contribute to operational costs. Vendors are investigating modular and open-source solutions; however, cost-effectiveness continues to be a concern for smaller entities.

Table: Key Factors Impacting Global Digital Product Passport Market (2025–2035)

Base CAGR: 37%

Regional Analysis

Europe Leads Global Digital Product Passport Deployment Underpinned by Strong Regulatory Mandates and Circular Economy Goals

Europe is at the forefront of Digital Product Passport adoption and is estimated to command the largest share of 40% of the global DPP market, driven largely by the EU’s Circular Economy Action Plan and the Ecodesign for Sustainable Products Regulation (ESPR). In 2024, the European Commission mandated DPP integration for textiles, batteries, and select electronics to improve traceability, recycling, and reuse rates. Countries like Germany and France are pioneering sector-specific DPP pilots—Germany in automotive supply chains to track component origins and France in luxury goods to combat counterfeiting. The Netherlands is expanding blockchain-enabled DPPs in the agri-food sector to strengthen provenance claims. Switzerland’s watchmaking industry has embraced DPPs to certify material sourcing and craftsmanship quality. Europe’s well-established cloud infrastructure, high blockchain adoption rates, and mature compliance culture enable rapid scaling, while upcoming EU-wide digital product data repositories will streamline cross-border data sharing for manufacturers and recyclers.

Asia-Pacific Ramps Up DPP Adoption Through Manufacturing Compliance, Export Alignment, and Government Digital Support

The Asia Pacific market is anticipated to surge exponentially with more than 40% CAGR by 2035. The Asia-Pacific region is becoming a pivotal area for DPP adoption, propelled by manufacturing exports and regulatory harmonisation. In 2024, China's Ministry of Industry and Information Technology initiated a pilot program for DPPs in the electronics and textiles sectors to comply with EU import standards. The Ministry of Economy, Trade and Industry (METI) of Japan is financing blockchain-based traceability systems for the automotive and battery industries. The Bureau of Indian Standards in India is investigating DPPs for compliance with electronics and food safety regulations. Due to increasing consumer awareness and export-oriented industries, DPPs are becoming crucial for market access and brand credibility. Regional governments are additionally endorsing digital infrastructure and data interoperability initiatives.

Country-level Analysis

U.S. Leads in DPP Adoption with Federal Funding, Corporate ESG Strategies, and Strong Cloud and Blockchain Ecosystem

The United States held over 85% revenue share in the North America regional market in 2025. The United States is promoting the adoption of digital product passports via federal initiatives and corporate ESG strategies. In 2024, the Department of Energy initiated a USD 50 million pilot program to monitor the lifecycle data of solar panels and batteries utilising Digital Product Passports (DPPs). Walmart and Target are piloting Digital Product Passports to enhance product traceability and achieve climate objectives. The SEC's proposed climate disclosure regulations are encouraging companies to digitise ESG data at the product level. The U.S. market benefits from strong cloud infrastructure and regulatory momentum.

China Expands Digital Product Passports Using National Compliance Programs and Growing Enterprise Digitization

China dominated the Asia-Pacific region with 30% revenue share in 2025. China is increasing the use of digital product passports to enhance domestic traceability and comply with international regulations. In 2024, the Ministry of Industry and Information Technology launched a pilot program for electronics and textiles to comply with EU DPP regulations. Big companies like Haier and Lenovo are testing blockchain-based DPPs to keep track of where materials come from and how much carbon they emit. The initiative is in alignment with China's dual circulation strategy and green manufacturing objectives.

Germany Drives EU DPP Standardization and Innovation, Leveraging Robust Manufacturing and Regulatory Frameworks

Germany is expected to grow at 42% CAGR during the forecast timeframe. Germany is leading Europe in the adoption of DPP thanks to industrial digitisation and regulatory leadership. For DPPs in the electronics and automotive industries, the German Environment Agency introduced a national framework in 2024. DPPs are being piloted by Siemens and Bosch to monitor component origin, emissions, and recycling potential. The country also leads standardisation efforts within the EU's CIRPASS consortium. Germany's strong manufacturing base and ESG commitments position it as a strategic hub for DPP innovation and deployment.

Segmental Analysis

Electronics Sector Leads Digital Product Passport Adoption Due to Complex Supply Chains and Stringent Compliance Needs

Based on end user, the electronics sector is estimated to command the largest share of 25% of the global digital product passports market. This is majorly owing to the result of regulatory pressure and intricate supply chains. In 2024, the EU's Battery Regulation required DPPs for all rechargeable batteries, affecting smartphones, electric vehicles, and consumer electronics. DPPs are being tested by companies such as Apple and Samsung to monitor the carbon footprint and the sourcing of materials. Blockchain and RFID technologies are employed to guarantee traceability among suppliers. The sector is experiencing integration with electronic waste recycling programs and circular economy initiatives.

Fashion Industry Embraces Digital Product Passports for Circularity, Consumer Engagement, and Transparency Enhancement

Based on end user, the fashion industry is swiftly embracing digital product passports to enhance circularity and transparency, is expected to with the highest 45% CAGR. In 2024, H&M initiated a pilot program utilising Digital Product Passports (DPPs) to convey garment origin, material composition, and care instructions to consumers. Decathlon and Zalando are conducting trials of DPPs to comply with EU sustainability regulations. QR codes and mobile applications are utilised to provide product-specific information at the point of sale. The sector is experiencing heightened consumer engagement, diminished returns, and enhanced brand trust. DPPs are additionally facilitating resale, recycling, and rental paradigms in fashion retail.

Report Specifications:

Market Segmentation

• By Component
  • Software
  • Services
• By Deployment Mode
  • Cloud-based
  • On-premises
• By Organization Size
  • Small Medium Enterprises (SMEs)
  • Large Enterprises
• By End-use Vertical
  • Consumer Electronics
  • Textile & Apparel
  • Automotive
  • Food & Beverages
  • Pharmaceuticals
  • Others

Key Questions Answered in the Report: