Circular Economy and Industry 4.0: One-Way or Two-way Relationships?

Abstract

The ability of Industry 4.0 to help solve complex economic and social problems and implement complex concepts is assessed. Currently, one of the greatest challenges is the integration of the circular economy (CE) into real business practices. However, the link between these two ideas is not fully recognised, causing an interpretative dilemma. Therefore, the aim of this paper is to identify the relationships between the CE and Industry 4.0. For this purpose, we performed a systematic literature review and content analysis of selected articles indexed in Scopus, Web of Science, ScienceDirect, and EBSCO. In total, 32 papers published during the period 2017-2020 were analysed. The findings show a one-way relationship, i.e., Industry 4.0 leads to a CE, and a two-way relationship, indicating synergy between these concepts. The key spheres of the CE in terms of Industry 4.0 are the recycle and reuse strategy applied in smart production and a sustainable supply chain. This study demonstrates the importance of company (micro) and industry (meso) levels as application areas. The most promising digitalisation tools of Industry 4.0 are the Internet of Things (IoT) and Big Data Analytics. The article concludes with the limitations of the study and a formulation of directions for future research.

The impact of digital transformation on macroeconomic stability: Evidence from EU countries

“…According to Bacik et al (2020), Cwiklicki and Wojnarowska (2020), Karaoulanis and Karaoulanis (2020), Kaya (2021), Mokhtar et al (2020), the digitalization of the economy changes economic relations, the process of production, exchange, distribution, and consumption, affecting the economic policy of the government, the strategy of economic development of the state, and its economic security. Sekhar (2013) claimed that the higher level of digital innovation activity of the country is, the higher levels of its macroeconomic stability are.…”

Circularity Protocols for Extending the Useful Lifetime of Obsolete Large Industrial Equipment and Assets

“…In [10] the relationship and synergies between these two concepts are studied concluding on a one-way relationship-I4.0 enables, leads to and enhances CE-and a two-way relationship, indicating synergies between the two concepts. In [7] the hybrid categories of Circular I4.0 and Digital CE are introduced.…”

“…However, as stated in [2], the implementation of I4.0 technologies is still in early stages and companies that are starting to introduce new technologies are doing it in a uneven manner. The diverse set of Industry 4.0 tools, impedes a clear indication of how to use these technologies at the industry level because they are very specific while industry is more general in terms of the factors hampering exemplifications [10].…”

“…A straightforward description in [14], assumes that this new industry can be considered as Cyber-Physical Systems (CPS)-physical devices and processes that integrate computation and networking capabilities-, connected to an heterogeneous data and knowledge structure where the manufacturing process is integrated, optimized, adapted and service oriented, through the use of algorithms for Big Data (BD) and advanced technologies such as the IoT and Internet-of-Services (IoS), Industrial Automation, Cybersecurity (CS), Cloud Computing (CC) or autonomous Robots. In [10] it is stated that the most promising digitalisation tools of Industry 4.0 are the IoT and BD Analytics.…”

“…The creation of new technological solutions based on information and communication technology appears to be a promising facilitator for the introduction of CE to the business realm [10]. Depending on a dedicated area of CE, it is possible to see the prevalence of some I4.0 technologies, also referred as 'Digital Technologies', than others.…”