Driving Circular Economy Strategies Through Digital Transformation and Emerging Technologies

Abstract

Digital transformation is refashioning industrial and economic fronts, embracing efficiency and sustainability. The application of digital technologies within circular economy principles boosts resource efficiency, minimizes waste, and maximizes sustainable business models. This report presents an analysis of how artificial intelligence (AI), the Internet of Things (IoT), blockchain, big data analytics, and cloud computing accelerate circular economy thinking through computational and algorithmic innovations. Deep learning and predictive maintenance based on sensor-monitoring decrease downtime and increase asset lifespan. AI-based waste sorting and CNN technology increase recycling output and reduce contaminants. Business process  are made more transparent and regulatory compliant through blockchain technology for secure, auditable tracking of transactions. The research acknowledges the mathematical and computational foundations of such innovations and their part in improving circular economy moves. Number one on the priority list is the convergence of blockchain and digital twin technology. Digital twins allow real-time tracking and forecasting analytics for optimal use of resources and product lifecycle management. Together with blockchain, they create an unambiguous record of the full life cycle of a product, introducing further transparency and facilitating circular business models. Even with these advantages, there have been several constraints including high implementation cost, data privacy protection of individual information, technicality, and the call for standard regulation. These obstacles must be confronted in order to achieve mass application and optimize digital transformation for circular economy approaches. By way of current application, advantage, and drawback review, this study emphasizes the importance of inter-disciplinary collaboration, regulatory endorsement, and ongoing innovation in order to be able to maximize digital transformation to make sustainability possible.