The consumer technology sector is at a pivotal crossroads. As global demand for devices—smartphones, laptops, wearables, and smart home gadgets—continues to surge, so does the urgency to address the environmental impact of their production, use, and disposal. E-waste is now one of the fastest-growing waste streams worldwide, with over 53 million metric tonnes generated in 2020 and projections nearing 75 million tonnes by 2030. Only a fraction of this waste is recycled, leaving valuable materials and hazardous substances to pollute landfills and ecosystems. The traditional linear model—make, use, dispose—is no longer sustainable, nor is it aligned with evolving consumer expectations or regulatory demands.
In response, leading consumer tech brands are embracing circular business models that extend product lifecycles, reduce e-waste, and unlock new revenue streams. These models—ranging from Device-as-a-Service (DaaS) and trade-in programs to pre-loved marketplaces—are not just environmental imperatives; they are strategic levers for growth, resilience, and customer loyalty.
Device-as-a-Service (DaaS) is transforming how consumers and businesses access technology. Rather than purchasing devices outright, customers subscribe to a service that bundles hardware, software, support, and regular upgrades. This model, pioneered in the enterprise sector by brands like Lenovo, is rapidly gaining traction among consumers. DaaS incentivizes manufacturers to design for durability, repairability, and eventual reuse or recycling, as the responsibility for the device’s entire lifecycle remains with the provider.
For consumers, DaaS offers flexibility, predictable costs, and access to the latest technology without the burden of ownership or disposal. For brands, it creates recurring revenue streams, deeper customer relationships, and valuable data on device usage and preferences. Critically, it also enables more efficient recovery, refurbishment, and redeployment of devices, closing the loop and minimizing waste.
Trade-in and refurbishment programs are now mainstream, with major brands and retailers offering consumers incentives to return used devices in exchange for credit or discounts on new purchases. These programs not only divert products from landfills but also provide affordable, high-quality technology to new users. Each resale or refurbishment cycle generates additional value for the manufacturer and extends the useful life of the device.
Pre-loved marketplaces—whether operated by brands, third parties, or as peer-to-peer platforms—are experiencing rapid growth. Retailers and manufacturers are increasingly launching their own certified pre-owned marketplaces, ensuring quality, authenticity, and warranty support. This approach builds trust, attracts value-conscious and sustainability-minded consumers, and creates new touchpoints for brand engagement.
Innovative upcycling initiatives are also emerging. For example, some brands repurpose old smartphones as IoT devices or tools for social impact projects, demonstrating the creative potential of circularity.
Circular business models are not just about environmental stewardship—they are engines of profitable growth. Each time a device is resold, refurbished, or repurposed, it generates incremental revenue and deepens customer engagement. Subscription and service-based models provide predictable, recurring income and opportunities for upselling ancillary services such as extended warranties, content, or on-demand support.
Moreover, circularity helps brands future-proof their operations against resource scarcity, regulatory risk, and shifting consumer preferences. As non-recycled materials become more expensive and regulations tighten—especially in regions like Europe, where right-to-repair and extended producer responsibility laws are setting new standards—brands that lead on circularity will enjoy a competitive advantage.
Successfully scaling circular business models requires a fundamental shift in operations, technology, and culture. Key enablers include:
The path to circularity is shaped by regional differences in regulation, consumer expectations, and supply chain realities. Europe leads with stringent right-to-repair laws and eco-design directives, driving investment in modular design and lifecycle responsibility. North America is seeing market-driven change, with consumers—especially millennials and Gen Z—willing to pay more for sustainable products and demanding transparency. Asia-Pacific, as both a major producer and consumer of electronics, is innovating with ambitious recycling mandates and upcycling initiatives.
Brands operating globally must adapt their circular strategies to local realities, ensuring compliance, relevance, and impact across diverse markets.
Circular business models are rapidly moving from the margins to the mainstream in consumer tech. They offer a practical, profitable path to sustainability—one that aligns with regulatory trends, consumer values, and the realities of resource constraints. Brands that invest in digital transformation, supply chain innovation, and customer-centric circular platforms will not only reduce their environmental footprint but also unlock new sources of value, resilience, and growth.
At Publicis Sapient, we partner with technology leaders to design, operationalize, and scale circular business models—helping them turn sustainability from a challenge into a competitive advantage. The future of consumer tech is circular, data-driven, and customer-centric. Now is the time to lead the transformation.