The consumer technology industry stands at a pivotal crossroads. As digital devices become ever more embedded in our daily lives, the environmental and economic costs of constant upgrades and short product lifecycles are coming into sharper focus. The traditional model—where consumers purchase, use, and eventually discard devices—has proven unsustainable in the face of mounting e-waste, resource scarcity, and shifting consumer values. In response, a new wave of circular business models is emerging, fundamentally reimagining what it means to own, use, and value technology.
Globally, the world produces over 50 million metric tonnes of electronic waste each year, with only a fraction—about 17%—being properly recycled. This e-waste contains not only hazardous substances but also valuable raw materials, the extraction and processing of which have significant environmental impacts. The proliferation of devices, coupled with rapid obsolescence and limited repairability, has made sustainability a pressing concern for both consumers and brands. As younger generations place greater emphasis on environmental responsibility, the industry is under increasing pressure to innovate beyond the status quo.
One of the most promising developments in the circular economy is the shift from product ownership to service-based models. Device-as-a-Service (DaaS) programs, pioneered in the enterprise sector and now gaining traction among consumers, offer a compelling alternative to outright purchase. Under DaaS, users pay a subscription fee to access the latest devices, with the provider retaining ownership and responsibility for maintenance, upgrades, and end-of-life recycling.
This model delivers several key benefits:
Major brands are already piloting consumer-facing DaaS offerings, building on their experience with business customers. As these programs mature, they are poised to become a mainstream option for tech-savvy, sustainability-minded consumers.
Alongside DaaS, the growth of pre-loved or refurbished device marketplaces is reshaping the way consumers think about value and longevity. These platforms enable the resale, trade-in, and refurbishment of used devices, creating a vibrant secondary market that extends the life of technology well beyond its first owner.
Key features of the pre-loved marketplace model include:
This approach not only diverts devices from landfills but also opens up new revenue streams for brands and more affordable options for consumers. As the stigma around "used" tech fades, especially among younger buyers, the pre-loved market is set to expand rapidly.
Circularity in consumer tech is not limited to resale and recycling. Innovative brands are exploring ways to upcycle and repurpose devices for entirely new uses. For example, old smartphones can be transformed into smart home sensors, security cameras, or even wildlife monitoring tools. These creative applications extend the utility of devices and inspire consumers to see technology as adaptable and enduring, rather than disposable.
Embracing circular models is not just an environmental imperative—it’s a strategic opportunity. Research shows that a significant share of consumers are willing to pay more for environmentally friendly products, and many express strong interest in recycling and trade-in programs. For brands, circularity can drive:
While the momentum behind circular business models is undeniable, challenges remain. Standardizing quality and certification for refurbished devices, ensuring data security, and building consumer trust are all critical hurdles. Additionally, brands must invest in the infrastructure and partnerships needed to support take-back, refurbishment, and recycling at scale.
Yet, the direction of travel is clear. As the circular economy takes root in consumer tech, the industry is moving toward a future where devices are designed for longevity, ownership is flexible, and value is measured not just by novelty, but by utility, sustainability, and shared benefit.
The shift toward device-as-a-service and pre-loved marketplaces marks a profound transformation in the consumer technology landscape. By extending device lifecycles, reducing e-waste, and offering new value propositions, these circular models align the interests of consumers, brands, and the planet. For industry leaders, the challenge—and the opportunity—is to embed circularity at the heart of their business, delivering experiences that are not only innovative and convenient, but also responsible and future-proof.
At Publicis Sapient, we believe that the future of consumer tech is circular, and we are committed to helping brands navigate this transition—unlocking new growth, building trust, and shaping a more sustainable digital world.