Applied Sciences
| Open Access | Digital Transformation and Circular Economy Integration: Advancing Sustainable Industrial Practices through Industry 4.0 and Consumer Engagement
Rahul Mehta , Department of Industrial Engineering, University of Delhi, IndiaAbstract
This study investigates the intersection of digital technologies, circular economy principles, and consumer behavior to elucidate mechanisms for sustainable industrial transformation. The research examines how Industry 4.0 technologies—such as artificial intelligence, Internet of Things (IoT), big data analytics, blockchain, augmented and virtual reality, 3D printing, and robotics—act as enablers of circular economy adoption in both production and consumption contexts (Ajwani-Ramchandani et al., 2021; Antikainen et al., 2018; Atif, 2023). By integrating insights from systematic literature reviews, case studies, and theoretical models like the Theory of Planned Behavior (Ajzen, 1991), the study develops a comprehensive framework that positions consumers as active agents in sustainable product lifecycle management. Findings reveal that digitalization enhances consumer engagement, supports eco-innovative product design, facilitates predictive maintenance, and improves supply chain efficiency, thereby reinforcing circularity. Moreover, technological integration in manufacturing and logistics fosters knowledge transfer, product durability, and re-commerce, contributing to environmental and economic performance (Bakker et al., 2020; Bag et al., 2022; Nayak). Limitations include uneven technological adoption across emerging and developed economies and potential behavioral resistance among consumers. The study contributes a nuanced understanding of how digital tools, policy frameworks, and consumer behavior interact to enable circular industrial ecosystems, offering practical insights for managers, policymakers, and researchers pursuing sustainable development. The research also identifies future directions for integrating digital platforms with circular economy practices, particularly through data-driven predictive analytics and service-oriented business models.
Keywords
Circular economy, Industry 4.0, digitalization, consumer engagement
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