Circular platforms are at the forefront of the transition to a circular economy, and I wanted to share the key findings from a new report by McFadyen Digital. It’s the first comprehensive study of circular platforms worldwide, analyzing 246 platforms across 14 sectors. The report reveals the growing role of these platforms in driving circular business models on a global scale.
Here are some of the most insightful highlights:
Global Reach: The study shows 100 circular platforms in North America, 95 in Europe, and 51 across the rest of the world. Europe has shown especially strong growth in recent years, indicating the rise of circularity in the region.
Three Waves of Evolution:
1. The first wave digitized traditional classifieds.
2. The second wave scaled higher-value items.
3. The current third wave is addressing more challenging products and materials like apparel, plastics, and construction waste.
Network Effects and Scale: Circular platforms efficiently match supply and demand, leveraging network effects to drive the growth of marketplaces. As more users join, the availability of products and materials grows, creating a positive cycle that expands circular opportunities. Some platforms have grown to serve tens of millions of customers, reaching valuations of $1 billion or more.
Beyond Transactions: These platforms do more than just enable resale or rental. They provide value-added services such as logistics, payments, and insurance, making it easier for both individuals and brands to embrace circular practices. Additionally, they contribute to reverse logistics, product-as-a-service models, and data-driven insights, pushing the boundaries of circularity.
As digital platforms continue to evolve, they are unlocking new potential for the circular economy across various industries. If you or your company haven’t explored these platforms yet, now is a great time to dive in!
To read the full report and dive deeper into these trends, check out McFadyen Digital’s white paper: Circular Platforms: Findings from a Global Survey
🔗 https://lnkd.in/draQZSka
Peter C. Evans, PhD #CircularEconomy #CircularPlatforms #Sustainability #DigitalTransformation #CircularBusiness #CircularInnovation #GreenUnicorns #Recommerce