How Advanced Technology Accelerates Circular Economy

How Advanced Technology Accelerates Circular Economy

Currently, we excited how advanced technology have begun to be used by humans, including in accelerates a circular economy. Advanced technology in achieving circular economy has been developed by many researchers and practitioners. Therefore, we will review six advanced technologies in the circular economy

1. Big Data System

Currently the world is faced with digital technology that stores large amounts of data. Thus, technology and systems that aim to collect, analyze, and synthesize are needed, such as the use of big data systems. Big data system is a technology that is used to analyze large amounts of data and is used as a basis for determining policies.

One study revealed that the use of big data in realizing a circular economy is carried out by sharing data between stakeholders from a supply chain. This will encourage positive cooperation so that later stakeholders can make strategic policies that are in line with the circular economy principles.

2. Robotics Technology

The use of robotics as a form of automation can accelerate the transition to a circular economy. Robots can be used to cope with repetitive work and can be placed in hazardous areas such as waste recycling activities. Although development requires a large amount of money, in a certain period of time the use of robots will be very profitable.

The use of robots in recycling activities does not mean replacing humans but instead complements and improves work efficiency. Humans who collaborate with robots can work on complex jobs and have high flexibility.

3. Extended Reality

In the last few decades, technology development has accelerated. Extended reality (XR) is no exception. The extended reality market, including virtual reality (VR), augmented reality (AR), and mixed reality (MR), is predicted to reach more than USD 250 billion by 2028.

XR technology can be used to visualize circular economy solutions. So, that it can be more easily imagined by the audience. Therefore, this technology is very suitable for use by practitioners, researchers, or government institutions that have a circular economy program and are trying to convey it to other stakeholders.

4. Artificial Intelligence

Artificial intelligence technology is believed to be able to accelerate the transition to a circular economy. There are three things that can be utilized from artificial intelligence, including informing and accelerating efforts to eliminate waste and pollution, increasing effectiveness in creating a circular economy business model, and summarizing the infrastructure of product and material management.

For example, Germany produces 220 million tons of construction and demolition waste every year. Therefore, Germany developed artificial intelligence to create a “Smart Recycling” program. This program utilizes AI technology and robotics to sort waste for easier recycling. Interestingly, the use of this technology has increased the efficiency of waste sorting by more than 65%.

5. Blockchain

The use of blockchain as an accelerator towards a circular economy has many strategic functions. First, blockchain can be used as a tool to increase transparency, reliability, and automate circular economy activities. Second, blockchain can solve high operational cost, bureaucratic problems. Third, blockchain can be used to trace the environmental footprint of a product.

For example, Coca-Cola collaborated with BanQu to leverage blockchain technology to ensure transparency and equitable supply chains. As a result, they were able to collaborate with 700 recycling collectors, 7000 transaction recorded, and more than 1000 tons of recycled waste.


So that’s how advanced technology accelerates the transition to a circular economy. Starting from big data technology that is able to connect large-scale information. Then there is robotization that accelerates the circular economy by increasing the automation process. In addition, there is extended reality which consists of VR, AR, and MR. This technology will help visualize and make remote communications more interactive. Besides that, there is artificial intelligence that can process information and create new ideas and manage systems and products. Finally, there is blockchain technology which is very useful for increasing the traceability and transparency of a system. Guess, if you are an entrepreneur, which technology will you adopt?

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