Digital Product Passport (DPP) Market - Size, Industry Share, Growth Trends and Forecasts (2025 - 2032)

By Offering:

Based on offering, the market is segmented into software and services.

Trends in the offering:

• Service providers are offering end-to-end DPP solutions, including consultancy, hardware, software, and digital ID technology, to help brands navigate the complexities of implementation.
• DPP data is increasingly being integrated with broader ESG reporting frameworks, allowing companies to demonstrate their sustainability performance more comprehensively.
• Thus, based on the above analysis, these factors are driving the digital product passport (DPP) market demand and growth.

The software segment accounted for the largest revenue share in the year 2024.

• Industries like electronics, automotive, and textiles rely heavily on advanced software to capture, store, and verify product data throughout the value chain.
• The growing need for regulatory compliance, real-time data visualization, and seamless integration with existing ERP and SCM systems further drives this segment. It is projected to maintain its lead, supported by innovations in AI-driven analytics and decentralized data architectures in the upcoming years.
• The growing importance of digital transparency, sustainability, and circular economy practices is expected to significantly boost the use of DPP software across sectors like electronics, textiles, and construction materials.
• For instance, in July 2024, Eviden, in collaboration with the IOTA Foundation, has introduced the Eviden Digital Passport Solution (EDPS). This ready-to-use digital product passport utilizes blockchain technology, specifically IOTA's distributed ledger, to ensure secure and tamper-proof storage for data related to a product's lifecycle, carbon footprint, and sustainability performance. Initially, EDPS will focus on automotive batteries to help meet upcoming EU regulations, with broader applications for any industry needing traceability and ESG (Environmental, Social, and Governance) compliance.
• Thus, based on the above analysis, these developments are further driving the digital product passport (DPP) market growth and trends.

The services segment is anticipated to register the fastest CAGR during the forecast period.

• As businesses transition from legacy systems to DPP-enabled digital ecosystems, demand for expert guidance on regulatory compliance, data standardization, and multi-platform interoperability is growing.
• Managed services for system monitoring, upgrades, and data security are gaining traction as enterprises seek operational efficiency and risk mitigation.
• Businesses in sectors like fashion, consumer electronics, automotive, and industrial manufacturing are increasingly looking for specialized help to create digital product passport strategies to understand technical requirements and run pilot programs.
• Thus, the above factors are expected to drive the digital product passport (DPP) market share during the forecast period.

By Deployment:

Based on the deployment, the digital product passport (DPP) market is segmented into on-premises and cloud.

Trends in the deployment:

• By providing detailed information on material composition, recyclability, and repair instructions, DPPs facilitate the reuse, repair, and recycling of products, leading to reduced waste, optimized resource utilization, and lower operational costs.
• Brands can leverage DPPs as a direct digital channel to provide personalized care instructions, offer upgrades, and foster ongoing relationships with customers, extending the product's value beyond the initial sale.
• Thus, the above factors are driving the digital product passport (DPP) market trends and growth during the forecast period.

The on-premises accounted for the largest revenue share in the year 2024.

• In 2024, the on-premises deployment model held a significant market share in the global market. This was primarily driven by its adoption among large corporations and heavily regulated sectors like automotive, aerospace, and industrial manufacturing.
• These organizations prioritize data sovereignty, robust security, and direct control over their sensitive product and supply chain information.
• On-premises solutions offer the necessary flexibility for customized configurations and seamless integration with their existing legacy systems.
• Furthermore, many early adopters of DPPs initially developed proprietary in-house solutions to meet their specific operational needs, reinforcing their reliance on on-premises infrastructure during the early stages of implementation.
• Thus, based on the above analysis, these factors would further supplement the digital product passport (DPP) market share and trends.

The cloud segment is anticipated to register the fastest CAGR during the forecast period.

• Cloud deployment models are becoming increasingly attractive to both small and medium-sized enterprises (SMEs) and large multinational corporations that need to implement digital product passport (DPP) solutions across their globally distributed operations.
• Cloud infrastructure allows immediate data capture and synchronization, ensuring that DPPs always contain the most current information throughout a product's lifecycle.
• Cloud platforms facilitate secure and controlled sharing of DPP data with various stakeholders across the value chain, from suppliers to recyclers.
• Thus, these factors would further supplement the digital product passport (DPP) market during the forecast period.

By End Use:

Based on end use, the market is segmented into consumer electronics, textile & apparel, automotive, pharmaceuticals, food & beverages, chemicals & industrial products, construction & building materials, and others.

Trends in the end use:

• The increasingly stringent EPR schemes worldwide shift the burden of end-of-life management to producers, making DPPs necessary for tracking and optimizing recovery processes in several industry verticals.
• DPPs facilitate sustainable product design, material sourcing, and end-of-life recycling by providing full lifecycle visibility. With growing consumer demand for ethical and sustainable products, companies in industries like fashion, electronics, and automotive are adopting DPP solutions to meet environmental targets and improve their ESG performance.
• These factors are anticipated to further drive the digital product passport (DPP) market trends during the forecast period.

The textile & apparel segment accounted for the largest revenue share of 30.56% in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• The segment growth is driven by the increasing consumer awareness regarding transparency in sourcing, production methods, and environmental impact.
• New era of transparency fashion brands are leveraging DPPs to inform consumers about materials, manufacturing processes, and sustainability practices.
• Regulatory pressures, including in the EU and California, are also spurring the industry to track and disclose product lifecycle data.
• Thus, based on the above analysis, these factors are driving the digital product passport (DPP) market growth and trends.