DPP and Circular Economy: Models for Secondary Markets

Stefan DyankovJanuary 29, 20265 min read
Circular economy with DPP

The idea of the circular economy is no longer just a concept or a long-term vision. The Digital Product Passport (DPP) is turning it into a practical and applicable reality, especially in the electronics industry. One of the most significant effects of DPP is that it makes it possible to build and scale secondary markets based on trust, transparency and verifiable information.


This opens new opportunities for manufacturers and market participants to generate value and revenue through models such as repair and resale, remanufacturing, leasing and "product as a service". DPP is not just a regulatory requirement – it is a digital infrastructure that makes these models sustainable and economically viable.

How the Digital Product Passport supports the circular economy


The core idea of the circular economy is for products to be used longer, more efficiently and in more than one lifecycle. For electronic products, this has long been difficult to achieve due to the lack of reliable information, distrust in the actual condition of devices and complex supply chains.


The Digital Product Passport solves these problems by providing:


These elements are key for the development of secondary markets and sustainable business models in the electronics industry.

Secondary markets and their role in the circular economy


Secondary markets include the sale of used devices, refurbished products, spare parts and remanufactured items. They have significant potential but traditionally face one fundamental problem – the lack of reliable and verifiable information.


Buyers often do not know how the product was used, whether it was repaired and what its real remaining lifecycle is. This is precisely where the Digital Product Passport plays a decisive role.

Secondary market models based on DPP


Resale of used products with proven history


One of the most obvious models for secondary markets is the resale of used electronic products with a full and transparent history. Instead of a general description, DPP provides specific data such as:


This increases trust and allows more accurate pricing based on the actual condition of the product.

Refurbished products with standardised information


The refurbished electronics market is growing rapidly, but standards are often unclear. The Digital Product Passport can serve as a basis for standardisation, clearly showing:


This enables better quality control and higher customer trust.

Repair and resale through certified service centres


DPP facilitates the building of ecosystems of certified service centres that work with standardised information. After each repair, the passport can be updated with data about:


Repair becomes part of the lifecycle, not an endpoint.

Remanufacturing and industrial restoration


For more complex electronics and industrial equipment, DPP supports remanufacturing processes. The passport contains information about the design, permissible usage cycles and critical components, making industrial restoration more predictable and economically justified.

Product as a Service (Product-as-a-Service)


In "product as a service" models, the Digital Product Passport supports asset management, maintenance planning and re-releasing products on the secondary market after the end of the contract. This makes these models sustainable and scalable.

How DPP changes the economics of secondary markets


Secondary markets are traditionally perceived as riskier and with lower margins. DPP reduces this risk through transparency and verifiable information, leading to:


This way, secondary markets become a real source of long-term value.

The role of manufacturers in secondary markets


Through the Digital Product Passport, manufacturers can actively participate in secondary markets, protecting their brand, guaranteeing quality and creating new revenue streams. Responsibility for the product no longer ends with the first sale.

Challenges in implementing DPP


Despite the potential, companies need to address issues such as data access management, protection of sensitive information and standardisation among different participants in the value chain.

Long-term impact on the circular economy


The Digital Product Passport can turn secondary markets into a main pillar of the electronics industry, extending product life, optimising resource use and reducing electronic waste.

How

WIARA

supports secondary markets through DPP


WIARA helps companies implement the Digital Product Passport as a practical business tool. Through DPP solutions aligned with the European regulatory framework, WIARA facilitates product lifecycle data management, integration with service centres and partners, and control over information access.


This enables the development of sustainable models for repair, resale, remanufacturing and "product as a service", based on trust and transparency.

Conclusion


DPP and the circular economy are closely linked, and secondary markets are the place where this connection turns into real economic value. The Digital Product Passport creates the foundation for sustainable business models that combine regulatory compliance, competitiveness and long-term growth.


DPP

Frequently Asked Questions

Question Mark Section Supporting Image

The main challenge for secondary markets is the lack of trust between buyer and seller. DPP addresses this problem by providing verifiable and structured information about the origin, history and condition of the product. When the buyer has access to data about usage, repairs and maintenance, the risk decreases significantly. This makes secondary markets more attractive for both end customers and business buyers.

DPP does not give direct control over secondary markets, but provides a tool for influence. Manufacturers can set standards for information, certification and product renewal based on passport data. This allows building official channels for refurbished or remanufactured products that protect the brand and quality without excluding external participants.

Without information, pricing in secondary markets is often approximate and subjective. DPP allows more accurate product valuation based on real data about condition, age and usage history. This leads to fairer and more predictable prices that reflect the real value of the device. For businesses, this means better margins and lower risk of complaints.

Yes, DPP is not intended only for large manufacturers or platforms. Small and medium companies engaged in repair, refurbished sales or redistribution can derive significant benefits from access to standardised information. Even partial access to passport data can improve service quality and customer trust.

In "product as a service" models, lifecycle management is critical. DPP provides central information about asset condition, facilitating maintenance planning, renewal and re-releasing the product for use. After the end of the contract, the product can easily be directed to the secondary market without loss of information or value.

DPP itself is not a regulation of secondary markets, but creates a basis for clearer rules and standards. In the future, certain transparency and traceability requirements may become mandatory for secondary channels as well. This will increase the professionalism of the sector and reduce grey practices that currently limit its growth.

The most common challenges are related to data access, standardisation between different participants and protection of sensitive information. Companies need to clearly define who has the right to read, supplement or update information in the passport. Successful models are those that find a balance between transparency and business interests.

The first applications of DPP in secondary markets will appear alongside its introduction for primary products. Initially, these will be pilot projects and limited models, but as data and experience accumulate, usage will become increasingly widespread. Companies that start preparing early will have a significant advantage.

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