How circular business models are boosting electronic device sustainability in Germany

Creating more value with fewer devices

Circular business models are designed to prolong the life of electronics by facilitating second-hand sales or rentals. This strategy can significantly reduce the need for new devices and raw materials, contributing to lower carbon emissions and less e-waste. The core idea is simple: generate more user value from fewer devices. By reusing and circulating products, the demand for new devices drops, reducing environmental strain.

However, the effectiveness of these circular offerings depends on actual usage patterns. Are businesses and consumers taking advantage of these models? And are the devices being used to their full potential?

B2B leads in circular model adoption

The study reveals that B2B markets in Germany are adopting circular business models at a faster rate than their B2C counterparts. Businesses are more likely to turn to second-hand or rental options, driven by concerns around price, flexibility, and data security. For smartphones, laptops, and other devices, companies find the cost-effectiveness and availability of these circular solutions attractive, while data security remains a priority in business transactions.

In the B2C sector, however, actual adoption lags behind, even though consumer intentions show potential for growth. Key barriers like price, warranty options, and rental flexibility still prevent wider acceptance among consumers.

Overcoming B2C barriers to unlock potential

For circular business models to flourish in the B2C market, companies need to address the concerns consumers face. Offering competitive prices, robust warranty services, and flexible rental agreements could help drive consumer adoption. Moreover, increasing the visibility of these sustainable alternatives through better marketing and education could help raise awareness and boost uptake.

Interestingly, potential rebound effects in the B2C market—where consumers purchase more second-hand devices due to lower costs—need to be monitored. This increase in consumption could offset the environmental benefits of reducing new device purchases, requiring further investigation.

Conclusion: sustainability potential on the rise

Despite these challenges, circular business models hold great promise for reducing environmental impact by extending device lifespans and reintroducing unused business electronics into the market. The B2B sector, in particular, is already experiencing positive sustainability effects. As B2C markets continue to grow and key adoption barriers are addressed, the environmental potential of circular business models could expand significantly.

UNDRESS Circularity: an industry-wide collaboration

The UNDRESS Circularity project, led by Circularity in partnership with Fraunhofer IZM, Systemiq, and 12 industry leaders, including Assurant, circulee, everphone, fixfirst, and Foxway, is focused on developing a framework to measure the sustainability impact of circular business models. Supported by Deutsche Bundesstiftung Umwelt and Deloitte, the project draws on industry data to provide a practical guide for maximizing device utilization and extending product lifespans.