The future of the circular economy: relevance & challenges on the way to a circular business model

The 2022 industry study conducted by EFS Consulting, Fraunhofer Austria and the Vienna University of Technology identifies key challenges for the Austrian manufacturing industry in the transformation to a circular economy. Almost 90% of the 229 participating companies, predominantly from the board of directors and top management, attribute high relevance to the circular economy for long-term success. The main barriers lie in the area of product materials/design, followed by technology and supply chain challenges, particularly in recycling and reverse logistics. Despite the strategic importance and initial circular initiatives, it is clear that a transition to higher-value circular strategies such as refurbishing or remanufacturing is required in order to realise the full potential of circular business models and establish the circular economy as the dominant model by 2050.