Component-as-a-Service for Electrical and Electronic Equipment: Business Model, Circularity, and Design Implications

This study explores the transformative potential of the Component-as-a-Service (CaaS) business model for electrical and electronic equipment (EEE), emphasizing the shift from traditional sales-centric models to circular, use-oriented models. Central to this approach is the value retention through component lifecycle management. The research integrates Design for X (DfX) principles with comprehensive design guidelines to facilitate the implementation of CaaS, ensuring sustainability and enhanced circularity in product usage. The methodology includes a detailed examination of existing CaaS offerings, leveraging the Business Model Canvas to elucidate key elements such as value propositions, customer relationships, and revenue streams. Additionally, the Circular Business Model Canvas highlights essential activities like take-back systems, non-destructive disassembly, and refurbishment operations that underpin sustainable practices. Critical to this study is the focus on critical raw materials (CRMs), highlighting the role of CaaS in fostering resilience within CRM supply chains by enabling multiple use cycles and optimizing resource utilization. This research underscores CaaS’s capacity to mitigate e-waste, promote resource efficiency, and enhance customer value, positioning it as a pivotal strategy in the evolution of business models within the electronics industry. The findings aim to guide OEMs and other stakeholders in adopting more sustainable and resilient operational frameworks.