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This chapter examines how digitalization and Industry 4.0 technologies are reshaping industrial systems by embedding circular economy principles into their core operations. It explores how digital tools—such as the Internet of Things, Artificial Intelligence, blockchain, and cloud computing—enable traceability, resource optimization, and lifecycle extension, thereby supporting the achievement of Sustainable Development Goal 12 (SDG 12) on responsible consumption and production. The chapter distinguishes between digitalization and digital transformation: while the former refers to the integration of digital technologies into existing processes, the latter implies systemic change across organizational structures and governance. In this context, digital tools are not merely operational enhancers but strategic enablers of circularity. Industry 4.0 technologies facilitate closed-loop supply chains, predictive maintenance, and intelligent waste valorization. Modular design and cyber-physical systems allow for product disassembly and reuse, while digital twins and lifecycle assessments support real-time monitoring and impact evaluation. Circular supply chain management integrates forward and reverse logistics, supported by big data analytics and collaborative platforms. The chapter also addresses critical challenges. The energy use of digital infrastructure—especially data centers and AI training—raises concerns about carbon emissions and water consumption. Material demands for digital devices contribute to electronic waste, often managed through informal and hazardous recycling methods. Digital divides persist across socioeconomic and geographic boundaries, limiting equitable access to technology and its sustainability benefits. Additionally, automation-driven job displacement calls for inclusive workforce strategies and ethical governance. Ultimately, the chapter argues that digitalization must be guided by principles of environmental responsibility, social justice, and inclusive policy frameworks to truly advance circular economy goals and redesign industrial systems toward sustainability.

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Digitalization and Circular Economy in Industry 4.0

  • 章节

  • 发表日期：

    2026年

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  • Luis Velazquez

摘要

This chapter examines how digitalization and Industry 4.0 technologies are reshaping industrial systems by embedding circular economy principles into their core operations. It explores how digital tools—such as the Internet of Things, Artificial Intelligence, blockchain, and cloud computing—enable traceability, resource optimization, and lifecycle extension, thereby supporting the achievement of Sustainable Development Goal 12 (SDG 12) on responsible consumption and production. The chapter distinguishes between digitalization and digital transformation: while the former refers to the integration of digital technologies into existing processes, the latter implies systemic change across organizational structures and governance. In this context, digital tools are not merely operational enhancers but strategic enablers of circularity. Industry 4.0 technologies facilitate closed-loop supply chains, predictive maintenance, and intelligent waste valorization. Modular design and cyber-physical systems allow for product disassembly and reuse, while digital twins and lifecycle assessments support real-time monitoring and impact evaluation. Circular supply chain management integrates forward and reverse logistics, supported by big data analytics and collaborative platforms. The chapter also addresses critical challenges. The energy use of digital infrastructure—especially data centers and AI training—raises concerns about carbon emissions and water consumption. Material demands for digital devices contribute to electronic waste, often managed through informal and hazardous recycling methods. Digital divides persist across socioeconomic and geographic boundaries, limiting equitable access to technology and its sustainability benefits. Additionally, automation-driven job displacement calls for inclusive workforce strategies and ethical governance. Ultimately, the chapter argues that digitalization must be guided by principles of environmental responsibility, social justice, and inclusive policy frameworks to truly advance circular economy goals and redesign industrial systems toward sustainability.