Integrating Industry 4.0 and circular economy: a review

Abstract

PurposeIndustry 4.0 and circular economy are the two major areas in the current manufacturing industry. However, the adoption and implementation of Industry 4.0 and circular economy worldwide are still in the nascent stage of development. To address this gap, the purpose of this article is to conduct a systematic literature review on integrating Industry 4.0 and circular economy. Further, identify the research gaps and provide the future scope of work in this area.Design/methodology/approachContent-based analysis was adopted for reviewing the research articles and proposed a transition framework that comprises of four categories, namely, (1) Transition from Industry 3.0 to Industry 4.0 and integration with circular economy; (2) Adoption of combined factors and different issues; (3) Implementation possibilities such as front-end technologies, integration capabilities and redesigning strategies; (4) Current challenges. The proposed study reviewed a total of 204 articles published from 2000 to 2020 based on these categories.FindingsThe article presents a systematic literature review of the last two decades that integrates Industry 4.0 and circular economy concepts. Findings revealed that very few studies considered the adoption and implementation issues of Industry 4.0 and circular economy. Moreover, it was found that Industry 4.0 technologies including digitalization, real-time monitoring and decision-making capabilities played a significant role in circular economy implementation. The major elements are discussed through the analysis of the transition and integration framework. The study further revealed that a limited number of developing countries like India have taken preliminary initiatives toward Industry 4.0 and circular economy implementation.Research limitations/implicationsThe study proposes a transition and integration framework that identifies adoption and implementation issues and challenges. This framework will help researchers and practitioners in implementation of Industry 4.0 and circular economy.Originality/valueReviews of articles indicated that there are very few studies on integrating Industry 4.0 and circular economy. Moreover, there are very few articles addressing adoption and implementation issues such as legal, ethical, operational and demographic issues, which may be used to monitor the organization's performance and productivity.