A Review on the prospects and challenges of integrating IoT technologies in circular business models

In recent times, there has been an increasing imperative to embrace Circular Business Models (CBM) as an indispensable means for enhancing businesses. Nevertheless, existing academic discourse rarely investigates the complex relationship between the Internet of Things (IoT) and CBM. This research paper initiates its investigation by identifying four pivotal IoT capabilities, namely monitoring, tracking, optimisation, and design evolution, all of which are instrumental in enhancing the performance of CBM, as grounded in the ReSOLVE framework. Preferred Reporting Items for Systematic Review and Meta-Analysis (PRISMA) guidelines were employed for systematic literature review in order to scrutinise how these identified IoT capabilities contribute to the core concepts of the 6R-CBM and CBM-IoT cross-section heatmaps and relationship frameworks. Finally, a comprehensive examination of the challenges impeding the realisation of IoT-enabled CBM is presented. The findings of this study reveal that Loop and Optimise business models are the predominant subjects of current research endeavours. IoT emerges as a pivotal player in these business models, primarily through its tracking, monitoring, and optimisation capabilities. In contrast, there is a noticeable absence of (quantitative) case studies pertaining to Virtualize, Exchange, and Regenerate CBM. Notably, IoT exhibits the potential to limit energy consumption significantly. However, it is essential to acknowledge that impediments associated with IoT hardware, software, protocol energy consumption, interoperability, security, and financial investments may pose substantial challenges to the broader adoption of IoT within the CBM.