As consumer electronics grow ever more sophisticated and pervasive, the strain they place on global resources continues to intensify.
From smartphones and laptops to wearables and smart appliances, modern devices require a complex cocktail of mined materials, semiconductors, and polymers, all assembled across global supply chains.
In response to increasing pressure from regulators, investors, and environmentally conscious consumers, many electronics companies have begun exploring circular economy models. But can circularity realistically work in the consumer electronics supply chain – and what would it take to close the loop?
Understanding circularity in electronics
The traditional supply chain for consumer electronics has followed a linear model: extract raw materials, manufacture components, assemble devices, ship to market, and eventually dispose of them. In contrast, a circular supply chain aims to extend the lifecycle of materials and products through reuse, repair, refurbishment, and recycling, thereby reducing the need for virgin resources.
Circularity, in principle, offers compelling benefits: reduced material costs, lower emissions, decreased e-waste, and enhanced resilience to supply shocks. For example, recovering rare earth metals from returned devices could reduce dependency on geopolitically sensitive sources, such as China, which has historically dominated the market for these materials.
The challenges of closing the loop
Despite its promise, circularity in the consumer electronics sector faces significant hurdles.
- Product design limitations
Many devices are not designed with disassembly or material recovery in mind. Miniaturisation, glued components, and proprietary construction techniques make it difficult to extract valuable parts without damaging them. For instance, integrated batteries and soldered components complicate efforts to refurbish or recycle smartphones and laptops. Modular design – where components can be easily removed and replaced – remains the exception rather than the rule.
- Fragmented reverse logistics
A circular supply chain relies on efficient reverse logistics: the infrastructure and systems to collect used devices from consumers and transport them to facilities for repair, reuse, or recycling. However, reverse logistics remains underdeveloped in most regions, particularly in emerging markets. Consumer participation is often low, driven by inconvenience, data privacy concerns, or lack of awareness.
- Low recycling yields
Even when e-waste reaches recycling centres, the yield of recovered materials is often modest. Many critical materials, such as tantalum, cobalt, and indium, are present in small quantities and are difficult to separate from mixed waste streams. As a result, less than 20% of global e-waste is formally recycled, according to the Global E-waste Monitor.
- Economic viability
Recycling or refurbishing electronics is labour-intensive and costly. In many cases, it is more economically attractive for manufacturers to source new materials or build new devices than to invest in material recovery. Without subsidies, regulatory incentives, or shifts in consumer behaviour, the business case for circularity can remain weak.
Emerging models and innovations
Despite these barriers, there are encouraging signs that circularity can be more than a theoretical ideal.
Device-as-a-Service (DaaS) models, where consumers lease rather than own devices, are gaining traction among businesses and, to a lesser extent, consumers. By retaining ownership, manufacturers can design products for longer life, easier repair, and eventual recovery. HP, Dell, and Lenovo have all expanded DaaS offerings, particularly for laptops and IT hardware.
Take-back schemes and trade-in programmes have become more widespread. Apple, for example, operates a global trade-in programme and uses a custom recycling robot, Daisy, to disassemble iPhones and recover valuable materials. Samsung and Google offer similar services, although the actual rate of device return remains relatively low.
Standardisation and modularity may also help support circularity. The EU’s Right to Repair legislation, which came into effect in 2021, has prompted some manufacturers to make spare parts and repair information available. Framework, a laptop startup, has gone further by launching fully modular devices with user-replaceable components. Although still a niche player, it has shown that circular design is technically feasible.
Digital product passports, which track the material composition and lifecycle of a device, could further enable circularity by improving transparency and streamlining recovery processes. These are currently under consideration within the EU’s Ecodesign for Sustainable Products Regulation (ESPR).
The role of supply chain stakeholders
For circularity to work at scale, supply chain stakeholders must rethink their roles and relationships.
OEMs need to incorporate circular design principles at the R&D stage and plan for end-of-life recovery from the outset.
Component suppliers must be willing to share data on material composition to support digital tracking and recycling efforts.
Distributors and retailers can play a crucial role in facilitating trade-in and collection schemes, acting as physical hubs for reverse logistics.
Contract manufacturers may need to shift capabilities towards remanufacturing, refurbishment, or disassembly.
Policy frameworks will also be pivotal. Mandatory recycling targets, eco-design regulations, and extended producer responsibility (EPR) schemes can help align economic incentives with environmental goals. The EU’s upcoming Critical Raw Materials Act, for instance, is likely to push manufacturers towards more domestic recovery of rare earths and strategic inputs.
Conclusion
Circularity in the consumer electronics supply chain is both technically possible and environmentally necessary, but it remains economically and operationally complex. It requires reengineering products, redesigning logistics networks, rethinking ownership models, and reshaping industry mindsets.
Closing the loop will not happen overnight. However, incremental advances – driven by regulation, innovation, and shifting consumer expectations – are beginning to lay the groundwork. For supply chain professionals, the opportunity lies not only in reducing risk and waste but in building a more resilient and resource-efficient model for the future of electronics.
