Circular Electronics Business Model Could Create $20 Billion Market by 2035

A joint report by the India Cellular and Electronics Association (ICEA) and Accenture suggests that a circular electronics business model, encompassing product design to recycling, could create a total addressable market of up to USD 20 billion by 2035. This model would foster multi-brand repair services, define refurbishment standards, and create a product as-a-service framework, leading to the creation of 1.1 lakh high-quality formal sector green jobs and a reduction in greenhouse gas emissions by 1.6 million tonnes from smartphones and laptops by 2035. The report was released by Ministry of Electronics and IT Secretary Alkesh Sharma and emphasized the government’s commitment to India-centric circular business models.

How could the circular electronics business model help in reducing the greenhouse gas emissions from smartphones and laptops by 2035?

The circular electronics business model emphasizes the 4Rs: reuse, repair, recover, and re-manufacture. By promoting multi-brand repair services, defining refurbishment standards, and creating a product-as-a-service framework, the model encourages the reuse and refurbishment of electronic devices, reducing the need for the production of new devices. This, in turn, leads to a reduction in the manufacturing-related greenhouse gas emissions associated with the production of new smartphones and laptops. Moreover, recovering and recycling materials from end-of-life devices reduces the need for new raw materials, further reducing the environmental impact.

What are the potential challenges that might be faced in implementing the circular electronics business model?

Implementing the circular electronics business model could face several challenges:

• Consumer Behavior: Consumers might prefer buying new devices rather than refurbished ones due to perceived quality or performance issues.
• Technological Obsolescence: Rapid technological advancements might render older devices obsolete, making it less viable to repair or refurbish them.
• Informal Sector: The report notes that 90% of collection and 70% of recycling of electronic products are managed by a competitive informal sector. Formalizing this sector and ensuring that it adheres to the required standards and regulations might be challenging.
• Supply Chain Complexity: Managing the supply chain for repair, refurbishment, and recycling of electronic devices is complex and might face logistical challenges.

What is the role of public and private partnerships in unlocking the untapped revenue potential of circular electronics business models?

Public and private partnerships are crucial in unlocking the untapped revenue potential of circular electronics business models as they can facilitate:

• Policy Support: Government support in the form of policies that encourage the reuse, repair, and recycling of electronic devices can create a favorable environment for circular business models.
• Financial Support: Public and private partnerships can lead to shared financial responsibility, which can help in setting up the necessary infrastructure for repair, refurbishment, and recycling of electronic devices.
• Standardization: Public and private partnerships can help in defining refurbishment standards and creating a product-as-a-service framework, ensuring that refurbished devices meet the required quality and performance standards.

Month: Current Affairs - August, 2023