Leveraging industry 4.0 for circular economy adoption: An empirical examination of opportunities and challenges

The integration of Industry 4.0 (I4.0) technologies with Circular Economy (CE) practices holds substantial potential for enhancing sustainability outcomes, yet empirical understanding of associated opportunities and challenges remains limited. This study adopts a qualitative, expert-driven approach to examine the mechanisms and impacts of CE–I4.0 integration. Seven purposively selected experts from academia, industry, and sustainability consultancy participated in semi-structured interviews, providing insights on the practical adoption of I4.0 technologies within CE frameworks. Data were analyzed using Dedoose for thematic analysis, with an emphasis on coding, theme development, and systematic reporting of findings. Key opportunities identified include real-time monitoring and traceability, data-driven decision-making, secure blockchain-enabled collaboration, carbon management, orchestration at scale, policy support, and verification of CE outcomes. Key challenges were highlighted, including technological fragmentation, data gaps, skill shortages, financial constraints, regulatory misalignment, ethical concerns, and limited strategic CE awareness. Drawing on these findings, a CE–I4.0 Integration and Impact Framework is proposed, demonstrating how digital technologies can enhance resource efficiency, economic performance, social outcomes, and environmental sustainability while addressing implementation barriers. The study offers practical guidance for organizations and policymakers aiming to leverage I4.0 to scale circular practices and achieve systemic sustainability goals.