Exploring Industry 4.0 Technologies Implementation to Enhance Circularity in Spanish Manufacturing Enterprises

Industry 4.0 (I4.0) is reshaping manufacturing by integrating advanced digital technologies and is increasingly seen as an enabler of the circular economy (CE). However, most research treats digitalisation and circularity separately, with limited empirical insight regarding their combined implementation. This study investigates I4.0 adoption to support sustainability and CE across industries, focusing on how enterprise size influences adoption patterns. Based on survey data from 69 enterprises, the research examines which technologies are applied, at what stages of the product life cycle, and what barriers and drivers influence uptake. Findings reveal a modest but growing adoption led by the Internet of Things (IoT), big data, and integrated systems. While larger firms implement more advanced tools (e.g., robotics and simulation), smaller enterprises favour accessible solutions (e.g., IoT and cloud computing). A positive link is observed between digital adoption and CE practices, though barriers remain significant. Five main categories of perceived obstacles are identified: political/institutional, financial, social/market-related, technological/infrastructural, and legal/regulatory. Attitudinal resistance, particularly in micro and small enterprises, emerges as an additional challenge. Based on these insights, and to support the twin transition, the paper proposes targeted policies, including expanded funding, streamlined procedures, enhanced training, and tools for circular performance monitoring.