IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v31y2023i4p2155-2175.html
   My bibliography  Save this article

Analysing the alignment between circular economy and industry 4.0 nexus with industry 5.0 era: An integrative systematic literature review

Author

Listed:
  • Sehrish Atif

Abstract

Circular economy (CE) and Industry 4.0 (I4.0) laid the foundation of intelligent and sustainable manufacturing based on real‐time data collection. However, the absence of a human‐centric approach has recently pushed for a more value‐driven Industry 5.0 (I5.0) vision. A systematic literature review is conducted by critically analysing the peer‐reviewed academic journals to evaluate the material‐flow of a product's lifecycle and information‐flow in a data‐driven platform to find any existing relationship between the CE and I4.0 nexus with I5.0. The results indicate that the application of I5.0 is significantly more comprehensive as it is not limited to industry‐focused but also considers broader societal values. I5.0 places the human‐centric approach at the centre of the production process and utilise innovative technical advancement to provide a sustainable and resilient smart manufacturing path. It extends the tech features of I4.0 and complements the CE paradigm that prospers beyond jobs and growth while respecting the environment.

Suggested Citation

  • Sehrish Atif, 2023. "Analysing the alignment between circular economy and industry 4.0 nexus with industry 5.0 era: An integrative systematic literature review," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2155-2175, August.
    • Handle: RePEc:wly:sustdv:v:31:y:2023:i:4:p:2155-2175
    DOI: 10.1002/sd.2542
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.2542
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.2542?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Laura Carraresi & Stefanie Bröring, 2021. "How does business model redesign foster resilience in emerging circular value chains?," Post-Print hal-03267359, HAL.
    2. Roberto Rocca & Paolo Rosa & Claudio Sassanelli & Luca Fumagalli & Sergio Terzi, 2020. "Integrating Virtual Reality and Digital Twin in Circular Economy Practices: A Laboratory Application Case," Sustainability, MDPI, vol. 12(6), pages 1-27, March.
    3. Zafar Husain & Annayath Maqbool & Abid Haleem & R. D. Pathak & Danny Samson, 2021. "Analyzing the business models for circular economy implementation: a fuzzy TOPSIS approach," Operations Management Research, Springer, vol. 14(3), pages 256-271, December.
    4. Kristoffersen, Eivind & Blomsma, Fenna & Mikalef, Patrick & Li, Jingyue, 2020. "The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies," Journal of Business Research, Elsevier, vol. 120(C), pages 241-261.
    5. Jessica Rossi & Augusto Bianchini & Patricia Guarnieri, 2020. "Circular Economy Model Enhanced by Intelligent Assets from Industry 4.0: The Proposition of an Innovative Tool to Analyze Case Studies," Sustainability, MDPI, vol. 12(17), pages 1-22, September.
    6. Mark Anthony Camilleri, 2020. "European environment policy for the circular economy: Implications for business and industry stakeholders," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1804-1812, November.
    7. Surajit Bag & Atul Kumar Sahu & Peter Kilbourn & Noleen Pisa & Pavitra Dhamija & Anoop Kumar Sahu, 2021. "Modeling barriers of digital manufacturing in a circular economy for enhancing sustainability," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 71(3), pages 833-869, May.
    8. Paolo Rosa & Claudio Sassanelli & Andrea Urbinati & Davide Chiaroni & Sergio Terzi, 2020. "Assessing relations between Circular Economy and Industry 4.0: a systematic literature review," International Journal of Production Research, Taylor & Francis Journals, vol. 58(6), pages 1662-1687, March.
    9. Hafiz Muhammad Naeem & Eleonora Di Maria, 2021. "Customer participation in new product development: an Industry 4.0 perspective," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 25(6), pages 637-655, June.
    10. Tadas Limba & Andrejus Novikovas & Andrius Stankevičius & Antanas Andrulevičius & Manuela Tvaronavičienė, 2020. "Big Data Manifestation in Municipal Waste Management and Cryptocurrency Sectors: Positive and Negative Implementation Factors," Sustainability, MDPI, vol. 12(7), pages 1-14, April.
    11. Seferlis, Panos & Varbanov, Petar Sabev & Papadopoulos, Athanasios I. & Chin, Hon Huin & Klemeš, Jiří Jaromír, 2021. "Sustainable design, integration, and operation for energy high-performance process systems," Energy, Elsevier, vol. 224(C).
    12. Carman-Ka-Man Lee & Lucas Lui & Yung-Po Tsang, 2021. "Formulation and Prioritization of Sustainable New Product Design in Smart Glasses Development," Sustainability, MDPI, vol. 13(18), pages 1-18, September.
    13. Bai, Chunguang & Zhu, Qingyun & Sarkis, Joseph, 2021. "Joint blockchain service vendor-platform selection using social network relationships: A multi-provider multi-user decision perspective," International Journal of Production Economics, Elsevier, vol. 238(C).
    14. Yu Hao & Yingting Wang & Qiuwei Wu & Shiwei Sun & Weilu Wang & Menglin Cui, 2020. "What affects residents' participation in the circular economy for sustainable development? Evidence from China," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1251-1268, September.
    15. Guilherme F. Frederico, 2021. "From Supply Chain 4.0 to Supply Chain 5.0: Findings from a Systematic Literature Review and Research Directions," Logistics, MDPI, vol. 5(3), pages 1-21, July.
    16. Chris Turner & Mariale Moreno & Luigi Mondini & Konstantinos Salonitis & Fiona Charnley & Ashutosh Tiwari & Windo Hutabarat, 2019. "Sustainable Production in a Circular Economy: A Business Model for Re-Distributed Manufacturing," Sustainability, MDPI, vol. 11(16), pages 1-19, August.
    17. Mark Anthony Camilleri, 2019. "The circular economy's closed loop and product service systems for sustainable development: A review and appraisal," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(3), pages 530-536, May.
    18. Okechukwu Okorie & Konstantinos Salonitis & Fiona Charnley & Mariale Moreno & Christopher Turner & Ashutosh Tiwari, 2018. "Digitisation and the Circular Economy: A Review of Current Research and Future Trends," Energies, MDPI, vol. 11(11), pages 1-31, November.
    19. Tahera Kalsoom & Shehzad Ahmed & Piyya Muhammad Rafi-ul-Shan & Muhammad Azmat & Pervaiz Akhtar & Zeeshan Pervez & Muhammad Ali Imran & Masood Ur-Rehman, 2021. "Impact of IoT on Manufacturing Industry 4.0: A New Triangular Systematic Review," Sustainability, MDPI, vol. 13(22), pages 1-22, November.
    20. Trang Thi Pham & Tsai-Chi Kuo & Ming-Lang Tseng & Raymond R. Tan & Kimhua Tan & Denny Satria Ika & Chiuhsiang Joe Lin, 2019. "Industry 4.0 to Accelerate the Circular Economy: A Case Study of Electric Scooter Sharing," Sustainability, MDPI, vol. 11(23), pages 1-16, November.
    21. Eglantina Hysa & Alba Kruja & Naqeeb Ur Rehman & Rafael Laurenti, 2020. "Circular Economy Innovation and Environmental Sustainability Impact on Economic Growth: An Integrated Model for Sustainable Development," Sustainability, MDPI, vol. 12(12), pages 1-16, June.
    22. Junghee Han & Almas Heshmati & Masoomeh Rashidghalam, 2020. "Circular Economy Business Models with a Focus on Servitization," Sustainability, MDPI, vol. 12(21), pages 1-17, October.
    23. Vanessa Prieto‐Sandoval & Carmen Jaca & Javier Santos & Rupert J. Baumgartner & Marta Ormazabal, 2019. "Key strategies, resources, and capabilities for implementing circular economy in industrial small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1473-1484, November.
    24. Chiappetta Jabbour, Charbel Jose & De Camargo Fiorini, Paula & Wong, Christina W.Y. & Jugend, Daniel & Lopes De Sousa Jabbour, Ana Beatriz & Roman Pais Seles, Bruno Michel & Paula Pinheiro, Marco Anto, 2020. "First-mover firms in the transition towards the sharing economy in metallic natural resource-intensive industries: Implications for the circular economy and emerging industry 4.0 technologies," Resources Policy, Elsevier, vol. 66(C).
    25. José Salvador da Motta Reis & Maximilian Espuny & Thaís Vieira Nunhes & Nilo Antonio de Souza Sampaio & Raine Isaksson & Fernando Celso de Campos & Otávio José de Oliveira, 2021. "Striding towards Sustainability: A Framework to Overcome Challenges and Explore Opportunities through Industry 4.0," Sustainability, MDPI, vol. 13(9), pages 1-28, May.
    26. Ekaterina V. Orlova, 2021. "Design of Personal Trajectories for Employees’ Professional Development in the Knowledge Society under Industry 5.0," Social Sciences, MDPI, vol. 10(11), pages 1-29, November.
    27. Cristina Ciliberto & Katarzyna Szopik‐Depczyńska & Małgorzata Tarczyńska‐Łuniewska & Alessandro Ruggieri & Giuseppe Ioppolo, 2021. "Enabling the Circular Economy transition: a sustainable lean manufacturing recipe for Industry 4.0," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3255-3272, November.
    28. Yunus Zengin & Serkan Naktiyok & Erdoğan Kaygın & Onur Kavak & Ethem Topçuoğlu, 2021. "An Investigation upon Industry 4.0 and Society 5.0 within the Context of Sustainable Development Goals," Sustainability, MDPI, vol. 13(5), pages 1-16, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sarkar, Bishal Dey & Shardeo, Vipulesh & Dwivedi, Ashish & Pamucar, Dragan, 2024. "Digital transition from industry 4.0 to industry 5.0 in smart manufacturing: A framework for sustainable future," Technology in Society, Elsevier, vol. 78(C).
    2. Srikant Gupta & Rajesh Kumar Singh & Chintan Amrit, 2025. "Integrating Industry 4.0 with Circular Economy Approach for Sustainable and Flexible Manufacturing Systems," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(1), pages 115-145, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qinglan Liu & Adriana Hofmann Trevisan & Miying Yang & Janaina Mascarenhas, 2022. "A framework of digital technologies for the circular economy: Digital functions and mechanisms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2171-2192, July.
    2. Carlos Andrés Tavera Romero & Diego F. Castro & Jesús Hamilton Ortiz & Osamah Ibrahim Khalaf & Miguel A. Vargas, 2021. "Synergy between Circular Economy and Industry 4.0: A Literature Review," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    3. Kristoffersen, Eivind & Blomsma, Fenna & Mikalef, Patrick & Li, Jingyue, 2020. "The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies," Journal of Business Research, Elsevier, vol. 120(C), pages 241-261.
    4. Kayikci, Yasanur & Kazancoglu, Yigit & Gozacan-Chase, Nazlican & Lafci, Cisem & Batista, Luciano, 2022. "Assessing smart circular supply chain readiness and maturity level of small and medium-sized enterprises," Journal of Business Research, Elsevier, vol. 149(C), pages 375-392.
    5. Kristoffersen, Eivind & Mikalef, Patrick & Blomsma, Fenna & Li, Jingyue, 2021. "Towards a business analytics capability for the circular economy," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    6. Kristoffersen, Eivind & Mikalef, Patrick & Blomsma, Fenna & Li, Jingyue, 2021. "The effects of business analytics capability on circular economy implementation, resource orchestration capability, and firm performance," International Journal of Production Economics, Elsevier, vol. 239(C).
    7. Manish Mohan Baral & U. V. Adinarayana Rao & K. Srinivasa Rao & Girish Chandra Dey & Subhodeep Mukherjee & M. Arun Kumar, 2023. "Achieving Sustainability of SMEs Through Industry 4.0-Based Circular Economy," International Journal of Global Business and Competitiveness, Springer, vol. 18(2), pages 128-144, December.
    8. Chauhan, Chetna & Parida, Vinit & Dhir, Amandeep, 2022. "Linking circular economy and digitalisation technologies: A systematic literature review of past achievements and future promises," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    9. Aurelija Burinskienė & Olga Lingaitienė & Artūras Jakubavičius, 2022. "Core Elements Affecting the Circularity of Materials," Sustainability, MDPI, vol. 14(14), pages 1-21, July.
    10. Khai Wah Khaw & Mark Camilleri & Victor Tiberius & Alhamzah Alnoor & Ali Shakir Zaidan, 2024. "Benchmarking electric power companies’ sustainability and circular economy behaviors: using a hybrid PLS-SEM and MCDM approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(3), pages 6561-6599, March.
    11. Usama Awan & Robert Sroufe & Muhammad Shahbaz, 2021. "Industry 4.0 and the circular economy: A literature review and recommendations for future research," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2038-2060, May.
    12. Yafeng Han & Tetiana Shevchenko & Bernard Yannou & Meisam Ranjbari & Zahra Shams Esfandabadi & Michael Saidani & Ghada Bouillass & Kseniia Bliumska-Danko & Guohou Li, 2023. "Exploring How Digital Technologies Enable a Circular Economy of Products," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
    13. Dwivedi, Ashish & Moktadir, Md. Abdul & Chiappetta Jabbour, Charbel José & de Carvalho, Daniel Estima, 2022. "Integrating the circular economy and industry 4.0 for sustainable development: Implications for responsible footwear production in a big data-driven world," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    14. Adriana Neligan & Rupert J. Baumgartner & Martin Geissdoerfer & Josef‐Peter Schöggl, 2023. "Circular disruption: Digitalisation as a driver of circular economy business models," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1175-1188, March.
    15. Awan, Usama & Shamim, Saqib & Khan, Zaheer & Zia, Najam Ul & Shariq, Syed Muhammad & Khan, Muhammad Naveed, 2021. "Big data analytics capability and decision-making: The role of data-driven insight on circular economy performance," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    16. Srikant Gupta & Rajesh Kumar Singh & Chintan Amrit, 2025. "Integrating Industry 4.0 with Circular Economy Approach for Sustainable and Flexible Manufacturing Systems," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(1), pages 115-145, March.
    17. Rohit Agrawal & Vishal A. Wankhede & Anil Kumar & Sunil Luthra & Abhijit Majumdar & Yigit Kazancoglu, 2022. "An Exploratory State-of-the-Art Review of Artificial Intelligence Applications in Circular Economy using Structural Topic Modeling," Operations Management Research, Springer, vol. 15(3), pages 609-626, December.
    18. Ahmad, Farhan & Bask, Anu & Laari, Sini & Robinson, Craig V., 2023. "Business management perspectives on the circular economy: Present state and future directions," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    19. Gianmarco Bressanelli & Federico Adrodegari & Daniela C. A. Pigosso & Vinit Parida, 2022. "Towards the Smart Circular Economy Paradigm: A Definition, Conceptualization, and Research Agenda," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    20. Damoon Razmjooei & Moslem Alimohammadlou & Habib-Allah Ranaei Kordshouli & Kazem Askarifar, 2024. "A bibliometric analysis of the literature on circular economy and sustainability in maritime studies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(3), pages 5509-5536, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:31:y:2023:i:4:p:2155-2175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.