Circular Transformation of Industries 2025

Revenue: Capacity-sharing models shift profit pools to a recurring revenue model (earning revenue over time, for example through rental fees), which allows businesses to target new customer groups that prefer access over ownership, such as low- usage and trial customers. Additionally, capacity-sharing models allow businesses to capture value from a larger share of customer needs through broader offerings, such as maintenance or health monitoring, while increasing satisfaction. Substantial potential for revenue growth exists when there is high willingness to pay for the use of critical devices. This is often seen in heavy industry and in aerospace and defence, for example in cases like spare-engine rental, where the survey finds that revenue increases are particularly significant. Cost: Capacity-sharing models have the potential to reduce cost. However, these models require increased net working capital and higher ongoing costs due to operational complexity. For example, to enable capacity-sharing solutions, businesses must master the process of shipping the product from and to the customer at a higher frequency (for example for short-term rental of machines) while maintaining the product. Businesses that operate these models can offset these costs by leveraging their increased control over operational decisions thanks to retained ownership, which allows for reduced operational expenses. Additionally, they decrease customer retention costs through continuous engagement across the customer life cycle and lower the cost to access products at the end of life for recycling or reuse. Enabling strategies – Capacity sharing FIGURE 6 Source: Circular Transformation of Industries initiativeEconomic value Employ data-driven services to maximize value from deployed assets by increasing product utilization and reducing maintenance costsEstablish a cross- functional mandate to align capacity-sharing solutions as a part of the business strategyLeverage existing operational capabilities to extend the product lifespan and design products for various product use casesA B C Circular Transformation of Industries: Unlocking Economic Value 20