Why the Digital Product Passport Is Becoming an Opportunity for Manufacturers

From 2026, the digital product passport will be mandatory for many products. For SMEs, this means a need for action - but also great opportunities. Those who start early will benefit from greater efficiency, better sustainability communication and new market access.

With the digital product passport, or DPP for short, the EU is establishing an instrument that intervenes deeply in industrial processes. The aim of the project is to make information on the origin, composition, energy consumption and recyclability of a product available digitally and consistently. What sounds like a purely regulatory project turns out to be a potential competitive advantage on closer inspection - especially for medium-sized manufacturing companies.

The DPP accompanies a product throughout its entire life cycle. As a dynamic data object, it is continuously maintained, expanded and made available along the supply chain. Using technologies such as QR codes or RFID, information on materials, production, use and disposal can be read at any time - by producers, service technicians, customers or recyclers alike.

The digital product passport is more than just a digital data sheet. It creates the basis for transparent, efficient and circular production. The focus is on seven central data categories:

• Product identification (UID, QR code)
• Material composition (raw materials, recycled content)
• Manufacturing data (energy consumption, CO₂ footprint)
• Information on the supply chain
• Maintenance and usage instructions
• End-of-life data (recycling options)
• Conformity and certifications

This data not only enables regulatory verification, but also opens up new digital business models and efficiency potential - provided it is systematically collected and integrated.

Many medium-sized companies act as suppliers for global value chains. They are the ones who will have to provide reliable data in future if OEMs, customers or partners rely on the DPP. At the same time, this is precisely where opportunities arise: those who invest in suitable structures at an early stage not only create security, but also differentiation in the market.

Customers and investors are also increasingly demanding reliable sustainability data. The digital product passport makes it possible to transparently present CO₂ balances, recycling rates or certificates of origin - and thus strengthens trust and brand positioning.

The possible uses of the DPP range from simple maintenance instructions to the basis for new business models.

Use case: A machine manufacturer is enabled to get access to service intervals, spare part numbers and disassembly instructions directly on the product via a QR code. This simplifies maintenance and reduces downtime.

Use case: A manufacturer of electrical components can use stored material and origin data to make recycling processes more efficient. Precise information about the materials used is available at the end of the life cycle - this saves costs and supports the circular economy.

Use case: The digital product passport is also a valuable building block for ESG reporting: robust sustainability data, such as the Product Carbon Footprint (PCF), can be transferred directly from the product passport to reporting systems without any additional data entry effort.

The digital product passport brings concrete operational added value - beyond mere legal compliance:

• Transparency: traceability throughout the supply chain
• Efficiency: better use of data in production, service and disposal
• Competitiveness: differentiation through credible sustainability information
• New business models: take-back programs, re-manufacturing, product-as-a-service
• Early compliance: reducing regulatory risks through proactive action

This makes the digital product passport a lever for process optimization and innovation capability.

The introduction of the DPP is not a sure-fire success. For SMEs, there are particular questions regarding data collection, system integration and technology selection. A pragmatic start is important - for example with a pilot product and a clear analysis of existing data.

Open standards and interfaces are essential for integrating existing ERP, PLM or IoT systems. Cloud platforms also offer scalability and reduce the barriers to entry. Where internal resources are lacking, external service providers, industry initiatives or funding programs can provide support.

• Selection of a manageable product as a pilot
• Identification of existing and missing data
• Definition of suitable technologies (e.g. QR code, platform)
• Integration into existing IT infrastructure
• Setting up internal processes for data maintenance

Companies that already work with digital twins or the Asset Administration Shell have a clear starting advantage here.

Regulation around the digital product passport will continue to increase in the coming years. The Ecodesign Regulation is just the beginning - further sector-specific regulations, such as for batteries or electronics, will follow. At the same time, the market for sustainable products is growing - and with it the demand for reliable data.

The DPP offers medium-sized manufacturers the opportunity to do both: fulfill legal requirements and tap into new market potential at the same time. The digital product passport is less of an obligation than a strategic tool - provided it is understood as such at an early stage.

The digital product passport is coming - and with it, new requirements for the industry. For SMEs, this means acting instead of waiting. Those who approach the DPP strategically can not only meet regulatory requirements, but also improve processes, win over customers and promote innovation.

Investing now means staying fit for the future. The DPP is not a bureaucratic obstacle - but a key to the sustainable value creation of tomorrow.