The Role of Industry 4.0 Components on the Circular Economy: An Empirical Study Based on Regression Analysis

Abstract

This study aims to examine the relationship between Industry 4.0 and circular economy practices through a regression model. The potential of Industry 4.0 to optimize manufacturing processes through advanced technologies and digitalization, when combined with circular economy principles, offers significant opportunities to enhance resource efficiency and reduce waste. The study employs a quantitative regression model to analyze how the applications of Industry 4.0 are integrated with circular economy principles and the impact of this integration on economic, environmental, and operational outcomes. In the model developed for the research, circular economy performance is defined as the dependent variable, while the usage of IoT, robotic automation, and digital manufacturing are considered as independent variables. According to the obtained regression model, digital manufacturing emerges as the most effective variable in increasing recycling rates, with this effect being both statistically significant and positively correlated. The results highlight the role of Industry 4.0 technologies in achieving the objectives of circular economy, potentially providing a roadmap for the design of sustainable production systems.