A recent policy brief by European Commission’s Joint Research Centre (JRC) highlights the significant potential of the Product-as-a-Service (PaaS) model for a more circular economy, citing the example of a vacuum cleaner.
PaaS is a service-based business model in which the supplier retains ownership of the products, while end users gain access to them through subscription contracts.
The key to PaaS is the greater control that the supplier exercises over the product’s life cycle, providing a strong incentive to extend the product’s useful life and facilitate its remanufacturing and recycling.
The JRC’s scientific study evaluated a PaaS case for a cordless domestic vacuum cleaner, focusing on the efficient use of Critical Raw Materials.
The results of the material flow analysis, comparing PaaS with a one-off sales alternative, indicate a clear superiority of the PaaS model. In particular:
- Lower material input: The total inflow of CRM into PaaS has been calculated to be between 50% and 97% compared to one-off sales, demonstrating improved resource efficiency.
- Increased recycling: PaaS improves the outflow of materials, with a higher percentage going to recycling.
- Success factors: The improved performance is attributed to three key factors in PaaS: better product collection conditions, better component extraction conditions, and exploitation of a longer component life through reuse.
The study document is available at this link: https://publications.jrc.ec.europa.eu/repository/handle/JRC143813