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October 23, 2025

DPP depends on data spaces to reach its full potential

The Digital Product Passport (DPP) is often introduced as a regulatory requirement – a mechanism to track components, materials, carbon footprint, and recyclability across a product’s lifecycle. Yet its strategic potential goes far beyond compliance. With the right foundations, the DPP can become a powerful enabler of transparency, sustainability, and new business models. Those foundations are built on data spaces.

DPP data captures the story of a product from origin to reuse – the materials that go into it, how it is manufactured and used, and how it is recycled at end of life. But the value of this information is only unlocked when it can move across organizations, stay under the control of those who share it, and follow agreed standards.

Trust and interoperability as the operating principles

An effective DPP is based on an intricate web of information – sensitive, often commercially valuable, and essential for decision-making across the value chain. Making that web work depends on two conditions: systems that interconnect without friction and a level of trust that makes companies confident enough to share.

Data spaces deliver both. They establish technical standards and governance rules that allow information to flow securely between organizations without losing meaning or ownership. Contributors define who can access their data and on what terms, while contractual and consent mechanisms ensure those conditions are respected. This governance-first approach builds confidence and transforms fragmented supply chains into collaborative data ecosystems – ones where information supports circular business models, sharper sustainability reporting, and more coordinated operations.

Meeting obligations while retaining control

Balancing transparency with competitive sensitivity is one of the most significant challenges companies face. Regulations demand detailed disclosure on materials, emissions, and compliance, yet exposing too much can compromise intellectual property or market position. Governance in data spaces resolves this tension by embedding compliance into the fabric of collaboration.

Access policies, usage rules, and technical safeguards make regulatory adherence part of the system rather than a costly add-on. Companies can meet legal requirements while protecting commercially sensitive information, turning what might have been a risk into a controlled advantage.

Speaking a shared language

Even the most advanced governance model achieves little if data remains incompatible. A DPP’s usefulness depends on a shared vocabulary – standardized data models and common ontologies that ensure information can be interpreted and reused across platforms.

This principle is already shaping large-scale initiatives. In the automotive sector, Catena-X connects hundreds of suppliers through a unified data framework, while Manufacturing-X is driving the same approach across industrial production. These efforts demonstrate how shared language turns isolated projects into integrated value networks – and how the DPP’s utility multiplies as interoperability increases.

Lowering barriers, raising participation

Comprehensive lifecycle data requires contributions from every link in the chain, including small and medium-sized enterprises. Yet many lack the resources for complex integration. Data spaces address this by providing plug-and-play connectors, shared services, and ready-to-use compliance tools. This lowers the barrier to participation and ensures that the data behind each DPP reflects the complete picture of a product’s lifecycle.

When information circulates securely, interoperably, and under clear governance, the DPP evolves from a compliance burden into a strategic capability. Companies gain real-time visibility into material flows and emissions, automate reporting, design for circularity, and launch new service-based business models. Regulators receive better data, consumers make more informed choices, and entire industries become more transparent and resilient.

The Digital Product Passport is set to redefine how products are designed, produced, and reused. Its success, however, depends on more than regulation – it depends on the ability to share data confidently and collaboratively. Data spaces make that possible.

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