Nov 6, 2025

Smart Waste, Smarter Cities: Why IoT Manufacturers Hold the Key to Circular Innovation

Smart Waste, Smarter Cities: Why IoT Manufacturers Hold the Key to Circular Innovation

Smart Waste, Smarter Cities: Why IoT Manufacturers Hold the Key to Circular Innovation

Over the past fifty years, waste management has evolved from a landfill-centric utility into a dynamic, data-driven ecosystem. Today, it plays a pivotal role in enabling circular economies. For IoT designers, manufacturers, and integrators, this transformation presents a rare opportunity to redefine how cities, businesses, and households interact with waste.

The Market Signal: Why Now?

Global waste generation is expected to reach 3.4 billion tonnes by 2050. In response, governments are tightening regulations and launching smart initiatives to reduce landfill dependency and boost recycling.

From the EU’s Circular Economy Action Plan to Singapore’s smart estate standards, policies like the Ecodesign for Sustainable Products Regulation and the Packaging & Packaging Waste Regulation (PPWR) are creating strong demand for IoT-enabled waste solutions.

Municipalities and haulers are under pressure to deliver:

  • Efficiency: Optimized collection routes and reduced fuel consumption.

  • Transparency: Fair billing through Pay-As-You-Throw (PAYT) models.

  • Compliance: Data-driven reporting for Extended Producer Responsibility (EPR) and recycling targets.

Enter IoT sensors coupled with intelligent hardware and Analytics-as-a-Service (AaaS) enabled platforms. These systems help reduce emissions, drive circularity, and deliver actionable insights for urban waste ecosystems.

Design Priorities for IoT Innovators

To lead in this space, manufacturers must move beyond standalone hardware and deliver integrated, intelligent solutions. Key design priorities include:

a.       Connectivity That Works Everywhere

  • RFID for bin identification and PAYT billing.

  • LPWAN technologies (LoRaWAN, NB-IoT) paired with long-life, sustainable power sources for fill-level sensors.

  • Hybrid RFID + LPWAN solutions for seamless data capture across diverse environments.

b.       Edge Intelligence

  • Compact vision modules for contamination detection.

  • AI-powered predictive analytics for overflow prevention and proactive maintenance.

c.       Sustainability by Design

  • Energy harvesting to minimize battery waste.

  • Recyclable components and eco-design principles aligned with public procurement standards.

d.       Interoperability

  • Open APIs for integration with municipal ERP and hauler systems.

  • Over-the-Air (OTA) firmware updates to ensure cybersecurity and regulatory compliance.

Challenges on the Horizon

Despite global momentum, many regions still face fundamental challenges with:

  • Inadequate basic waste services and uncontrolled disposal.

  • Overpopulated, underfunded urban areas.

  • Gaps in IoT infrastructure and digital readiness.

These issues often lead to uneven policy execution and jeopardize national targets, especially in emerging markets.

What’s Next?

As smart waste mandates become embedded in urban planning, municipalities are likely to prioritise the quick wins where the infrastructure is in place, while preparing for deeper tech integration. Emerging markets such India and Sub-Saharan Africa, for example, offer long-term potential, but initial adoption will likely depend on donor-funded pilots and smart city programs.

Horizon Research

At Horizon, we are committed to revealing the full scope of the compliance landscape. We take a deep dive into national initiatives and regulatory developments to uncover the true state of play in emerging markets, and what those regional trends and barriers look like for transformative technologies.

Watch this space for our initial findings!