Best examples of product-as-a-service model examples in the circular economy

Real-world examples of product-as-a-service model examples

If you’re trying to understand the circular economy in practice, you learn more from examples of product-as-a-service model examples than from any framework slide. Here are some of the most cited and most interesting cases, spanning B2B and consumer markets.

Philips Lighting-as-a-Service (Signify) – Selling light, not lamps

Philips (now Signify) has become a classic example of product-as-a-service model examples with its “lighting-as-a-service” contracts. Instead of selling light fixtures, Signify designs, installs, owns, and maintains lighting systems in buildings. Customers pay for light output—often measured in lux and operating hours—through multi‑year service agreements.

Why it matters for circularity:

• Signify keeps ownership of the equipment, so it has a financial incentive to design long‑lasting, modular, and energy‑efficient systems.
• Components are recovered, refurbished, or recycled at end of contract.
• Customers cut upfront capital expenditure and typically reduce energy use by 50–70%, depending on the baseline.

The company has reported that by 2023, a growing share of its professional projects used circular design principles and service-based offerings, aligned with its goal to double circular revenues by 2025.

Rolls-Royce “Power by the Hour” – Paying for uptime, not engines

One of the best-known examples of product-as-a-service model examples is Rolls‑Royce’s “Power by the Hour” program for jet engines. Airlines don’t just buy engines; they pay Rolls‑Royce for hours of engine operation and guaranteed availability.

Key features:

• Rolls‑Royce retains responsibility for maintenance, repairs, and overhauls.
• Data from sensors allows predictive maintenance, extending engine life and improving fuel efficiency.
• Components are remanufactured and reused across the fleet.

This model aligns perfectly with circular economy principles: the manufacturer is rewarded for durability, efficiency, and recoverability, not for selling more physical units.

Michelin Fleet Solutions – Tires-as-a-service for logistics

Michelin’s fleet services are a textbook example of product-as-a-service model examples in heavy transport. Instead of selling truck tires outright, Michelin offers contracts based on miles driven or uptime, bundling in tire selection, maintenance, retreading, and replacement.

Why this matters:

• Michelin has every reason to design tires that last longer and can be retreaded multiple times.
• Fleet operators get predictable costs and better fuel efficiency.
• Fewer raw materials are used per mile driven, which supports emissions reduction goals.

Michelin’s retreading and recycling programs are part of its wider circular strategy, which aligns with policy and research trends highlighted by organizations like the OECD and the Ellen MacArthur Foundation.

HP & Xerox – Printing-as-a-service for offices

Office printers are a quiet but powerful example of product-as-a-service model examples. HP, Xerox, and others offer managed print services where customers pay per page printed or through a monthly subscription. The provider owns or controls the devices, supplies, and maintenance.

What makes it circular:

• Devices are designed for long life and multiple reuse cycles.
• Providers recover used cartridges and components, refurbish devices, and keep materials in circulation.
• Customers can scale usage up or down without buying new hardware.

HP, for instance, reports progress toward circularity in its sustainability disclosures, including increased use of recycled plastics and take‑back programs for electronics and supplies.

Caterpillar & John Deere – Heavy equipment-as-a-service

In construction and agriculture, equipment-as-a-service is gaining ground. Caterpillar, John Deere, and other OEMs are blending leasing, performance guarantees, and digital monitoring into service‑based offerings.

These models often include:

• Remote monitoring of equipment performance and fuel efficiency.
• Predictive maintenance to extend asset life.
• Take‑back, remanufacturing, and resale of engines, components, and whole machines.

Caterpillar’s remanufacturing business (Cat Reman) is frequently cited as an example of product-as-a-service model examples supporting circularity. By 2024, Cat Reman was processing millions of components annually, reducing the need for virgin materials and lowering lifecycle emissions.

Interface – Flooring-as-a-service and take-back programs

Interface, a global carpet tile manufacturer, has experimented with flooring-as-a-service contracts and built strong take‑back and recycling systems. Customers pay for floor performance over time, while Interface remains responsible for installation, maintenance, and end‑of‑life.

Why this is a meaningful example:

• Carpet tiles are designed for disassembly and material recovery.
• Interface collects old tiles, separates backing and fiber, and reuses materials in new products.
• The company has published data on emissions reductions and recycled content in its annual sustainability reports.

Even where contracts aren’t formally framed as “as‑a‑service,” the combination of take‑back, leasing, and performance guarantees shows how product responsibility can stay with the manufacturer.

Mud Jeans & Rent the Runway – Clothing-as-a-service

Mud Jeans in Europe offers a “Lease A Jeans” model, a widely cited example of product-as-a-service model examples in fashion. Customers pay a monthly fee to use jeans, then return them for repair, swap, or recycling.

How it supports circular fashion:

• Mud Jeans retains ownership of the cotton fibers.
• Returned jeans are repaired, resold as vintage, or shredded and blended into new denim.
• The model pushes the brand to design durable, repairable garments.

In the U.S., Rent the Runway and similar services operate clothing-as-a-service at scale, especially for occasion wear and work apparel. While not always framed as circular economy projects, they extend product lifetimes and reduce the number of single‑use fashion purchases.

Apple, Dell & others – Devices-as-a-service and subscription hardware

Tech companies are increasingly shifting toward devices-as-a-service for businesses, and in some cases for consumers.

Examples include:

• Apple’s iPhone Upgrade Program and enterprise leasing arrangements.
• Dell’s PC-as-a-service, bundling hardware, software, and support into a monthly fee.
• Other OEMs and IT service providers offering similar subscription models.

These programs are important examples of product-as-a-service model examples when they include:

• Take‑back and certified refurbishment.
• Modular, repairable design to extend device life.
• Clear pathways for component reuse and material recycling.

The U.S. Environmental Protection Agency (EPA) has highlighted electronics reuse and recycling as a key strategy for reducing e‑waste and conserving resources, which aligns naturally with devices-as-a-service models (EPA e-waste overview).

Why these examples of product-as-a-service model examples matter for the circular economy

Looking across these examples of product-as-a-service model examples, a few patterns show up again and again. They’re not just clever pricing tricks; they change the physics of how resources move through the economy.

Ownership stays with the producer, responsibility follows

In nearly every example of a product-as-a-service model, the manufacturer or service provider keeps ownership of the asset. That single design choice has huge ripple effects:

• They care about total lifecycle cost, not just manufacturing cost.
• They design for durability, repairability, and upgradability.
• They build systems for collection, refurbishment, and recycling.

Instead of products becoming waste at the end of a single user’s ownership, they become inputs for the next service contract. That’s the circular economy in action.

Revenue shifts from volume to performance

These real examples of product-as-a-service model examples also show a shift from selling more units to selling better performance:

• Rolls‑Royce gets paid for engine uptime.
• Signify gets paid for light, not lamps.
• Michelin gets paid for miles, not tires.

This shift rewards efficiency. If the provider can deliver the same outcome with fewer materials, less energy, and longer‑lasting products, they win. That’s very different from the traditional linear model, where selling more stuff is the only growth path.

Data and digital tools make it possible

Most modern examples of product-as-a-service model examples rely heavily on digital infrastructure:

• Sensors measure usage and performance.
• Predictive analytics optimize maintenance schedules.
• Platforms manage contracts, billing, and asset tracking.

Without this data layer, it would be much harder to price services accurately, manage risk, or coordinate take‑back and refurbishment at scale.

2024–2025 trends shaping new examples of product-as-a-service models

The landscape is moving fast. By 2024–2025, several trends are pushing more sectors toward product-as-a-service and circular design.

Policy pressure and extended producer responsibility (EPR)

Governments are tightening rules on waste, product design, and producer responsibility. Extended producer responsibility (EPR) laws for electronics, packaging, and other categories effectively push manufacturers to stay involved after the sale.

For example, the U.S. EPA notes that EPR programs can shift end‑of‑life costs from taxpayers to producers and incentivize better design (EPA on EPR). This policy direction makes examples of product-as-a-service model examples more attractive, because companies already have to think about end‑of‑life; turning that obligation into a paid service is a logical next step.

Corporate climate and ESG commitments

Large companies are under pressure from investors and regulators to report climate and resource use metrics. Service-based models can help:

• Longer product lifetimes reduce Scope 3 emissions.
• Refurbishment and remanufacturing cut material footprints.
• Predictable service contracts make it easier to plan decarbonization pathways.

Organizations like the World Resources Institute and CDP have documented growing corporate interest in circular strategies as part of climate plans. That’s one reason you see more real examples of product-as-a-service model examples appearing in sustainability reports.

Consumer attitudes and subscription fatigue

On the consumer side, the picture is more mixed. People are used to subscriptions for software, entertainment, and sometimes cars or phones. But there’s also growing “subscription fatigue.”

The product-as-a-service models that tend to succeed with consumers share a few traits:

• Transparent pricing and clear value versus ownership.
• Simple return, repair, and upgrade processes.
• Tangible sustainability benefits (e.g., visible reuse, repair, or recycling).

Clothing rental platforms, for instance, have had to adjust their offerings and pricing to find stable ground. Some of the best examples of product-as-a-service model examples in consumer markets are now hybrid: combining ownership, resale, repair, and subscription elements rather than pure rental.

How to design your own product-as-a-service model (lessons from the best examples)

If you’re building or redesigning a business around circular economy principles, these examples of product-as-a-service model examples aren’t just interesting—they’re a playbook.

Start with the outcome, not the object

The strongest models sell outcomes:

• Light, not fixtures.
• Clean floors, not vacuum cleaners.
• Climate‑controlled space, not HVAC units.

Ask: what outcome does your customer really care about, and how can you guarantee it? That question forces you to think about performance, maintenance, and end‑of‑life from day one.

Design for multiple life cycles

Look again at the best examples of product-as-a-service model examples:

• Rolls‑Royce designs engines to be disassembled and rebuilt multiple times.
• Michelin designs tires for retreading.
• Interface designs carpet tiles for disassembly and material separation.

Your product needs similar modularity and durability, or your service margins will collapse under maintenance and replacement costs.

Build the reverse logistics and data backbone

Every example of product-as-a-service model examples that actually works at scale has two things:

• A way to get products back (reverse logistics, take‑back, on‑site service teams).
• A way to know what’s happening in the field (sensors, asset tracking, usage data).

Without those, you’re just running an expensive rental business with no visibility.

Price for risk, not just cost-plus

Service models shift risk from the customer to you. That means your pricing has to reflect:

• Variability in usage patterns.
• Maintenance and repair uncertainty.
• Residual value of assets at end of contract.

The more data you gather from early deployments, the more accurately you can price later contracts. That’s another reason the best examples of product-as-a-service model examples invest heavily in analytics and feedback loops.

FAQ: examples of product-as-a-service model examples and common questions

What is an example of a product-as-a-service model in manufacturing?
Rolls‑Royce’s “Power by the Hour” program is a classic example. Instead of selling jet engines outright, the company sells hours of engine operation and uptime guarantees. It retains responsibility for maintenance, repairs, and overhauls, and it recovers and remanufactures components, which aligns with circular economy goals.

What are some real examples of product-as-a-service model examples in everyday life?
Common examples include managed print services from HP or Xerox (paying per page printed), smartphone upgrade programs from Apple and carriers (paying monthly for access to the latest device), and clothing rental services like Rent the Runway (paying to use garments for a set period instead of owning them).

How do product-as-a-service models support sustainability?
Because the provider keeps ownership and responsibility, they’re motivated to design products that last longer, can be repaired, and can be disassembled for parts or materials. This reduces waste and resource use. The U.S. EPA notes that reuse, repair, and remanufacturing can significantly cut environmental impacts compared with producing new products from virgin materials (EPA sustainable materials management).

Are product-as-a-service models always better than ownership?
Not always. They work best when products are expensive, complex, and used intensively, and when performance and uptime matter more than personal ownership. In some consumer cases, ownership is still cheaper and simpler. The strongest examples of product-as-a-service model examples tend to be in B2B sectors like aviation, logistics, and industrial equipment.

How can a small or mid-sized business start experimenting with this model?
A practical path is to start with a limited offer to a few customers: bundle your product with maintenance and performance guarantees under a multi‑year contract. Track asset performance, failure modes, and costs carefully. Use that data to refine your design, pricing, and service operations. Learning from the best examples of product-as-a-service model examples, the key is to pilot, measure, and iterate rather than trying to transform your entire business overnight.