The gist: The Digital Product Passport requires not just IT integration but a permanently operated compliance infrastructure where the choice between in-house development and service provider platforms fundamentally determines cost burden over years.
The Digital Product Passport, mandatory from 2027 onwards, is not a one-time system extension but a permanent compliance infrastructure that links data management, supplier processes and regulatory reporting. CDOs must weigh in-house development against third-party platforms, with the total cost of ownership over years being decisive.
The Digital Product Passport (DPP) will be gradually introduced by the EU from 2027. Batteries form the starting point, with further product categories to follow under the Ecodesign Regulation. The passport combines product and material data, CO₂ footprint, origin information, recycling content, repair data and conformity certificates. It must be machine-readable, uniquely identifiable and role-based accessible to consumers, business partners and authorities. It is not a static dataset.
Companies often view the DPP as a purely IT project since product data already exists in ERP, PLM, quality or sustainability systems. However, a simple functional extension carries significant risks because the DPP operates as a permanent infrastructure requiring regular adaptation to new EU requirements, standards and data models. This is compounded by the consolidation of supplier data, ongoing software maintenance and audit documentation. The substantive responsibility for accurate data remains with the company itself regardless of the operating model.
In-house development incurs initial costs of €300,000 to €1.5 million. Annual operations then cost €350,000 to €500,000 for smaller companies and €600,000 to over €700,000 for larger enterprises. The required team comprises five to eight full-time positions. Regulatory changes, new standards and incomplete supplier data create permanent operational risks and additional costs ahead of regulatory audits.
A third-party platform operated by a service provider shifts this burden through predictable subscription models and eliminates high initial investment. Internal effort is significantly lower than in-house operation. Implementation typically takes 3 to 6 months compared to 12 to 24 months for in-house development. For the decision, CDOs should calculate the total burden over years, not just the integration duration.
Source: www.it-daily.net · Published 2 July 2026
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