Product Service Systems (PSS) have significant potential for supporting circular and digital economy, improving societal sustainability and value creation. This project aims to demonstrate whether, when and how PSS can be economically and environmentally successful and contribute to the fulfilment of the Nordic Vision ‘to become the most sustainable and integrated region in the world’.

This report presents the findings from the project’s first two steps to create an overview of existing PSS models in the Nordics (step 1) and identify key product groups suitable for PSS (step 2). The report provides insight into existing PSS solutions applied in the Nordic Region, based on Arnold Tukker's three categories for PSS - Product-oriented, Use-oriented, and Result-oriented. The analysis is based on 275 cases of PSS found in the Nordic countries and categorised into nine product group clusters: Transportation, Packaging, Machinery and tools, Appliances, furniture and household products, Product for children, Clothing and accessories, Seasonal and special occasions, Electronic equipment and solutions, and ‘Other’.

The survey shows that use-oriented PSS solutions are the most common in the Nordics, with 230 cases identified. Product-oriented PSS models are assessed to uphold the least environmental benefits of the three groups, and only the 40 most interesting cases of this type have been mapped in the project. Result-oriented PSS models are rare, and only a few cases are identified in Nordic countries. 

Across the product groups, there is an overall focus on reducing CO2e emissions, increasing production utilisation, sustainable material sourcing, and reducing waste. Most of the product group clusters include models such as repair, refurbishment, and extended warranty, facilitating a prolonged lifespan of products and increased product durability. Based on consultations with PSS providers, the main attraction for consumers utilising PSS solutions is convenience, especially related to maintenance of the products offered. Increasing consumer awareness of product emissions and waste production has been identified as a focus for many PSS solutions. 

Most consulted PSS provider experience challenges in competing with product-sales models, utilising cheap and unsustainable sourced materials for their products, and enabling low retail prices. For PSS providers utilising the use-oriented models, upkeeping an efficient stock to stay attractive to consumers has also proven challenging. Challenges with cultural lock-ins regarding product ownership and consumption patterns are experienced in all product group clusters, especially for providers utilising useoriented business models targeting the B2C market. Many do, however, expect these tendencies to change over time.