With a world population of ten billion people by the middle of the 21st century, natural resources must be used sustainably to prevent environmental disasters and wars. Traditional concepts such as recycling alone are no longer sufficient. Instead, we must think in terms of material cycles and transform the traditional production economy into a circular economy. To achieve this, a close link between production and recycling must be established, which is hardly conceivable without digitalization. This article begins with an overview of steps of industrial development towards more sustainability, finally showing how the digital transformation can facilitate the realization of a circular economy.