Eton Systems, a long-standing member of TMAS – the Swedish Textile Machinery Association – is emerging as a key technology provider in the Microfactories System Innovation project, an ambitious initiative aimed at fully automating the handling and resale of second-hand garments. The project brings together leading Swedish institutions, including the Swedish School of Textiles in Borås, the Automation Region at Mälardalen University, and the national innovation platform iHubs Sweden.
Automation Becomes Essential as the Reuse Market Booms
The scale of the global second-hand apparel market has reached unprecedented levels. According to ThredUp’s 2025 Resale Report, the sector is valued at $256 billion in 2025 and is growing at 10% annually, expected to hit $367 billion by 2029. Online resale alone is on track to double to nearly $40 billion within five years, driven by a surge in consumer demand and mounting environmental awareness.
“The volumes are now so large that handling must be automated for it to work,” explains Jan Molin, CEO of Eton Systems. “New EU requirements for separate textile collection are accelerating this shift, but the real driver is a rapidly changing mindset—consumers increasingly understand the environmental cost of textile production.”
AI-Powered Categorization at the Heart of the New System
At Science Park Borås, the project has established a real-world test facility built around Eton’s proven conveyor technology. Garments enter the system on customized carriers and pass through multiple automated stations.
A vision-based inspection system evaluates each item, while AI algorithms classify garments by brand, model, and size. Damage is documented, and the software generates recommendations for repair.
“The collected information feeds a calculation model that, using real-time market data, suggests an optimal selling price,” says Molin. After processing, each garment is photographed for listing and automatically routed to storage.
From the 1960s to Today: Automation at the Core of Eton’s DNA
Eton Systems’ expertise in workflow automation dates back to the 1960s, when the company developed its Unit Production System (UPS) to reduce the overwhelming material-handling time in shirt manufacturing. The ceiling-mounted system revolutionized production by moving garments one by one through each step, allowing manufacturers to switch from batch processes to individual item management.
The advantages were transformative: shorter lead times, reduced handling, improved ergonomics and significantly lower quality defect costs. Its success led to the creation of Eton Systems as an independent company in 1967. Today, operating from a modern facility in Borås, the company serves global customers across apparel, home textiles, furniture, and even the automotive sector.
Unlocking New Value in the Reuse Economy
The Microfactories System Innovation project builds on earlier initiatives focused on localized, on-demand production. This time, the spotlight is on the fast-growing reuse economy.
“We see enormous potential in second hand,” Molin says. “It’s a rapidly expanding area with room for both innovation and new business models—and a chance to adapt technology from other industries.”
Running from 2024 to 2028, the project offers Eton Systems an opportunity to field-test new applications, accelerate innovation and strengthen its position in the circular economy.
“Collaborating with universities and innovation environments helps us stay ahead,” Molin adds. “It gives us the freedom to explore visionary ideas while contributing to a more resource-efficient textile industry.”
A Circular Future Built on Automation and Digitalization
TMAS General Secretary Therese Premler-Andersson highlights the larger impact:
“There is a growing willingness among consumers to embrace second hand as a pillar of circularity. Automation and digitalization—pioneered by companies like Eton—are critical to making this market more efficient and scaling the fight against textile waste.”
