AbstractAs part of the recent trend towards sustainability in modern society, in general, the knitting sector has done its part to emphasise social responsibility and the careful use of resources. Focus has been placed on reusing, recycling and upcycling raw materials and reducing or even eliminating knitting waste. Manufacturers and users have rethought processes, production and consumption volumes. Sustainable preparation and finishing processes have been developed. Knitting machines that offer environmentally friendly manufacturing techniques with less impact on people and the environment and production methods that significantly reduce the wasted or unproductive time between manufacturing phases have been favoured. Sustainability is not just a new approach or a trend that is fashionable right now, but a must, a compelling concept for the survival of businesses in the future. Knitting as a unique technology spans quite opposite poles: hand and machine production, hobby and money‐making, individual and mass production, assembled and seamless products, fashion and technical market, and so forth. As such, it can adapt, expand and evolve towards sustainability, circular economy and Industry 4.0. This paper provides an overview of the versatility and complexity of knitting today, as well as its sustainability potential, optimisation and merging within knitting and with other processes and opportunities for transition to the circular economy and Industry 4.0, covering digitalisation, the Internet of things and robotisation in knitting. It also analyses the market for knitting machines, knitted fabrics and knitted goods, and addresses the pitfalls of consumerism.