Enabling circularity in construction: A technology-phase alignment of construction 4.0 and circular economy principles

Abstract

Integrating Construction 4.0 technologies—the construction-specific application of Industry 4.0—with circular economy (CE) principles presents a transformative opportunity for the construction sector to enhance sustainability, improve resource efficiency, and build long-term resilience. Construction 4.0 refers to the digitalisation and automation of processes through technologies such as Building Information Modelling (BIM), the Internet of Things (IoT), blockchain, digital twins, robotics, and artificial intelligence (AI). Given the construction industry's significant environmental footprint and contribution to global waste, aligning Construction 4.0 with CE principles is essential for shifting from traditional linear practices towards regenerative, closed-loop systems. While sectors such as transport and manufacturing have already demonstrated the benefits of Industry 4.0 technologies in reducing waste and optimising resources, construction has been comparatively slow to embed these innovations across buildings and infrastructure. In addition, despite growing scholarly and industry interest, there remains no comprehensive framework that systematically integrates Construction 4.0 technologies with CE principles across all stages of the construction lifecycle.

This study addresses this gap through a systematic literature review of 58 peer-reviewed articles published between 2015 and 2024, following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. The review focused on English-language publications directly examining the intersection of Construction 4.0 and CE in the construction sector, while excluding non-peer-reviewed studies from unrelated industries. Thematic and co-occurrence analyses were applied to map the alignment of CE principles with Construction 4.0 technologies across seven phases of construction: Planning, Design, Tendering, Manufacturing, Construction, Operation, and End-of-Life. The study contributes a conceptual framework that visualises these alignments and highlights key opportunities and barriers for advancing circularity through digital transformation within the construction industry.

The findings highlight that BIM and IoT play pivotal roles in lifecycle planning, operational efficiency, and resource optimisation, while AI and digital twins support predictive maintenance, material recovery, and closed-loop optimisation. In contrast, robotics and blockchain remain underutilised in manufacturing and deconstruction, representing significant untapped potential to advance circularity. Persistent challenges, including fragmented stakeholder collaboration, siloed practices, and slow technological adoption, continue to impede the sector's ability to fully realise CE ambitions.

Future research should focus on fostering early stakeholder engagement and promoting cross-phase integration of Construction 4.0 technologies to enhance circular outcomes. Further studies are also needed to empirically validate the proposed framework across diverse project contexts and geographical settings. In addition, future research should examine the evolving role of emerging technologies, particularly AI, in accelerating the transition towards circular construction and scaling sustainable innovation across the sector.