How Can Digital Technologies Enable Circular Economy in the Construction Industry? A Review of Lifecycle Applications, Integrations, Potential, and Limitations

The circular economy (CE) implementation in the built environment is hindered by the complexity of CE strategies and unique nature of construction industry. Digital technologies (DTs) have been explored as promising solutions to aid decision-making and enable CE in the architecture, engineering, and construction (AEC) sector. Despite the rapid growing literature on both CE and DTs, very few studies have reviewed practical applications of DTs in the AEC sector and their intersection with CE. There is a need for a comprehensive review of the state-of-the-art applications, integrations, potential, and limitations of DT in the CE context. Through a systematic literature review, this study identified ten key DTs to enable circularity in the building sector: Building information modeling (BIM), spatial data acquisition (SDA), Artificial intelligence and machine learning (AI/ML), Internet of things (IoT), blockchain, digital twin, augmented and virtual realities (AR/VR), digital platform/marketplace, material passports (MPs), and additive manufacturing and digital fabrication (AM/DF). We provided a comprehensive review of current applications for each DT, discussed their integrations, and mapped the DT applications along a building’s life cycle. Additionally, we identified the potential of DTs in overcoming the most reoccurring barriers to CE in the built environment: design, policies and standards, assessment methods, digitalization, and business models. Finally, we discussed the main DT limitations and future research needs.