Transitioning Manufacturing Toward Circular Economy: A Systematic Review of Practices, Digital Enablers, and Implementation Barriers

Abstract

Manufacturing is a key setting for examining how circular economy (CE) principles move from general ambition to operational practice. This paper reviews studies on CE transition in manufacturing published between 2010 and May 2026, using a PRISMA-informed screening process, eligibility criteria, quality evaluation, and thematic synthesis. The review shows that circular manufacturing is mainly organized around product and component life extension, reverse logistics, material recovery, industrial symbiosis, and circular business model innovation. Digital and automation-related technologies support these practices when they improve traceability, recovery decisions, lifecycle monitoring, and operational coordination. Implementation remains affected by financing constraints, technical complexity, organizational readiness, market acceptance, regulation, and supply-chain coordination. By connecting these dimensions, the paper explains why circular manufacturing remains uneven across firms, sectors, and contexts. It also identifies research needs related to measurement, empirical validation, scalability, and industrial implementation.