Mapping Circular Economy Strategies in the Construction Sector: Impact, Solutions and Gaps

Abstract

The construction sector is a major contributor to global resource consumption and environmental degradation. Circular Economy (CE) has emerged as a transformative framework for sustainable construction, promoting resource efficiency, waste reduction, and regenerative practices. To enable advancement, this study conducted a Systematic Literature Review (SLR) of 384 peer-reviewed articles to map CE strategies in construction, assess their impacts, identify solutions, and highlight research gaps. The review reveals a growing academic interest in CE, yet the practical implementation of CE strategies remains limited. The thematic analysis categorised CE impacts under the three pillars of sustainability: economic (e.g., cost savings, market innovation), environmental (e.g., waste minimisation, decarbonisation), and social (e.g., job creation, stakeholder engagement). Solutions identified were synthesised into four overarching categories: Foundational Enablers, Design and Planning, Implementation, and Innovation and Knowledge-Building Solutions. Despite promising developments in CE in the construction context, the study identifies critical gaps: limited empirical validation, underexplored social impacts, fragmented implementation frameworks, and insufficient integration of digital technologies. The dominance of recycling over more sustainable strategies like reduction and reuse also reflects a partial transition toward circularity in the construction sector. The paper calls for interdisciplinary research, harmonised metrics, and collaborative ecosystems to advance CE adoption in the construction sector. By offering a comprehensive synthesis of CE strategies, impacts, and gaps, this study provides actionable insights for researchers, policymakers, and industry stakeholders. It advocates for a systemic shift toward regenerative, low-carbon, and resource-efficient construction practices, aligning CE principles with broader sustainability goals.