Deciphering how digital functions enable circular economy practices in construction: A critical review of recent progress and future outlook

The growing interest in leveraging digital technologies to advance circular economy practices in construction reflects the global push for Industry 4.0 and sustainable development. However, a comprehensive understanding of how digital technologies can effectively support circular initiatives in the sector remains limited. This study addresses this gap by critically reviewing the role of digitalization in enabling circular strategies through an innovative academic lens, exploring a more refined and sophisticated mechanism in which digital technologies are decomposed into their corresponding digital functions. Through a thorough analysis of 125 papers, 10 digital functions and 15 circular strategies in construction have been unveiled. By correlating these functions with strategies in an organized framework, it was found that different functions are typically supported by specific digital technologies. Among the most frequently emphasized functions are “assess”, “auto-plan”, “collect”, and “estimate”. The reliance on digital functions varies across different circular economy strategies. This study also highlights three key research gaps for future exploration: (1) the application of digital technologies in underexplored lifecycle stages, with a particular focus on strategies for extending building lifespan, (2) reuse and recycling practices at the meso- and macro-scales, and (3) the development of robust data management mechanisms. By offering insights into the state-of-the-art of existing research, and unexplored areas deserving future investigations, this study aids in propelling the conversation on digitalization-enabled circular construction practices. © 2025 The Authors