Circular Economy in Construction Supply Chains: Global Drivers, Barriers, and Pathways for Transition

Abstract

The construction industry is a major contributor to global resource consumption and waste generation, intensifying the urgency for sustainable alternatives to linear economic models. The Circular Economy (CE) has emerged as a transformative framework to address these challenges by extending material lifespans, maximising resource value, and reducing environmental impacts. This paper presents a systematic literature review (SLR) of 80 peer-reviewed studies published between 2019 and 2024 that examine the adoption of CE principles in construction supply chains worldwide. The review identifies nine key drivers, including regulatory support, economic incentives, technological innovation, and environmental goals, and six major barriers, such as high upfront costs, fragmented supply chains, weak market demand, and limited knowledge or training. A key finding is the overlap between categories: regulation, finance, technology, and culture frequently act as both enablers and constraints depending on the presence or absence of supportive conditions. The discussion highlights that CE adoption requires systemic alignment across governance, markets, digital tools, and organisational practices rather than isolated initiatives. The study contributes to global understanding by consolidating knowledge of the factors shaping CE adoption and offering insights for policymakers, industry practitioners, and researchers seeking to accelerate circular transition in the construction sector.