Exploring Challenges and Strategies in Circular Economy Applications in Modular Construction: The Case in Australia

The construction industry’s transition toward sustainability and the circular economy is vital in reducing its environmental impacts. At the same time, modular construction is gaining wider recognition in the industry. However, studies that apply circular economy principles in modular construction are lacking. This study investigates the challenges and strategies in applying circular economy principles, particularly the 10R principles, in modular construction in Australia. The research utilised qualitative methods such as expert interviews and secondary case studies and analysed data using thematic analysis. The findings reveal that, while rethink and recycle principles are generally implemented, the adoption of the remaining 10R principles is minimal due to limited industry awareness and insufficient initiatives. Case studies highlight challenges such as a lack of technical knowledge, industry engagement, and policy support, as well as the need for strategies such as capacity building, stakeholder collaboration, and government-led initiatives to overcome these barriers. This study contributes to research and practice by identifying key challenges and proposing strategies for the integration of sustainable principles into the Australian modular construction industry, aligning with global sustainability benchmarks and advancing a circular economy. The study emphasises the importance of supportive policies and government schemes to encourage the broader adoption of circular economy practices. Its findings have the potential to shape policy development and influence industry standards, laying a foundation for future studies to deepen our understanding and drive transformative change in the industry.