Unlocking circular economy potential in construction and demolition: an empirical analysis of success factors, failure drivers, benefits, and emerging technologies

Purpose The adoption of circular economy (CE) practices in the construction and demolition (C&D) sector remains limited, primarily due to a lack of practical knowledge about critical success factors, tools, techniques, and enabling technologies. Despite its strong potential to support Sustainable Development Goals (SDGs), CE implementation faces several barriers. This study aims to empirically identify and analyze the key success and failure factors, benefits, tools and technologies essential for effective CE adoption in C&D organizations, with a focus on enhancing global waste management practices. Design/methodology/approach A pilot survey was selected as the most suitable methodology, given that CE adoption in the C&D sector is still in its infancy. The survey targeted a diverse group of professionals, including managers, architects/designers, manufacturers, suppliers, engineers, contractors, facility managers and CE experts from the large enterprises and SMEs worldwide to collect relevant research information. The structured questionnaire was distributed to 300 participants and received 109 valid responses over a six-month period. Findings The study findings reveal that “Developing a market for circular materials and products” is a key success factor for CE adoption. Conversely, the most significant failure factors are “Limited market demand for secondary or recycled materials” and “Reluctance to use recycled products due to perceived quality concerns”. The results further highlight that successful CE implementation leads to greater conservation of natural resources, a reduction in greenhouse gas (GHG) emissions, improvements in public health, increased promotion of recycled materials, and enhanced regulatory compliance. Additionally, the analysis identifies artificial intelligence (AI), the Internet of Things (IoT), blockchain, vision-based robotic systems and digital twin as the most prominent technologies playing a crucial role across all stages of the CE adoption framework. Research limitations/implications The study is limited by its sample size, as CE adoption in the C&D sector is still in its early stages, making it challenging to collect extensive data. Non-parametric methods were used for analysis. Future research should incorporate larger and more geographically diverse samples to explore cross-regional variations and enable parametric analyses for deeper insights. Practical implications The findings provide actionable insights for managers, planners, decision-makers, and researchers to understand the critical success and failure factors before implementing CE within their organizations. Additionally, the study helps convince top management of the benefits of CE adoption by presenting a comprehensive overview of its advantages. Furthermore, the research offers guidance to decision-makers in selecting the most appropriate Industry 4.0 technologies for each stage of the CE adoption framework. Originality/value This is the first global empirical study that integrates success factors, failure factors, and benefits of CE adoption in the C&D sector while examining the application of Industry 4.0 technologies across all stages of the CE adoption framework. The research contributes to both theoretical and practical understanding, offering a strategic roadmap for effective waste management in the C&D sector.