Circular Wood Construction in a Sustainable Built Environment: A Thematic Review of Gaps and Emerging Topics

Abstract

As a renewable and carbon-storing raw material, wood is playing an increasingly important role in the transformation of the construction sector towards a circular economy (CE). However, extant scientific studies have largely analyzed its technical, environmental, and social aspects in isolation from one another. The present article provides a problem-oriented and conceptual narrative overview, integrating these three dimensions from a design perspective. The objective of this study is not to provide a systematic review of the extant literature, but rather to structure existing knowledge by categorizing topics as follows: well-recognized, moderately developed, and niche. This approach enables the identification of gaps and links relevant to architectural practice. A qualitative thematic approach was adopted, underpinned by a comprehensive analysis of peer-reviewed articles sourced from the Scopus and Web of Science databases. This approach was further enriched by the incorporation of a select array of highly cited sources, serving to substantiate the study’s findings and provide a comprehensive overview of the pertinent literature. The review identified four research areas with high potential but low recognition: digital tracking of the life cycle of wooden elements, upcycling of low-quality wood, development of innovative wood-based materials, and socio-cultural acceptance of CE-based architecture. These subjects are currently marginal in the field of research, despite their significant implications for design strategies, adaptive resource use, and the development of interdisciplinary tools. The article posits the necessity of integrating materials science, digital technologies and architectural theory as a prerequisite for the scalable development of circular wood construction. The proposed classification provides a conceptual framework to support further research and guide innovation in the built environment.

1. Introduction

Against the backdrop of growing problems resulting from climate change, overconsumption of natural resources, and the need to reduce greenhouse gas emissions in the construction sector, the integration of closed-loop economy principles into practices that shape the urbanized environment is gaining importance [1,2,3,4,5]. In this view, engineered wood, especially glulam (glued laminated timber) and cross-laminated timber (CLT), is emerging as a material with significant potential in the context of a circular economy, offering a viable alternative to traditional, carbon-intensive raw materials used in construction [6,7]. Wood as a sustainable building material plays a key role in the transformation of the construction sector toward a circular economy.

As a building material with a low carbon footprint and high renewable potential, wood is playing an increasingly important role in the construction sector’s transition to a circular economy (CE) model. Its properties, ability to store carbon, biodegradability, and relatively low environmental cost, make it a viable alternative to traditional materials such as concrete and steel. Although many aspects related to the use of wood have already been well described in the literature, there are still areas that need to be explored more deeply, both technologically and in terms of design. Responding to these needs requires further interdisciplinary research and innovative solutions to take full advantage of the opportunities that wood offers in sustainable construction.

While wood is recognized as a strategic material in the transition to a circular economy, newer research points to a number of significant constraints and challenges that should be openly articulated. Although wood is often promoted as a renewable resource, its excessive use in construction can lead to pressure on forest resources, especially in regions without certified forest management. As the authors of the Timber in Construction Roadmap 2025 report note [8], increased demand for construction timber in the EU and UK could result in a shortage of certified raw material by 2030. In response to this challenge, Waugh Thistleton Architects are advocating the development of hyperlocal supply chains and urban forestry as a way to balance supply and demand [9].

The recycling of demolition wood is still associated with high costs, lack of standardization of materials, and difficulty in assessing their mechanical properties. The first and most immediate challenge is the high costs associated with the process of recovering and processing demolition wood. These are mainly due to the labor-intensive nature of dismantling and the need to clean the material of contaminants such as nails, screws, paint and impregnates. The additional steps of selecting and preparing wood for reuse significantly increase unit costs compared to using virgin wood. While some studies indicate that recycling can be profitable for CLT production, for example, the final profitability depends on the scale of the project, availability of infrastructure and local labor costs. A second major barrier is the lack of standardization of recycled materials. Demolition wood is characterized by high variability in terms of species, age, moisture content, and service history. The lack of uniform standards for classifying and assessing the quality of this raw material hinders both the design processes and the logistics of its reintegration into the material cycle. This problem also limits the development of automated sorting systems and inhibits the implementation of digital tools such as material passports, which, although increasingly present in large-scale projects, are still not standard for medium- and small-scale investments. The third problem area concerns the difficulty of assessing the mechanical properties of reclaimed wood. Parameters such as bending strength, modulus of elasticity, or resistance to biological degradation can vary significantly, even within a single set of materials. Although nondestructive methods such as computed tomography or ultrasonic diagnostics are being used, their operational effectiveness and availability in an industrial context are still limited. Moreover, while some studies show similar elastic modulus values for reclaimed and new wood, parameters such as flexural strength often show significant declines, limiting the potential for full-fledged use in load-bearing structures [10,11,12,13,14].

Material passports are often presented as a key CE tool, but many studies point to their limited interoperability and lack of a coherent legal framework [15,16]. Research conducted in Stockholm as part of the Stockholm Wood City project [17,18] shows that public acceptance of wooden buildings is strongly linked to education, trust in technology, and local cultural heritage. In countries where concrete and steel are the dominant materials, wood is still sometimes perceived as less durable and less prestigious. In contrast, a study by the World Economic Forum (2024) indicated that solid wood projects require strong public policy support and transformational financing [19].

This review aims to organize and identify key issues that, while present in the literature, remain poorly recognized or are currently emerging. The authors, working in the fields of architecture and design, focus on those aspects that have practical relevance to the implementation of CE principles in construction, but have not yet received in-depth analysis. The article under review does not constitute a systematic review of the extant literature; rather, it is a problem-oriented and conceptual narrative review. The originality of the study lies not in the identification of entirely new topics, but in the manner in which they are structured, through the recognition of relationships between technological, environmental, and socio-cultural aspects in the context of wooden architecture. The objective of the review is to identify topics that are well described, moderately developed, and niche, and that are relevant to design practice. A review of the extant literature reveals that previous studies have predominantly focused on discrete aspects, including life cycle analysis, material issues, recycling processes, and design challenges. However, there is a paucity of analyses that integrate these areas from the perspective of timber architecture design and the implementation of circular economy principles. The present article addresses this lacuna by conducting an analysis of the interrelationships between these domains and their ramifications for design practice.

The article is divided into five sections. The second section is concerned with the presentation of the review methodology and the source selection criteria. The third section is concerned with the classification of topics according to their level of recognition in the existing literature. The fourth part of the study contains a discussion of gaps and future directions. The fifth section of this text constitutes a case study in design practice. The article concludes with a summary of conclusions and recommendations for further research and design practice.

2. Methodology

This study does not constitute a systematic review of the literature or a bibliometric analysis. The present study adopts a problem-oriented, conceptual narrative review, with the objective of identifying key topics and research gaps in qualitative terms. The review places particular emphasis on the design and practical significance of these topics in the context of circular timber architecture. The research approach took the perspective of architecture as both a design and cultural field. A qualitative approach was used, focused on extracting and organizing key evaluation criteria present in scientific sources and design practice. Instead of the classic systematic review model, a problem-thematic analysis, characteristic of architectural research, was adopted. The approach’s originality does not lie in the identification of entirely new topics, but rather in a structural approach to existing issues through an analysis of their level of recognition and significance for design practice. The primary objective of this study was to identify the interrelationships between the technological, environmental, and socio-cultural aspects of timber architecture. In previous reviews, these aspects have usually been considered separately. In contrast to numerous preceding literature reviews, which have concentrated on specific domains such as the material properties of wood, life cycle assessment (LCA) analysis or design strategies, this study integrates these viewpoints into an integrated design approach. The practical implications for architects and designers of implementing circular economy principles are emphasized.

The purpose of the analysis was to identify the following:

• Key research directions;
• The most frequently addressed research problems and gaps in the literature;
• Examples of good practices and innovative design solutions.

The following publications were included in the analysis: those which had undergone the peer-review process; those which had been indexed in the Scopus or Web of Science databases; those which were available in full text; those which had a DOI number; and those which fell within the subject area of wood as a circular material in architecture and construction. Furthermore, a selection of articles from publishing platforms (MDPI, ScienceDirect, SpringerLink, Taylor & Francis) were included, provided that they met the aforementioned criteria. In order to provide further context, backward reference tracking was also carried out in publications with a high number of citations. A total of 132 scientific publications that met the selection criteria were analyzed. The preliminary search yielded over 370 records, of which a number were disqualified during the full-text analysis stage due to an absence of references to design, social, or circular economy aspects. The selection was qualitative in nature, informed by an assessment of relevance to the thematic scope and potential contribution to an interdisciplinary approach.

Searches were supported by manual selection by reviewing references from papers with high citation counts. The search process was conducted in English and Polish using a combination of keywords, such as engineered wood, sustainable construction, circular economy in architecture, material reuse and recycling, wood-based composites, life cycle assessment, digital material passport, circular design strategies. In addition, an analysis of back references in publications considered key was performed to identify complementary and contextual works.

The analysis was carried out in three stages. In the first stage, research was performed in the direction of (i) categorization—dividing the articles into main thematic groups, (ii) comparative analysis—reviewing research approaches, (iii) synthesis and classification of research problems—identifying challenges, recurring methodological limitations, and niche topics. The analysis facilitated the identification of recurrent research issues and knowledge gaps. These were subsequently categorized according to their level of recognition, namely as well recognized, moderately recognized, niche, and emerging. The classification was determined by the frequency of occurrence of the topic in the literature, the degree of its elaboration, and references to architectural practice. The categorization was qualitative in nature, with the classification system being derived from content analysis as opposed to the number of citations. In the second stage, research problems were systematized as

• Well recognized;
• Moderately recognized;
• Niche and emerging.

Special attention in this research has been given to the niche and emerging topics. Four such topics were selected for analysis in the third stage. The results of the first and second stage of the research are given in Section 3. The results of the third stage of research are given in Section 4.

To clarify the methodological framework adopted in this thematic review,

Table 1. Methodological framework for the literature review on circular timber construction.

Analysis Stage	Description	Specific Objective
Stage of Analysis	Critical review of scientific literature concerning the use of wood in sustainable construction within the circular economy context; identification of research challenges at three recognition levels: well established, moderately addressed, and niche/emerging.	Identify research gaps, particularly in underexplored or emerging areas; strengthen the role of interdisciplinary approaches integrating design, technological, and social knowledge.
Source Selection	Selection of peer-reviewed publications indexed in Scopus and Web of Science; additional use of ScienceDirect, SpringerLink, MDPI, and Taylor & Francis sources, provided they are also indexed in Scopus.	Ensure scientific quality, topical relevance, and thematic diversity of the analyzed sources.
Publication Criteria	Included works focus on wood as a sustainable material within CE frameworks; full-text availability and DOI required.	Exclude purely technical publications lacking relevance to design, societal, or environmental contexts.
Search Strategies	Used keyword combinations such as engineered wood, circular economy, wood recycling, LCA, digital material passport; also applied backward reference checking in frequently cited publications.	Gather a wide-ranging, interdisciplinary literature sample to support thematic identification.
Content Analysis Approach	Three-stage thematic-problem analysis: article categorization, comparative review of methodologies, and identification of challenges and knowledge gaps; qualitative evaluation considering technological, design, and cultural aspects.	Organize research challenges and highlight topics with significant cognitive or application potential.
Typology of Research Topics	Issues classified into three levels: well established (e.g., carbon footprint, prefabrication), moderately addressed (e.g., recycling, biodegradation, business models), and niche/emerging (e.g., digital material passports, upcycling, innovative wood-based materials, socio-cultural aspects).	Demonstrate topic maturity and scientific grounding while identifying areas requiring further exploration.
Research Perspective	Interdisciplinary perspective of the architect-designer, combining scientific insight with project intuition and cultural reflection.	Promote the relevance of design- and culture-driven research in the development of sustainable timber construction.
Methodological Limitations	Focus restricted to indexed sources; literature in languages other than English and Polish excluded; academic lens prevails over implementation-oriented perspectives.	Openly acknowledge methodological boundaries and potential limitations impacting findings.

outlines the key stages of the literature analysis. It summarizes the research assumptions, selection criteria, and analytical strategies applied, reflecting the interdisciplinary and design-oriented nature of the study.

3. Results of the Literature Review

This section presents the findings of a comprehensive literature review, which has been organized into a classification of topics related to timber architecture and the circular economy. The aforementioned issues have been categorized into three distinct groups: well recognized, moderately developed, and niche and emerging. The structure of this phenomenon is illustrated in Figure 1, which shows the level of recognition of individual topics in the literature. An analysis of selected literature sources reveals a considerable diversity of research approaches to the use of wood as a sustainable material, with a particular focus on its role in the context of implementing the principles of a circular economy in the built environment. This diversity reflects the interdisciplinary nature of the issue, including both technological and environmental aspects, as well as design and socio-cultural aspects.

The following scientific problems are associated with the issue under discussion and have been divided into three categories for the purpose of clarity: well recognized, moderately recognized, and niche and emerging (see Figure 1). Figure 1 presents a summary of topics organized according to their prevalence in the literature. The illustration presented here is intended to serve as a visual aid and is based on a qualitative assessment of the reviewed sources.

3.1. Well Recognized

Well-recognized scientific problems in this problem area in the literature include the following:

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Reducing the carbon footprint through the use of wood: Wood has significant potential in reducing the carbon footprint due to its ability to sequester carbon over the long term, its ability to replace carbon-intensive building materials, and its use in cascade systems. The effectiveness of these strategies, however, depends on sustainable forest management, optimal use of wood raw materials, and properly targeted supporting policies. Under these conditions, wood can play a key role in mitigating the effects of climate change and supporting the transition to a sustainable built environment [20,21,22,23].

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Mechanical properties of structural timber: The mechanical properties of structural timber are determined by its anisotropic structure, species variation, environmental factors and the microstructure of the material. Their accurate recognition is the basis for the rational and safe design of wooden structures. Advances in testing methods and the development of modern engineered materials, such as glulam and laminated wood, translate into higher performance and reliability in construction applications. As a result, wood is increasingly seen not only as an alternative to conventional materials, but as a durable, cost-effective and sustainable component of the built environment [24,25,26,27].

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Prefabrication and standardization of wooden component: Prefabrication and standardization of wooden components in the construction industry are important tools for streamlining investment processes, contributing to increased realization efficiency, reduced environmental impact and expanded design possibilities. They enable better control over the quality and repeatability of components, reducing on-site assembly time and minimizing waste. The increasing automation of production further enhances the advantages of prefabrication, making it an attractive solution in terms of cost and technology. Despite these advantages, the successful large-scale implementation of prefabrication requires overcoming significant barriers, such as ensuring high manufacturing precision, integration with applicable standards, and aligning prefabricated solutions with accepted execution and engineering practices [28,29,30,31].

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Life Cycle Analysis of Wooden Structures: Life cycle assessment is a key tool in analyzing the environmental impact of buildings, especially in the context of wooden structures, which show lower greenhouse effect potential (GWP) and lower energy consumption than traditional materials. However, the reliability of LCA results depends on the quality of the data and comprehensive coverage of all life cycle phases, including disassembly and end-of-life scenarios. Further methodological development remains a prerequisite for effectively promoting sustainable design in wood construction [32,33,34,35].

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CE compliant design with wood: Designing with wood in the spirit of a circular economy is based on strategies aimed at efficient use of resources, minimizing waste and extending the life cycle of materials. Practices such as component reuse, reduced material waste and sustainable sourcing support both environmental and economic goals, making wood a key material in the transformation of construction toward a circular model [36,37].

In order to provide a more comprehensive illustration of the strength of the links between topics considered to be well recognized, Figure 2 has been prepared. This figure presents the author’s assessment of the relationships between them in the literature. The following section will present an evaluation of the strength of interrelationships among the aforementioned issues (Figure 2).

3.2. Moderately Recognized

Moderately recognized scientific problems in this problem area in the literature include the following:

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Recycling and reuse of wood in construction: Recycling and reuse of wood in construction are an important part of sustainable development strategies, contributing to emission reductions, resource savings, and economic benefits. Challenges related to quality, pollution, or market acceptance require support in the form of innovative technological solutions and appropriate regulations. Mainstreaming these practices into the construction industry promotes the goals of a circular economy [10,11,38,39].

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Biodegradation and biological durability of wood in a closed cycle: Biodegradation and biological durability are key aspects of wood reuse in a closed cycle. Their control requires the integration of chemical modification methods, appropriate conservation treatments, and consideration of the impact of environmental conditions. Enhancing wood’s resilience through sustainable practices and modern testing methods is essential for extending its life cycle and reducing its environmental impact [40,41].

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Integration of wood with other materials in hybrid structures: Hybrid structures involving wood combine the advantages of different materials, offering improved mechanical properties, increased durability, and a favorable environmental impact. Integration of wood with other components allows optimization of parameters such as fire resistance and sound insulation. These solutions represent a promising approach to sustainable design, but their full implementation requires further research and technological development [42,43].

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Business models and closed-loop economics involving wood: The integration of closed-loop economics principles in the wood sector is based on the implementation of innovative business models, efficient waste management, and the development of new technologies and products. This transformation, despite the challenges, is a key component of a sustainable development strategy, offering tangible environmental and economic benefits [44].

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Impact of regulatory standards and certification on sustainable wood use: Certifications such as FSC and PEFC play an important role in promoting sustainable forest management and wood use. However, their impact on market practice and design decisions in the construction industry requires further research [45,46].

Figure 3 presents an assessment of the degree of interconnection between issues classified as moderately recognized. The graphic representation provides a visual indication of the relative coherence of the topics under investigation and the distribution of research threads. The following presentation offers an evaluation of the strength of interrelationships among the aforementioned issues (see Figure 3).

3.3. Niche and Emerging Topics

Niche and emerging scientific problems in this problem area in the literature include the following:

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Digital Life Cycle Tracking of Wood Elements: The use of digital technologies, such as Building Information Modeling (BIM) and Internet of Things (IoT), in life cycle tracking of wood elements is an area that is still developing. Research indicates the potential of these technologies in documenting materials, traceability, and reuse decisions (Section 4.1).

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Upcycling of Low-Quality Wood: The processing of low-quality wood, such as wood from demolition, pallets, or packaging, into building materials with lower technical requirements is an area of research with great potential. Research is focused on developing technologies for the efficient use of such wood in construction (Section 4.2).

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The Potential of Innovative Wood-Based Materials: New wood-based materials, such as recycled CLTs, offer opportunities for sustainable construction. However, their production and application in construction practice require further research and technology development (Section 4.3).

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Social and Cultural Factors Influencing the Acceptance of Circular Economy Construction: Understanding the social and cultural aspects of CE construction acceptance is crucial to its widespread implementation. However, research in this area is limited and needs further development (Section 4.4).

As demonstrated in Figure 4, the level of thematic integration and research maturity of issues considered to be niche or emerging is illustrated graphically. The axes of the graph correspond to the degree of connection between this topic and others, and the level of its development in the literature, respectively. The following chart (Figure 4) presents an evaluation of the thematic integration of the aforementioned areas in the literature, as well as the maturity level of the research.

The X-axis is defined as follows: Thematic integration in the literature (from low to high) indicates the extent to which a topic is connected to other themes in circular wood construction (e.g., digital tracking linked with reuse, upcycling tied to material innovations, etc.).

The Y-axis is indicated as follows: The maturity level of research, ranging from emerging to established, signifies the degree of advancement within the academic literature.

To provide a clear synthesis of the findings outlined in this section,

Table 2. Research topics in circular wood construction—recognition level, problem characteristics, and future directions.

Recognition Level	Topic Category	Research Focus	Problem Description	Future Research Directions
Well recognized	Carbon impact and LCA	Reducing the carbon footprint through the use of wood	Utilizing wood to lower the carbon footprint due to its carbon sequestration capacity and substitution of carbon-intensive materials.	Standardizing LCA methods; including end-of-life and reuse scenarios in assessments.
	Material properties	Mechanical properties of structural timber	Influence of species, moisture, and microstructure; advancement of engineered products like CLT and glulam.	Further studies on durability in changing climate conditions; applications in multi-story construction.
	Technology and production	Prefabrication and standardization of wooden components	Factory-based solutions improve quality, reduce waste, and increase construction efficiency.	Integration with parametric design and building standards.
	Environmental assessment	Life Cycle Analysis of wooden structures	Comparative LCA with conventional materials; sensitivity to data quality and scope of the analysis.	Development of comprehensive and dynamic LCA models for wood.
	Circular design strategies	CE compliant design with wood	Reuse, material efficiency, design for disassembly; focus on resource optimization.	Case-based evaluation of CE implementation and supporting design tools.
Moderately recognized	Resource management	Recycling and reuse of wood in construction	Technical, economic, and normative barriers such as contamination, standardization, and variable properties.	Advanced diagnostics, quality classification systems, and material logistics support.
	Biological durability	Biodegradation and biological durability of wood in a closed cycle	Impact of biological agents and environment on secondary wood lifespan.	Application of chemical/biological treatments and longevity testing.
	Hybrid systems	Integration of wood with other materials	Hybrid solutions enhance fire, acoustic, and mechanical performance.	Validation of long-term durability and environmental performance.
	Circular business models	Business models for CE involving wood	Sustainable production-consumption models for timber in the built environment.	Feasibility studies, implementation strategies, scalability analysis.
	Regulations and certification	Impact of regulatory standards and certification	Role of FSC, PEFC certifications in shaping design practices and supply chains.	Effectiveness of certification and integration into building design processes.
Niche and emerging	Digital tools	Digital life cycle tracking of wood components	Use of BIM, IoT, and material passports for identification, monitoring, and reuse.	Standardization of data, development of interoperable digital platforms.
	Material upcycling	Upcycling of low-quality wood	Transforming low-grade wood (e.g., pallets, demolition timber) into higher-value construction components.	Technological efficiency studies, mechanical properties, life cycle and cost analysis.
	Material innovations	Innovative wood-based materials	Biocomposites, transparent wood, lignocellulosic foams, and biopolymers for multifunctional uses.	Certification and performance validation, adaptation to building codes.
	Socio-cultural acceptance	Social and cultural acceptance of CE-based wood construction	Influenced by education, trust in technology, and esthetic perception.	Participatory research, communication strategies, adaptation to local cultures.

presents a comprehensive summary of the key research topics related to circular wood construction. Each topic is briefly described, classified by its current level of recognition in the literature, and accompanied by identified directions for future research. This structured overview highlights both well-established areas of knowledge and those that are still emerging or insufficiently explored, offering a solid foundation for the discussion in the following section.

4. Discussion on Niche and Emerging Topics

The following section provides an in-depth review of the selected thematic threads, which, despite their presence in the literature, still remain limited in their recognition and description. The purpose of this analysis is to identify current research directions and to identify important knowledge gaps, further exploration of which can make a valuable contribution to the development of theoretical and practical knowledge in the field of sustainable construction with wood materials.

A review of the extant literature on the utilization of wood in construction reveals a tendency to focus on discrete aspects, including mechanical properties, life cycle assessment analyses, prefabrication applications, and social issues. However, there is a paucity of studies that combine these dimensions in the context of architectural design. This article therefore contributes to the extant literature by offering an interdisciplinary perspective that integrates technical and design approaches.

4.1. Digital Life Cycle Tracking of Wood Elements

Digital tracking of the life cycle of wood components exemplifies a modern approach to managing wood as a building material throughout its life cycle, i.e., from the harvesting phase, through its processing and use, to disposal or recycling. Tracking the material’s history serves to increase transparency and efficiency of its use in the context of sustainability and its identification as a building component in a facility [47].

According to this idea, wood in the form of any building element, appearing, for example, in the form of columns, beams, CLT boards, or prefabricated modules, is subject to individual identification by assigning it a unique identifier (e.g., QR code, NFC, or RFID chip) and, consequently, a so-called material passport [16,48,49]. This passport is a collection of information about the material, including data on the species and origin of the wood (FSC, PEFC certificates), technical parameters (strength, moisture content, fire resistance class, location of use in the building, and transport and installation history). The passport thus contains data collected from the entire life cycle of the material. The detail of this information remains an open question [32,50].

The initial phase of the cycle, i.e., harvesting of the raw material, can include both the indication of the place and method of harvesting the material (e.g., FSC, PEFC certifications), in an extended variant also the environmental conditions and sustainable exploitation practices of forests and other such green areas. The next phase, processing and transportation, involves monitoring the supply chain and recording the wood processing, which can include activities such as drying, impregnation, or mechanical treatment, for example [51].

It seems that the greatest usefulness of passports should be attributed only to the third phase, i.e., the building use stage, integration with BIM systems facilitates building management, and planning of repairs and upgrades. At this stage, it is important to monitor the conditions of use of the wood (e.g., wear and moisture content) and the associated prediction of its service life and maintenance needs [52].

The final phase of a material’s life cycle, i.e., disposal or recycling, can be documented in the material passport in the form of how to disassemble and possibly reuse. It seems indisputable that from the point of view of sustainable design, it also becomes crucial to know how to recycle or, if this is not possible, dispose of in accordance with the principles of CE [53,54].

Analyzing previous studies on digital life cycle tracking of wood components, there are several key advantages mentioned in different contexts, such as integration with BIM technology, circular construction, quality management and sustainability of wood as a building component, or transparency of its use, among others [55,56].

BIM technology facilitates the planning of assembly logistics (Just-In-Time Delivery), ongoing progress control, and building management. Digital cycle tracking is becoming an essential part of the information resources of software programs using BIM, increasing the accuracy of project documentation. The standard of the design process in developed countries is becoming the creation of a digital twin, allowing the representation of an actual material element, including wood, in digital form, which allows its parameters to be tracked in real time [57,58]. Another indicated advantage of a method based on tracking the life cycle of wood is related to supporting the circular economy. Potential opportunities are indicated for identifying wood elements suitable for reuse, recycling, or disposal, and consequently reducing waste and facilitating decisions on the use of existing materials in projects for remodeling, adaptation, and various forms of modernization of buildings, including historic structures [59].

The use of this method in the context of wood quality and durability management, i.e., monitoring the conditions under which wooden structural components operate, emerges as a particularly important advantage of digital material tracking. This tracking, through the use of IoT sensors and the regular recording of data on the condition of the wood (e.g., moisture content or changes in mechanical stress), can enable rapid response to unwanted changes—planning in maintenance, repairs—consequently increasing the safety of the structure [60]. The last of the cited advantages is identified with the openness and availability of information about the wood material used. Information transparency favors investors, including developers, enabling them to demonstrate, for example, the legality of the wood supply, or the environmental performance of sustainable processing and construction, which can also be an important marketing element or a tool for obtaining subsidies and other forms of financial support. Advantages in this context are also seen in relation to end customers, who receive a full set of information, avoiding, for example, so-called “hidden defects” in the purchase of residential or commercial premises.

Barriers and limitations also emerge from the analysis of the state-of-the-art of digital life cycle tracking of building materials, including wood [61,62]. Among the more significant are the lack of standardization of digital tools and how data is collected and processed. Practical barriers also include the limited availability of raw material data, as well as problems in accurately labeling wood as a more diverse material than steel or concrete. A general problem is the lack of regulation and economic incentives to make the digital tracking method more widespread and measurable. Despite convincing theoretical assumptions, in practice, creating a reliable wood supply chain is sometimes cumbersome, as it requires the unification of an elaborate and multi-stage (from forestry to sawmills to precast manufacturers to construction sites) process for identifying and labeling the material. Each of these stages can generate data in a different form and quality, making full transparency and consistency of information at each stage of an item’s life difficult to achieve. Finally, the last stage of the life cycle is limited, where in practice there is often a lack of tools to identify wood materials and evaluate them in terms of decisions to dismantle, recycle, reuse, or dispose.

4.2. Upcycling of Low-Quality Wood

Another interesting practice gaining importance in the context of sustainable development and the circular economy is the upcycling of low-quality wood. This term can be used to describe the process of transforming wood materials with reduced quality properties into building components with better functional or esthetic properties. Of particular interest is the possibility of reusing waste wood, mechanically damaged, biologically degraded or from demolition, as a secondary raw material with improved utility, thus reusing this building material as a product for construction or architectural applications [63,64,65,66].

Low-quality wood, despite the limitations of its original physical and chemical state (e.g., the presence of cracks, knots, microbial degradation, variable moisture content or uneven fiber structure), can be adapted to construction applications, appearing as, among other things, load-bearing elements in frame structures after appropriate reinforcement, prefabricated wall and roof elements, insulation layers and finishing and decorative elements, micro-joining, layered gluing, pressing, and thermal and biological modifications [67].

Among the advantages of upcycling low-quality wood, the main ones cited are participation in reducing consumption of natural resources, reducing greenhouse gas emissions, and minimizing waste [68]. This is a practice that is part of the low-carbon building strategy moving toward CE goals.

Current research on wood upcycling in construction focuses on improving the efficiency of reclaimed wood use, increasing its durability, and integrating it with modern material technologies. The pursuit of improvements in the mechanical and esthetic properties of recycled wood includes the search for processing methods and techniques (e.g., impregnation, layered bonding, coating) to increase the strength, durability and attractiveness of these elements. Modern methods are based on automating the process of selecting and classifying low-quality wood using artificial intelligence and scanners. Not only are the mechanical properties themselves and the durability of upcycled materials analyzed, but also the behavior under operating conditions, such as resistance to moisture, fire, insects, and fungi [63,65].

On a parallel track, research is running on combining reclaimed wood with other materials (e.g., wood composites) to achieve better performance. For example, the potential of using reclaimed wood in the production of building materials such as particleboard and composite concrete is being pointed out. Research on cement-bonded particleboard (CBP) has shown that the use of alternative binders and carbon dioxide curing technologies can improve the durability of these materials, while reducing greenhouse gas emissions by 9% compared to traditional particleboard [69].

A study was conducted in the Netherlands on upcycling disposable pallets into cross-laminated timber. After dismantling the pallets and removing the metal components, the wood was converted into CLT panels. Mechanical tests showed that the panels had comparable strength to new CLT panels, suggesting that they could be used in construction [70]. This research is accompanied by analyses of the economic and environmental effectiveness of such solutions [71].

From CE’s point of view, relevant research includes especially the latter, i.e., those focused on environmental and sustainability aspects. The research includes, among other things, assessments of the impact of wood upcycling on reducing wood waste and reducing the need for virgin raw materials, as well as life cycle analyses of recycled and upcycled wood products [72,73].

4.3. The Potential of Innovative Wood-Based Materials

The rapid development of innovative wood-based materials makes them an important element in supporting the transformation of the construction industry toward sustainability and integration into a closed-loop economy. Materials such as cross-laminated timber, LVL (laminated veneer lumber), MDF made from recycled fibers, lignin-based biocomposites, and wood insulation materials are gaining attention for both their technical properties and environmental benefits. The growing interest in these solutions is due to their high material efficiency, design flexibility, and ability to reduce CO₂ emissions [22,74,75,76,77].

Their use is not limited to the construction industry; wood-based materials are also playing an increasingly important role in the packaging, furniture, and transportation industries. However, it is the construction industry that is becoming the main customer for modern wood-based solutions. Prefabrication, low dead weight, good thermal insulation and natural esthetics make innovative wood products a viable alternative to concrete and steel, especially in residential, public building, and multi-story construction projects. In this context, CLT is a material of strategic importance; its use enables the reduction in construction time, waste reduction and significant reduction in construction-related emissions. According to market data, the global CLT market is expected to reach USD 4.1 billion by 2032, confirming the growing global interest in this material [78]. In parallel, other types of wood-based materials are being developed, including bioplastics and lignocellulosic composites, which are finding applications in thermal insulation, interior finishes, and as high-value-added functional components. Innovations such as wood foam, lignocellulosic fibers, and lignin-based bioplastics offer attractive alternatives to synthetic materials based on fossil fuels, while supporting the development of the bioeconomy [79,80].

These materials show significant environmental advantages over conventional raw materials. As a renewable material, wood stores carbon during its life cycle and can be recycled again after use. Studies indicate that replacing concrete and steel with engineered wood can significantly reduce greenhouse gas emissions associated with the construction sector, while reducing the energy intensity of manufacturing processes [81,82]. In addition, due to their lower dead weight, wooden structures generate lower transportation and foundation costs. Prefabrication reduces construction time, and the development of local supply chains has a positive impact on regional economies and employment [83,84].

At the same time, wood-based materials are increasingly being used in applications beyond traditional structural functions. Materials engineering, nanotechnology, and sustainable chemistry are making it possible to create advanced products such as acoustic panels, biopolymers for 3D printing, or boards with antibacterial and fire-resistant properties. Of particular interest is transparent wood—a material with high strength and applications in energy-efficient glazing or solar panels [85]. Meanwhile, thermally modified wood is gaining recognition as a durable facade material that is resistant to biodegradation and weathering. New applications also include water filtration, energy storage, and biomedical technologies, indicating the growing importance of wood as a platform for multifunctional materials [86,87].

However, the full realization of the potential of these solutions faces a number of barriers. Limited standardization, lack of adaptation of technical and construction regulations, and insufficient knowledge among investors and designers inhibit the pace of their implementation. Concerns about fire resistance and durability are often the result of a lack of reliable information, which requires improved scientific communication and technical education [88,89]. In addition, high production costs, limited availability of recycling technologies, and low implementation scale negatively affect the market competitiveness of some innovative materials.

In the long term, the future of wood-based materials will depend on their integration with digital technologies and automation of design processes. Tools such as BIM allow the optimization of resource consumption, life cycle planning of facilities, and reduction in material losses. At the same time, the concept of closed value loops involving recovery, processing, and recycling of wood in accordance with eco-design principles is developing [90].

However, this requires further investment in research, real-world testing of new solutions, and close collaboration between science, industry, and government. Policy frameworks, subsidies, legislative changes, and promotion of bioeconomics are also key, and can accelerate the construction sector’s transition to a climate-neutral model [91]. Ultimately, the success of wood-based materials will depend not only on technology, but also on values—such as responsible forestry, efficient resource management and a systems approach to sustainability.

4.4. Social and Cultural Factors Influencing the Acceptance of Circular Economy Construction

Implementing the principles of the circular economy in the construction sector requires not only technological innovation, but also broad social and cultural acceptance. Research indicates that the success of the CE transformation depends on understanding and addressing social aspects such as residents’ perceptions, community involvement, and adapting solutions to the cultural context.

One of the key factors influencing social acceptance is stakeholder involvement at various stages of the construction process. Research conducted as part of the VALUEWASTE project emphasized the importance of including local communities in decision-making processes and educating them about the benefits of CE. The use of methods such as scenario workshops and surveys allows for a better understanding of residents’ concerns and expectations, which in turn increases the chances of accepting new construction solutions [92].

Cultural acceptance of CE construction also involves the adaptation of existing structures to new functions, respecting cultural heritage. Strategies for adaptive reuse of historic buildings in the spirit of CE can help preserve local identity and promote sustainable development. Involving communities in the processes of revitalization and adaptation of buildings fosters a sense of community and responsibility for urban space [93].

However, despite growing environmental awareness, there are barriers to full acceptance of CE-based construction. Lack of confidence in new technologies, cost concerns and insufficient education about the benefits of CE are significant challenges. Therefore, it is crucial to conduct information campaigns and create platforms for dialog between designers, decision-makers, and local communities [94].

The social and cultural acceptance of CE construction depends on active community involvement, consideration of the cultural context, and transparent communication of the benefits and challenges of the transition. Only by integrating technological innovations with social needs and values is it possible to achieve sustainable and balanced development in the construction sector.

To consolidate the main points emerging from the discussion,

Table 3. Key discussion insights and their implications for advancing circular wood construction.

Thematic Area	Key Discussion Insights	Research Implications	Practical Implications
Digital life cycle tracking (DMP, BIM, IoT)	Material passports and digital twins offer significant potential to enhance traceability and transparency of wood products across their life cycle, yet challenges remain regarding standardization and interoperability.	Further studies are needed to integrate BIM environments with circular economy models and material traceability systems.	Developing standardized digital tools for material monitoring across design and operational phases.
Upcycling of low-quality wood	Upcycling demolition timber is technically feasible but requires improved processing technologies and validation of functional performance.	Evaluate environmental and material efficiency, and test mechanical properties of reclaimed components.	Leverage AI and automation in sorting processes; develop prefabrication systems using secondary wood.
Innovative wood-based materials	Emerging materials such as biocomposites and transparent wood show great potential, but face regulatory and economic barriers.	Experimental testing in real-use conditions and evaluation of technical performance is needed.	Accelerate certification processes and incorporation of novel materials into existing building codes.
Socio-cultural acceptance	Timber is still perceived in some contexts as less durable or prestigious, which limits widespread adoption of circular strategies, particularly in concrete- and steel-dominated cultures.	Encourage participatory research to explore user perception and cultural meanings of wood in architecture.	Design communication strategies tailored to regional contexts and public education campaigns promoting CE-based timber construction.
Systemic implementation barriers	The lack of coherent regulations, fragmented responsibilities, and weak political support hinder the practical implementation of circular principles.	Call for interdisciplinary policy analyses and proposals for legal and institutional tools to support CE adoption.	Develop incentive mechanisms (e.g., subsidies, public procurement criteria) and systemic transformation strategies.

provides a structured synthesis of key thematic areas that require particular attention in advancing circular wood construction. It highlights the most pressing insights, their broader research relevance, and concrete implications for design practice, material innovation, policy, and industry. This summary offers a bridge between the interpretative analysis of the discussion and the strategic directions needed to enable systemic transformation in the built environment.

Study Limitations: The present review is of a qualitative and narrative nature, a fact which gives rise to certain limitations. The selection of literature was conducted with a focus on problems and concepts, which may have resulted in the exclusion of some publications of a highly technical or specialized nature. Moreover, the evaluation of the significance of subjects and their categorization was founded on the analysis of the respective authors rather than on the utilization of algorithmic citation analysis or quantitative meta-analysis. Notwithstanding the aforementioned limitations, the method employed enabled the identification of research gaps that are pertinent to design practice.

5. Circular Wood Construction in Design Practice

In response to the research questions presented earlier, this section sets out to demonstrate how the challenges and strategies associated with circular timber construction can be addressed in design practice. The objective of this study is to demonstrate the manner in which the material, technological and environmental concepts identified and classified in the literature review translate into real architectural decisions in specific urban and climatic contexts.

The section focuses on two types of examples: the first is the widely commented Vertikal Nydalen building in Oslo (see Figure 5), which can be interpreted as a model case of the integration of circular economy principles in Scandinavian conditions, both in terms of materials and functionality. The second group consists of three original architectural designs, developed in different local contexts, which will illustrate potential design responses to issues such as the reuse of wood, prefabrication, the integration of materials in hybrid structures, and the adaptability of buildings at different stages of their life cycle.

While the section does not address all fourteen research problems identified in Part III, it seeks to illustrate a selection of these based on empirical design decisions and architectural solutions. Consequently, it can be regarded as a practical extension of the theoretical framework, providing readers with a comprehensive understanding of the relationship between circularity assumptions and the architectural design process.

One of the most comprehensive illustrations of the implementation of circular timber construction principles in an urban and design context is the Vertikal Nydalen building in Oslo, which was designed by Snøhetta. This edifice exemplifies the integration of sustainable design principles with technological solutions grounded in a circular economy, wherein wood assumes a pivotal role in its utilization as a facade, finishing, and symbolic material.

This edifice offers a tangible illustration of several pivotal research issues that were identified in the preceding literature review. From the perspective of CE design, particular emphasis should be placed on the utilization of natural ventilation, the minimization of installation and system materials, and the incorporation of passive energy solutions into the architectural form. The minimization of technical infrastructure is conducive to sustainability and the utilization of natural materials, including wood, thereby increasing its presence in the functional and esthetic layers of the building. The utilization of geothermal, photovoltaic and thermal mass systems exemplifies the implementation of carbon footprint reduction strategies, which can be executed not only during the operational phase, but also through the elimination of excess technologies and materials.

A significant aspect of the building’s design is its hybrid construction, which integrates thermally modified wood in the façade with a concrete core and a steel load-bearing structure. This approach directly addresses the integration of wood with other materials, where esthetic, structural, and environmental functions are complementary. The thermally modified wood used in the façade has been demonstrated to reduce the carbon footprint, whilst also supporting the concept of design for decomposition through its suitability for later dismantling and reuse. It is important to note that the choice of wood was not only environmentally conscious, but also culturally significant. The intention behind this choice was to create a connection between the building and the natural environment, thereby reducing its visual impact in public spaces.

In terms of functionality, the design implements solutions that combine business models and certification. The construction of this building was made possible thanks to the support of two interdisciplinary research projects—The LowEx (Low Exergy Systems for Zero Emission Buildings) and NaturLigvis (Naturally Ventilated Buildings) projects are two case studies that will be examined in this study. The first of these was concerned with the development of low-energy solutions for the heating and cooling of buildings, while the second concentrated on the implementation of natural ventilation strategies in the context of urban architecture. The edifice was likewise subjected to monitoring as part of the SmartTune program, the objective of which is to ascertain user comfort, air quality, and energy consumption. It is important to note that the implementation of innovative technologies necessitated the introduction of temporary exemptions from the prevailing regulations concerning indoor climate in buildings. The edifice has been awarded certification by BREEAM NOR, the Norwegian iteration of the international sustainable building assessment system (Building Research Establishment Environmental Assessment Method). The property received an ‘Excellent’ rating for office space and a ‘Very Good’ rating for apartments, thereby confirming its high level of compliance with environmental, social, and functional criteria.

In the context of future applications, mechanisms related to the monitoring and management of comfort, such as the digital tracking of a building’s life cycle, are also of significance. QR codes affixed to workstations enable users to document their observations on the indoor climate, with the data from sensors being incorporated into ventilation systems. While this solution does not yet constitute a comprehensive material passport, it represents a significant stride towards the integration of tools that facilitate the flow of information and data-driven decision-making throughout the life cycle of circular buildings.

The design of the façade and interior solutions is predicated on a strategy of disassembly, with numerous elements that are readily detachable, replaceable, or repairable without compromising the integrity of the primary structure. The strategy of minimizing materials (e.g., the absence of suspended ceilings) demonstrates the capacity of design practice to optimize resource consumption and increase the durability of components [95].

In summary, Vertikal Nydalen cannot be considered a ‘wooden’ project in terms of construction, but it presents a systemic approach to building design in a closed-loop model, where wood plays a key role not only as a material but also as a carrier of cultural and environmental values. This facility can be regarded as a paradigm for the integration of diverse research strands with architectural practice in an urban context.

The three original designs presented (Figure 6a–c) represent a development and practical application of the concept of circular construction in the context of contemporary wooden architecture. The design of these buildings is predicated on a conscious approach that integrates the principles of circular economy with social, technological, and environmental factors. The result is a series of concrete solutions that have the potential to be implemented in architectural practice.

In the case of the residential and service building with a day-care center for children with intellectual disabilities (Figure 6a), in addition to visible solutions such as photovoltaic panels, a green roof, and a façade made of local larch wood, the design also includes a rainwater and gray water recovery system, low-emission sanitary installations, prefabricated wall modules, and the possibility of adapting the space without interfering with the structural layout. The utilization of solutions that facilitate future dismantling and replacement of finishing elements (including glue-free assembly and detachable mechanical connections) is in accordance with the design for disassembly strategy. The implementation of passive climate solutions has also been observed, encompassing techniques such as thermal zoning, natural cross-ventilation, and the utilization of recycled insulation.

The energy-efficient kindergarten in Michałowice (Figure 6b) serves as a paradigm, illustrating how architecture can function as an educational and environmental catalyst. In addition to the façade, constructed from untreated spruce wood, and the natural ventilation system, the building incorporates low-temperature heating systems, powered by a heat pump; automatic CO₂ sensors, which regulate the supply of fresh air; and floors made of renewable and biodegradable materials. Furniture components with a low carbon footprint, manufactured from recycled or secondary wood, were utilized. The facility was designed with the objective of minimizing environmental impact throughout its life cycle, with consideration given to the requirements of users with diverse sensory and perceptual profiles.

The multifunctional service building with bosun’s office in Czerniakowski Port (Figure 6c) presents a modular and flexible approach, allowing for easy reconfiguration of the usable space in response to changing functions. The charred larch wood façade fulfills a dual role, serving both a protective and an esthetic function. The structure is partly based on cross-laminated timber (CLT), a material that is known to support material efficiency and reduce production waste. The building is equipped with an intelligent energy management system (BMS) that monitors resource consumption, enables optimization, and prepares the facility for future life cycle data tracking (digital twin). The high proportion of glazing has been employed to apply selective coatings and high-performance glass, and the black color scheme of the façade supports passive solar gains in winter.

Each of the presented examples treats wood not only as an esthetic material, but above all as a component of system architecture, in which design is subordinated to the idea of closing material cycles, eliminating waste, increasing durability and enhancing the utility value of buildings over time. The integration of invisible resource management systems and adaptive solutions within the material strategy facilitates the sustainable operation of these buildings.

Each of the presented examples treats wood not only as an esthetic material, but above all as a component of systemic architecture, in which design is subordinated to the idea of closing material cycles, eliminating waste, increasing durability, and enhancing the utility value of buildings over time. The integration of invisible resource management systems and adaptive solutions into material strategies enables these structures to serve as exemplary models for the implementation of circular timber construction in contemporary design practice.

6. Conclusions

This article presents an analysis of the role of innovative wood and wood-based materials as a key element supporting the integration of the principles of the circular economy into the design and construction practice of modern construction. The authors present wood not only as a renewable resource, but as a rapidly evolving materials technology platform capable of meeting the environmental, energy, and construction challenges of the 21st century. The work is based on an analysis of sources, current technological trends and identified system barriers. This theoretical framework is further illustrated by original design case studies that demonstrate how circular principles can be implemented in real architectural practice.

The essential value of the study is to show wood in a new, complex context, not only as a substitute for concrete or steel, but as a component integrated into the digital life cycle of a building, its adaptive potential and the possibility of closing the material cycle. The authors discuss in detail the properties of materials such as CLT, LVL, recycled MDF, pointing out their strength, lightness, energy efficiency of the manufacturing process, and reusability. The advantages of prefabrication, which shortens construction time and reduces waste, which from the point of view of CE, are aptly highlighted.

The analytical layer also presents critical insights into systemic constraints inhibiting wider implementation of modern wood-based solutions. They point out, among other things, the shortage of technical standards and building norms adequate to the properties of bioengineered materials, knowledge gaps on the part of designers and decision-makers, as well as perceptual barriers resulting from insufficient education and investment conservatism. The authors note that systemic transformation will not happen without public and private sector interaction, as well as legislative and financial support mechanisms to move from pilot innovation to mass deployment.

Attention was also paid to the applications of wood beyond the classical construction industry in water filtration, energy storage systems, or biomedical technologies, among others, highlighting the potential of wood as a next-generation raw material that transcends traditional sector frameworks. It was pointed out that only the integration of material technologies with digital tools (such as BIM or 3D printing), as well as the development of closed value loops and eco-design practices, can enable modern construction to fully synchronize with the goals of climate policy and CE strategy.

A significant component of the study is the exposition of pragmatic implementations of circular wood construction principles, predicated on contemporary architectural designs. These cases offer empirical evidence of the translation of discussed technologies and strategies into built form and material solutions, thereby reinforcing the theoretical arguments presented.

The study’s conclusions are clear: further development of innovative wood and wood-based materials should be treated not as an option, but as a strategic necessity in the face of the growing requirements of decarbonization, raw material sovereignty, and energy transition. However, a coherent and multifaceted approach combining scientific development, technological implementation, technical education, and adaptation of institutional frameworks is needed to realize their full potential. Only such integrated efforts will allow wood, as a traditional material in a modern form, to play a real role in shaping a sustainable future for the construction sector and the economy as a whole.