Construction 4.0 is witnessing exponential growth in digital twin (DT) technology developments and applications, revolutionizing the adoption of building information modelling (BIM) and other emerging technologies used throughout the built environment lifecycle. BIM provides technologies, procedures, and data schemas representing building components and systems. At the same time, the DT enhances this with real-time data for integrating cyber-physical systems, enabling live asset monitoring and better decision making. Despite being in the early stages of development, DT applications have rapidly progressed in the AEC sector, resulting in a diverse literature landscape due to the various technologies and parameters involved in fully developing the DT technology. The intricate complexities inherent in digital twin advancements have confused professionals and researchers. This confusion arises from the nuanced distinctions between the two technologies, i.e., BIM and DT, causing a convergence that hinders realizing their potential. To address this confusion and lead to a swift development of DT technology, this study provides a holistic review of the existing research focusing on the critical components responsible for developing the applications of DT technology in the construction industry. It highlights five crucial elements: technologies, maturity levels, data layers, enablers, and functionalities. Additionally, it identifies research gaps and proposes future avenues for streamlined DT developments and applications in the AEC sector. Future researchers and practitioners can target data integrity, integration and transmission, bi-directional interoperability, non-technical factors, and data security to achieve mature digital twin applications for AEC practices. This study highlights the growing significance of DTs in construction and provides a foundation for further advancements in this field to harness its potential to transform built environment practices. It also pinpoints the latest developments in AI, namely the large language model (LLM) and retrieval-augmented generation (RAG)’s implications for DT education, policies, and the construction industry’s practices.