Modular construction and operation significantly impact building lifecycle management, with various stakeholders playing key roles. Digital twin technology emerges as a cutting-edge tool for information exchange, management, and forecasting in the construction sector, offering comprehensive services for diverse stakeholders. However, research primarily explores potential applications and practical solutions, with limited focus on application strategies considering all stakeholders' interests. This gap hinders the transition of digital twin technology from theoretical to practical use. Addressing this, the paper employs game theory to develop models that analyze key stakeholder decisions during the modular construction and operational phases. It creatively introduces mathematical models for complex conditions in the operation phase and conducts numerical simulations. Findings show that the diffusion rate of digital twin technology significantly affects decision-making by main stakeholders in the construction industries in two stages. The diffusion rate in other industries influences the decision of facility management contractors from different backgrounds, yet its implementation ultimately depends on their status and profitability during the operation process. These diffusion rates are influenced by various factors like government subsidies, development costs, and revenues. To enhance the application rate of digital twin technology, the paper suggests initiating pilot projects, creating project pools, expanding industry-university-research collaborations, and implementing subsidies and incentive programs.
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