There are plenty of small intersections with traffic lights that aren't any wider than two opposite lanes with no median and no shoulder, only big enough for two vehicles to pass in opposite directions. They would need to be expanded to put a circle of any size in the middle, especially if a big truck was expected to make it through safely.
They don't take up any extra space, but they do probably require drivers to intuitively understand the concept and priorities before they can be introduced.
Here's a satellite view of a random one near me: https://goo.gl/maps/NJ2KpYdMP1reQA1u5
Its an upgrade of the American 4-way-stop with better defined priorities for entry.
Additionally, there is frequently extra space in the existing intersection. From parking lanes, shoulders, etc.
https://www.google.com/maps/@56.5902318,-3.3376212,3a,75y,34...
Worth noting this particular roundabout is in a small farming town on the edge of the highlands. Already slow speed road and low volume. But, shows that many 4-way stops within the US suburbs could easily be swapped with a roundabout during normal road repaving without much additional cost (yield signs to replace stops, some paint).
The issue I've seen with them in the US is many US drivers ignore pretty much everything about the painted circle which creates a really dangerous situation. They treat those intersections like 4 way stops (including driving over the circle) and that's a major problem.
That intersection you showed is clearly big enough. This one doesn't look big enough. Or is it? There are smaller intersections than this one, also. (And I realized that this one might be a bad example because it's not four directions.)