The prevalence of modular construction has sparked interest in understanding the industry’s new and emerging business drivers for modularization to seek maximum modularization benefits in capital projects. Previous studies on modularization business drivers have primarily focused on the building sector, with few addressing industrial projects. Additionally, these studies have been criticized for failing to address emerging issues such as sustainability and environmental, social, and governance (ESG) initiatives. To address these research gaps, this study identifies new and emerging business drivers for modularization in capital projects, mainly heavy industrial projects. A comprehensive analysis of existing business models/tools in the industry, followed by a literature review and brainstorming sessions with subject matter experts from the Construction Industry Institute Research Team 396, was conducted to gather all the potential business drivers for modularization. As a result, a total of 97 potential business drivers were identified. The subject matter experts assessed these drivers through a survey, indicating that sustainability, construction-related emissions and waste, ESG initiatives, transportation-related emissions and congestion, and standardization (repetitive design) are the new and emerging business drivers. This study offers valuable insights for practitioners seeking to analyze the potential of modularization ventures.
New and Emerging Modularization Business Drivers in Industrial Projects
Authors :Amrit Shahi, Jin Ouk Choi, Young Hoon Kwak