In a world where time-to-market determines competitive advantage, rigid structures are becoming a business burden. The answer is modularity. This is perfectly illustrated by our UNICOMM design – a smart home system in which the division of functionality into independent but interoperable modules allowed for parallel development, independent certification, and flexible production scaling. The system consists of independent devices (functional modules) connected in a network. In this article, we'll show you how to transfer this approach to your business, reducing the costs and risks of implementing innovation.

What is modular design?

Modular design is an approach that breaks a complex product into independent modules that communicate through standardized interfaces. Unlike "all-in-one" solutions, where all functions are tightly integrated into a single structure, modular architecture allows each module to be treated as a separate entity - with its own development, production, and update cycle.

This difference has fundamental practical significance. An integrated product requires a comprehensive overhaul with every change - even a minor modification to a single component can necessitate a redesign of the entire structure. In a device ecosystem, a change affects only a specific module/device, while the rest of the structure remains intact, operating independently.

This approach works across a wide range of industries. In consumer electronics, modularity allows users to replace memory or batteries without purchasing a new device. In industrial machines, standard modules can be reconfigured to meet specific production requirements or easily serviced by quickly replacing them in the event of a failure. In medical devices, modular design allows for the certification of individual components independently of the overall system.

Business benefits

Product flexibility: one platform, many variants

One of the key advantages of modularity is the ability to create multiple SKUs (Stock Keeping Units) based on a common platform. Instead of having to design every product variant from scratch, a company can assemble different configurations from an ecosystem of interoperable devices and modules.

Cost reduction through common tooling and components

Fewer variants of critical components means simpler inventory management and easier supply chain management. Modularity enables the consolidation of production volumes – larger batches of the same modules allow for more efficient use of tools and production lines.

The latest modular manufacturing automation study (2025) provides concrete numbers. A cost-benefit analysis published in Frontiers in Built Environment showed a reduction in production time by approximately 40% per unit and a 69.7% decrease in labor costs. The payback period for automation was approximately 3 years.

In prefabricated construction, a study published in Nature (2024) showed that modular optimization of floor slabs reduced the number of mold types from nine to four, resulting in a 69.6% reduction in tooling costs. Internally, warehousing becomes simpler with fewer unique components and reduced average inventory levels.

Easier updates and extended product life

Replacing a single module instead of an entire device also represents a paradigm shift in the manufacturer-user relationship. When better technology emerges or users require expanded functionality, modular design allows for the upgrade of a specific component without the need to purchase a new product.

This approach aligns directly with the goals of the circular economy. The European Union's "Right to Repair" Directive promotes products that can be repaired rather than replaced. Modular architecture facilitates repair because faulty components can be easily identified and replaced.

A meta-analysis of modular construction practices (2025) found that this approach achieves a 20-40% reduction in CO₂ emissions, 45-80% material recovery, and life-cycle cost savings of €500,000-€1.2 million in construction projects. While these figures are specific to construction, the mechanism is universal: modularity extends product life and reduces resource consumption.

Challenges in Design for Manufacturing

Interface standardization

Interfaces are the backbone of any modular system. They must be well-documented, versioned, and validated for all anticipated use conditions. Standardization encompasses both physical aspects (uniform connections, component dimensions, positioning) and logical aspects (protocols, signals, communication mechanisms).

Research on the integration of Design for Assembly with Modular Function Deployment conducted at the KTH Royal Institute of Technology (2025) confirms that standardized interfaces and assembly methods can significantly increase production efficiency. The key is that such planning must begin early in product development.

For the design team, this means parallel collaboration between mechanical and electronics engineers and designers, right from the stage of defining the ecosystem's specifications. Each specialization brings different requirements – tolerances, electrical requirements, functional and aesthetic aspects must be reconciled within a single, coherent solution.

Balance between universality and optimization

This is where a fundamental design tension arises. A module that is too universal may prove suboptimal for a specific application – additional features increase cost and complexity where they may not be needed. A module that is too specialized loses the benefits of modularity – it becomes a one-off solution instead of a component of a broader system.

Overengineering is a real threat. Each layer of abstraction , each additional feature, requires more development time, more testing, and more documentation. The more complex the devices, the more potential points of failure. Ironically, systems designed to appear robust often become vulnerable to potential failures.

A Hilti case study showed that decisions about modular architecture can change the average lead time by 10-20%. Crucially, in the analyzed case, the increased complexity of the variants lengthened this time, clearly demonstrating that modularity requires a precise balance between flexibility and standardization to prevent it from becoming an operational trap.

Technical documentation

In the context of modularity, documentation takes on particular importance. Each module must have a complete specification. This documentation includes mechanical, electrical, and environmental specifications, as well as testing protocols.

For companies working with medical devices or industrial machinery, modular documentation translates directly into the certification process. A module with its own, complete documentation can be validated independently of the rest of the system. This means that updating one module does not require recertification of the entire device – provided the interfaces remain unchanged.

Modularity in prototyping and certification

Faster iterations through module testing

Modular architecture fundamentally accelerates the prototyping cycle. Instead of building and testing a complete product with every change, teams can iterate on individual modules. A new version of a smart home thermostat can be designed, manufactured, and tested independently of the control panel or motion sensors.

This approach aligns perfectly with Agile and Lean methodologies, where the goal is to quickly validate hypotheses with minimal resource investment. Modules act as natural test units - their functionality, compatibility, and performance can be verified without engaging the entire system.

Certification: one module, one validation

In regulated industries - medical, industrial, and aerospace - modularity offers a unique certification advantage. According to EU MDR and FDA requirements, medical devices must undergo rigorous verification and validation processes. Modular design allows for individual modules to be certified independently.

The practical implications are significant. When a company introduces a new version of a communication module in a medical device, only that module requires recertification - provided that the interfaces to the rest of the system remain unchanged. Notified Bodies (NBs) in Europe expect complete V&V (verification and validation) results for each component but do not require recertification of components that have not changed.

For manufacturers, this means faster time-to-market and lower costs for maintaining their product portfolio. For end users, it means access to the latest technologies without having to replace the entire system.

The future: mass customization and the circular economy

Trends: IoT and mass personalization

Mass customization - the production of individualized products at prices close to mass production - is becoming increasingly feasible thanks to modularity. Product configurators allow customers to compose their own variants from a library of available modules, and the system automatically generates production documentation.

Technologies such as 3D printing, digital twins, and artificial intelligence are reinforcing this trend. Parametric modeling enables the creation of flexible templates that adapt to user choices without redesigning the entire structure. For example, furniture manufacturers use 3D configurators where consumers define height, shape, and material.

In the IoT domain, modularity takes on an additional dimension. A smart home system can grow with the user's needs – from a basic intercom set to full building automation with the integration of elevators, outdoor meters, and air quality sensors.

Circular economy and the role of R&D

The European Union is systematically introducing regulations to support the circular economy. The Ecodesign Directive requires products to be designed with repair and recycling in mind. Manufacturers must provide spare parts and repair instructions.

Modularity is a natural ally of these goals. In a modular product, individual modules can be replaced, repaired, and reused, reducing resource consumption and extending the product's lifespan. Because modularization involves working with a limited number of module variants, it is possible to scale production of individual components based on actual demand - consequently reducing raw material consumption, waste, and energy consumption, and translating into a positive environmental impact.

The golden mean: when to choose modularity and when to choose a dedicated solution?

Modularity isn't a one-size-fits-all solution. There are situations where integrated design offers better performance, lower cost, or smaller footprints. The key lies in assessing the specific business case.

Modularity works best when a product requires multiple variants for different markets or segments, regular technology updates are expected, users require configurability or expansion, regulatory certification applies to selected components, and repair and servicing are a significant part of the offering.

The wrap-up

An integrated solution may be preferable when the product is simple and homogeneous, miniaturization is a key requirement, production volume is very high with minimal variation, and modular interfaces would introduce disproportionate complexity.Modular design isn't just a technological trend - it's a strategic decision that impacts the entire organization: from R&D to production to after-sales service. Properly implemented, it offers the flexibility needed in a dynamically changing market while maintaining control over costs and complexity.

If you're considering a modular architecture for your product or want to assess whether your current project would benefit from modularization, contact us! We'll help analyze your case from the perspective of optimization, cost, and market potential.