Factors Driving the Adoption of Modular Building Practices in the Construction Industry ^†

Abstract

The construction industry is transforming toward innovative and sustainable building methods, with modular building emerging as a viable alternative to conventional techniques. Modular building practices (MBPs) are regarded as an efficient and sustainable alternative driven by the need to reduce costs, minimise material waste, improve project timelines, and meet technological and environmental demands in the construction industry. This study, therefore, explores the key factors promoting the adoption of MBPs within the construction space. Using a quantitative research design, data were collected through structured questionnaires administered to registered and practising construction professionals, including architects, engineers, project managers, and quantity surveyors across various construction firms in South Africa. The instrument’s reliability was confirmed with a high Cronbach’s alpha coefficient of 0.974, indicating excellent internal consistency. Findings reveal that education and training, increased funding for research and development, tax imposition on traditional building components, introducing relevant support policies and legislations, and awareness creation among the stakeholders are key drivers of MBPs. The findings underscore the importance of aligning industry practices with policy incentives, investing in workforce upskilling, and enhancing stakeholder engagement to accelerate the transition toward modular construction. The study contributes to both the academic literature and industry knowledge by providing empirical evidence on the multidimensional factors promoting modular practices. Implementation of supportive regulations and incentives that promote sustainability, streamlined approval processes, and innovation is highly recommended.

1. Introduction

The construction industry (CI) faces increasing pressure to tackle many challenges, including rising operational costs, skilled labour shortages, environmental harm, and the growing demand for sustainable infrastructure. Innovative and sustainable construction methods, such as modular building practices (MBPs), have emerged as transformative alternatives to conventional techniques. Modular construction, also called off-site, prefabricated, or industrialised building, involves manufacturing building parts in a controlled factory environment and assembling them on-site [1,2,3]. Although modular construction is not a novel idea, its adoption and implementation have historically varied across countries, regions and market segments. However, its potential to tackle urgent issues like climate change, housing shortages, deficit, productivity delays and emergency shelters for displaced persons has reignited interest in its use. A recent example is the COVID-19 pandemic, which emphasised the need for flexible and quick construction methods, especially in healthcare and residential sectors. China demonstrated the significance of this construction method by building a 1000-bed military-run coronavirus hospital called Huoshenshan in just 10 days [4,5]. To demonstrate the authenticity of this construction feat, the construction of the hospital was live-streamed and feted by Chinese state media. Hence, governments, developers, and contractors are increasingly adopting modular technologies to speed up projects, comply with green building standards, and lessen environmental impact. This approach offers many benefits, such as improved efficiency, waste reduction, better quality control, and faster project completion [6,7,8].

Despite its advantages, the widespread adoption of MBPs has been inconsistent across global markets. While countries like China, Sweden and Japan have embraced modular techniques for decades, accounting for a significant share of their residential construction [9,10,11], other regions, including the United States and the United Kingdom, have only recently accelerated adoption due to pressing industry demands [12,13]. Understanding the key drivers behind the adoption of MBPs is crucial for policymakers, industry practitioners, and researchers aiming to facilitate its integration into mainstream construction practices and to promote sustainable and resilient built environments. This paper examines the multifaceted factors influencing the adoption of MBPs, from the economic, technological, environmental, regulatory, and socio-cultural dimensions or viewpoints.

Several key drivers influence the adoption of MBPs. Cost efficiency remains one of the most compelling arguments for modular construction. Research indicates that MBPs can reduce project costs by about 20% due to decreased labour requirements, minimised material waste, and shorter project durations [14]. The controlled factory environment mitigates weather-related delays, which account for most on-site construction disruptions, and the economies of scale in factory production enable bulk purchasing of materials, further driving down expenses [15]. MBPs also reduce reliance on skilled on-site labour by shifting much of the assembly to automated or semi-automated factories [16]. Similarly, technological advancements such as integrating robotics and building information modelling (BIM) have significantly enhanced the feasibility of MBPs [17,18].

In addressing environmental and sustainability concerns in the built environment, MBPs present alternatives with minimal environmental footprint by reducing waste and optimising material usage compared to conventional construction methods [19]. Modular components are often designed for disassembly, facilitating material recovery and reuse at the end of a building’s life cycle [20]. Government policies and building codes also play a pivotal role in adopting MBPs. For example, initiatives like the Construction 2025 Strategy in the United Kingdom promote modular construction methods to enhance productivity [21,22]. Therefore, a comprehensive understanding of enabling and inhibiting factors is crucial for crafting effective strategies to support the broader diffusion of MBPs. Hence, this paper investigates the multifaceted factors that drive the adoption of MBPs within the South African construction industry. The objective is to provide a holistic perspective that informs policy development, industry practice, and future research directions for South Africa and is adaptable in other parts of the world with a similar system. Ultimately, this research contributes to the growing discourse on sustainable construction and supports the transition toward more innovative, efficient, and environmentally responsible building practices.

2. Research Methodology

To achieve the objective of the study, a quantitative research design was adopted, offering a structured means to explore the perceived factors that drive the adoption of Modular Building Practices (MBPs) for a sustainable construction industry in South Africa. A comprehensive questionnaire survey was developed, comprising two key sections: the first gathered demographic information from respondents, while the second focused on the core objectives of the investigation (ways of promoting the adoption of MBPs). The survey targeted professionally registered construction practitioners operating within the Gauteng province of South Africa. Participants included professionals such as architects, construction and project managers, civil and structural engineers, quantity surveyors, and construction managers.

Of the 110 questionnaires distributed, 71 were completed and returned, yielding a response rate of approximately 65%. The sampling strategy employed a blend of purposive and snowball techniques, ensuring the inclusion of individuals with relevant expertise and experience in the field. Cronbach’s alpha was applied to evaluate the reliability and internal consistency of the questionnaire. This statistical tool assesses the extent to which a set of items consistently measures a single construct [23]. The section focusing on the benefits of modular construction recorded a Cronbach’s alpha value of 0.974, indicating excellent reliability of the instrument used. The data collected from respondents were analysed through descriptive statistics, specifically using mean item scores and standard deviation. The results were systematically organised and presented in tabular format for clarity and interpretability.

3. Findings and Discussion

This section provides an overview of the demographic characteristics of the respondents who participated in the study and the descriptive analysis of the results. The gender distribution shows a near-equal representation, with male respondents comprising 51% and females making up 49%. This relatively balanced representation reflects the growing success of non-governmental and government-led initiatives to narrow the gender gap within the South African built environment sector. Traditionally dominated by men, the industry is witnessing progressive efforts by stakeholders to create a more inclusive and appealing environment for women and young girls entering the profession.

Regarding professional affiliation, the data indicate that quantity surveyors constituted the largest group at 38%. Civil engineers and architects each accounted for 14.1% of respondents, followed by structural engineers at 12.7%, construction managers at 11.3%, project managers at 7%, and construction project managers at 2.8%. Regarding professional experience, most participants (67.6%) reported having between 0 and 5 years of experience in the construction sector. Those with 6 to 10 years of experience comprised 16.9%, while 8.5% had between 11 and 15 years. Respondents with 16 to 20 years and those with more than 20 years of experience each accounted for 2.8% of the total. Occupational/sectoral affiliations revealed that 26.8% of respondents were employed within government institutions, while 36.6% worked in contracting and another 36.6% in consulting firms.

Table 1 presents the descriptive statistics of the factors that drive the adoption and implementation of Modular Building Practices (MBPs) for a sustainable construction industry in South Africa. Findings as presented in Table 1 indicated that the education and training of stakeholders (MIS = 4.20; Std Dev = 1.071; R = 1) is the top way of promoting the adoption of MBPs for sustainable construction. This factor is followed by increased funding for research and development (MIS = 4.19; Std Dev = 1.094; R = 2), increased client demand (MIS = 4.14; Std Dev = 1.088; R = 3), awareness creation among stakeholders (MIS = 4.14; Std Dev = 1.019; R = 3), and provision of tax incentives and subsidies (MIS = 4.14; Std Dev = 1.026; R = 3). The bottom-ranked drivers of MBPs for sustainable construction are workforce upskilling and reskilling (MIS = 4.07; Std Dev = 1.132; R = 11), enactment of support policies and legislation (MIS = 4.07; Std Dev = 1.012; R = 11), increased usage of innovative technologies (MIS = 4.07; Std Dev = 0.997; R = 11), integrating modular construction practices into academic curricula (MIS = 4.04; Std Dev = 1.055; R = 14) and tax imposition on traditional building components (MIS = 4.04; Std Dev = 1.109; R = 14). A careful perusal of these drivers, considering their relatively high mean item scores, shows that the fifteen (15) items are considered significant by all the respondents (construction professionals) who participated in the study. It is important to note that a factor is deemed significant to a study owing to a mean item score of 2.50 and above [24].

Table 1. Drivers of modular building practices for sustainable construction.

Drivers	Mean Score	Standard Deviation	Rank
Education and training of stakeholders	4.20	1.071	1
Increased funding for research and development	4.19	1.094	2
Increased client demand	4.14	1.088	3
Awareness creation among stakeholders	4.14	1.019	3
Provision of tax incentives and subsidies	4.14	1.026	3
Accessible financing and insurance models	4.14	1.026	3
Optimising logistical planning and processes	4.11	1.057	7
Promoting professional collaborative partnerships	4.10	1.065	8
Establishing industry standards and certifications	4.10	1.079	8
Market support for modular building components	4.09	1.061	10
Workforce upskilling and reskilling	4.07	1.132	11
Enactment of support policies and legislation	4.07	1.012	11
Increased usage of innovative technologies	4.07	0.997	11
Integrating modular construction practices into academic curricula	4.04	1.055	14
Tax imposition on traditional building components	4.04	1.109	14

The findings of this study align with those of other researchers who have shown that MBPs, when adopted and implemented, hold significant potential for advancing the sustainability agenda in the global construction industry. The shortage of skilled workers and the need for waste minimisation, safer construction environments, cost reduction, improved quality and productivity, greater precision, and reduced construction time all drive the adoption of MBPs for sustainable building practices [25,26]. Similarly, the desire to minimise on-site duration and environmental impacts during construction, reduce health and safety risks, ensure time and cost certainty, achieve high quality, enhance environmental performance, and address skills shortages motivates MBP implementation [27]. According to the study by Wuni and Shen [28], the drivers for MBP adoption are numerous and can be categorised as sustainability, innovative competitiveness, productivity, quality improvement, policy, construction market factors, and concerns related to cost and time performance. These drivers are also grouped into industry dynamics, government policy and regulation, technological innovation, productivity concerns, and performance-related factors [29]. More comprehensively, Mao et al. [30], employing structural equation modelling, identified drivers including government policies and regulations, pursuit of sustainable competitiveness, construction market demand, corporate social responsibility, corporate willingness and behaviour, and technological innovation. These findings and results from other studies support this research, further confirming the benefits of MBPs in strengthening the sustainability outlook of the construction industry in South Africa and worldwide.

Considering the significant benefits attached to MBPs, it is imperative that all stakeholders collectively and collaboratively embrace the factors that drive their adoption and implementation. Notably, adopting MBPs in the built environment is driven by a confluence of economic, environmental, technological, and policy-related factors, all aiding the sector’s transition to a sustainable state [31]. Chief among these is the need to improve construction productivity and reduce project timelines. These benefits are made possible through factory-controlled environments and parallel site preparation of MBPs, which can cut project durations by up to 50% and are 20% more economical based on case studies [32,33]. Similarly, environmental sustainability is another strong driver, as modular construction significantly reduces material waste, energy consumption, and carbon emissions throughout the building life-cycle [34,35]. Additionally, the fourth industrial revolution era has seen the influx of digital technologies such as Building Information Modelling, Robotics, Artificial Intelligence, the Internet of Things, and Digital Twin, enhancing design coordination and logistical efficiency, making modular delivery more viable and scalable [31,36,37]. These factors collectively underscore the strategic importance of modularisation in creating a more efficient, resilient, and sustainable built environment, which aligns with this study’s findings.

4. Conclusions and Recommendations

This study elucidated the constellation of drivers accelerating the adoption of Modular Building Practices (MBPs) within the South African construction industry. By surveying 71 registered professionals and achieving excellent instrument reliability (Cronbach’s α = 0.974), the research confirms that the momentum behind MBPs is multidimensional. Education and training, robust R&D investment, growing client demand, awareness creation, and targeted fiscal incentives emerged as the most powerful levers. Collectively, these mechanisms help the sector respond to escalating pressures for cost efficiency, compressed schedules, labour-force constraints, and environmental stewardship. Importantly, every one of the fifteen drivers investigated recorded a mean score well above the 2.50 significance threshold, underscoring a broad professional consensus that modularisation is no longer peripheral but central to a sustainable construction future. Yet, the findings also reveal uneven maturity across these drivers. While stakeholder education and research funding score highest, systemic enablers, such as comprehensive support policies, consistent certification regimes, and integrated academic curricula, remain comparatively underdeveloped. The implication is straightforward: without a holistic policy-innovation ecosystem, the current enthusiasm for modularisation risks stalling at pilot scale rather than scaling industry-wide.

To entrench MBPs, tertiary institutions should embed MBP theory and studio-based learning in architecture, engineering and construction curricula. At the same time, universities and professional bodies should collaborate on accredited short courses for practitioners who need rapid upskilling. A dedicated national innovation fund, supported by public- and private-sector contributions, ought to channel resources into prototyping, life-cycle assessment and digital-twin research, and should favour consortia in which manufacturers, contractors and academics co-create open-access design libraries. The government can accelerate adoption by promulgating performance-based codes tailored to factory fabrication, streamlining approvals for volumetric systems, and granting time-limited tax credits and import-duty relief for advanced modular technologies. Public agencies should also commit a defined share of housing, healthcare and educational projects to modular delivery, signalling dependable demand. At the same time, procurement frameworks need to reward verifiable reductions in embodied carbon. On the supply side, industrial land-use planning and investment incentives ought to foster clusters of component manufacturers near major urban nodes, reducing logistics costs and emissions, and logistics providers capable of handling large modules safely should be certified to uniform standards. Finally, the workforce must be prepared for the factory-first paradigm: apprenticeship pathways in precision manufacturing, robotics, and digital fabrication should be expanded, and a voucher system for retraining on-site tradespeople can ease concerns over employment displacement.

For future research directions and comparison of outcomes, a new and more rigorous research methodology that employs more respondents spread across the nine provinces of South Africa is recommended. Scholars should also quantify cradle-to-grave carbon, energy and cost benefits of MBPs under South Africa’s specific climatic conditions and electricity mix, thereby supplying the empirical evidence needed for performance-based policy. Parallel investigations are required into digital integration, exploring how Building Information Modelling, sensor-rich Internet of Things platforms, and artificial-intelligence scheduling can be fused to create seamless design-to-manufacture workflows. Because technological transitions have social consequences, longitudinal studies should examine employment trajectories, community acceptance, and housing affordability outcomes in modular versus traditional projects. Using quasi-experimental or time-series designs, rigorous policy-effectiveness research can reveal how tax incentives, fast-track approvals or public procurement targets influence adoption rates and project performance over time. Lastly, a circular-economy lens is indispensable: design-for-disassembly strategies, secondary markets for reclaimed modules and material passports warrant detailed exploration so that modular construction can eventually operate within a closed-loop, zero-waste built-environment ecosystem.