Modularization is a structured approach to carefully translate market and customer needs into modular product architectures. These product architectures are characterized by logical structures and standardized interfaces, which limit the total number of product components and allow both streamlined designs and substitution of component variations within product families. This manner of combining and configuring products and modules subsequently facilitate more commercial variants within a product family, which in turn increases a company’s potential to serve the largest possible part of a market while keeping costs low.

Modular Product Architecture explained

(Image source: Modular Management)