The benefits of modular construction is focused on certain market sectors, where there is a demand for speed of construction, economy in manufacture, or where reducing the disturbance of the building process is an important business or planning requirement.

Using prefabricated modular units leads to many constructional and sustainability benefits:

- When building in a factory, waste is eliminated by recycling materials, controlling inventory and protecting building materials. 

- Modular structures are substantially completed in a factory-controlled setting using dry materials, the potential for high levels of moisture being trapped in the new construction is eliminated.

- Modular buildings can occur simultaneously with the site and foundation work, projects can be completed 30% to 50% sooner than traditional construction.

- 60 to 90% of the construction is completed inside a factory, which mitigates the risk of weather delays. Buildings are occupied sooner, creating a faster return on investment.

- Modular buildings are built to meet or exceed the same building codes and standards as site-built structures, and the same architect-specified materials used in conventionally constructed buildings are used in modular construction projects – wood, concrete and steel.

- The indoor construction environment reduces the risks of accidents and related liabilities for workers.

- Modular units may be designed to fit in with external aesthetics of any existing building and modular units, once assembled, are virtually indistinguishable from their site-built counterparts.