Modular design, or modularity in design, is a design principle that subdivides a system into smaller parts called modules (such as modular process skids), which can be independently created, modified, replaced, or exchanged with other modules or between different systems. A modular design can be characterized by functional partitioning into discrete scalable and reusable modules, rigorous use of well-defined modular interfaces, and making use of industry standards for interfaces. In this context modularity is at the component level, and has a single dimension, component slottability. A modular system with this limited modularity is generally known as a platform system that uses modular components. Examples are car platforms or the USB port in computer engineering platforms. In design theory this is distinct from a modular system which has higher dimensional modularity and degrees of freedom. A modular system design has no distinct lifetime and exhibits flexibility in at least three dimensions. In this respect modular systems are very rare in markets. Mero architectural systems are the closest example to a modular system in terms of hard products in markets. Weapons platforms, especially in aerospace, tend to be modular systems, wherein the airframe is designed to be upgraded multiple times during its lifetime, without the purchase of a completely new system. Modularity is best defined by the dimensions effected or the degrees of freedom in form, cost, or operation. Modularity offers benefits such as reduction in cost (customization can be limited to a portion of the system, rather than needing an overhaul of the entire system), interoperability, shorter learning time, flexibility in design, non-generationally constrained augmentation or updating (adding new solution by merely plugging in a new module), and exclusion. Modularity in platform systems, offer benefits in returning margins to scale, reduced product development cost, reduced O&M costs, and time to market.

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