Over the past few years, the concept of the smart city has become a central topic among urban planners, technology experts, architects, designers, sociologists, and public administrations. Yet much of the discussion appears to focus solely on implementing digital tools for data collection and management.

This narrow approach can be frustrating, especially when it’s clear that future cities require innovative, comprehensive solutions to address the profound changes ahead. Also when it comes to building.

While smart cities will undoubtedly leverage data analytics, AI, interconnected devices, and automation processes, they must also be sustainable, safe, and truly livable. One of the major challenges will be developing construction methods that are more efficient, faster, and cost-effective—without compromising the essential qualities of sustainability and human well-being.

Creating dynamic buildings will require a complete rethinking of the urban construction process—from the materials used and design approach to supplier collaboration, transportation, and on-site operations. In this context, modular construction will prove to be an invaluable asset.

Materials Matter as Much as Tech

Future modular developments are expected to be driven by the adoption of more robust, lightweight, and sustainable materials in conjunction with technologies such as digital twins and AI. For instance, wood may gradually replace steel and concrete, and traditional rooftop solar panels could be extended to cover facades, maximizing energy capture.

Additionally, artificial intelligence and analytical tools will become increasingly important for suppliers, enabling them to optimize how various components are integrated. This will lead to a construction process that is not only more efficient and cost-effective but also more agile.

Unlike traditional modular construction, where components are assembled on a single factory floor, these new approaches resemble an assembly line for cars or airplanes. The manufacturing instructions are so precise that modules and other building elements fit together like Lego blocks, allowing them to be easily assembled anywhere in the world. This methodology minimizes human error, shortens project timelines, and provides greater cost certainty from the outset.

Harnessing Digital Twins

We already have examples—such as Assembly’s post-modular construction method—that leverage digital twin models to enhance transparency regarding materials, labor, quality, deadlines, and costs.

A digital twin is software that creates an exact digital replica of an entire cityscape, including buildings, roads, and underground infrastructure. This replica is meticulously detailed and updated in real time to reflect any changes. The primary goal is to enable cities to simulate infrastructure, construction, and other modifications to the built environment, thereby assessing their real-world impacts before any physical work begins.

Artificial Intelligence to Optimize Processes

The advent of AI is revolutionizing the construction industry by automating complex tasks and enabling systems to design prefabricated components tailored to specific project requirements. AI can schedule production and assembly tasks to maximize efficiency and adapt designs in real time in response to evolving project conditions.

Moreover, AI’s capacity to perform advanced simulations—such as structural strength analysis, weather impact assessments, and thermal efficiency evaluations—helps identify and resolve potential issues before construction even begins. This proactive approach not only saves time and resources but also enhances the overall reliability and performance of construction projects..

Challenges for the Development of Smart Cities

Modular construction is a clear choice for modern urban development, yet the adoption of smart technologies still faces significant barriers. These include high implementation costs, substantial investments in R&D, and limitations in the necessary knowledge and skills. 

Additional challenges involve hardware requirements and issues related to network interoperability and connectivity. Moreover, ensuring security and privacy during data acquisition and handling—while complying with various regulatory frameworks—is essential.

Also, transporting the critical elements of modular construction, often large blocks, to the building site must account for traffic restrictions in different countries, the acquisition of necessary permits, the use of authorized routes, and the high costs associated with large-tonnage trucks.

Intelligent technologies such as Building Information Modeling (BIM) and Geographic Information Systems (GIS) offer solutions by optimizing and visualizing module installation programs and the logistics of transport. GIS, which captures, stores, verifies, and displays data related to locations on Earth, plays a crucial role in this process.

A GIS platform can display a wide variety of data on a map—including streets, buildings, roads, bridges, and vegetation areas—while also providing real-time information on traffic volumes, construction zones, and network congestion.

Additionally, logistics mapping software integrated with GIS can propose optimized access routes to construction sites, making the best use of available resources and minimizing costs. At the same time, it facilitates effective communication and coordination with storage areas at the assembly site.

Automation and Sustainability

Modular construction combined with smart technologies has become the driving force behind the development of smart cities, whose objectives are to optimize processes, promote sustainability, and ensure a high quality of life for their inhabitants.

In Japan, the Fujisawa Smart Sustainable Town—a dedicated smart city zone—has already experimented with autonomous delivery robots. On a larger scale, freight carriers keep exploring autonomous vehicle technology for driverless trucks, enabling the efficient transportation of large amounts of cargo over long distances.

Smart building practices are also central to achieving several Sustainable Development Goals (SDGs), particularly those related to urban development, innovation in manufacturing processes, reducing carbon emissions, and enhancing the health and well-being of communities.