The construction industry has a significant impact on the environment and society. It consumes large amounts of energy and generates high levels of carbon emissions and waste. Modular construction produces components off-site and assembles them on-site. This method can enhance efficiency, quality, and sustainability. However, the adoption of modular methods might be limited. Challenges, including out- dated regulations, financial risks, and traditional construction practices, hinder widespread use. This study examines the potential of modular construction in Iran through the Multi-Level Perspective. It considers innovations at the niche level, established industry practices, and broader societal influences. Ten experts from universities, government, and industry provided insights on key barriers and opportunities. Results indicate that trends such as urban growth, sustainability awareness, and digital skills support the adoption of new construction methods. Economic uncertainty and rigid building codes slow progress. Pilot projects and the expertise of young engineers demonstrate potential for change. Broader adoption requires policy support, updated regulations, and collaboration across sectors and further research for the potential of systemic change is needed.
