Any time a developer is working on a monolithic application, using principles of modularity can help them to improve the processes for their team.
Whether that means making dependencies more manageable within the application, improving developer interoperability on the modular components of that application, or adding modular components to the house repository, embracing modularity can have a positive impact on teams.
For the application itself, embracing modularity can help to organize dependencies, making it easier and less time-consuming to change components within the system.
Good practices shall be applied to refactor the application [1, 2, 3, 4].
Why should you consider a modular monolith instead of microservices?
Microservices architecture certainly provides a good solution for multi-team development.
Sadly, organizations are seldom aware of the associated high DevOps costs.
Often a modular monolith would be more cost-effective and still support parallel development.
Later, if necessary (Meaning that there are tens of thousands of concurrent users), you can migrate to a distributed service or microservice architecture.
I often see companies jumping on the microservice train and complaining later about the costs of their solution.
I strongly advise Think big, Start small.