In software development, the Factory Method is a design pattern categorized under Creational Patterns. The main objective of the Factory Method is to encapsulate and abstract the creation of objects by defining an interface for object creation but leaving the exact way these objects are created to the derived classes.

Here are some key concepts and characteristics of the Factory Method:

1. Abstract Interface: In the Factory Method, an abstract interface or an abstract base class is defined, which declares a method for creating objects. This method is referred to as the "Factory Method."

2. Concrete Implementations: Concrete subclasses implement the Factory Method to create specific objects that meet their requirements. Each subclass can provide different implementations of the Factory Method.

3. Decoupling Creation and Usage: The Factory Method separates the creation of objects from their usage. This allows for loose coupling between the code that uses the objects and the code that creates them.

4. Extensibility: Since new subclasses can be created to implement the Factory Method, this pattern is extensible. New types of objects can be added without modifying existing code.

5. Use Cases: The Factory Method is often used when a class needs to be able to create objects of a specific type, but the exact type needs to be determined at runtime. This is particularly useful in scenarios where objects need to be created dynamically based on user requirements or configuration parameters.

A common example of using the Factory Method is in the creation of products in a manufacturing process. Each type of product may have its own factory method tailored to the specific requirements and processes for producing that product.

In software development, Factory Methods can help make code more flexible and extensible by placing the responsibility for object creation in the appropriate context and providing a clear interface for creation. This contributes to improving the modularity and maintainability of software projects.