The Factory Method is a design pattern used in software development that allows a class to create objects without specifying the exact class of the object that will be created. Instead of calling a constructor directly, the class uses a method to create an instance of a subclass. This approach promotes flexibility and scalability, as new subclasses can be added without changing the existing code. For example, consider a Vehicle factory that produces different types of vehicles like Car and Truck. By using the Factory Method, the factory can create a Car or a Truck based on input parameters, allowing for easy expansion and maintenance of the codebase.