Plant factories (PFs), also known as vertical farms, are advanced agricultural production systems that operate independently of geographical and environmental conditions. They utilize artificial light and controlled environments to produce horticultural plants year-round. This approach offers a promising solution for the stable and efficient supply of high-quality horticultural produce in urban areas, enhancing resilient urban food systems. This review explores the economic and environmental impacts and potential of PFs. Breakthroughs in PF research and development are highlighted, including increased product yields and quality, reduced energy input and CO₂ emissions through optimized growing conditions and automation systems, transitioning to clean energy, improved resource use efficiency, and reduced food transport distances. Moreover, innovations and applications of PFs have been proposed to address challenges from both economic and environmental perspectives. The proposed development of PF technologies for economic and environmental benefits represents a comprehensive and promising approach to urban horticulture, significantly enhancing the impact and benefits of fundamental research and industrial applications.

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