Today, megatrends such as individualization, climate change, emissions, energy, and resource scarcity, urbanization, and human well-being, impact almost every aspect of people’s lives. Transformative impacts on many sectors are inevitable, and manufacturing is not an exception. Many studies have investigated solutions that focus on diverse directions, with urban production being the focus of many research efforts and recent studies concentrating on Industry 4.0 and smart manufacturing technologies. This study investigated the integration of smart factory technologies with urban manufacturing as a solution for the aforementioned megatrends. A literature review on related fields, mass personalization, sustainable manufacturing, urban factory, and smart factory was conducted to analyze the benefits, challenges, and correlations. In addition, applications of smart factory technologies in urban production with several case studies are summarized from the literature review. The integration of smart factory technologies and urban manufacturing is proposed as the urban smart factory which has three major characteristics, human-centric, sustainable, and resilient. To the best of the author’s knowledge, no such definition has been proposed before. Practitioners could use the conceptual definition of an urban smart factory presented in this study as a reference model for enhancement of urban production while academics could benefit from the mentioned future research directions.

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