Micellization is the process where surfactant molecules spontaneously self-assemble into aggregates called micelles above a critical concentration known as the critical micellar concentration (CMC). Micelles form to minimize contact between the surfactant hydrophobic tails and water. The CMC and micelle size are affected by factors like the surfactant chain length and head group, counter ion type, temperature, and presence of additives. Micelles can incorporate hydrophobic drugs to improve their solubility and stability for drug delivery applications.