The Aerosol Deposition (AD) method is a dry spray coating process for the production of dense ceramic coatings at room temperature directly from the ceramic raw powder. In order to avoid confusion with liquid aerosol technology, the term powder aerosol deposition (PAD) is introduced here, to highlight that the aerosol consists only of ceramic powder and carrier gas. Especially in the field of functional ceramics, PAD is a promising alternative to conventional sinter-based production processes. This review focuses on the PAD of functional ceramics in the field of sensing and energy technology. In this context, especially current developments and trends are presented. On the part of the sensors, gas and temperature sensors are especially considered, whereas in the field of energy technology, the focus is on vibration energy harvesting, thermoelectric generators, superconductors, and solar cells as well as on all solid-state batteries and fuel cells. Besides the different applications of PAD films, this review also highlights opportunities for influencing the film properties by the used powder or the process parameters.