Aerogels, due to their unique features like lightweight, ultra-low thermal conductivity, and design variations, have gotten a lot of interest in thermal insulation, photocatalysis, and protective areas. Besides their superior thermal properties, aerogel thermal insulation and photocatalyst materials also possess many inherent flaws, such as handling issues, high manufacturing costs, and low strength as well as toughness. The most persuasive and successful ways to improve photocatalytic and thermal insulating qualities while lowering costs are composition optimization and microstructure reconstruction. Their high surface area and porosity make them ideal for enhancing the efficiency and capacity of these devices. Research may lead to more efficient and longer-lasting energy storage solutions. This review describes the characteristics, microstructural reconstruction, design variation, and properties of all aerogel fabrication techniques and provides a comprehensive overview of scientific achievements linked to them. The effectiveness of raw material compositions, properties, and mechanical parameters are also discussed. The major goal of this review is to highlight the aerogel-based materials and design variations and to explore the most potential development trends for photocatalysis and thermal applications. The industrial as well as technical applications of silica aerogels are also highlighted. This review highlights futuristic applications of aerogel-based textile materials to alleviate the CO2 burden on our atmosphere, either by providing next-level thermal insulation or by employing them in CO2 mitigating technologies such as CO2 capture.