Sensorless speed estimation has been extensively studied for its use in control schemes. Nevertheless, it is also a key step when applying Motor Current Signature Analysis to induction motor diagnosis: accurate speed estimation is vital to locate fault harmonics, and prevent false positives and false negatives, as shown at the beginning of the paper through a real industrial case. Unfortunately, existing sensorless speed estimation techniques either do not provide enough precision for this purpose or have limited applicability. Currently, this is preventing Industry 4.0 from having a precise and automatic system to monitor the motor condition. Despite its importance, there is no research published reviewing this topic. To fill this gap, this paper investigates, from both theoretical background and an industrial application perspective, the reasons behind these problems. Therefore, the families of sensorless speed estimation techniques, mainly conceived for sensorless control, are here reviewed and thoroughly analyzed from the perspective of their use for diagnosis. Moreover, the algorithms implemented in the two leading commercial diagnostic devices are analyzed using real examples from a database of industrial measurements belonging to 79 induction motors. The analysis and discussion through the paper are synthesized to summarize the lacks and weaknesses of the industry application of these methods, which helps to highlight the open problems, challenges and research prospects, showing the direction in which research efforts have to be made to solve this important problem.