In the realm of industries focused on tribology, such as the machining industry, among others, the primary objective has been tribological performance enhancement, given its substantial impact on production cost. Amid the variety of tribological enhancement techniques, cathodic arc evaporation physical vapour deposition (CAE-PVD) coatings have emerged as a promising solution offering both tribological performance enhancement and cost-effectiveness. This review article aims to systematically present the subject of CAE-PVD coatings in light of the tribological performance enhancement. It commences with a comprehensive discussion on substrate preparation, emphasizing the significant effect of substrate roughness on the coating properties and the ensuing tribological performance. The literature analysis conducted revealed that optimum tribological performance could be achieved with an average roughness (Ra) of 0.1 µm. Subsequently, the article explores the CAE-PVD process and the coating’s microstructural evolution with emphasis on advances in macroparticles (MPs) formation and reduction. Further discussions are provided on the characterization of the coatings’ microstructural, mechanical, electrochemical and tribological properties. Most importantly, crucial analytical discussions highlighting the impact of deposition parameters namely: arc current, temperature and substrate bias on the coating properties are also provided. The examination of the analyzed literature revealed that the optimum tribological performance can be attained with a 70 to 100 A arc current, a substrate bias ranging from −100 to −200 V and a deposition temperature exceeding 300 °C. The article further explores advancements in coating doping, monolayer and multilayer coating architectures of CAE-PVD coatings. Finally, invaluable recommendations for future exploration by prospective researchers to further enrich the field of study are also provided.