Energy needs have increased with global advancements and industrial revolutions. Electrical energy utilization shares a huge amount of energy with residential and industrial loads. Traditional energy resources are expensive and polluting, producing greenhouse gasses, which is a major environmental concern. Solar energy utilization is a cost-effective, sustainable, and green solution to meet the ongoing energy demand. Concentrator photovoltaic (CPV) systems are developed for energy conversion by providing high efficiency using multi-junction solar cells. This paper provides an overview of the recent optical developments in CPV systems and emerging technologies that are likely to shape the future of CPV systems. The objective of this article is to provide an overview of the issues that need to be resolved to improve the geometrical concentration, acceptance angle, uniformity, and optical efficiency of CPV systems. A comprehensive comparison is also presented on different types of solar concentrators. In addition, future research directions are presented to facilitate the continued growth and success of CPV systems. Furthermore, this review article gives an up-to-date and widespread overview of CPV technology, assesses its potential for various applications, and distinguishes the challenges and opportunities for future research and development.