The recent increase in the use of carbonless energy systems have resulted in the need for reliable energy storage due to the intermittent nature of renewables. Among the existing energy storage technologies, compressed-air energy storage (CAES) has significant potential to meet techno-economic requirements in different storage domains due to its long lifespan, reasonable cost, and near-zero self-decay. When viewed as a battery system, the key performance metrics of CAES, like energy density (ED), round trip efficiency (RTE), and the depth of discharge (DoD), have poor values when compared with other battery technologies in similar domains. This prevents CAES from transitioning to a state-of-the-art form of energy storage. This paper reviews the transition of CAES concepts from carbonized to carbonless types of CAES, along with different single-objective optimization strategies and their effects on the overall system’s performance. It was discovered that competing performance metrics attributes cause single-objective optimization to have trade-offs that worsen at least one other preferred metric. The topology limitations of the generic CAES design were noted to prevent its use in different domains. To ensure that the optimal convergence of subsystem parameters is retained during charging and discharging periods, a suitable topology and subunit combinations for different domains are necessary. Possible options for solving these problems are identified so that the effects of the trade-offs imposed by optimization are either suppressed or eliminated.