Photovoltaic-thermal (PVT) solar collector technologies are considered a highly efficient solution for sustainable energy generation, capable of producing electricity and heat simultaneously. This paper reviews and discusses different aspects of PVT collectors, including fundamental principles, materials, diverse classifications, such as air-type and water-type, and different cooling mechanisms to boost their performance, such as nano-fluids, Phase Change Materials (PCMs), and Thermoelectric Generators (TEGs). At the system level, this paper analyses PVT technologies’ integration in buildings and industrial applications and gives a comprehensive market overview. The methodology focused on evaluating advancements in design, thermal management, and overall system efficiency based on existing literature published from 2010 to 2025. From the findings of various studies, water-based PVT systems provide electrical efficiencies ranging from 8% to 22% and thermal efficiencies between 30% and 70%, which are almost always higher than air-based alternatives. Innovations, including nanofluids, phase change materials, and hybrid topologies, have improved energy conversion and storage. Market data indicates growing adoption in Europe and Asia, stressing significant investments led by Sunmaxx, Abora Solar, Naked Energy, and DualSun. Nonetheless, obstacles to PVT arise regarding aspects such as cost, design complexity, lack of awareness, and economic incentives. According to the findings of this study, additional research is required to reduce the operational expenses of such systems, improve system integration, and build supportive policy frameworks. This paper offers guidance on PVT technologies and how they can be integrated into different setups based on current normativity and regulatory frameworks.