Multilevel inverters (MLIs) with switched-capacitor (SC) units have been a widely rehearsed research topic in power electronics since the last decade. Inductorless/transformerless operation with voltage-boosting feature and inherent capacitor self-voltage balancing performance with a reduced electromagnetic interference make the SC-MLI an attractive converter over the other available counterparts for various applications. There have been many developed SC-MLI structures recently put forward, where different basic switching techniques are used to generate multiple (discrete) output voltage levels. In general, the priority of the topological development is motivated by the number of output voltage levels, overall voltage gain, and full dc-link voltage utilization, while reducing the component counts and stress on devices for better efficiency and power density. To facilitate the direction of future research in SC-MLIs, this article presents a comprehensive review, critical analysis, and categorization of the existing topologies. Common fundamental units are generalized and summarized with their merits and demerits. Ultimately, major challenges and research directions are outlined leading to the future technology roadmap for more practical applications.