The rapid advancement of carbon nanotube (CNT) synthesis through the Floating Catalyst Chemical Vapor Deposition (FC-CVD) process has propelled the field of carbon nanomaterials to new heights. Nevertheless, transitioning from laboratory-scale success to industrial production demands a comprehensive understanding of the process, optimization of diverse parameters, and the design of a suitable reactor. The necessity for enhanced efficiency, improved control, and continuous synthesis is a crucial prerequisite for the industrial adoption of the process. Recent advancements in the process have significantly altered the trajectory toward CNT fiber production, underscoring the importance of a systematic analysis that delves into every aspect of recent developments. This in-depth review extensively covers the notable progress achieved in the synthesis of CNT fibers and fabrics using the FC-CVD process. Here, a comprehensive analysis of the engineering challenges associated with controlled synthesis is provided, and a forward-looking perspective is offered through proposed future research strategies to advance the synthesis process. The successful production of CNT-based macroscopic materials has revitalized R&D efforts in nanoscience, making these materials suitable for various applications. Two of the most promising fields where CNT fibers and fabrics demonstrate high potential are the fabrication of flexible smart wearable sensors and flexible electrodes for next-generation energy storage devices. We briefly discuss these two applications, focusing on how they are influenced by the synthesis process and the method of self-assembly. The insights provided in this review aim to be a valuable guide for researchers and engineers involved in the design and optimization of reactors. The ultimate objective is to facilitate the widespread commercialization of CNT fiber and fabric and their seamless integration into various industrial applications.