The rapid development of information and communication technologies (ICT) has enabled the prevailing digital transformation (i.e. digitalization), where physical products can be readily digitized in the virtual space and seamlessly interconnected. Meanwhile, industries are ever increasingly adopting service business models (i.e. servitization), so as to offer not only physical products but also services as a solution bundle to meet individual customer needs. Such convergence of both digitalization and servitization (i.e. digital servitization) has triggered an emerging IT-driven business paradigm, smart product-service systems (Smart PSS). As a novel paradigm coined in 2014, to the authors’ knowledge, only 2 conference papers have provided some literature review to date, and many issues remain uncovered or not comprehensively investigated. Aiming to fill this gap, this paper has conducted a systematic review of Smart PSS or related papers published ever since its first brought up to date (30/06/2019), and selected 97 representative items together with other 37 supplementary works to summarize the tendency towards Smart PSS, its business and technical aspects, current challenges, and future perspectives. From the survey, it is found that several hybrid concerns are the key challenges faced, and self-adaptiveness with sustainability, advanced IT infrastructure, human-centric perspectives, and circular lifecycle management are the core future perspectives to explore. It is hoped that this work can attract more open discussions and provide useful insights to both academics and industries in their exploration and implementation of Smart PSS.