Capsule networks emerged as a promising alternative to convolutional neural networks for learning object-centric representations. The idea is to explicitly model part-whole hierarchies by using groups of neurons called capsules to encode visual entities, then learn the relationships between these entities dynamically from data. However, a major hurdle for capsule network research has been the lack of a reliable point of reference for understanding their foundational ideas and motivations. This survey provides a comprehensive and critical overview of capsule networks, which aims to serve as a main point of reference going forward. To that end, we introduce the fundamental concepts and motivations behind capsule networks, such as equivariant inference . We then cover various technical advances in capsule routing algorithms as well as alternative geometric and generative formulations. We provide a detailed explanation of how capsule networks relate to the attention mechanism in Transformers and uncover non-trivial conceptual similarities between them in the context of object-centric representation learning. We also review the extensive applications of capsule networks in computer vision, video and motion, graph representation learning, natural language processing, medical imaging, and many others. To conclude, we provide an in-depth discussion highlighting promising directions for future work.