Indoor positioning systems (IPS) are essential for mobile robot navigation in environments where global positioning systems (GPS) are unavailable, such as hospitals, warehouses, and intelligent infrastructure. While current surveys may limit themselves to specific technologies or fail to provide practical application-specific details, this review summarizes IPS developments directed specifically towards mobile robotics. It examines and compares a breadth of approaches that vary across non-radio frequency, radio frequency, and hybrid sensor fusion systems, through the lens of performance metrics that include accuracy, delay, scalability, and cost. Distinctively, this work explores emerging innovations, including synthetic aperture radar (SAR), federated learning, and privacy-aware AI, which are reshaping the IPS landscape. The motivation stems from the’ increasing complexity and dynamic nature of indoor environments, where high-precision, real-time localization is essential for safety and efficiency. This literature review provides a new conceptual, cross-border pathway for research and implementation of IPS in mobile robotics, addressing both technical and application-related challenges in sectors related to healthcare, industry, and smart cities. The findings from the literature review allow early career researchers, industry knowledge workers, and stakeholders to provide secure societal, human, and economic integration of IPS with AI and IoT in safe expansions and scale-ups.