Next generation aircrafts will use more electrical power to reduce weight, fuel consumption, system complexity and greenhouse gas emissions. However, new failure modes and challenges arise related to the required voltage increase and consequent rise of electrical stress on wiring insulation materials, thus increasing the risk of electrical arc appearance. This work performs a critical and comprehensive review concerning arc tracking effects in wiring insulation systems, underlying mechanisms, role of materials and possible mitigation strategies, with a special focus on aircraft applications. To this end an evaluation of the scientific and technological state of the art is carried out from the analysis of theses, research articles, technical reports, international standards and white papers. This review paper also reports the limitations of existing insulation materials, standard test methods and mitigation approaches, while identifying the research needs to comply with the future demands of the aircraft industry