Adaptive transparent system (ATS) is an aspiring and effective building system that can adapt itself through environmental changes in spontaneous and reversible ways. It proposes an automatic and real-time response to indoor and outdoor conditions by increasing building energy efficiency and user comfort. This research presents a critical analysis to provide a preference order of the smart materials being used in the adaptive transparent systems. The approach of using smart material technologies in the building façades is discussed as the promising research direction for the future. A comprehensive literature review is conducted to identify the smart materials used in adaptive transparent systems along with their properties. Seven types of smart materials that are aerogel (AG), phase change material (PCM), photovoltaic (PV), electrochromic (EC), thermo-chromic (TC), thermo-tropic (TT), and liquid crystal polymers (LCP) are selected based on evaluation criteria determined by the literature. The identified criteria are bulk density (BD), thermal conductivity (TCd), sound insolation (SI), fire retardation (FR), heat transfer coefficient (HTC), solar transmittance (ST), air purification (AP), annual energy saving (AES), cost saving (CS), ultraviolet (UV)/near infrared (NIR) control (UNC), and embodied carbon (EC). The identified seven smart materials are investigated with the help of two multi-criteria decision-making (MCDM) techniques named analytical hierarchical process (AHP) and technique for order preference by similarity to ideal solution (TOPSIS) for analysis and ranking of materials. Results of the analysis demonstrate that PV is the most optimum material for adaptive transparent systems while others are ranked according to their performance.