Which frontier technologies matter most for companies in 2025? Our annual tech trends report highlights the latest technology breakthroughs, talent trends, use cases, and their potential impact on companies across sectors.
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McKinsey Technology Trends Outlook 2025
The global technology landscape is undergoing significant shifts, propelled by fast-moving innovations in technologies. These are exponentially increasing demand for computing power, capturing the attention of management teams and the public, and accelerating experimentation. These developments are occurring against a backdrop of rising global competition as countries and corporations race to secure leadership in producing and applying these strategic technologies.
This year’s McKinsey Technology Trends Outlook provides in-depth perspectives on 13—a “baker’s dozen”—frontier technology trends with the potential to transform global business. Executives today face a mandate to navigate rising complexity, scale emerging solutions, and build trust in a world where the lines between digital and physical and centralized and decentralized continue to blur. The insights in this report can help business leaders decide which of these frontier technologies are most relevant to their companies by demonstrating how others are starting to apply them today. These findings emerge from our analysis of quantitative measures of interest, innovation, equity investment, and talent that underpin each of the 13 trends and explore the underlying technologies, uncertainties, and questions around them. (For more about our research, please see the sidebar, “Research methodology.”)Share
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Research methodology
This outlook highlights transformative trends that are driving innovation and addressing critical challenges across sectors. Artificial intelligence stands out not only as a powerful technology wave on its own but also as a foundational amplifier of the other trends. Its impact increasingly occurs via a combination with other trends, as AI both accelerates progress within individual domains and unlocks new possibilities at the intersections—accelerating the training of robots, advancing scientific discoveries in bioengineering, optimizing energy systems, and much more. The evolution of AI solutions in the marketplace increasingly combines aspects of trends we previously analyzed separately as applied AI and generative AI, so this year, they are examined together.
Even as excitement about AI applications and their use cases builds, realizing AI’s full potential across sectors will require continued innovations to manage computing intensity, reduce deployment costs, and drive infrastructure investment. This will also demand thoughtful approaches to safety, governance, and workforce adaptation, creating a wide range of opportunities for industry leaders, policymakers, and entrepreneurs alike.
New and notable
In addition to the growing reach of AI, another new trend we have chosen to highlight in this year’s report is agentic AI, which has rapidly emerged as a major focus of interest and experimentation in enterprise and consumer technology. Agentic AI combines the flexibility and generality of AI foundation models with the ability to act in the world by creating “virtual coworkers” that can autonomously plan and execute multistep workflows. Although quantitative measures of interest and equity investment levels are as yet relatively low compared with more established trends, agentic AI is among the fastest growing of this year’s trends, signaling its potentially revolutionary possibilities.
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AI is also the primary catalyst for another trend we highlight this year: application-specific semiconductors. While Moore’s Law and the semiconductor layer of the technology stack have long been key enablers of other tech trends, innovations in semiconductors have spiked as reflected in quantitative metrics such as number of patents. These innovations have come in response to exponentially higher demands for computing capacity, memory, and networking for AI training and inference, as well as a need to manage cost, heat, and electric power consumption. This has given rise to a slew of new products, new competitors, and new ecosystems.
Technology trends also have a variety of profiles along the dimensions we analyzed. AI is a widely applicable, general-purpose technology with use cases in every industry and business function—and thus lots of innovation and interest—and it is scaling rapidly across the business landscape. Quantum technologies have a different profile. Quantum computing has the potential for transformative impact in certain critical domains, such as cryptography and material science, and the basic technology continues to be developed. Recent announcements, particularly by technology giants, have sparked increased interest, but real-world business impact will require even more technology advancements to make quantum computing practical. Other trends and subtrends vary across the multiple dimensions we analyzed, offering different approaches—from watchful waiting to aggressive deployment—to business leaders depending on their industries and competitive positions.
From the rise of robotics and autonomous systems to the imperative for responsible AI innovations, this year’s technology developments underscore a future where technology is more adaptive, collaborative, and integral to solving global problems. This is illuminated by themes that cut across trends this year:
- The rise of autonomous systems. Autonomous systems, including physical robots and digital agents, are moving from pilot projects to practical applications. These systems aren’t just executing tasks; they’re starting to learn, adapt, and collaborate. Autonomy is moving toward broad deployment, whether through coordinating last-mile logistics, navigating dynamic environments, or acting as virtual coworkers, among other skills.
- New human–machine collaboration models. Human–machine interaction is entering a new phase defined by more natural interfaces, multimodal inputs, and adaptive intelligence. From immersive training environments and haptic robotics to voice-driven copilots and sensor-enabled wearables, technology is becoming more responsive to human intent and behavior. This evolution is shifting the narrative from human replacement to augmentation—enabling more natural, productive collaboration between people and intelligent systems. As machines get better at interpreting context, the boundary between operator and cocreator continues to dissolve.
- Scaling challenges. The surging demand for compute-intensive workloads, especially from gen AI, robotics, and immersive environments, is creating new demands on global infrastructure. Data center power constraints, physical network vulnerabilities, and rising compute demands have exposed cracks in global infrastructure. But the challenge isn’t just technical: Supply chain delays, labor shortages, and regulatory friction around grid access and permitting are slowing deployments. As a result, scaling now means solving not only for technical architecture and efficient design but also for the messy, real-world challenges in talent, policy, and execution.
- Regional and national competition. Global competition over critical technologies has intensified. Countries and corporations have doubled down on sovereign infrastructure, localized chip fabrication, and funding technology initiatives such as quantum labs. This push for self-sufficiency isn’t just about security; it’s about reducing exposure to geopolitical risk and owning the next wave of value creation. The result is a new era of tech-driven competition where nations have a stake in critical industries.
- Scale and specialization are growing simultaneously. Growth on these vectors is enabled by innovation in cloud services and advanced connectivity. On one hand, we see rapid growth in general-purpose model training infrastructure in vast, power-hungry data centers, while on the other, we observe accelerating innovation “at the edge,” with lower-power technology embedded in phones, cars, home controls, and industrial devices. This is creating ecosystems that deliver massive large language models with staggering parameter counts, as well as a growing range of domain-specific AI tools that can run almost anywhere. Leaders will balance centralized scale with localized control: Think modular microgrids for clean energy or bespoke robotics for niche manufacturing.
- Responsible innovation imperatives. As technologies become more powerful and more personal, trust is increasingly the gatekeeper to adoption. Companies face growing pressure to demonstrate transparency, fairness, and accountability, whether in AI models, gene editing pipelines, or immersive platforms. Ethics are no longer just the right thing to do but rather strategic levers in deployment that can accelerate—or stall—scaling, investment, and long-term impact.
The following illustrations show how different frontier technologies can work together to provide innovative solutions in the future:
After a year in which the macroeconomic environment and broader market weakness provoked significant declines in equity financing for technology across several of our trends, the investment climate for frontier technologies stabilized and, in many cases, rebounded in 2024. Levels of equity investment in trends such as cloud and edge computing, bioengineering, and space technologies increased despite the broader market dip in 2023, while investments in other trends, such as AI and robotics, dipped only to recover to higher levels in 2024 than they achieved two years prior. The two trends with the highest levels of equity investment, the future of energy and sustainability technologies and the future of mobility, declined overall in 2023, but the former bounced back in 2024 (exhibit).
Exhibit
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Our baker’s dozen of technology trends shaping 2025 underscores the vast potential of emerging technologies and the need for strategic alignment in an AI-powered future. For executives, success will hinge on identifying high-impact domains in which they can apply these trends, investing in the necessary talent and infrastructure, and addressing external factors like regulatory shifts and ecosystem readiness. By fostering collaboration, bridging ecosystem gaps, and maintaining a long-term vision, leaders can accelerate adoption and position their organizations to drive the next wave of technological transformation. Those who act with focus and agility will not only unlock new value but also shape the future of their industries and the future of today’s emerging frontier technologies.
The 13 tech trends
This report lays out considerations for all 13 technology trends. For easier consideration of related trends, we grouped them into three broader categories: the AI revolution, compute and connectivity frontiers, and cutting-edge engineering. Of course, there’s significant power and potential in looking across these groupings when considering trend combinations.
To describe the state of each trend, we developed scores for innovation (based on patents and research publications) and interest (based on news and web searches). We also estimated the level of equity investments in relevant technologies and rated their level of adoption by organizations.
The AI revolution
Agentic AI
Agentic AI is an artificial intelligence system capable of independently planning and executing complex, multistep tasks. Built on foundation models, these agents can autonomously perform actions, communicate with one another, and adapt to new information. Significant advancements have emerged, from general agent platforms to specialized agents designed for deep research.
In 2020, the interest score for Agentic AI was 0.0001 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0 on the same scale. The adoption rate was scored at 2. The investment in 2020 was 0 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 0 billion dollars. By 2024, the interest score for Agentic AI was 0.0033. The innovation score was 0. The investment was 1 billion dollars. Job postings within this trend changed by 985 percent from 2022 to 2024
$1.1
billion
equity investment,2024
+985%
job postings
difference,2023–24Learn more about agentic AI
The AI revolution
Artificial intelligence
Artificial intelligence refers to computer systems designed to perform tasks that typically require human intelligence. These systems leverage algorithms, data, and computational power to recognize patterns, make decisions, and learn from experiences.
In 2020, the interest score for Artificial intelligence was 0.16 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.43 on the same scale. The adoption rate was scored at 4. The investment in 2020 was 64 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 64 billion dollars. By 2024, the interest score for Artificial intelligence was 0.91. The innovation score was 0.89. The investment was 124 billion dollars. Job postings within this trend changed by 35 percent from 2022 to 2024
$124.3
billion
equity investment,2024
+35%
job postings
difference,2023–24Learn more about artificial intelligence
Compute and connectivity frontiers
Application-specific semiconductors
Application-specific semiconductors are purpose-built chips optimized to perform specialized tasks. Unlike general-purpose semiconductors, they are engineered to handle specific workloads (such as large-scale AI training and inference tasks) while optimizing performance characteristics, including offering superior speed, energy efficiency, and performance.
In 2020, the interest score for Application-specific semiconductors was 0.05 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.49 on the same scale. The adoption rate was scored at 4. The investment in 2020 was 3 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 3 billion dollars. By 2024, the interest score for Application-specific semiconductors was 0.14. The innovation score was 0.52. The investment was 8 billion dollars. Job postings within this trend changed by 22 percent from 2022 to 2024
$7.5
billion
equity investment,2024
+22%
job postings
difference,2023–24Learn more about semiconductors
Compute and connectivity frontiers
Advanced connectivity
Advanced connectivity covers a suite of evolving technologies that enhance and expand digital communication networks. This includes wireless low-power networks, 5G and emerging 6G cellular systems, Wi-Fi 6 and 7 standards, and low-Earth-orbit (LEO) satellites.
In 2020, the interest score for Advanced connectivity was 0.07 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.34 on the same scale. The adoption rate was scored at 4. The investment in 2020 was 44 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 44 billion dollars. By 2024, the interest score for Advanced connectivity was 0.1. The innovation score was 0.42. The investment was 44 billion dollars. Job postings within this trend changed by -14 percent from 2022 to 2024
$44.2
billion
equity investment,2024
–14%
job postings
difference,2023–24Learn more about advanced connectivity
Compute and connectivity frontiers
Cloud and edge computing
Cloud and edge computing involve distributing workloads across locations, from hyperscale remote data centers to regional hubs and local nodes. This approach optimizes performance by addressing factors such as latency, data transfer costs, data sovereignty, and data security.
In 2020, the interest score for Cloud and edge computing was 0.07 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.17 on the same scale. The adoption rate was scored at 4. The investment in 2020 was 106 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 106 billion dollars. By 2024, the interest score for Cloud and edge computing was 0.11. The innovation score was 0.21. The investment was 81 billion dollars. Job postings within this trend changed by 2 percent from 2022 to 2024
$80.8
billion
equity investment,2024
+2%
job postings
difference,2023–24Learn more about cloud computing
Compute and connectivity frontiers
Immersive-reality technologies
Immersive-reality technologies encompass augmented reality (AR) and virtual reality (VR) and include AR smart glasses, advanced haptic feedback, and AI-powered enhancements that improve rendering, tracking, and processing capabilities.
In 2020, the interest score for Immersive-reality technologies was 0.06 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.13 on the same scale. The adoption rate was scored at 2. The investment in 2020 was 10 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 10 billion dollars. By 2024, the interest score for Immersive-reality technologies was 0.14. The innovation score was 0.19. The investment was 6 billion dollars. Job postings within this trend changed by -11 percent from 2022 to 2024
$6.0
billion
equity investment,2024
–11%
job postings
difference,2023–24Learn more about immersive-reality tech
Compute and connectivity frontiers
Digital trust and cybersecurity
Digital trust and cybersecurity covers technologies and practices designed to ensure secure, transparent, and trustworthy digital interactions. This includes identity verification, data protection, encryption, threat detection, and blockchain-based trust systems.
In 2020, the interest score for Digital trust and cybersecurity was 0.07 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.08 on the same scale. The adoption rate was scored at 4. The investment in 2020 was 37 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 37 billion dollars. By 2024, the interest score for Digital trust and cybersecurity was 0.17. The innovation score was 0.13. The investment was 78 billion dollars. Job postings within this trend changed by 7 percent from 2022 to 2024
$77.8
billion
equity investment,2024
+7%
job postings
difference,2023–24Learn more about digital trust
Compute and connectivity frontiers
Quantum technologies
Quantum-based technologies make use of the unique properties of quantum mechanics to execute certain complex calculations exponentially faster than classical computers, secure communication networks, and produce sensors with higher sensitivity levels than their classical counterparts.
In 2020, the interest score for Quantum technologies was 0.01 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.02 on the same scale. The adoption rate was scored at 1. The investment in 2020 was 1 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 1 billion dollars. By 2024, the interest score for Quantum technologies was 0.02. The innovation score was 0.04. The investment was 2 billion dollars. Job postings within this trend changed by -15 percent from 2022 to 2024
$2.0
billion
equity investment,2024
–15%
job postings
difference,2023–24Learn more about quantum tech
Cutting-edge engineering
Future of robotics
The future of robotics covers the advancement of robotics capable of performing tasks autonomously or semi-autonomously, adapting to new, real-life inputs with increasing degrees of autonomy and dexterity, including autonomous mobile robots and humanoid robots.
In 2020, the interest score for Future of robotics was 0.01 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.03 on the same scale. The adoption rate was scored at 2. The investment in 2020 was 4 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 4 billion dollars. By 2024, the interest score for Future of robotics was 0.01. The innovation score was 0.05. The investment was 7 billion dollars. Job postings within this trend changed by -2 percent from 2022 to 2024
$7.0
billion
equity investment,2024
–2%
job postings
difference,2023–24Learn more about future of robotics
Cutting-edge engineering
Future of mobility
Mobility technologies include autonomous vehicles; electric vehicles; drones; urban air mobility solutions, such as electric vertical takeoff and landing aircraft; and micromobility, such as e-scooters and e-bikes. These technologies have the goal of improving the efficiency, safety, and sustainability of transportation systems.
In 2020, the interest score for Future of mobility was 0.1 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.11 on the same scale. The adoption rate was scored at 3. The investment in 2020 was 198 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 198 billion dollars. By 2024, the interest score for Future of mobility was 0.23. The innovation score was 0.2. The investment was 132 billion dollars. Job postings within this trend changed by 6 percent from 2022 to 2024
$131.6
billion
equity investment,2024
+6%
job postings
difference,2023–24Learn more about future of mobility
Cutting-edge engineering
Future of bioengineering
Bioengineering is the application of engineering principles to biology, utilizing technological advancements (for example, gene editing, synthetic biology) to improve health and human performance, transform food value chains, and create innovative offerings.
In 2020, the interest score for Future of bioengineering was 0.11 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.35 on the same scale. The adoption rate was scored at 4. The investment in 2020 was 127 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 127 billion dollars. By 2024, the interest score for Future of bioengineering was 0.11. The innovation score was 0.4. The investment was 57 billion dollars. Job postings within this trend changed by -17 percent from 2022 to 2024
$57.3
billion
equity investment,2024
–17%
job postings
difference,2023–24Learn more about future of bioengineering
Cutting-edge engineering
Future of space technologies
Space technologies cover satellite systems, launch vehicles, habitation modules, and exploration missions, including low-Earth-orbit satellite constellations, direct-to-device connectivity integrating space assets with terrestrial networks, and Earth observation.
In 2020, the interest score for Future of space technologies was 0.07 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.06 on the same scale. The adoption rate was scored at 2. The investment in 2020 was 7 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 7 billion dollars. By 2024, the interest score for Future of space technologies was 0.12. The innovation score was 0.07. The investment was 9 billion dollars. Job postings within this trend changed by -9 percent from 2022 to 2024
$9.3
billion
equity investment,2024
–9%
job postings
difference,2023–24Learn more about space tech
Cutting-edge engineering
Future of energy and sustainability technologies
Energy and sustainability technologies encompass a broad spectrum of innovations aimed at transforming the global energy landscape toward a more sustainable and resilient future. This includes the spectrum of technologies transforming the global energy value chain, particularly focusing on clean electrons, electrification, and clean molecules.
In 2020, the interest score for Future of energy and sustainability technologies was 0.35 on a scale from 0 to 1, where 0 is low and 1 is high. The innovation score was 0.29 on the same scale. The adoption rate was scored at 3. The investment in 2020 was 176 on a scale from 1 to 5, with 1 defined as “frontier innovation” and 5 defined as “fully scaled.” The investment was 176 billion dollars. By 2024, the interest score for Future of energy and sustainability technologies was 0.65. The innovation score was 0.37. The investment was 223 billion dollars. Job postings within this trend changed by -6 percent from 2022 to 2024
$223.2
billion
equity investment,2024
–6%
job postings
difference,2023–24Learn more about future of energy
