New report highlights the burgeoning technology that could be the next big thing
Technology has been one of the most prominent sectors for investors for some time, with equities in both big tech and emerging tech often outperforming. But is AI the only story in town for investors looking to diversify?
The global technology landscape is undergoing profound shifts, presenting both challenges and unprecedented opportunities for investors as highlighted in McKinsey’s new Technology Trends Outlook 2025.
The report highlights 13 frontier technologies poised to transform global business, with Artificial Intelligence (AI) still leading the pack with 78% of organizations already leveraging the tech in at least one business function and 92% of executives planning increased investment over the next three years.
This AI revolution is driving innovation in agentic AI, which enables autonomous, multistep workflows, creating virtual coworkers. While still in early stages, agentic AI saw a remarkable 985% difference in job postings between 2023 and 2024, signalling its revolutionary potential.
The surging demand for AI also propels the ‘application-specific semiconductors’ trend. These purpose-built chips, optimized for AI training and inference, are critical for managing the exponentially higher demands for computing capacity and power efficiency. This sector saw a 97% increase in equity investments from 2023 to 2024.
Beyond AI, ‘advanced connectivity’ is a growth area as the ongoing 5G rollout lays the groundwork for 6G, with innovations such as direct-to-satellite communications expanding global reach. While equity investments moderated in 2024, the sector continues to lead in patents granted, highlighting sustained innovation in enhancing digital communication networks.
Cloud and edge computing are also evolving rapidly, driven by AI workloads. The report projects global data center capacity to more than triple by 2030, necessitating distributed computing solutions to optimize performance and reduce latency. This trend is seeing hyperscalers and specialized providers push the boundaries of high-capacity data centers, while ‘digital trust and cybersecurity’ become paramount amidst rising threats and regulatory focus.
Finally, bioengineering is reaching a new level of maturity, fueled by AI. Advances in gene editing, personalized medicine, and synthetic biology are transforming healthcare and agriculture. Despite some decline in equity investment, the sector boasts a strong innovation score and is scaling rapidly.
