Artificial Intelligence
Net zero
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Deep tech investment 2024-2025: will AI continue to dominate?
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Why old ideas are finally coming to fruition – well, some of them. A look at our key areas of innovation, the stats and the stories, and what’s in store for the months ahead
Superman, Jurassic Park, Lilo & Stitch, Mission: Impossible, Snow White, Karate Kid… a list of new movies for 2025 reads like a roll call of nostalgic hits. It’s a year where old ideas are being reinvented, repackaged and made relevant for a new generation. And it’s not just Hollywood getting in on the act – technology is doing the same.
Quantum computing, AI, robotics, and hydrogen power might sound futuristic but many of these innovations have been decades in the making, built on ideas that were once dismissed as science-fiction. Now as 2025 unfolds, we’re seeing these ideas evolve into real products that can help solve some of our most pressing problems, in healthcare, environmental science, and energy, for example.
While we won’t get flying cars or hoverboards just yet, there has been enough discovery and momentum across these sectors already, to suggest big things for 2025. Oh, it’s also the Year of the Wood Snake in the Chinese zodiac, a symbol of wisdom, strategy and transformation, which could be an auspicious sign – if you are into those sorts of things.
To try and put this all into perspective, we have trawled the stats and soothsayers to see what 2025 has in store for tech and science innovation.
With the United Nations declaring 2025 as the International Year of Quantum Science and Technology, the spotlight is firmly on quantum’s potential to tackle major global challenges. Whether it’s optimising supply chains, advancing drug discovery, or modelling climate change, the possibilities are huge – but what is the reality?
As we revealed a few months ago, Gartner is being a bit down on quantum, while McKinsey was seeing “strong momentum”, thanks largely to both funding and “sturdy underlying fundamentals and significant technological advances.”
Some figures for the global quantum computing market reflect this momentum. According to Markets and Markets, it’s expected to grow from $1.3 billion in 2024 to $5.3 billion by 2029, representing an impressive compound annual growth rate (CAGR) of 32.7%. In the longer term, some predictions see the market surging to $12.6 billion by 2032, driven by advancements in hardware and commercialisation.
According to BCG, quantum computing “will create $450 billion to $850 billion of economic value – sustaining a $90 billion to $170 billion market for hardware and software providers – by 2040.”
Technological milestones are also on the horizon. IBM plans to develop quantum processors exceeding 4,000 qubits by 2025, a significant leap in computational power. Similarly, collaborations between companies like Microsoft and Atom Computing aim to bring commercial quantum computers to market next year, entangling record numbers of logical qubits. They won’t be the only ones.
PsiQuantum is partnering with the Illinois Quantum and Microelectronics Park (IQMP) to build a powerful quantum computer, aiming to establish Chicago as a hub for quantum computing, while French start-up Pasqal has entered a partnership with Saudi Arabia’s state oil giant Aramco to install the country’s first quantum computer, a 200-qubit machine slated for deployment in the latter half of 2025.
Industries like automotive are expected to see quantum computing deliver $2-$3 billion in economic impact by 2030
The applications are just as exciting. Industries like automotive are expected to see quantum computing deliver $2-$3 billion in economic impact by 2030, while the adoption of quantum-safe encryption is set to accelerate as organisations prepare for quantum-enabled cybersecurity threats.While there’s still a long way to go before quantum computing becomes mainstream, 2025 is shaping up as a pivotal year, one where quantum finally starts to deliver on its decades-old promise. According to a forthcoming Capgemini Research Institute survey, 55% of top executives and 44% of VCs expect quantum computing to be one of the top three technologies within the “Computing & Networking” space to have a major impact in 2025. The research says that 41% of top executives “expect to be experimenting with quantum computing Proofs of Concepts with limited use cases, and 27% of the top executives surveyed expect the technology to be partially scaled in some parts of the organisation in 2025.”
Artificial intelligence has long been the poster child of futuristic tech and while we have already seen incredible growth in its use, especially generative AI, 2025 is expected to surpass all records. Predictions from IDC suggest worldwide spending on AI, including AI-enabled applications, infrastructure, and related IT and business services, will more than double by 2028 when it is expected to reach $632 billion. Bain & Company suggests it’s going to be worth $780-$990 billion by 2027.
But here’s the catch. The rapid pace of AI adoption has left many businesses overwhelmed. Forrester warns that 75% of tech leaders will face moderate to severe technical debt by 2026, thanks to rushed AI integration. That’s where AIOps (AI for IT Operations) comes in, automating IT fixes and helping organisations make sense of the complexity. An AI solution to solve an AI problem. So, what are the expected AI tech advancements and industry applications in 2025?
Key sectors such as healthcare (where AI is projected to improve diagnostics, personalise treatment plans and streamline administrative tasks) and financial services (where AI will enhance fraud detection, risk assessments and customer service enhancements, at least according to PwC) will drive innovation forward. They will demand change and new ideas to improve services, while at the same time removing costly, inefficient legacy technologies and methods.According to Deloitte, next year 25% of enterprises using gen AI are expected to deploy AI agents, growing to 50% by 2027. According to Forbes, 2025 will see the rise of specialised AI models. These are industry-specific AI solutions developed to address unique challenges across sectors, fostering innovation.
The robotics sector is at a pivotal moment in 2025, with emerging technologies like polyfunctional robots promising to redefine industries. As Gartner suggests, these versatile machines can perform multiple tasks without the need for extensive reprogramming, learning new skills through instruction and seamlessly collaborating with human workers. Gartner predicts that these advancements will transform industries such as logistics, healthcare, and manufacturing by reducing downtime and enhancing operational flexibility.
In the UK, there is a lot of work to be done. Despite global advancements, the UK lags behind its European peers in robot adoption. The Tony Blair Institute for Global Change’s report, A new national purpose: the UK’s opportunity to lead in next-wave robotics, underscores the importance of strategic investment. The report calls for a national robotics strategy that focuses on…
The UK’s robotics market is projected to generate $1.76 billion in revenue in 2024, with service robotics contributing $1.54 billion. By 2029, this market is expected to grow to $3.92 billion, with a CAGR of 17.32%. While the UK is behind European leaders like Germany and Italy in terms of adoption, these projections highlight significant growth potential, particularly in service and healthcare robotics.
By investing strategically in innovation, fostering collaboration, and ensuring ethical governance, the UK could turn its current challenges into a springboard for growth. As 2025 unfolds, the focus will be on how polyfunctional robots and other innovations can shape a future where robots are not just tools but active collaborators in solving real world challenges. This may or may not include humanoid robots, although that is not for lack of trying.From social and healthcare robots (such as Honda’s Haru) to Total Recall ‘Johnny Cab’ style robots (such as Tesla’s Cybercab) the fascination with and drive to create humanoid robots continues but for the most part, the emphasis in robotics will be as assistants, not replacements.
In 2025, the materials industry is poised for significant advancements, driven by innovations in quantum technologies, sustainable materials, and nanotechnology. Hydrogen power, graphene, and lightweight composites might not grab headlines like AI but these advanced materials are quietly transforming industries. They’re enabling lighter vehicles, more efficient energy storage and greener construction solutions.
The Future directions for materials for quantum technologies report by the Materials for Quantum Network (M4QN) highlights the critical role of advanced materials in the development of quantum computing, sensing, and imaging. Key challenges include:
The report emphasises the need for interdisciplinary collaboration and infrastructure development to position the UK at the forefront of quantum advancements.
Meanwhile, British climate technology firm Levidian has launched its second-generation LOOP technology, enabling industrial-scale production of high-quality graphene. This system decarbonises processes in heavy-emitting industries by converting methane into clean hydrogen and graphene. A single LOOP device can produce approximately 15 tonnes of graphene annually, enhancing products like electric vehicle batteries and tyres. Levidian aims to produce over 50,000 tonnes of graphene per year by 2030, positioning itself as a leading global producer.
In 2025, the materials industry will increasingly focus on sustainability, with trends including:
These innovations are set to transform sectors such as construction, healthcare, and electronics but perhaps one area where we may see some lengthy strides is energy storage. Researchers at the UK Atomic Energy Authority and the University of Bristol have developed a carbon-14 diamond battery capable of powering devices for thousands of years. Encased in diamond, this battery safely contains radioactive material, making it suitable for medical devices and use in extreme environments. It also offers a method for managing nuclear waste by utilising carbon-14 extracted from graphite blocks in nuclear reactors.
One interesting development worth keeping an eye on is in China. According to the MERICS report materials innovation, coupled with big data and automation, is driving the rise of smart factories. Key materials like lightweight composites and advanced polymers are enabling factories to become more adaptable, reducing production times and enhancing sustainability.
Smart factories now integrate materials like graphene-based supercapacitors for real-time energy management, creating a new industrial model driven by automation and predictive maintenance. This is backed-up by Deloitte’s 2025 Manufacturing Industry Outlook, which predicts a rising demand for high-performance materials in reshaping the manufacturing ecosystem. This includes Industrial IoT-enabled materials (advanced composites and smart polymers being integrated into sensors and devices for predictive maintenance and energy-efficient production) and resilient manufacturing components (lightweight alloys and carbon-based compounds for more robust and sustainable industrial operations).
In terms of green hydrogen, much will depend on reducing production costs in 2025, with innovations in electrolyser technologies, for example. Back in February, S&P Global reported that the global production of green hydrogen was predicted to double in 2025. There are a number of related projects across North America and Europe that could ramp-up next year to meet the growing demand for sustainable energy solutions. But India looks like one to watch. This month, India’s second green hydrogen production subsidy auction was oversubscribed by nearly 40%, attracting bids totaling approximately 630,000 tonnes per year against an offered capacity of 450,000 tonnes. Major companies, including Reliance Industries, ReNew Power and Avaada, were among the bidders, indicating strong industry interest and confidence in the sector’s growth.
In 2025, significant strides are anticipated in the development and standardisation of 6G technology, setting the stage for its expected commercialisation around 2030. The 3rd Generation Partnership Project (3GPP) plans to commence 6G technology development in mid-2025 with a 21-month study phase to analyse technological options.
Decisions regarding the duration of Release 21 work items and the availability of initial 6G specifications are expected by June 2026, according to Ericsson. This timeline aims for 6G specifications to be ready by the end of 2028, facilitating the introduction of the first commercial 6G systems by 2030. The European Union is proactively engaging in 6G research and innovation, with standardisation expected to begin in 2025.
In February 2024, the United States, along with allies including Australia, Canada, and Japan, endorsed a set of principles for 6G development. These principles emphasise the creation of secure, open, and resilient networks, advocating for international cooperation to promote interoperability and inclusivity in 6G technologies. The collaborative approach aims to ensure that 6G infrastructure supports a competitive global market and bridges digital divides, paving the way for innovation in 2025.
AI in 6G can be a “force for good” in managing the complexity of increasingly expansive network infrastructures and services
Research and development efforts are expected to intensify further, with companies like Nokia actively participating in 6G standardisation. Nokia highlights the importance of early standardisation to address future connectivity demands and to integrate emerging technologies such as AI and machine learning into 6G networks.
According to Dimitra Simeonidou, UKTIN Lead for UK Research Capability and director of the Smart Internet Lab, University of Bristol, AI in 6G can be a “force for good” in managing the complexity of increasingly expansive network infrastructures and services. It can also open new opportunities for malicious actors to exploit vulnerabilities.
With a new year ahead, Simeonidou offers some strategic recommendations for AI, to harness its potential while mitigating associated risks:
Foster collaboration: Encourage partnerships among industry stakeholders, regulators, and academia to address challenges and share best practices.
Gartner forecasts a 14% increase in worldwide semiconductor revenue, reaching $600 billion in 2025. This growth is attributed to the rising demand for advanced technologies such as AI, 5G and automotive electronics. Similarly, Deutsche Bank predicts 16% growth in the semiconductor sector, highlighting the industry’s robust expansion.
China is set to boost its mature node semiconductor production capacity by 6% in 2025, according to The Register. This expansion is part of China’s strategy to reduce reliance on imported semiconductors and enhance its position in the global market. However, this increase has raised concerns about potential oversupply, which could impact global semiconductor prices and market dynamics.
The UK government announced the establishment of an independent Semiconductor Institute to drive innovation and support the nation’s semiconductor strategy. This initiative aims to strengthen the UK’s capabilities in semiconductor research and development, fostering collaboration between academia and industry. Additionally, the University of Bristol’s REWIRE project is focusing on developing semiconductor technologies pivotal to achieving the UK’s net zero ambitions, such as enabling rapid electric vehicle charging.
From AI transforming telecoms and quantum computing entering practical deployment, to advances in robotics, materials science, and 6G connectivity, the pace of technological progress will be both exhilarating and disruptive.
Meanwhile, keep an eye on Google, which says it has made significant strides in quantum computing, unveiling chips capable of solving complex problems far beyond the reach of current supercomputers. These advancements underscore the critical role of semiconductors in next-generation technologies, including quantum computing and AI.
In summary, 2025 is expected to be a pivotal year across all major innovation sectors. From AI transforming telecoms and quantum computing entering practical deployment, to advances in robotics, materials science, and 6G connectivity, the pace of technological progress will be both exhilarating and disruptive.
However, two underlying themes will define the year’s true impact: data security and net zero carbon commitments. As technology continues to evolve, the race to protect critical data from emerging cyber threats will intensify, requiring smarter, AI-driven security protocols and quantum-safe encryption standards.
Simultaneously, achieving sustainability goals will remain a critical challenge. Companies across industries must balance technological innovation with environmental responsibility, as evidenced by initiatives like hydrogen power scaling, graphene-driven decarbonisation, and sustainable 6G network designs.
2025 won’t just be about what’s new, it will be about how innovations are deployed, managed, and secured in a world increasingly shaped by interconnected technologies.
Happy New Year!
Working as a technology journalist and writer since 1989, Marc has written for a wide range of titles on technology, business, education, politics and sustainability, with work appearing in The Guardian, The Register, New Statesman, Computer Weekly and many more.
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