13 tech trends to watch now, according to McKinsey (and no, it's not all AI)

Published in Science and Technology on Saturday, July 26th 2025 at 4:13 GMT by ZDNet
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AI, especially agents, may be at the top of the list but that's not all you need to keep an eye on.

13 Tech Trends Poised to Transform Industries: Beyond the AI Hype

In the ever-evolving landscape of technology, it's easy to get swept up in the buzz surrounding artificial intelligence. However, a comprehensive analysis from global consulting firm McKinsey reveals a broader spectrum of innovations that are set to redefine industries, economies, and societies. While AI undoubtedly plays a starring role, McKinsey's latest Technology Trends Outlook identifies 13 key trends that extend far beyond generative models and machine learning algorithms. These trends span everything from sustainable energy solutions to quantum computing, offering a roadmap for businesses, policymakers, and innovators to navigate the coming years. Drawing from extensive data on innovation, investment, and adoption rates, this outlook emphasizes practical applications and real-world impacts. In this article, we'll delve into each of these trends, exploring their potential, challenges, and why they demand attention now.

Starting with applied AI, which McKinsey positions as a foundational trend. Unlike the abstract hype of AI in media, applied AI focuses on integrating artificial intelligence into everyday business operations and consumer products. This includes AI-driven analytics for supply chain optimization, personalized healthcare diagnostics, and automated customer service. The trend is gaining momentum due to advancements in scalable AI models that can process vast datasets in real-time. For instance, companies like Amazon and Google are already embedding AI into logistics and search functionalities, reducing costs and improving efficiency. McKinsey notes that adoption rates have surged by over 20% in the past year, driven by falling computational costs and accessible tools. However, challenges like data privacy concerns and ethical biases remain hurdles. Businesses ignoring this could fall behind, as applied AI is projected to add trillions to global GDP by enhancing productivity across sectors.

Closely related is next-generation software development, which revolutionizes how code is written and deployed. This trend encompasses low-code/no-code platforms, AI-assisted coding, and agile methodologies that accelerate development cycles. Tools like GitHub Copilot exemplify this, where AI suggests code snippets, cutting development time by up to 50%. McKinsey highlights how this democratizes software creation, allowing non-technical users to build applications. In industries like finance and healthcare, this means faster iteration on apps for fraud detection or patient monitoring. The trend is fueled by the explosion of cloud-native architectures, but it also raises questions about job displacement for traditional developers. As remote work persists, next-gen development ensures teams can collaborate seamlessly, fostering innovation in a post-pandemic world.

Shifting gears to security, trust architectures and digital identity are critical in an era of rising cyber threats. This trend involves blockchain-based systems, zero-trust models, and biometric authentication to secure digital interactions. With data breaches costing billions annually, McKinsey stresses the need for robust frameworks that verify identities without compromising privacy. Examples include decentralized identity solutions like those from Microsoft, which allow users to control their data across platforms. This is particularly vital for e-commerce and remote work, where phishing attacks have skyrocketed. Adoption is accelerating in Europe due to regulations like GDPR, but global standardization remains a challenge. Ultimately, strong trust architectures could underpin a safer digital economy, reducing fraud and building consumer confidence.

The future of mobility trend explores autonomous vehicles, electric transport, and smart infrastructure. Beyond Tesla's self-driving cars, this includes urban air mobility with drones and eVTOLs (electric vertical takeoff and landing vehicles). McKinsey predicts that by 2030, autonomous tech could reduce traffic accidents by 90% and reshape urban planning. Investments in companies like Waymo and Joby Aviation underscore the trend's potential, but regulatory hurdles and public skepticism slow progress. In developing regions, electric scooters and shared mobility apps are already alleviating congestion, pointing to a greener, more efficient transport ecosystem.

Hand in hand with mobility is electrification and renewables, focusing on the shift to clean energy sources. This encompasses solar, wind, and battery storage advancements that make renewables more viable. McKinsey reports a boom in investments, with global renewable capacity expected to double by 2025. Innovations like perovskite solar cells promise higher efficiency at lower costs, while grid-scale batteries from firms like Tesla stabilize supply. Challenges include supply chain vulnerabilities for rare earth materials, but the trend is essential for combating climate change. Countries like China and Germany lead in adoption, setting examples for others to follow in achieving net-zero goals.

Expanding on sustainability, climate tech beyond electrification and renewables includes carbon capture, sustainable agriculture, and circular economy models. This trend leverages tech like AI-optimized farming and bio-based materials to mitigate environmental impact. McKinsey highlights startups developing direct air capture systems, which could remove gigatons of CO2 annually. In agriculture, precision tech reduces water usage by 30%, addressing food security amid population growth. While funding has dipped post-pandemic, the urgency of climate crises is reigniting interest, with potential for massive economic value in green jobs.

Advanced connectivity is another powerhouse, encompassing 5G, 6G, and satellite networks like Starlink. This enables ultra-fast, low-latency connections for IoT devices, remote surgeries, and smart cities. McKinsey notes that 5G adoption could unlock $13 trillion in economic value by 2030, transforming industries from manufacturing to entertainment. However, infrastructure costs and spectrum allocation issues persist, especially in rural areas. As connectivity becomes ubiquitous, it paves the way for seamless integration of other trends like AI and immersive tech.

Speaking of which, immersive-reality technologies—including VR, AR, and the metaverse—are evolving from gaming novelties to enterprise tools. Applications in training, such as virtual simulations for surgeons or mechanics, are reducing errors and costs. McKinsey points to Meta's investments and Apple's Vision Pro as catalysts, with the market projected to reach $1.5 trillion by 2030. Challenges include hardware accessibility and motion sickness, but in education and retail, AR enhances experiences, like virtual try-ons for clothing.

Industrializing machine learning takes AI from labs to factories, automating ML pipelines for scalable deployment. This involves MLOps (machine learning operations) to streamline model training and monitoring. McKinsey emphasizes its role in predictive maintenance for industries like oil and gas, potentially saving billions in downtime. Tools from Google Cloud and AWS make this accessible, but talent shortages hinder widespread adoption.

The Web3 trend builds on blockchain for decentralized apps, NFTs, and DAOs (decentralized autonomous organizations). Beyond crypto hype, it's about ownership in digital economies. McKinsey sees potential in supply chain transparency and fan-engaged entertainment, though volatility and scams pose risks. As regulations evolve, Web3 could democratize finance and content creation.

In biotechnology, the future of bioengineering includes gene editing like CRISPR for disease treatment and synthetic biology for lab-grown meat. McKinsey forecasts breakthroughs in personalized medicine, with ethical debates on designer babies. This trend could address global health challenges, from pandemics to aging populations.

Future of space technologies encompasses reusable rockets, satellite constellations, and space tourism. Companies like SpaceX are lowering costs, enabling applications in Earth observation for climate monitoring. McKinsey highlights economic opportunities in asteroid mining, but space debris and international treaties are concerns.

Finally, quantum technologies promise exponential computing power for drug discovery and cryptography. While still nascent, investments from IBM and Google signal progress. McKinsey warns of a "quantum divide" if access isn't equitable, but the potential to solve intractable problems is immense.

These 13 trends, as outlined by McKinsey, illustrate a multifaceted tech future where AI is just one piece. By investing in these areas, organizations can drive growth, sustainability, and resilience. The key takeaway? Diversify beyond the AI echo chamber to harness the full spectrum of innovation. As we move forward, monitoring these developments will be crucial for staying ahead in a rapidly changing world.

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