The global technology and telecoms landscape in 2025 is set to be a dynamic mix of realism, innovation, and strategic challenges. While artificial intelligence matures into a practical tool, companies grapple with scaling, regulations, and sustainability concerns. Geopolitical tensions will significantly shape semiconductor production, tech governance, and international collaboration. Meanwhile, advancements in satellite internet, 6G, and quantum computing showcase humanity’s relentless push for innovation.
Below are the top 10 points from the Economist Intelligence Unit's Tech and Telecom Outlook for 2025
1. AI Enters a Phase of Realism
The AI sector in 2025 will focus on realistic applications and scaling. Despite significant investments, many companies will remain in the proof-of-concept phase. Generative AI faces challenges like high costs and regulatory hurdles, with Nvidia being the primary beneficiary so far. However, the need for sustainability and energy efficiency will dominate discussions.
2. Semiconductor Geopolitics Takes Center Stage
Demand for semiconductors, driven by AI, will outpace traditional devices. Geopolitical tension between China and the West will influence production strategies. The US, EU, and Japan are courting fabs, but execution remains challenging. For instance, Intel plans to cut $9 billion in costs, delaying EU expansion.
3. Tightening Regulation of Tech Giants
Governments will push for greater accountability from tech companies, reshaping the global tech landscape. This includes debates on Section 230 in the US and the EU’s Digital Services Act. While platforms are pressured to moderate content effectively, enforcement and regulatory capacity remain concerns.
4. Satellite Internet Expansion Remains Limited
Although satellite internet will see increased deployment, its reach will primarily benefit enterprises such as maritime and military users. Retail adoption will stay low due to high costs and competition from terrestrial infrastructure. Amazon’s Kuiper is set to disrupt the duopoly of Starlink and Eutelsat OneWeb.
5. US Election to Influence Global Tech Policies
The new Republican administration is expected to pursue similar objectives to the current Democratic administration in terms of limiting China's access to technology. However, Trump's approach would likely be more unilateral and transactional. This means he would focus on implementing trade restrictions on technology independently, rather than collaborating with other countries to form a unified front against China.
6. 6G Development Begins
The standardization of 6G will kick off in 2025, with discussions focusing on software-driven principles. Unlike earlier networks, many operators may resist significant infrastructure upgrades. China’s ambitions to set its own global 6G standard could intensify competition.
7. Quantum Computing Gains Spotlight
UNESCO’s declaration of 2025 as the year of quantum science highlights the technology’s potential, especially in encryption. While quantum computing’s large-scale viability is uncertain, it represents a frontier for exponential computing power.
8. Emerging Markets Achieve High Internet Penetration
Internet penetration in emerging markets is expected to surpass 90% by 2025. This milestone reflects advancements in connectivity infrastructure, though challenges remain in affordability and regional disparities.
9. Space Sector Becomes a Geopolitical Arena
Low-Earth orbit (LEO) satellite investments by nations like Saudi Arabia, South Korea, and Japan will grow in 2025. Governments view space as critical to national security, but retail satellite internet adoption remains limited due to high costs. Starlink, Eutelsat OneWeb, and Amazon’s Kuiper are key players in this emerging sector.
10. Can the Digital Economy Escape Fragmentation?
Amid rising nationalism and regulatory differences, questions remain about whether the global digital economy can remain integrated. From diverging 6G standards to contrasting AI rules, nations are increasingly prioritizing sovereignty over collaboration. This trend could disrupt tech innovation and trade in unprecedented ways.
