As the tech world continues to evolve in 2025, several IT trends will redefine industries in ways large and small. Cybersecurity will undoubtedly be among the most pressing issues, with artificial intelligence (AI) playing a pivotal role in helping to enhance it.
But traditional challenges will remain. New technologies, emerging threats and regulations will require greater collaboration — among partners and within organizations — to navigate and manage these complexities effectively.
Across critical industries such as energy and utilities, telecom and manufacturing, new competitors and changing industry landscapes call for a bold and more holistic approach to IT modernization. At stake will be the ability of industry players to operate more efficiently in the face of skills shortages, protect their IP and customer data across the processing chain, and make the most of their current IT investments.
Each industry will have to reinvent itself to some degree to remain competitive and ready for next year and beyond — with IT modernization, market positioning and the hazards of uncertainty in the mix.
In the first installment of our industry predictions for 2025, here are 11 key IT trends energy and utilities, telecommunications and manufacturing companies must navigate to stay competitive.
Industry:
Energy and utilities
Economic growth and technological advancements are putting energy and utilities providers under pressure to meet rising power demands. In response, companies are turning to various energy sources and using technology like AI to develop secure and sustainable systems, including distributed energy resources (DER) and virtual power plants. However, 75% of leaders struggle to keep up with technological change, and only a third feel prepared to manage cyberattacks.
“The energy and utilities sector faces a modernization challenge. Leaders are under immense pressure not only to meet the explosive energy demands of the developing global economy but to build capacity to meet the demands of the future,” said Onofrio Pirrotta, Senior Vice President, Managing Partner and leader of Kyndryl's U.S. Manufacturing and Energy market. “At each step in their transformations, enterprises are scrutinizing their technology investments and accelerating those that make the greatest positive business impact.”
In the coming year, leaders in these sectors will focus on balancing investments in new technology with modernizing outdated systems, strengthening resilience against extreme weather and grid disruptions, and removing technology barriers to ensure efficient, secure and reliable energy delivery.
Key industry trends
87%
of leaders in the energy and utilities sector are confident their IT infrastructure is best-in-class
67%
of leaders in the energy and utilities sector are concerned that their IT tools or processes are outdated or close to end-of-life
32%
report their IT infrastructure is completely ready to manage future risks, which is below the overall average of 39%
Industry:
Telecommunications
The factory floor is the next frontier for telecommunications. But to capitalize on this opportunity, telecoms must evolve at every level — from the technology stack to IoT and IIoT (industrial internet of things). Hyperscalers are the competition, with each constituency seeking to best the other in the build-out of critical infrastructure to deliver high-speed, ultra-low-latency services at scale.
“Data is data — it means nothing if you don’t have the tools and the skills for ingesting that data to marshal insights, drive efficiency and improve operations,” said Gretchen Tinnerman, Vice President and Leader of Kyndryl's U.S. Telecommunications, Media & Entertainment, and Technology market.
Key industry trends
90%
of telecommunications leaders are confident that their IT infrastructure is best-in-class
64%
of telecommunications CEOs are concerned that their IT tools or processes are outdated or close to end-of-life
43%
report that their IT infrastructure is completely ready to manage future risks, slightly above the overall average of 39%
Industry:
Manufacturing
As manufacturing firms focus on maintaining smooth, safe and secure operations, they are combining networking, edge and AI technologies with data from advanced sensors to solve problems, improve safety and maximize efficiency. However, manufacturers face challenges such as outdated systems and increased security threats from internet-connected devices. They also need to avoid costly disruptions and manage safety hazards.
“The integration of operational technology in manufacturing represents a new frontier. With more and more IoT devices in networks, the threat landscape expands — and enterprises must be prepared to manage an attack successfully,” said Jason Jackson, Distinguished Engineer and VP of Manufacturing and Energy sectors at Kyndryl. “Every other threat comes in second to security exposure.”
Many manufacturers have a culture that favors incremental change over transformative change, leading to a lag in modernization. As a result, manufacturing leaders feel least prepared to manage future risks, struggling to bridge skills gaps, keep pace with change and see business results from their AI investments.
Key industry trends
88%
of leaders in the manufacturing sector are confident that their IT infrastructure is best-in-class
55%
of manufacturing leaders are concerned that their IT tools or processes are outdated or close to end-of-life
31%
feel their IT infrastructure is completely ready to manage future risks, which is lower than the overall average of 39%
For additional insights, read our Predictions 2025 reports on the various IT trends that will impact the energy and utilities, telecommunications and manufacturing industries.