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In the coming year, leaders in these sectors will focus on balancing investments in new technology with modernizing outdated systems, strengthening resilience against extreme weather and grid disruptions, and removing technology barriers to ensure efficient, secure and reliable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

01
Companies will focus on DER technologies like battery storage and solar panels to improve reliability, resilience and efficiency.
02
Increasing attacks on critical infrastructure will drive companies to prioritize cybersecurity and cyber recovery to protect both IT and operational technology (OT) and strengthen supply chain resiliency.
03
Rising investments in AI and demand for AI data centers will prompt energy and utilities companies to use AI to enhance efficiency to meet increasing power needs.
04
In 2025, more companies will explore how smart-grid technologies and AI can help optimize energy flow, forecast energy generation, assess climate risks and improve overall grid resiliency.
The readiness paradox

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

05
Telecoms will collaborate with AI players in the GPU space to integrate generative AI with legacy systems, 5G networks and the Edge — aiming to provide faster, more reliable services with ultra-low-latency streaming and real-time analytics.
06
Enhanced telecom capabilities will include distinguishing between keepable and disposable data, particularly in autonomous transportation. In such cases, on-vehicle data processing can be discarded after use, while valuable data is transmitted to the cloud for real-time updates and future analytics.
07
Security will remain critical, with telecoms focusing on quantum computing to speed responses and protect against quantum-enabled data decryption attempts.
The readiness paradox

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

08
Enterprises will invest in 5G, Wi-Fi and hybrid networking models to achieve seamless connectivity across manufacturing sites and enable rapid data processing and real-time communications among smart devices.
09
Manufacturers will use last-mile technologies and edge computing to integrate data, improve analytics and uncover new business insights.
10
To address security risks from aging systems and equipment, manufacturing leaders will focus on operational security and supply chain traceability, and invest in data integration and distributed fabrication practices to enhance visibility across supply chains.
11
Manufacturers will work to bridge the gap between the front office and the factory floor, addressing data silos between IT and OT and fostering collaboration between IT and OT leaders to harmonize business objectives, company cultures and technologies.
The readiness paradox

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.