As we reflect on the technological landscape of 2024 — marked by advancements in industrial metaverse interactions, generative AI, quantum computing, 5G, and green energy — the horizon of 2025 promises even more transformative innovations.
Tech Funding News spoke with leading European and UK venture capitalists to uncover the most promising emerging trends that will reshape industries and drive technological progress. Here you go!
Humanoid robotics – the next frontier of automation
The rise of humanoid robotics is a potentially disruptive technology for 2025. Building on examples like Agility Robotics’ Digit, which we recently covered at TFN and is transforming Amazon warehouses, this trend will redefine multiple industries.
Artem Sokolov, founder of SKL.vc and Humanoid (the UK’s first AI and robotics company), told TFN: “The most exciting aspect of humanoid robotics is the democratisation of automation. We’re moving beyond rigid, specialised machines to flexible, adaptable systems that can perform complex tasks across industries with minimal technical expertise.”
The UK humanoid robot market is projected to grow at a CAGR of 16.2% from 2024 to 2030, reaching $110.8 million. Sokolov predicts humanoid robots will become vital to the robotics sector with AI innovation and potential AGI (Artificial General Intelligence) on the horizon.
Rapid growth and investment in AI technologies
Artificial intelligence drives innovation across industries. Global AI market projections suggest a 38% growth in 2025, with demand surging in healthcare, finance, and manufacturing. An Ernst & Young survey reveals that 97% of senior business leaders investing in AI report positive ROIs, leading to expanded AI budgets.
Adam French, Partner at Antler, highlights the creative potential. He says, “We’re seeing a surge of startups applying AI and automation across industries with incredible creativity — unlocking breakthroughs in personalised medicine, generative design, and climate modelling. We’re still at the early stages of this cycle, and I expect AI-driven disruption to accelerate throughout 2025 as AI integrates into all business models and industries.”
Jan Lozek, Managing Director and co-founder of Future Energy Ventures, told TFN, “While AI is already enhancing weather forecasting and climate change predictions, its most interesting potential lies in optimising supply and demand. AI algorithms can analyse and optimise energy flows in real time, helping utilities anticipate demand spikes and adjust supply accordingly. Through enhanced transparency, energy systems will become more organised, resulting in better pricing mechanisms.”
Sebastian Heitmann, a Partner at Extantia, offers a broader perspective: “AI and machine learning will transform industries by driving efficiency, enabling breakthroughs, and addressing challenges. Beyond operational efficiency and data-driven decision-making, AI unlocks opportunities in biotech, particularly at the intersection of biology and climate tech.”
Sokolov from SKL.vc provides insight into the investment landscape: “At SKL.vc, we monitor emerging technological innovations and quickly adopt them. We’re interested in AI advancements and their potential to reshape consumer behaviour. This year, our investment interests span a broad spectrum of AI applications, from large language models and computer vision to generative models.”
Catriona Hyland, Investment Research Lead at noa, predicts: “We’re seeing significant advances in physical AI amid rising labor shortages, with emerging implications for climate tech. AI software and hardware advances impact the speed to market and cost profile of automation solutions in the built world.”
Vertically embedded AI in domain-specific industries like healthcare and DevOps
The artificial intelligence landscape is shifting towards a growing emphasis on vertically embedded AI tailored to specific industries. This trend is driven by technological advancements, strategic investments, and a nuanced understanding of how AI can adapt to unique sectoral challenges.
Savina Doshi, a Visiting Analyst at Cornerstone VC, highlights the shift: “Vertically embedded AI is not just a future concept, but an increasingly prevalent reality. By 2025, we anticipate integrating AI-powered software solutions designed for industries like healthcare and DevOps.”
This approach transforms diagnostic processes and operational efficiency in healthcare. AI algorithms now analyse complex medical imaging, like X-rays and MRIs, delivering faster and more accurate diagnoses than traditional methods. Beyond diagnostics, AI streamlines administrative functions, including patient scheduling, registration, financial management, and cybersecurity.
The DevOps landscape is experiencing similar technological breakthroughs. Generative AI integrated within AIOps (Artificial Intelligence for IT Operations) expands operational capabilities through advanced anomaly detection and automated remediation. These AI solutions enhance KPIs alignment and operational efficiency by integrating with existing monitoring systems and dashboards.
Climate tech will maintain its momentum, focusing on “green discount”
Climate technology attracts significant investment, with Europe leading the way. Lozek shared some data points with TFN: “Climate tech is one of the strongest-performing tech sectors, with a projected $44.1B in investments this year, almost matching AI’s $46.4B. In fact, even during the downturn in 2022-2023, it reached $70.1B, a remarkable 89% increase compared to 2021. The sector’s growth is largely driven by an increased focus on intelligent software solutions and automation, crucial to achieving decarbonisation goals.”
Antler’s portfolio analysis also shows climate tech as the sector with the most invested, with hardware and healthtech as the fastest-growing areas. French elaborates: “What’s exciting is the intersection of these sectors, like hardware innovations driving climate solutions or AI supercharging healthtech breakthroughs. Europe’s advantage lies in deep expertise and research excellence, particularly in climate, deep tech, and fintech — where we can lead globally in setting new standards for impactful innovation.”
Sebastian Heitmann from Extantia highlights a crucial shift: “One emerging trend in a climate that excites Extantia is the shift from a ‘green premium’ to a ‘green discount.’ Technologies like heat pumps and behind-the-meter storage are no longer considered premium sustainable alternatives; they’re cost-competitive solutions that deliver immediate financial benefits and accelerate the transition.”
David Delfassy, Investment Director at TDK Ventures, comments: “In 2024, the climate tech landscape was dominated by first-of-a-kind (FOAK) projects — each a unique puzzle requiring bespoke solutions for viable returns. As we look to 2025, the focus is shifting to the larger opportunity: scaling to nth-of-a-kind (NOAK) projects. Infrastructure and growth funders aren’t here for one-off successes; they’re investing in the replicable, scalable future.”
“To unlock this next wave, climate tech must shift from solving individual IRRs to proving the long-term viability of a scalable template. The message for funders is clear: the blueprint for a profitable, sustainable future is within reach, and now is the time to seize it,” concluded Delfassy.
Decarbonisation in buildings, energy, and infrastructure
As Europe moves toward sustainability, decarbonisation leads across industries. According to the latest State of Built World Tech report by noa, investment in electrification, robotics, grid technology, and clean energy surged: building operations robotics (up 895%), industrial automation (up 61%), grid technologies (up 40%), and electrification (up 10%).
Catriona Hyland, Investment Research Lead at noa, told TFN: “In 2025, we’ll prioritise opportunities across several themes with upward trends, including innovative financing solutions for building energy retrofit installers, automated design software for MEP (mechanical, electrical, plumbing) components in data centres – enabling more sustainable and faster-to-permit data centres, novel commercial and industrial green power procurement and management methods, and cybersecurity and monitoring solutions for grid and infrastructure assets.”
“One key aspect of this shift is the potential to break down traditional boundaries between energy and adjacent sectors. This will enhance flexibility and facilitate integration across entire systems, unlocking new opportunities. As a result, we believe now is a unique moment, offering compelling investment opportunities and a strong call to action for the energy industry,” concluded Lozek.
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