Trends set to shape electronics design in 2025

First, a brief discussion about the analysis process. Consider data analytics a sort of time machine for technology. Using real-world data to inform the future provides unique access into what’s really happening in virtually all sectors of the electronics industry. In other words, historical patterns pack a predictive punch, and with that in mind, here are a few trends worthy of consideration for the New Year.

Industrial IoT and Edge AI

The convergence of the Internet of Things (IoT) and artificial intelligence (AI) is no longer a distant dream but an imminent reality.

A great example of the growth of this trend is the size of the worldwide AI robotic market. AI-powered robots are projected to be one of the fastest-growing segments of industrial robotics, and Avnet’s own estimates confirm the trend.

Market predictions from Statista show significant worldwide growth, from $17 billion in 2024 to $30 billion by 2027. By 2032 the market is projected to reach $82.5 billion, propelled in part by the increasing availability of enabling technologies like IoT networks, embedded intelligent devices and advanced processors. All these product families unlock the power of Edge AI.

But the story behind this growth isn’t just about the numbers. It represents a fundamental reimagining of industrial processes as more of the compute power resides on hardware, reducing the need for transmission to cloud-based processing.

Power technologies

Analysis of data available through Design Hub, a self-service design tool for the engineering community, indicates that engineers will be laser-focused on power technologies in 2025.

The insatiable appetite of emerging technologies like AI, cryptocurrencies and electric vehicles is fundamentally reshaping the industry’s understanding of electrical infrastructure.

Consider this stark projection: By 2026, cryptocurrency mining is expected to consume 160 terawatt-hours (TWh) of power. That’s roughly equivalent to the annual electricity consumption of a medium-sized country like Chile or Finland. AI applications will devour 90TWh of power.

Again, the numbers tell an interesting story. They represent a seismic shift in global energy consumption patterns. Electronics designers are now being challenged to create more energy-efficient systems that can deliver unprecedented computational power at the edge while minimising energy footprint.

In addition, more engineers are interested in free resources for power and charging design than for the leading verticals that use power, such as industrial, embedded or energy. 

Supply chain regionalisation

The days of truly global, interconnected supply chains are evolving. Geopolitical tensions, pandemic-induced disruptions, and the need for greater resilience are driving a trend toward regionalised supply networks. Electronics designers must now think beyond traditional globalization models and develop more flexible, localised design and manufacturing strategies.

This trend toward regionalisation isn't just about mitigating risk. It's about creating more responsive, adaptable technological ecosystems. Companies that can quickly prototype, iterate and manufacture in regional clusters will gain significant competitive advantages in the year ahead.

Conclusions

Business decisions need not just data, but data that is interpreted correctly and that is based in historical fact. That’s where the real value exists in predictions about the year ahead.

What’s clear is that 2025 isn't just about new and evolving technological capabilities. It’s also about intelligent, purposeful design. The most successful electronics designers will be those who can anticipate systemic changes, create adaptable solutions and think holistically about technology's broader implications.