The reshoring of manufacturing, the retirement of skilled workers in industries like water treatment and HVAC, and the rise of autonomy in defense and consumer applications are driving the need for engineers who can integrate AI software into complex hardware systems.
Industries like oil and gas, water treatment, chemical engineering, and HVAC are experiencing mass retirements, creating a demand for new engineers who can operate and troubleshoot autonomous systems.
Earth observation data is being used in agriculture for crop monitoring and yield prediction, in defense for monitoring troop movements and port activities, and in energy for solar farm planning and cloud forecasting.
Launch costs have decreased significantly, satellites have become smaller and more affordable, and advancements in communications infrastructure have made it easier to downlink data from orbit.
Gaming engines are being used for defense simulations, autonomous vehicle training, architectural visualization, and virtual training environments, leveraging the immersive and interactive capabilities of gaming technology.
The first is AI-assisted content creation, which reduces the cost of generating 3D assets. The second is improved 3D capture techniques, enabling more realistic digital twins. The third is the development of better VR/AR devices with features like eye tracking.
Virtual simulations allow for the scaling of training data and the testing of fringe and edge cases that are impractical or impossible to capture in the real world, such as extreme weather conditions or rare human interventions.
Brain-computer interface (BCI) technology and digital touch feedback systems are expected to enhance immersion in virtual environments, allowing users to interact with virtual worlds using brainwaves and receive haptic feedback.
As 2025 begins, industries are evolving at unprecedented speed: robots are revolutionizing manufacturing, terabytes of earth observation data are driving new possibilities, and gaming technology is transforming how we design, train, and innovate across sectors.
In this episode, a16z General Partner Erin Price-Wright, Engineering Fellow Millen Anand, and Partner Troy Kirwin discuss the trends reshaping the future of hardware, software, and beyond.
We explore:
This is just the beginning of our four-part series on 50 Big Ideas for 2025—don’t miss the full list at a16z.com/bigideas.
Resources:
Find Erin on X: https://x.com/espricewright
Find Millen on LinkedIn: https://www.linkedin.com/in/millen-anand/
Find Troy on X: https://x.com/tkexpress11
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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.