21 Latest Trends in Custom Software Development

What are 21 trends of custom software development of the 21st century? Custom software development is pacing exponentially, foundationally driven by emerging technologies like AI, cloud computing, and automation.

With agility in high demand, custom software development avails the near to perfect personalized solutions that offer scalability and agility, both in the same package.

In 2024, trends like low-code/no-code platforms, AI-powered development tools, and the rise of microservices architectures reshaped the industry. 

As Satya Nadella, CEO of Microsoft, said, “The future of software is in AI and cloud.” To stay competitive, organizations must anchor these trends to create innovative, efficient, and adaptable solutions personalized to their specific needs.

21 Latest Trends in Custom Software Development

Market shows a very good response to the influx of whatever IoT has to offer, with US $254 Billion in revenue in IT itself. If this doesn’t convince you to stay up to date with what is happening in all things IoT, nothing will. Well, in this blogpost, we will explore the latest custom software trends, and catch up with what is brewing under the binary chip. 

1. Edge Computing

It is a decentralisation of the computation model, bringing it closer to where the data processing occurs (IoT devices, sensors, etc) for faster processing, and avails the real time decision making.  It reduces latency which directly results in real time decision making. 

Use Cases:  Autonomous Vehicles, Healthcare, Smart Cities, Manufacturing, etc. 

Key Market Statistics:

1. Global edge computing market: Expected to grow from USD 15.4 billion in 2022 to USD 156.6 billion by 2030.
2. Edge computing in healthcare is expected to grow at a CAGR of 26.1% to $12.9 billion by 2028.
3. Autonomous vehicles: Expected to generate up to 4,000 GB of data per day and drive significant edge computing adoption.
4. IoT edge data processing: 75% of enterprise-generated data is expected to be processed outside centralized data centers by 2025.
5. Smart cities: Over 50 billion connected devices expected by 2025, with edge computing enhancing energy efficiency by up to 40%.
6. 5G and Edge: By 2027, 5G edge computing revenues will exceed USD 10 billion.

Source: Fortune Business Insights, Solved, Gartner Report, Mckinsey Report, MarketsandMarkets

2. Low-Code and No-Code Platforms

These are for the one who do not hold much depth in coding, and do not have the time to gain some. These platforms empower businesses and individuals to build and modify custom applications with almost no to low hand coding., democratizing software creation. These use graphical interfaces, drag and drop features, and pre-built templates to simplify the app development. 

Use Cases: Enterprise Applications, Customer Relationship Management (CRM), Mobile Apps, Web Applications, Internal Tools (e.g. for HR, project management, or finance teams), etc.

Key Market Statistics:

1. Low-code platform market size (2020): USD 13.2 billion, projected to grow to USD 187 billion by 2028, with a CAGR of 28.1%. 
2. Adoption rate (2024): 65% of all enterprise applications will be developed using low-code/no-code platforms.
3. Cost savings: By 2025, low-code/no-code platforms are projected to reduce development costs by 50% for organizations.
4. Governance and security: By 2025, 70% of organizations will have centralized governance policies for low-code/no-code applications.

Source: MarketsandMarkets, Gartner Forecast, Gartner Findings

3. AI-Driven Cybersecurity

With the rise of cyber threats, custom software is increasingly integrating AI for threat detection, prevention, and mitigation in real-time.

What difference does AI make? It utilizes the fast ability of artificial intelligence and machine learning to detect, prevent, and respond to security threats. It applies and analyzes data from network traffic, user behavior, and historical threats. Here, AI holds the forte of easily identifying patterns, anomalies and potential vulnerabilities. Results in better supervision, and stronger mitigating measures. 

Use Cases: Threat Detection, Malware Prevention, Phishing Detection, Behavioral Analytics, Automated Incident Response, etc.

Key Market Statistics:

1. Artificial Intelligence in Cybersecurity Market size is expected to reach USD 60.6 Billion by 2028 from USD 22.4 Billion in 2023 to grow at a CAGR of 21.9%.
2. Incident Response: AI-driven automation reduces response times by up to 24 hours.
3. Phishing Detection: 75% of organizations use AI to combat phishing attacks.

Source: MarketsandMarkets, Mckinsey Study, Team8 Report.

4. Progressive Web Apps (PWAs)

As the name suggests, these are web applications that furnish a native app-like experience while being accessible through a web browser. By combining the best features of web and mobile interfaces, such as offline capabilities, fast loading times, push notifications, and sound responsiveness, these enable progressive tech that enables hybrid approach. 

With adaptability to various screen sizes and devices, PWAs offer a smarter user experience, greater engagement scope, and reduced multiple apps dependency. 

Use Cases: eCommerce, Content Websites, Social Media, Messaging Apps, Event Management. 

Key Market Statistics:

1. PWA Market Size: Expected to grow from USD 1.46 billion in 2019 to USD 10.4 billion by 2027 with a CAGR of 31.1%.
2. Push Notifications: PWAs increase engagement by up to 50% through push notifications.
3. Social Media: Platforms like Pinterest saw a 60% increase in user engagement with PWAs.
4. Increase in mobile traffic: Businesses that have adopted PWAs typically experience a significant rise in mobile traffic, with some seeing an increase of up to 68%, as reported in Google Developers case studies.

Source: GrandViewResearch, Landmark Group Case Study, CIS, Google Developers Case Studies

5. Quantum Computing (In Development)

Though still in its infancy, quantum computing is set to revolutionize the entire tech space. It is an emerging tech that has its roots set in the principles of quantum mechanics. Unlike traditional computers that are dependent on bits for processing, these use Quantum Bits, in other terms Qubits.

Qubits represent and process information in multiple states simultaneously, this lets quantum computers solve highly complex problems with lightning speed. With the kind of potential it holds, it promises to tackle problems that are currently unimaginable for even the most advanced supercomputers. 

Use Cases: Cryptography, Drug Discovery, Optimization Problems, Artificial Intelligence, Financial Modeling, etc. 

Key Market Statistics:

1. Quantum Computing Market Size: Valued at USD 1.3 billion in 2024, expected to reach USD 5.3 billion by 2029, growing at a CAGR of 32.7%.
2. Government Funding: The U.S. allocated USD 1.2 billion in 2022 for quantum research; EU earmarked EUR 1 billion through the Quantum Technologies Flagship program.
3. In April 2023, the Indian Union Cabinet approved the National Quantum Mission (NQM), with an allocated budget of around $726 Million for the period 2023–2031.
4. Google’s Sycamore: Achieved quantum supremacy in 2019 with 53 qubits, performing a task in 200 seconds that would take 10,000 years on a classical computer.

Source: MarketsandMarkets, US Funding, UK Funding, India’s Funding, BBC

6. Serverless Computing

It is a method of providing backend services on an as-used basis. It eliminates the dependency on server management, which lets users write and deploy code without sweating about underlying infrastructure. Usually charged on the exact computation time, rather than provisioning dedicated servers.

Note that despite the name serverless, physical servers are still used but users do not need to be aware of them. It offers rapid development, scope for scalability, reduced operational overhead. 

Use Cases: Microservices Architecture, Real-Time Data Processing, Backend for Mobile & Web Apps, Event-Driven Automation, APIs and Webhooks, etc.

Key Market Statistics:

1. Global Market Size: Analysts predict strong growth for serverless computing, with CAGRs of 21%-28% and a market value of $36.8 billion by 2028.
2. Early adopters are drawn to serverless computing primarily for its anticipated cost savings (47%), reduced operational effort (34%), and scalability (34%).

Source: The state of serverless applications: Collection, characterization, and community consensus

7. DevOps and Continuous Integration/Delivery

It is a set of practices that combine software development (Dev) and IT operations (Ops) to shorten the overall development lifecycle. Most of the emphasis is on collaboration, automation, and continuous feedback between development and operations teams.

Here, Continuous Integration and Delivery is an important aspect of DevOps, mainly participating in testing, integration and deployment of the code. 

Use Cases: Automated Testing, Frequent Releases, Infrastructure as Code (IaC), Monitoring & Feedback Loops, Collaboration, etc.

Key Market Statistics:

1. The global DevOps market is projected to grow from USD 10.4 billion in 2023 to USD 25.5 billion by 2028, expanding at a CAGR of 18.95%, with an estimated value of USD 12.22 billion by 2026.
2. Over 86% of organizations globally are looking forward to adopting DevOps practices to some extent, with a rapid increase in industries like banking, technology, and healthcare. 
3. Automated Testing Adoption: 50-70% of test cases in DevOps pipelines are automated, leading to quicker feedback cycles and improved code quality.
4. In DevOps, utilizing cloud computing’s 22% greater infrastructure flexibility drives a 30% improvement in organizational performance, with success depending on fully exploiting the cloud’s unique capabilities.

Source: GlobeNewsWire, Harvard Business Review, CloudZero Findings, Deloitte Findings

8. Human Augmentation

Human capabilities are at the centre stage for innovation. Much focus is on wearable tech, smart devices and advanced interfaces. In this sense, Human Augmentation is a new entrant that has the primary work to elevate human performance, health and quality of life.

You might have heard of Cochlear implants or robotic limbs? These are all applications of Human augmentation. Now that AI has arrived, it is expected to enhance the scope of development further with expert human guidance, care givers, students, professionals in virtually any kind of work. 

Use Cases: Exoskeletons, Brain-Computer Interfaces (BCIs), Wearable Devices, Sensory Enhancement, Cognitive Augmentation, etc.

Key Market Statistics:

1. The global human augmentation market was valued at USD 169.07 billion in 2023 and is expected to grow from USD 201.59 billion in 2024 to USD 885.93 billion by 2032, with a CAGR of 20.3% during the forecast period.
2. Approximately 320 million health and wellness wearable devices were shipped globally in 2022, with projections indicating that the number will reach 440 million units by 2024 as health awareness rises post-pandemic.

Source: Fortune Business Insights

9. Cloud Security and Zero Trust Architecture

Cloud Security refers to the set technologies, policies, and designs that protect data, application, and services hosted in the cloud environment.  As businesses increasingly rely on cloud services, ensuring the confidentiality, integrity, and availability of cloud-based resources becomes essential. 

Meanwhile, Zero Trust Architecture (ZTA) is a security model that assumes no one, inside or outside the network, can be trusted by default. ZTA requires strict identity verification, continuous monitoring, and least-privilege access to secure systems and data, making it a critical approach for modern cloud security.

Use Cases: Identity and Access Management (IAM), Data Encryption, Network Segmentation, Continuous Monitoring, Endpoint Protection, etc. 

Key Market Statistics:

1. The global zero trust security market, valued at USD 27.42 billion in 2022, is projected to grow to USD 95.22 billion by 2030, with a CAGR of 17.1%, led by North America, which held a 36.87% market share in 2022.
2. Forrester’s 2023 survey shows that online adults in the US (38%), Spain (28%), Italy (47%), and Singapore (36%) are more likely to share personal data with trusted tech companies, highlighting Zero Trust as essential for earning that trust.
3. Companies that have implemented Zero Trust see a 50% reduction in data breaches and security incidents, thanks to more robust access control and continuous monitoring.

Source: Fortune Business Insights, Forrester, Microsoft Findings

10. Distributed Ledger Technology (DLT)

It is a decentralised database that keeps the records of transactions across multiple nodes, devices or computer systems, or digital assets. Its unique property is transparency, robust security, and immutability without the need for a central authority.

It operates through consensus mechanisms, which keeps it protected from tampering and fraud. This is the very technology that forms the foundation for Blockchain tech, although not all DLTs are blockchains. 

Use Cases: Cryptocurrency, Supply Chain Management, Digital Identity, Voting Systems, Smart Contracts, etc.

Key Market Statistics:

1. Supply chain audits dominate the distributed ledger market, projected to reach USD 103 billion by 2030.
2. The global DLT market size was valued at USD 17.46 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 87.7% from 2023 to 2030.
3. 80% of financial institutions plan to integrate distributed ledger technology in their cloud strategies by 2025, primarily for improving transaction transparency and efficiency

Source: Statista, Grand View Research, Deloitte Report

11. Adaptive and Contextual User Interfaces (UI)

Adaptive UIs are now being widely recognised as a promising means towards accessible computer systems, which are more intuitive and adaptable layouts in context with the real time applicability. They can easily make adjustments to the user behaviour and preferences.

Due to its real time agility, it is still a complex endeavour and research challenge. Some approaches rely on rules or design patterns to define how the user interface changes in case of specific context conditions. Model-driven user interface development is perceived as the most powerful, but not the easiest way towards extensive user interface adaptations for universal access.

Contextual UIs get modified as per the context or environment in whey they are deployed, e.g. location, time or activity. 

Use Cases: Responsive Design, Personalized Dashboards, Location-Based Services, Context-Aware Assistants, Accessibility Features, etc.

Key Market Statistics:

1. 73% of customers prefer personalized experiences, making adaptive and contextual UIs crucial for user engagement.
2. Implementing adaptive and contextual UI elements can increase conversion rates by up to 200%.
3. The use of AI in adaptive UIs is expected to grow by 30% through 2026, driven by advancements in machine learning and user personalization.

Source: Statista, Forrester, Gartner Findings

12. Digital Twins

Everything is getting its virtual simulations, the tech is increasingly capturing the optimisation capabilities of virtual spaces. A Digital Twin is a virtual replica of a physical entity, i.e., any object, system or process that simulates real time data and behavior of the entity.

This entails real time monitoring, predictive maintenance and provides opportunity for improvements in the real world applications without actual anticipation to extend the life cycle of the physical asset/entity. 

Use Cases: Predictive Maintenance, Product Design and Testing, Energy Management, Smart Cities, Supply Chain Optimization, etc. 

Key Market Statistics:

1. The global digital twin market is projected to grow from USD 10.1 billion in 2023 to USD 110.1 billion by 2028, at a CAGR of 61.3%.
2. 60% of large enterprises are expected to adopt digital twin technology by 2025 to optimize operations and improve product development. 
3. The automotive sector is expected to spend the largest share on digital twins by 2026.

Source: Intelligentcio, MarketsAndMarkets

13. Remote Work and Collaboration Tools

After the pandemic in 2020, the world quickly adapted remote working and collaboration to avoid the costs relying otherwise. Hence, the custom software development methodologies space is seeing the influx of real time remote working and collaboration tools with features like virtual whiteboards, project management systems.

These tools are digitally managed, availing better synergy and communication support for increased productivity for teams working from time zones and locations. 

Use Cases: Virtual Meetings, Document Collaboration, Project Management, Cloud Storage, Instant Messaging, etc.

Key Market Statistics:

1. The global team collaboration software market is expected to grow from USD 24.63 billion in 2024 to USD 60.38 billion by 2032, at a CAGR of 11.9%.
2. The global video conferencing market is set to hit USD 20.02 billion by 2030, growing at 9.4% CAGR.
3. 79% of enterprises are using collaboration software tools to streamline remote work and improve communication. 

Source: Fortune Business Insights, Grand View Research, Scoop Market

14. Data Fabric and Integration

A data fabric is an emerging data management architecture. It integrates and manages data across disparate sources, making everything more uniformed and intelligent. Its purpose is to support data access through flexible, reusable, augmented and sometimes automated data integration.

The framework promises scalable solutions that minimises technical debt. This helps organizations manage the complexity of modern data environments and make informed decisions faster.

Use Cases: Data Integration, Real-Time Analytics, Data Governance, Data Virtualization, Automated Data Management, etc.

Key Market Statistics:

1. The global data fabric market, valued at $2.29 billion in 2023, is expected to reach $12.91 billion by 2032.
2. Implementing data fabric solutions can reduce data integration design time by 30-40% for large organizations.

Source: Fortune Business Insights, Gartner Findings

15. Web3 Identity Solutions

Decentralisation is trending, and Web3 identity solutions are no different. It is the same approach for managing digital identities. It empowers individuals to act as a custodian of their own information, including names, emails, usernames, and other sensitive data.

For instance, Self-Sovereign Identity (SSI) is being developed to give users control over their digital identities without relying on centralized identity providers. This helps users maintain privacy and security while interacting with Web3 platforms. These are built on blockchain technology.

For some time, Onyx by J.P. Morgan and the wider digital identity community have been exploring Web3 compatible solutions to avail the melding of identity and ownership.

Use Cases: Decentralized Authentication, Self-Sovereign Identity, Credential Verification, Privacy Protection, Cross-Platform Identity Management, etc.

Key Market Statistics:

1. As of October 2024, 5.52 billion Internet users have driven demand for privacy-first, trustless systems.
2. The global digital identity market is expected to grow at a 16% CAGR from 2025 to 2030.
3. By 2024, around 45% of enterprises worldwide are anticipated to adopt decentralized identity solutions.

Source: ZebPay, SNSInsider

16. Decentralized Storage Solutions

Web3 is pushing for decentralized alternatives to traditional cloud storage, ensuring that data is stored securely and without central control. Projects like Filecoin, IPFS (InterPlanetary File System), and Arweave are becoming popular, and custom software solutions are being developed to harness these decentralized storage protocols.

It is a distributed data storage system that relies on a network of individual nodes in a peer to peer (P2P) network to store, manage and share data. This eliminated the centralised authority or scope of any intermediaries for a more trustworthy, and transparent storage solution with greater control.

Use Cases: Data Redundancy, Secure File Sharing, Blockchain-Based Storage, Distributed Cloud Backup, Content Distribution, etc.

Key Market Statistics:

1. Adoption in Blockchain Applications: 35% of blockchain applications are expected to use decentralized storage solutions by 2025, driving demand, with the World Economic Forum predicting 10% of global GDP will be stored in blockchain by 2025.
2. Decentralized storage solutions can reduce cloud storage costs by 30-40%, offering more affordable scalability.

Source: NITI Ayog, Global Market Insights, FileCoin

17. Metaverse Integration

Who has not heard of the Metaverse? The ultimate virtual space which is live and interactive in real time. The interconnectedness is what makes it the most unique, where users can engage with each other and other digital assets (built on Web3  tech).

It integrates blockchain, NFTs, Augmented Reality, Virtual Reality, and other decentralised assets, letting the economic activity be available for trades and real world services.

Use Cases: Virtual Real Estate, Gaming, Digital Goods, Virtual Workspaces, Brand Activation, etc.

Key Market Statistics:

1. The global metaverse market, valued at USD 82.02 billion in 2023, will grow at 43.9% CAGR.
2. Virtual Real Estate Market: The metaverse virtual real estate market is projected to grow to USD 5 billion by 2025.
3. The metaverse currently boasts more than 400 million monthly active users.
4. Metaverse as a Marketing Tool: More than 50% of brands are expected to increase investments in the metaverse for marketing in the upcoming years. 
5. Metaverse Spending Forecast: Global spending on metaverse-related products and services is forecast to exceed USD 1.5 trillion by 2030. 

Source: Grand View Research, OpenPR, HubSpot, McKinsey, Statista

18. Layer 2 Solutions

As blockchain networks face scalability issues such as blockchain congestion, Layer 2 solutions are being developed to resolve it. Designed to handle transactions off chain and then settling them on the main chain in a more effective manner without compromising on security. 

Use Cases: Payment Channels, Scalable dApps, Microtransactions, Cross-Chain Transfers, etc. 

Key Market Statistics:

1. Ethereum Layer 2 solutions are expected to handle over 1 million transactions per second by 2025.
2. Layer 2 and NFT Market: Layer 2 solutions are expected to handle 50% of global NFT transactions.
3. Cost Reduction with Layer 2: Using Layer 2 solutions can reduce transaction fees by up to 100x in cryptocurrency.

Source: News AssamTribune, Global Data, CryptoforInnovation

19. Hyper-Personalization

Big Data is nothing but a step towards personalisation. And now, with AI, hyper personalisation is being highly preferred for better user experience, whether in eCom, content delivery, or CX services across multiple touchpoints using real time data, preferences, behaviours and past interactions.

It is an advanced marketing strategy that optimises AI, machine learning and data analytics combined. 

Use Cases: eCommerce Recommendations, Targeted Advertising, Retail, Customer Support, Email Campaigns: etc. 

Key Market Statistics:

1. The global hyper-personalization market was valued at USD 18.9 billion in 2023 and is projected to reach USD 74.82 billion by 2033.
2. 74% of marketers say hyper-personalization in email marketing increases engagement and response rates significantly.
3. AI and Hyper-Personalization Adoption: 90% of businesses have started using AI-driven hyper-personalization to improve customer engagement.
4. Hyper-personalization has the potential to boost marketing ROI by up to eight times.
5. According to Mckinsey, 76% of consumers feel frustrated when a brand fails to offer a personalized experience.

Source: Apac Entrepreneur, InstaPage, Harvard Business Review, Deloitte, CleverTap

20. Edge AI

It refers to running artificial intelligence algorithms directly on devices (like IoT devices or smartphones) instead of relying solely on cloud-based processing.

Simply stated, edge AI, or “AI on the edge“, refers to the combination of edge computing and artificial intelligence to execute machine learning tasks directly on interconnected edge devices. 

Use Cases: Autonomous Vehicles, Smart Manufacturing, Healthcare, Smart Cities, Retail, etc. 

Key Market Statistics:

1. The global edge AI market, valued at USD 20.45 billion in 2023, will reach USD 269.82 billion by 2032, growing at a 33.3% CAGR.
2. Global Edge AI software market to reach USD 4.1 billion by 2028, growing 30.5% CAGR.

Source: Fortune Business Insights, MarketsandMarkets

21. Internet of Behavior

It is imperative, since the Internet has been sensational from day one, the IoB is not much of a valid aftermath. As the world becomes more interconnected through IoT and AI technologies, the ability to track and influence behavior will become even more pronounced.

Custom software software development tools and technologies that combine these technologies will revolutionize industries across all verticals. It tracks and analyzes human behaviour on the internet in real time, combining behavioral sciences with technology to assist and predict patterns and anticipation. 

Use Cases: Personalized Marketing, Smart Retail, Healthcare, Traffic Management, Cybersecurity, etc.

Key Market Statistics:

1. The global Internet of Behavior market, valued at USD 369.25 billion in 2022, will grow at 23.6% CAGR.

Source: Grand View Research

ScaleupAlly’s Final Thoughts

In conclusion, these latest custom software development trends are reshaping industries with cutting-edge technologies like AI, edge computing, and blockchain. As businesses adapt to these innovations, adopting trends such as low-code platforms, quantum computing, and Web3 solutions will drive efficiency, scalability, and personalized experiences.

Staying ahead in this dynamic landscape is a must to not become obsolete and to set the seal on having competitive advantage and future-proofed solutions.

We at ScaleupAlly, are proud experts on Custom Software Development, with 350+ happy clientele to our name, we are the one with the right custom solution. No we are not boasting, we are simply stating facts. Let’s grow together? Take the first step, and drop us a line today for a complimentary consultation from our experts.

Frequently Asked Questions

Q: What are the recent trends in software development?

Some of the key trends in custom software development today include low-code/no-code platforms, AI-driven security, edge computing, and blockchain. These innovations are helping businesses build smarter, more efficient, and scalable solutions.

Q: Can low-code and no-code tools replace traditional software development?

Low-code and no-code platforms make app development more accessible and faster, but they’re not a full replacement for traditional development. For highly customized or sophisticated solutions, experienced professionals are still needed to maintain quality and functionality.

Q: What are some common AI and ML applications in custom software?

AI and ML are being used in custom software for things like predictive analytics, chatbots, personalized recommendations, fraud detection, and natural language processing. These technologies are enhancing everything from security to user experience.