Custom Software Development Trends for 2024

The Accenture Pulse of Change Index highlights a significant surge in technology disruption, skyrocketing to 88% in 2023, propelling it from the 6th position in 2022 to the top. This notable shift is predominantly driven by advances in generative AI. Together with it, the pervasive use of cloud technology, changes in cybersecurity practices, and the growing awareness of sustainable development underscore a multifaceted landscape of AI transformation. 

However, 47% of organizations admit they are not fully prepared for the escalating pace of technological advancements, while an overwhelming majority (88%) anticipate an even swifter rate of change in 2024. Knowing what software development trends will fuel this change is crucial for organizations aiming to stay ahead.

In this article, we’ll cover the latest trends in software development, proven by statistics and facts, to help your organization navigate the evolving tech landscape effectively.

Last year’s sudden democratization of generative AI has led to its rapid exploration and testing in custom software development. As of 2023, nearly 85% of global digital leaders stated that their companies are actively considering or already adopting AI and ML on a small or large scale. 

Though many organizations are still in the early stages of Gen AI adoption and deployment, in 2024, this technology already tops the list of software development trends and is promised to ramp up. As of Jan 2024, 29% of GenAI Proof of Concepts (POCs) have already moved into production. This number is projected to double by the end of the year, reaching 58%. Deloitte predicts that the revenue uplift for enterprise software companies using generative AI will be at a $10 billion run rate by the end of 2024.

How is it possible?

Generative AI is a powerful tool that can help accelerate software development and improve developer productivity. According to a recent study by McKinsey, generative AI-based tools can help developers complete tasks up to two times faster than traditional methods.

The same McKinsey study found that AI-assisted code has better quality concerning bugs, maintainability, and readability. Still, developers must understand the attributes that make up quality code and prompt the tool for the correct outputs to maintain it.

Gartner predicts that by 2026, generative AI will fundamentally transform 70% of the design and development effort for new web applications and mobile apps. And by 2028, 75% of enterprise software engineers will use AI coding assistants, up from less than 10% in early 2023. 

However, it’s important to note that the value of generative AI depends on the use case and the complexity of the task. Today, the technology is not mature enough so that programmers can use AI as a complement, not a substitute, for their skills and expertise.

As of 2023, nearly 92% of global digital leaders stated that their companies adopted cloud technology on a small or large scale. In 2024, cloud usage will remain central to many custom software development initiatives using the following technologies, approaches, and practices.

Cloud-native approach to software development involves designing, developing, and deploying applications that leverage cloud computing principles and services from the ground up.  Cloud-native development is quickly revving up. The global cloud-native market has generated $5.3 billion in 2022 and is estimated to reach $48.8 billion by 2032, growing at 25.2% annually. Furthermore, Gartner anticipates that by 2025, over 95% of newly developed digital workloads will be implemented on cloud-native platforms, a significant increase from the 30% recorded in 2021.

API-first development involves developing APIs before writing other code instead of treating them as afterthoughts. According to Postman’s 2023 State of the API Report, organizations adopting API-first practices demonstrate accelerated API production and experience fewer failures than the average. In case of API failures, these leaders showcase a quicker restoration time, often within an hour. 

Containerization involves packing an application along with its dependencies into a container, to ensure its consistent performance across various environments. According to the 2022 CNCF Annual Survey, container adoption surpasses the maturity of cloud-native implementation. Notably, 62% of companies with less advanced cloud-native practices already use containers for pilot projects or limited production cases.

FinOps aims to foster collaboration between finance, business, and tech teams to maximize business value derived from the cloud. FinOps is a growing trend in software development as more organizations adopt cloud-based solutions and face the challenges of controlling and optimizing their cloud costs. The 2023 tech spending report indicates that 34% of organizations extensively employ FinOps methodology, while an additional 31% use FinOps in a limited capacity.

These technologies concentrate on the evolution of cloud computing in software development as a crucial driver of business innovation. To gain maximum value from your cloud investments in 2024, you will need to embrace cloud-native platform tools and embed robust cloud cost optimization measures.

Low-code/no-code (LC/NC) platforms are gaining popularity and adoption in various industries, enabling faster, easier, and cheaper application development. According to Gartner’s forecast, by the close of 2025, approximately 70% of newly developed applications in organizations will use low-code or no-code technologies, a significant rise from the less than 25% recorded in 2020.

No surprise, since the advancements in AI and the availability of tools like Microsoft Power Automate, Bubble, or Carrd can take over the lion’s share of simple developments, like creating responsive, one-page websites, MVPs of marketplaces or social networks, etc.

Robotic process automation (RPA) stands out as one of the rapidly advancing categories in LC/NC systems. By employing rule-based decision-making, users can create automated workflows capable of interfacing with various information systems (e.g., streamlining back-office administrative processes).

However, as companies turn to LC/NC solutions, it’s crucial to recognize that despite providing cost savings, time, and error reduction, these platforms still demand a certain level of technical expertise for scaling, maintenance, integration, and governance. Being suitable for analytics, small-scale automation capabilities, and constructing simple websites, LC/NC solutions fall short in complex system development and scaling.

Currently, LC/NC solutions pose security and management challenges, including authorization misuse, asset management failures, and security misconfigurations. Additionally, there’s a common scenario where if the individual responsible for development leaves the company, others may not know how to modify or maintain the system.

Gartner predicts that environmental sustainability will be a core selection and disqualification criterion for IT products and services in the next three years. The reason is that enterprise technology is a significant contributor to environmental impact. It releases approximately 350 – 400 megatons of carbon dioxide equivalent gasses (CO2e), accounting for around 1% of global greenhouse gas emissions. It may not seem a lot, but this number is equivalent to the total carbon footprint of the United Kingdom.

As digital experiences expand across various facets of human life, software’s energy consumption and emissions will continue to grow. That’s where Sustainable Software Engineering (SSE) comes into focus and enters the list of the latest software development trends. SSE aims to reduce the environmental impact of software systems and their life cycle.

McKinsey’s recent analysis suggests that by incorporating sustainability into software through green data handling and coding practices today, companies can potentially achieve a reduction of 5% in CO2 emissions by 2030. As of 2023, 36% of digital leaders globally stated that their companies already adopted green technology, and 24% are actively considering it.

According to Gartner, sustainable engineering will also gain operational importance as it can help companies optimize costs, enhance energy performance, maximize asset utilization, and uphold responsible business practices.

Cybersecurity remains among the top software development trends over the years. However, in 2024, the cybersecurity landscape is undergoing a transformative shift. 

The latest GitHub survey reveals a trend among organizations, with 74% of security professionals indicating that they have either shifted left security in the SDLC or plan to do so in the next three years. This shift has led to a reduction in the number of vulnerabilities identified by developers.

The following technologies and practices contribute to this shift.

Rise of DevSecOps. As a part of the shift-left approach, there’s a notable transition from legacy software development methodologies to DevSecOps. It extends traditional DevOps by seamlessly integrating security testing throughout the entire software development lifecycle. Last year, 56% of respondents reported adopting DevOps or DevSecOps methodologies, a 9% rise from in 2022.

AI/ML integration. These technologies have proven to enhance threat detection, automate responses to security incidents, and provide predictive analytics to anticipate potential vulnerabilities. According to the latest GitLab survey, 62% of developers use AI/ML to check code (separate from testing). Last year has also shown the rise of bots and AI/ML tools for code reviews.

Zero Trust. This security principle has gained popularity and adoption in recent years, primarily due to the rise of remote work, cloud computing, and data privacy regulations. Statista reports that 72% of organizations are in the process of adopting or have already embraced the Zero Trust model. Notably, 90% of organizations identify advancing Zero Trust as one of their top three IT and security priorities. The primary driving force behind this trend is cost-effectiveness, with the adoption of Zero Trust potentially reducing the cost of a data breach by approximately $1.76 million.

Despite the extensive use of AI and related technologies to improve cybersecurity, the market is still underpenetrated. According to McKinsey, the potential opportunity in this domain reaches an astounding $1.5 trillion to $2.0 trillion in the addressable market. The lack of skilled professionals in the field slows the adoption of new security technologies and leads us to the next trend in software development. 

Statista projects that the global IT outsourcing market’s revenue will reach $512 billion in 2024, with an impressive 10.99% annual growth rate in the next four years. The primary reason fueling such growth is a need for more skilled professionals than local markets can offer. The Accenture Pulse of Change: 2024 Index reveals that issues like skills shortages and a lack of employee engagement stay just behind technology as the leading causes of business change.

According to McKinsey’s Technology Trends Outlook, organizations identify the scarcity of skilled professionals as the major obstacle to growing. Many fields related to tech trends demand skills for which the talent supply is limited, with only a handful of fields experiencing a surplus of talent. In fact, 42% of C-suite leaders identify skills shortage as one of the top three challenges hindering their organizations’ ability to adapt to change. 

The shortage of tech talent in cloud computing, cybersecurity, and data science is prompting companies to explore candidates from nearshore and abroad to harness the potential of emerging technologies and trends in the software industry. This leads to the rise of software development outsourcing and the hiring of globally distributed teams.

Blockchain has been on a list of software development trends since its inception. ​​In 2024, the adoption of blockchain technology extends far beyond its initial association with cryptocurrencies. Blockchain’s decentralized and immutable nature is being harnessed across diverse sectors, influencing the software development landscape and opening up new possibilities for secure and transparent applications. 

As of 2023, nearly 15% of digital leaders globally stated that their companies are actively considering, and 10% already use blockchain on a small or large scale. 

Here are the areas where blockchain can make a difference.

• Real-estate transactions. Blockchain in real estate is still a nascent field, with significant potential to eliminate intermediaries like brokers, lawyers, and banks, thereby reducing costs and minimizing the risks of fraud. According to the 2024 Commercial Real Estate Outlook by Deloitte, smart contracts and self-executing transaction protocols stored on the blockchain ranked third among respondents, with 63% showing hard dollar commitments.
• Supply chain management optimization. Blockchain can enhance transparency and traceability in supply chains by creating an immutable ledger that records every transaction or movement of goods. For instance, with Blockchain, IBM and Walmart reduced the time to trace a food item from 6 days to just 2.2 seconds.
• Decentralized finance (DeFi). Blockchain introduces a decentralized ledger system, reducing the need for central intermediaries like banks. Thanks to it, tasks that typically relied on bank intervention can now be automated and executed without the involvement of traditional third-party entities. As of December 2023, the most popular activities on DeFi were money exchange and crypto lending. 
• Healthcare data management. Blockchain can revolutionize the industry by ensuring tamper-proof records, preventing unauthorized alterations, and enabling seamless data exchange between healthcare institutions. However, the limited availability of skilled professionals poses a significant challenge to Blockchain adoption in healthcare. 
• Digital identity and authentication. Governments, businesses, and various entities can harness blockchain to simplify identity verification processes, thereby lowering the risks associated with identity theft and fraud. A good example here is using self-sovereign identity (SSI), which allows users to have more control over their personal information, deciding what details to share and with whom. 

• Intellectual property protection. Blockchain can provide a transparent and immutable ledger for monitoring the ownership and utilization of intellectual property. This approach can help safeguard content creators’ rights and streamline licensing and royalty distribution procedures.

Still, high energy consumption and scalability issues can hinder the widespread adoption of blockchain. For instance, the current capacity of the Bitcoin blockchain is limited by around 7 – 10 transactions per second (TPS). This falls significantly short of traditional payment systems like Visa, which can manage thousands of transactions per second. Besides, the mismatch between supply and demand for blockchain developers may slow down the technology adoption process.

From the end of 2022, when Google, Intel, Microsoft, and Samsung joined forces on their second PWA Summit, the adoption of PWAs has started to surge. No wonder since PWAs provide users with an experience akin to native mobile apps but are accessible through web browsers and don’t need installation from app stores. In 2021, the PWA market was projected to achieve a value of $10.77 billion by 2027, showcasing a remarkable year-on-year growth rate surpassing 30%. Google proves these numbers by indicating a substantial 270% increase in desktop installations of PWAs since the beginning of 2021.

What makes it so appealing?

• Convenience. PWAs provide autonomy to websites, quick loading, and the ability to link them to the smartphone screen, ensuring fast access. Besides, they can include all the features of a mobile app, such as notifications and home screen icons.
• Easy submission. PWAs don’t require approval from app stores, resulting in a significant speed-up.
• Platform-independence. PWAs can be installed on the device and launched from the operating system like any other app, or they can be accessed through a web browser like any other website. They can adapt to different screen sizes, orientations, and input methods and can also use device features such as camera, microphone, geolocation, and sensors (if supported by the browser).
• Offline work. PWAs offer offline support, which boosts their accessibility, especially in areas with low connectivity. This allows users to perform calculations or check something even without an internet connection.

Other factors contributing to the increasing adoption of PWAs are improved performance and user engagement and lower development and maintenance costs (compared to native apps). Market giants like YouTube, Google Books, and Pinterest have chosen the PWA path to let their users seamlessly access content, engage with features, and enjoy a responsive and app-like experience directly through web browsers.

In 2024, the technology disruption will play a major role in custom software development, with generative AI integration and the utilization of cloud technology expected to have the most substantial impact. Advancements in no-code/low-code solutions will democratize software development and let people in business create simple landing pages and MVPs, but will still require developer involvement and expertise to scale and develop some complex logic.

Cybersecurity is also promised to overcome transformation in 2024 by companies embracing security measures earlier in the process (a so-called “shift left”). However, the scarcity of tech experts will push many companies to seek talent abroad and refer to software development outsourcing to close the skill gap.

While staying abreast of software development trends is crucial for businesses to remain competitive, in the pursuit of innovation, companies might make hasty decisions and adopt trends that don’t align with their overarching business strategy.

Partnering with a reliable software development agency like Leobit can help you navigate this landscape effectively. With experienced professionals in web and mobile app development and .NET development, Leobit can help you mitigate potential risks and ensure that the technologies you adopt contribute meaningfully to your business success.

Contact us, and we’ll help you transform your ideas into robust and innovative solutions that propel your business forward.