Over the course of a decade, the revenue from the software market rose from $407.3 billion to $665.2 billion. That's an increase of over 63%. At this rate of growth, it's not a question of if but when the market will double, driven by the increasing demand for software development and consumption.
Big players, software developers, engineers, and consultants—and, of course, you—are all looking to seize the opportunities this growth presents. But to do that, staying ahead of the latest technologies in the software industry is essential.
In this article, we'll share the top software development trends 2025 that anyone invested in the software industry should know about.
Top 6 software development trends 2025
1. The development of AI-powered agents
AI assistants have become an essential tool in many businesses. Sixty percent of business owners report that artificial intelligence platforms have improved productivity, while 43% using AI tools like ChatGPT say these technologies help streamline workflows.
However, current AI solutions still have limitations, and businesses are seeking more advanced capabilities to enhance efficiency. This is why the software market is eager to adopt AI agents. Instead of interacting with users to complete tasks, agents can operate on their own to achieve predefined objectives.
Trends in software development have shown that AI agents are rapidly gaining traction, with strong market growth and increasing adoption:
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The market for AI agents is worth over $7 billion and could grow at a rate of more than 44% per year.
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Twenty-five percent of companies that are already using generative AI platforms will launch AI agents in 2025, according to Deloitte.
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Thirty-three percent of businesses will be using AI agents by 2028, according to Gartner.
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Some startups who're interested in seeing how far AI agents can go pooled over $8 billion to fund such projects in 2024.
Impacts of AI agents
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Creation of AI-driven technologies
AI agents are being used in the development of AI-driven technologies like AI-assisted diagnostics in healthcare, low-code/no-code development, managing logistics and delivery in fulfillment centers, etc.
Examples:
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AlphaFold2 by DeepMind helped with breaking down the code of a malaria protein which was important for the development of an experimental malaria vaccine.
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Amazon's fulfillment centers employ AI-driven robots to handle tasks such as picking, packing, and sorting products, significantly reducing processing times and operational costs.
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Automation of decision making processes
Among the latest technologies in software industry are AI agents that can truly work on their own. The new goal is not just to integrate AI assistants with enterprise applications but to equip AI tools with features that enable them to automate the workflows of the businesses using them.
Decision-making AI agents are gradually being deployed, and Gartner predicts that by 2028, these agents will be responsible for 15% of decisions made in the day-to-day running of businesses.
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Personalized customer experience
Businesses in the software industry are keen on moving from building AI customer service chatbots with personalized avatars and human-like text to speech software.
The next stop is the conception and deployment of software solutions (or basically the creation of AI agents) that can solve user problems and execute tasks in a way that's tailored to the needs and preferences of users.
Examples:
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In the UK, Open AI has rolled out Operator. Operator can autonomously handle tasks like ordering meals and groceries, book flights and appointments, and browse the web.
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Honor’s UI agent can complete similar tasks while memorizing details such as the user's name and preferences to provide a truly personalized experience.
2. Low-code and no-code development
While low-code development is an application development approach that requires minimal coding, no-code development eliminates the need for coding altogether. Software industry trends for 2025 point towards arise in both low-code and no-code development.
This doesn't necessarily mean software developers will lose their jobs. But it'll make coding easier. It will also shorten the software development lifecycle, resulting in a faster time to market for new applications.
Software trends in the low-code/no-code space indicate that adoption is accelerating across industries:
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77% of organizations use low-code software architecture.
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By the end of 2025, 70% of new applications in the software development industry will run on low-code.
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Low-code development platforms are making coding more accessible to everyone. Citizen developers, that is, non-professional developers, are outnumbering professional developers by a ratio of 4:1.
Impacts of low-code/no-code development
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Shift in desired skill sets
As tools like GitHub Copilot enhance the software development process, the need for more developers who only know how to code declines. Software development teams have a growing need for professionals with problem-solving abilities and domain-specific knowledge, who can identify and outline problems in programs proactively.
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Enhanced efficiency and productivity
Rather than spend hours on app development, skilled programmers use low-code platforms for writing repetitive code while they focus on the more technical details. 90% of developers adopting this approach in organizations have testified that it accelerates the pace of app delivery.
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Lower costs
In 2023, Microsoft Power Platform published the results of a study on the impact of low-code. The study shared the experience of PricewaterhouseCoopers (PwC), which achieved an 85% reduction in the cost of software development and operations, thanks to low-code solutions.
3. Adoption of Ambient Invisible Intelligence (AII)
Unlike traditional AI-driven automation, which reacts to explicit commands or predefined rules, AII continuously learns from its environment. It anticipates user needs, and seamlessly integrates intelligence into everyday interactions. As a result, it eliminates the friction found in current systems that rely on manual configuration, rigid workflows, or constant user intervention.
AII can reshape how software development technologies are used by enabling more proactive, adaptive, and context-aware systems that require less direct human input. Emerging technologies are starting to incorporate principles of AII to make daily life easier, and we expect to see more applications of AII in software development in 2025.
Trends in software development reveal that the Ambient Invisible Intelligence (AII) market is experiencing rapid growth:
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The ambient invisible intelligence market will be valued at $38.5 billion in 2025. This marks an increase of over $8 billion from its 2024 valuation of $30.02 billion.
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The market is projected to reach $209 billion by 2029.
Impacts of AII on software development
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Intelligent environments
Software development will increasingly focus on creating intelligent environments that adapt to occupants' needs, enhancing comfort and productivity.
Example: Samsung is leading the way with the integration of motion sensors into SmartThings. SmartThings is a smart home platform that enables users to connect, monitor, and control a wide array of smart devices through a unified interface. Through these sensors, SmartThings can identify and react to the actions of a user within their home.
4. Post-quantum Cryptography (PQC)
Post-quantum cryptography uses the principles of quantum mechanics to secure communication and protect data from hackers, including those using quantum computing. PQC is one of the emerging software development trends that are aimed at future-proofing data and communication.
While hackers haven't succeeded in breaking past the current encryption methods yet, the word on the street since 2015 has been that hackers are gathering currently encrypted data with the intention to decrypt them once quantum computers become powerful enough to decrypt such data. This is where the phrase “Harvest Now, Decrypt Later” or “Store Now, Decrypt Later” comes from.
Recent software trends in post-quantum cryptography (PQC) show that organizations are moving from exploration to implementation. Key developments include:
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Approximately 50% of federal IT leaders are actively developing strategies to accelerate their transition to PQC. An additional 35% are in the process of defining their plans and budgets for PQC readiness.
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The financial services sector is leading in PQC experimentation, particularly in secure communications.
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Many enterprises are moving beyond the initial "discovery" phase and are beginning to deploy PQC at scale.
Impacts of PQC
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Algorithm standardization
Example: In the US, the National Institute of Standards and Technology (NIST) has finalized several quantum-safe cryptography algorithms such as CRYSTALS-Kyber, Dilithium, and SPHINCS+. This is to ensure that the government is prepared against potential code-breaking quantum computers.
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Government mandates
Governments are setting timelines for federal agencies to adopt quantum-resistant encryption.
Example: In late 2024, the NIST announced that federal agencies are expected to have transitioned to PQC by 2035. 2025 will see accelerated growth in PQC software delivery as agencies work on transitioning to quantum-resistant encryption methods.
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PQC research
Blockchain technology relies heavily on present encryption methods which are potentially vulnerable to security breaches. Since blockchain networks don't want this to happen, they'll be spending 2025 (and later years, perhaps) researching quantum-resistant cryptographic algorithms to replace vulnerable encryption methods like RSA and ECC.
Example: Ethereum is working on PQC research to discover PQC protocols that can be integrated into its network.
5. Mobile DevOps
Think of Dev (Development) as the team that builds the software and Ops (Operations) as the team that keeps it running smoothly after it’s launched.
Traditionally, these two teams worked separately:
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Developers write code and build new features.
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Operations manage servers, deploy software, and fix issues when things break.
The problem? They don’t always communicate well. Developers might build something that works in their environment, but when it's deployed, it might fail due to system differences. This slows down the software engineering process. Modern software development requires regular collaboration between development and operations teams throughout the software development process.
Applying DevOps principles specifically to mobile application development could help solve unique challenges like slow release cycles, bugs and performance issues, etc. As at 2023, only 8% of organizations had dedicated departments for the implementation of DevOps principles in mobile app development.
However, more organizations have begun to see the need for DevOps to be applied by their software development teams. Tech trends indicate that:
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80% of organizations will have adopted DevOps systems by 2027. Although this percentage likely includes organizations applying DevOps principles to web development, it also suggests that these principles will become more widely used in mobile development as well.
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The DevOps market, worth $15.06 billion in 2025, will grow to be valued at $38.11 billion by 2029.
Impacts of mobile DevOps
1. Shift to cloud computing
More organizations are moving to the cloud because DevOps makes cloud infrastructure easier to manage and scale. This aligns with Gartner’s 2021 prediction that by 2025, 85% of organizations will adopt a cloud computing strategy, and 95% of new software applications will be deployed on cloud-native platforms.
2. Faster app releases
Mobile DevOps enables Continuous Integration & Continuous Delivery (CI/CD), automating the testing and deployment of apps. Developers can release updates multiple times a week or even daily instead of waiting months.
Example: Launch Darkly uses the latest technologies in the software industry, especially in the DevOps field, to assist organizations with smoother app deployment. Some of their case studies are summarized below:
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AMC Theatres used LaunchDarkly’s feature flags to keep their app running smoothly when millions of people rushed to buy Barbie and Oppenheimer tickets.
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Ally Financial used LaunchDarkly to push out app updates faster and with less risk, making sure new features worked before going live for everyone.
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Bayer's digital farming team used LaunchDarkly to make sure their farming apps stayed stable while rolling out updates.
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HP used LaunchDarkly to make their app releases more predictable, so updates went live without unexpected issues.
3. Better user experience & performance
DevOps allows real-time monitoring of app crashes, slow response times, and user interactions.
Example: In 2024, DoorDash built a new system using Apache Flink to track user activity in real time. This helps them quickly detect issues, improve app performance, and ensure a smoother experience for customers.
4. More secure mobile applications
Brands buying into this technology trend will also want to integrate security into the development process. This is known as DevSecOps (Development, Security, and Operations), and it helps with identifying vulnerabilities before they reach users.
Example: To further enhance their DevOps capabilities, Revolut integrated Snyk’s platform to continuously track and manage security vulnerabilities in their open-source software, ensuring stronger protection and compliance.
6. Spatial computing
Spatial computing is the use of technology to merge digital and physical spaces, allowing computers to understand and interact with the real world. Software teams use spatial computing frameworks to build AR/VR and IoT applications.
Latest software development trends signal that there'll be an increased interest and investment in spatial computing in 2025:
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In 2025, the global spatial computing market is projected to surpass $200 billion.
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The demand for AR and VR headsets is set to surge. Global shipments are expected to grow by 41.4% in 2025.
Impacts of spatial computing on the software development landscape
1. Increased demand for new development environments
Spatial computing requires 3D development environments that integrate AR, VR, AI, and IoT. There'll be a greater need for new tools that facilitate spatial computing, and a consequent rise in the number of companies in the sector. Already, more startups in this field are being registered.
Example: In North America, there are now more than 4,500 startups in the spatial computing sector. Over 1500 of them have gotten funding, 600+ have been able to get series A+ funding. About 19 of them are valued at $1+ billion.
2. Expansion of enterprise software development
Businesses are adopting spatial computing for training, virtual meetings, and remote collaboration, creating demand for enterprise-ready spatial applications. Companies that traditionally built web and mobile apps are now expanding into 3D, AR, and VR enterprise solutions.
Examples:
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Microsoft has introduced Windows Mixed Reality.
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Vicarious Surgical is in the process of designing the Vicarious Surgical System to promote minimally invasive surgical procedures through the use of VR technologies.
3. Opens new career opportunities for developers
The trend of spatial computing will also create new opportunities. To keep up, developers will have to go beyond mastering programming languages to acquiring new skills in 3D modeling, real-time computing, and spatial UI/UX.
This will help them stay competitive and meet the rising demand for spatial computing engineers, AR/VR developers, and AI-integrated application builders.
Software development trends 2025: Final thoughts
Software development in 2025 is evolving rapidly. Businesses aren’t just focused on building software—they’re rethinking how to streamline development, deployment, and scaling. AI-assisted development is accelerating development cycles, while platform engineering is improving infrastructure management and automating workflows. 5G technology is enabling real-time applications, making software more responsive and efficient.
Security and reliability remain top priorities. Blockchain technology is strengthening data integrity and security protocols, while analytics and data engineering are transforming fields like supply chain management and natural language processing. As development continues, software development companies are adopting new strategies to remain competitive.
The coming year will favor those who embrace these changes. With development cycles accelerating, success will belong to the teams that rethink how they build, secure, and scale their applications in a rapidly changing industry.
