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The business landscape in 2023 is marked by increased financial pressure due to record-high inflation. Leaders are being tested as they face the challenge of managing tighter budgets and driving greater returns on investment with fewer resources available.

The good news? Despite the economic downturn, businesses remain committed to investing in digital transformation initiatives. In 2023, it is projected that 70% of small and midsize companies will increase their technology budgets compared with last year.

Recent surveys show that 70% of companies plan on increasing their software investments in 2023, recognizing the need for digital transformation amid a constantly fluctuating technology landscape.

CIO and CTOs are adapting to trends and investing in the latest software technologies that can simplify operations and help them stay competitive.

With a projected market worth of over $1 billion by 2025, the software industry is on the path of rapid transformation.

This makes it clear that demand for emerging technologies in software development won’t be slowing down anytime soon.

So, if you want to keep yourself abreast of the latest trends in software development for the year 2023, this article should be able to help you out.

Table of Content

1. New Opportunities in Software Development for 2023
2. Summing it Up

New Opportunities in Software Development for 2023

Software trends have been evolving over the years, and this year a few key movements stand out.

Progressive web apps remain a popular alternative to native app development, while low-code platforms are now becoming an industry necessity due to their speed at cutting down on dev time.

On the other hand, the latest trends in software development, such as Artificial Intelligence (AI), Augmented Reality (AR), Blockchain Development, and IoT, are at an all-time high.

But what does this mean for software engineering trends in the coming years? Moreover, how can software development firms help shape the future of these software technology trends?

To get a clearer view of the future, it’s beneficial to explore current trends in software development by comparing them with the predictions from the last year.

This way, we can see how far the software industry trends have reached – and what may be on the radar for the upcoming months.

Now, let’s take a look at each software development trend. Here we go!

1. Technology Industry Investing Heavily in Progressive Web Apps

It has been a long journey for Progressive Web Apps since its introduction in 2015.

This technology is finally experiencing the kind of acceptance and adoption it deserves, with origins using PWAs seeing an increase of 170% while service worker use rising by 38%.

As mobile usage too is skyrocketing, PWAs provide an excellent opportunity for website owners to make the user experience even more attractive with app-like experiences in addition to decreasing development costs.

Here’s one example to prove the relevance and popularity of PWAs:

Pinterest needed a revamp to reach out more effectively to its user base. After careful analysis, they identified the areas where the website was underperforming and decided that an upgrade was necessary to boost their customer numbers.

After three months of hard work, the existing website was rebuilt using React and converted into a Progressive Web App (PWA), resulting in drastic changes like an impressive 40% boost in time spent on the platform by users and a 44% sharp increase in advertisement revenue.

If you’re looking for ways to optimize mobile experience and cost-efficiency, investing in PWA could be just what your business needs!

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2. Blockchain Applicability Extends Beyond the Financial Sector

Blockchain technology continues to disrupt the status quo, with businesses from various industries seeing its value and choosing to implement it.

This innovative technology offers unparalleled security for activities such as transactions by organizing data into distributed and decentralized systems that are almost impossible to hack or alter.

From distribution, manufacturing, and healthcare to the financial sector that initially adopted this tech, by 2024, we can anticipate the blockchain market worth an estimated $20 billion!

3. 2023 will be the Year of 5G technology

As we enter a new technological era with the rapid 5G rollout, experts predict that over 1.4 billion devices worldwide will be connected to this network by 2025 – nearly 15% of the global total.

Wonder why?

5G is light-years ahead of its predecessor technology, 4G. It’s not just an upgrade but a whole new network architecture with the promise to redefine how we communicate and interact with the digital world.

This advancement will not only lead to enhanced user experiences but also accelerate the growth of innovative software development technologies such as the Internet of things, Augmented Reality, and Artificial Intelligence (AI).

This makes it easy to prove that the future of 5G is bright, and now’s the time to get ahead in the race.

So, what are you waiting for? Start preparing your existing apps for lightning-fast 5G speeds or launch new ones specifically designed to take advantage of what this new technology in software development has to offer!

4. The Popularity of IoT is on the Rise

We are set for an exciting future fuelled by the widespread adoption and growth of smart devices and IoT solutions.

From connected homes to industrial monitoring systems – IoT devices enable us to bridge the gap between physical and digital realms, providing exceptional visibility into our everyday activities.

Despite facing temporary disruption at the beginning of 2020 due to decreased technology investments across specific sectors, it quickly recovered and is now projected by IDC to reach over US $437 billion within Asia Pacific alone by 2025.

From predictive capabilities enabled by machine learning algorithms to automation via edge computing, innovative developments in AI, ML, and other technologies have made IoT solutions increasingly applicable.

IoT trends you can expect to see in 2023:

• With the advent of IoT machine learning, businesses are finding quick and efficient ways to analyze a large amount of data, eliminating the need for lengthy and tedious manual processing.
• Digital twins bridge the gap between the physical and digital worlds – acting as an interactive, simulated representation of their real-life counterparts.
• Enterprise Metaverse provides a platform for businesses to take advantage of cutting-edge opportunities and seamlessly integrate their services to interact more freely with the physical world.
• With the dramatic increase in IoT devices, cybercriminals have become more active than ever. To combat this threat, businesses use sophisticated security measures such as blockchain technologies and other advanced approaches to ensure that device data remains safe from malicious attacks.
• From reducing traffic congestion to enhancing security, city governments are harnessing the power of IoT solutions to make urban life easier and more enjoyable by optimizing city infrastructure with cutting-edge technology.
• Embracing automation in production processes has become an industry-wide trend and is expected to remain strong in 2023 and beyond.
• Healthcare IoT gadgets are revolutionizing the way diseases are detected and treated by allowing detection in earlier stages, giving those suffering a better chance at recovery.

5. The Trend of Low Code Development is Expected to Continue

Developing software applications can be a lengthy process. But what if there was an easier way to create apps with minimum coding? Low-code application development is the perfect answer!

Gartner’s research indicates that companies of all sizes will embrace low-code development in the future. As per its estimate, the adoption rate will exceed beyond 50% within a decade.

This leads to the question; how do we start with low-code development? And what are some of the powerful use cases that can be achieved with a low-code platform?

Before we start, let’s first understand what exactly low-code development is. Low code software development is a software engineering approach that enables developers to quickly turn an idea into reality within a limited budget.

Low code platforms function like purpose-built Integrated Development Environments (IDEs). Now you may wonder what is “purpose-built. “It simply means that the platforms are specifically designed with different tools to address different needs and challenges.

Now to get a practical understanding, let’s take a closer look at some of the most common and popular low-code use cases.

• Leveraging an existing SaaS infrastructure with customized powerful bolt-on features to match the individual needs of your business.
• Transitioning from traditional spreadsheets to a modern, web-hosted relational database.
• Modernizing legacy applications to improve maintainability and extend their useful lifespan.
• Building complex applications from scratch in an easier and faster way.
• Creating a full stack web application combining various features such as business intelligence and data visualization into an engaging user experience.

Top Low Code Platforms:

• Appian
• Visual LANSA
• Mendix
• Zoho Creator
• Microsoft Power Apps

6. Python Set to Dominate Tech Industry

As machine learning and data science continue to rise in popularity across industries, demand for experienced python app developers is also set to increase significantly over time.

With over 700 programming languages available, businesses often need help choosing the right one for their app or web development project.

Python can rightfully be considered the ultimate toolbox of programming languages. It stands out as a dynamic language capable of performing numerous tasks – making it an ideal choice when tackling complex jobs.

From website design to mobile app development and even machine learning models – its incredible versatility allows developers and businesses to tackle any task with impressive efficiency. No wonder why tech and software development companies swear by its capabilities for their coding needs.

Here are the top 5 Python trends to watch in 2023:

• Artificial Intelligence and Machine Learning Applications
• Python in Game Development
• Python for IoT and the Internet of Things
• Web and Mobile Application Development
• Automation and Robotization

7. Artificial Intelligence Becoming an Everyday Assistant

AI is no longer a concept for sci-fi fans dreaming of space exploration.

Today, it is widely used by software companies across the globe to build predictive analytics and enable data-driven decision-making in their businesses.

From tech giants to small digital marketplaces, companies of all sizes can benefit from integrating AI into their applications.

IDC forecasts predict that AI will grow exponentially in the coming years, surpassing half a trillion dollars by 2024.

Check out these AI development trends, offering an array of innovative ways to power up your software products.

1. Automated Machine Learning – From healthcare and finance to retail – AutoML will help simplify complex data sets while also significantly reducing training time for models
2. Generative AI – Data from all sources, including images, videos, and sounds, will soon be used to create entirely original content, enabling businesses to generate new data for any purpose
3. Natural Language Processing (NLP) – NLP technologies will revolutionize human-computer interaction by bridging the gap between man and machine through natural language understanding capabilities
4. Ethical AI – Ethical AI will help bridge the trust gap between users and technology by reinforcing cybersecurity measures so that confidence in automated systems can continue to grow
5. AI-as-a-Service (AIaaS) – With offerings from Google’s TensorFlow and Amazon SageMaker to Microsoft AzureML, companies will be leveraging cloud-based platforms to capitalize on a variety of AI services

With modern Artificial Intelligence (AI) solutions more accessible than ever, now is the perfect opportunity to gain a competitive edge. If you have an unsolved need in your business operations or product offerings, get on board with these AI trends and create something uniquely yours.

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8. React Native Continues to Thrive

React Native has emerged as the powerful and predominant tool in the hybrid development market.

Its unparalleled ability to create high-quality, cross-platform applications with a single codebase has revolutionized the sector, streamlining the app development process for countless developers and businesses.

As the go-to choice for hybrid development, React Native has proven to be a vital asset for businesses seeking to maximize their reach in the ever-expanding global market, and its influence shows no sign of waning.

9. Augmented Reality to Redefine the World of E-Commerce

Augmented reality has swiftly emerged as a game-changer in e-commerce, dramatically transforming how businesses and consumers interact.

The integration of AR technology breathes life into the virtual shopping experience by allowing customers to visualize products in their environment, resulting in increased engagement, confidence and, ultimately, driving sales.

As the era of digital transformation continues to unfold, businesses are leveraging AR’s captivating features, such as:

• Digital Showrooms
• Try-on tools
• 3D modeling

Moreover, the rapid advancements in AR technology have made it accessible and affordable, opening doors for small and medium-sized businesses to tap into the power of immersive experiences.

10. The Rise of FinOps and GreenOps

The rapidly evolving cloud computing landscape has recently witnessed the emergence of the FinOps and GreenOps movements, steadily solidifying their status among the latest software development trends.

As more and more companies recognize the value of streamlining their operations, financial processes, and environmental sustainability efforts, it comes as no surprise that this innovative combination has swiftly become a top trend in the corporate sphere.

FinOps focuses on driving efficiency across various financial processes, while GreenOps emphasizes implementing eco-friendly practices for long-term value creation.

By integrating these two crucial aspects, organizations not only increase their bottom line but also enhance their brand reputation, regulatory compliance, and contribution to a sustainable future.

11. Enterprise Developers will Rely More on Distributed Computing

Another new-age software development trend that is gaining traction in 2023 is Distributed Computing.

Distributed computing is a method in which different computer servers are connected as a group. This allows data sharing most conveniently and manages power processing.

As we know that data is the new oil. As a result, it poses numerous obstacles to the application workload. Scaling can be smoothed out via distributed computing. However, you only need to add another server to the group if you are required to store more data.

Distributed cloud computing is the next step in this tale. Cloud computing in businesses will allow you to streamline your operations and eventually expand your bottom line. As per the report by Gartner, most cloud service providers will enable distributed cloud computing by 2024.

A problem is divided into multiple jobs in the distributed computing approach, each solved by one or more computers that transfer messages via message passing.

Advantages of Distributed Computing:

• A distributed computer system combines the processing capacity of numerous computers, -allowing it to run quicker than traditional systems.
• It delivers enhanced performance and minimizes cost compared to centralized computer network clusters.
• A system failure on one server will not affect other servers.

12. Web 3.0 will Continue to Improve

Do you know what the future of the Internet looks like? The answer lies in the latest technology in software development. Well, it’s Web Three or Web 3.0.

Just like previous Web versions – Web 1.0 and Web 2.0, today’s trending technologies in software development will propel the evolution into Web 3.0. It actually consists of three basic IT architecture tiers, which are as below:

Interaction: The content, hardware, and software we communicate with.

Computation: The logic to enable this interaction.

Information: The data and structure required for precise, efficient, and secure completion of computing functions.

These Web 3.0 applications are distinguished by their complexity and interactivity. They go beyond the basic, static pages standard in previous web versions.

JavaScript development is used to create Web 3.0 applications, which makes them more dynamic and responsive. They can also use the hardware of modern computers to enhance loading times.

Web 3.0 applications are available on desktop browsers and high-end mobile devices, such as smartphones with OLED panels. However, you can see many Web 3.0 applications in the coming year which will be compatible with all devices.

Advantages of Web 3.0:

• One of the prime advantages of Web 3.0 is the ability to access data from anywhere.
• End-users will reclaim full ownership and control of their data, as well as the protection of encryption.
• It will allow users to create a permissionless blockchain. So, anyone can address and interact with the blockchain network.

13. NFT Tokens a New Phenomenon in the Cryptocurrency World

NFTs, or Non-Fungible Tokens, are the recent cryptocurrency phenomenon to go mainstream and are considered one of the top software development trends in 2023. Well, NFTs are digital content elements that are connected to the blockchain, cryptocurrencies like Ethereum or Bitcoin.

NFTs are unique and not interchangeable, which means no two NFTs are similar. That’s why it has become a significant trend toward blockchain-based payments in recent times. Somewhat we can see it as the most common payment method in software development outsourcing. However, it allows you to have secure, fast, reliable, and transparent payment between organizations and vendors.

In recent years, the NFT market has gained massive popularity in the industry. Recently, the artist Beeple sold the token of his work for $69.3 million in 2021. Actually, around 40,000 tokens are sold daily worth $100 million.

We have to agree that NFTs are not considered as a software development trend, but it is undoubtedly one of the emerging digital trends in the recent era. In fact, many users compare NFTs to digital art that they own and subsequently sell for a greater price, suggesting that it could be a new revenue source for small businesses.

So, now the question is – will this trend fade away soon? Most likely not. And the reason is that many individuals, influencers, or large companies are joining the NFT movement.

Advantages of NFT Tokens:

• Since NFTs can’t be shared among owners, it has the ability to prove ownership for a particular user.
• NFTs ownership transfers become very easy as NFTs are built on smart contracts.
• NFT tokens are primarily dependent on their uniqueness. They are created on the blockchain, and thereby they are linked to particular data.

14. Cloud-Native Technologies Continue to Evolve

Wait! Hold on.

Did you ask anyone about “Cloud Native”? I am sure you might have heard multiple definitions or meanings of it.

So, let’s make you understand in layman’s language here:

Cloud-native technologies and architecture allow you to design, construct and operate workloads that are cloud developed and leverage full advantage of the cloud computing model.

Cloud-native technologies implementation allows you to develop and execute scalable applications in modern, dynamic work environments like private, public, and hybrid clouds. This methodology includes microservices, immutable infrastructure, containers, service meshes, and declarative APIs.

Cloud-native is about agility and better speed. Therefore, many organizations evolve from enabling business opportunities to weapons of strategic transformation weapons that boost business growth and velocity. It’s critical to get innovative ideas to market quickly.

Advantages of Cloud-Native Technologies:

• With the best practices of cloud-native stacks like DevOps and GitOps, software developers can easily use CI/CD to test the application and push new code to production.
• Organizations can leverage built-in scalability to match any demand profile without additional infrastructure design or provisioning.
• Cloud-native allows you to choose from various tools rather than be limited to older options.

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15. IoB (Internet of Behavior) will become a Formidable Force

Personalization is the primary key to the success of any business. It’s an effective strategy. So, the more effective your service will be, the more users will adapt their approach, ultimately.

This is when IoB comes into the picture. We can’t talk about the Internet of Behavior (IoB) without mentioning the Internet of Technologies – IoT. IoB brings various important data, such as user behaviors, interests, and preferences, from BI, Big Data, and CDPs. Wearable devices, individual internet activity, and household electrical gadgets contribute to this data, revealing important information on user’s behavior and interests.

Therefore, it has become very easy to track, merge, and evaluate massive data created by various online activities and personal behavior, including social media habits and commercial transactions, using both IoB and IoT.

Like the Internet of Things, IoB has yet to acquire broad momentum, but Gartner predicts that by the end of 2023, 40% of the world’s population will have their activities tracked. The information acquired is essential in providing clients with a customized user experience.

Companies and startups can observe this trend adopted by YouTube, providing viewers with a more customized feed. Facebook and other large social media networks are in the same boat.

Advantages of IoB:

• IoB can assist businesses in resolving challenges that prevent them from closing more sales and keeping their consumers happy.
• IoB may even replace customer surveys that are time-consuming for customers and enterprises.
• IoB lets you track your prospects’ behavior and purchase patterns across several platforms.

16. Continued Growth and Adoption of Microservice Architecture

“Microservices” is yet another one of the new technologies in software development. Microservices or Microservice Architecture is a different approach to software development that focuses on creating single-function modules with well-defined operations and interfaces.

Since organizations strive to become more agile and integrate DevOps methodology and continuous testing, the trend has gained momentum in recent years.

In a nutshell, Microservice architecture is small, loosely coupled, and independent. It allows a small development team to write and maintain service very quickly. However, each layer of service is independent and separated from the codebase, so it becomes easy to manage. Therefore, developers can update and manage the current service without rebuilding and redeploying the whole application.

Advantages of Microservices:

• If a single microservice goes down, the entire application will not be affected as long as upstream microservices are built to handle faults effectively.
• It allows you to implement schema updates as only an individual microservice layer gets affected.
• Microservice architecture reduces dependencies by not sharing data stores or codebases, making it easier to add new features.

17. Adoption of Infrastructure as Code (IaC)

Infrastructure as Code or IaC is one type of process that allows you to manage and provision computer data centers with the help of machine-readable definition files. However, it doesn’t use physical hardware or interactive configuration tools.

In short, IaC lets you manage and automate your IT infrastructure with the help of various configuration files. It enables dedicated developers to manage, analyze, and provision resources automatically. Though sometimes it is considered as software-driven infrastructure or programmable.

IaC is the primary DevOps approach that works in conjunction with CD (Continuous Delivery).

Advantages of IaC:

• It delivers faster and more efficient automated provisioning and management than manual operations.
• Since the infrastructure is written in code, it can have the same version control, automated testing, and other phases in a CI/CD pipeline as application code.
• As per the business approach, developers can implement code to provision and deploy servers and applications. They don’t have to depend on system administrators in a DevOps approach here.

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18. Major Cybersecurity with DevSecOps

Development + Security + Operations = DevSecOps

DevSecOps is an automation, platform design, and culture approach that integrates security as a shared responsibility across the IT lifecycle. It is about built-in security rather than security that acts as a perimeter around data and apps.

Early detection of potential security risks is possible using DevSecOps. Once the security risk is found, it fixes the vulnerabilities process at an early stage.

DevSecOps can be a crucial step in ensuring strong security standards, as it considers security in every commit and pull request. With that, organizations implementing security throughout the products and application lifecycle may quickly find and eliminate any threats.

Advantages of DevSecOps:

• The primary benefit of DevSecOps implementation is that it breaks down silos between different teams.
• It lets you detect vulnerabilities in code at an early stage.
• DevSecOps experts make compliance a matter of utmost importance by integrating compliance and security checks into the DevOps pipeline.

19. Kubernetes Has a Bright Future Ahead

Let us give an overview of Kubernetes; also known as K8 or Kube, Kubernetes is an open-source container orchestration platform automating many processes, such as scaling, deploying, and managing containerized applications.

Kubernetes is a container orchestration system that can be used to outsource data centers to public cloud service providers. Also, it is used to host large-scale websites. Website and mobile applications with complicated custom code can be deployed on commodity hardware using Kubernetes solutions to save money on web server provisioning with public cloud hosts and to speed up software development processes.

In the development phase, Kubernetes automates web server provisioning based on web traffic levels. It has aided in automating many components of the deployment process, allowing developers to concentrate on new feature development rather than server configuration.

Advantages of Kubernetes:

• Kubernetes can handle workloads that run on a single cloud and are spread across many clouds.
• Kubernetes is a proven and reliable solution that reduces cloud complexity.
• Kubernetes works with any container runtime.

20. Outsourcing Demand Will Reach the Tipping Point

Software development outsourcing has become a buzz and common methodology for which every organization has opted over an in-house team. As per the report from Deloitte, 70% of respondents stated cost reduction as a primary concern for outsourcing.

Outsourcing development companies can offer various services, including development, MVP development, testing, deployment, and support. Furthermore, they also provide a vast pool of technocrats specializing in multiple technologies and skills.

However, if you are a startup, software development outsourcing will be the right choice for you as it will allow you to access a large pool of resources without worrying about salary or IT costs. Big bulls like WhatsApp and Skype follow this approach for their project development to third-party software development companies.

Advantages of Outsourcing:

• Outsourcing development companies will reduce your software development cost while minimizing workload.
• It will save you time and cost in recruiting, hiring, training, and retaining your employees for the long term.
• Outsourcing to the best software consulting company enables you to leverage innovative minds and technical expertise to develop software solutions.

21. New Programming languages

Over the last few years, major tech companies like Google, Apple, and Microsoft have heavily invested in developing fast-performing programming languages that not only deliver high experiences but also seamlessly deploy across all devices.

These include Go by Google, Swift by Apple, Rust by Microsoft, and TypeScript – all offering a refreshing alternative to classic, all-purpose languages like C or Python.

A software development company must remain agile and receptive to new trends in software development, as the rapid evolution of programming languages directly impacts overall market dynamics.

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22. Predictive Analytics will become More Pervasive

As technology advances further and business leaders recognize the tremendous value that predictive analytics can lead to, it is projected to become increasingly crucial for organizations worldwide.

By leveraging vast amounts of data and applying advanced algorithms, it allows businesses to anticipate future patterns, consumer behaviors, and market trends more effectively, ultimately driving informed decision-making and higher profits.

For any forward-thinking business, we would suggest staying up to date with these new software trends to elevate their growth in the digital landscape.

23. The Digital Immune System Gaining Momentum across the Globe

In today’s times, where security threats and cyber-attacks are becoming increasingly common, the adoption of the concept of a digital immune system – offers an advanced approach to combating these challenges.

As businesses become more dependent on digital infrastructure, cyber threats, and vulnerabilities pose significant challenges for the continuity, integrity, and security of vital information assets.

Much like the human body’s biological immune system, developers are designing adaptive and responsive solutions that proactively tackle intrusions and secure the digital ecosystem.

This approach empowers organizations to prevent and mitigate potential risks from cyberattacks by implementing robust, real-time defense mechanisms with an added layer of protection to reinforce the digital foundation upon which modern enterprises are built.

A 2021 Gartner report highlights five key elements that can help strengthen organizational resilience and ensure a seamless user experience:

• Autonomous testing
• Chaos engineering
• Auto remediation
• Observability
• Continuous validation

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Summing it Up

Software development is constantly evolving, but with the broad range of forecasts and predictions offered in this article, you can have insight into where these new software technologies are headed to maximize their potential and make sure your software evolves along with it.

An IT partner like Valorwide Ltd can provide you with crucial support and access to innovative services and technologies – so that you remain at the forefront of the latest trends in software engineering and are able to implement best practices in custom software development.

With an impressive 93% customer retention rate and 4200+ projects successfully completed for clients worldwide, our dedicated software development team stays up-to-date on cutting-edge technologies such as Machine Learning, Blockchain Technology Internet of Things, and AI – so that we can help you with any challenge you may have!