Key Trends In Custom Software Development In 2025

Look, we're not going to lie – developing generic software isn't going to attract your dream clients and increase your business revenue, no matter how good the software is. With changing customer needs, your generic software won't match client expectations. 

While most businesses think that they could develop one software solution just because it fits their bills on the go, they tend to save a few dollars by settling for off-the-shelf software. They end up creating a digital product that's subpar, and no one likes. 

Though building custom software requires a minimum investment, it's your secret sauce to increasing your business ROI by 7-10x. 

With the growing need for custom software solutions, businesses are finding ways to speed up their development tasks using low-code/no-code tools. But this is just one trend that's buzzing. 

Read this blog to know other custom software development trends that will be game changers for businesses in 2025.

What Is Custom Software Development?

Custom software development involves designing and developing customized applications that target the needs of specific users. However, off-shelf software is available for a broader set of audiences.

Microsoft office for instance meets the general needs of all users, providing the same features and functionalities that every organization, be it a startup, medium-sized venture, or unicorn brand can use it.

Therefore, Microsoft Office is categorized as a commercial software product.

But if a bank needs a specific app that is purely designed to meet the banking needs of users, then it is called custom software development.

However, every business need cannot be served by developing generalized software because businesses do have specific needs to provide customized solutions to their customers.

Therefore, custom software development comes into existence to address customers' specific challenges.

8 Latest Technology Trends in Custom Software Development

As we're heading down the path of digital transformation, it's important for your business to know what's going on in the software development industry and how you can stand out by creating custom software. 

That's possible when you update yourself with software development trends. Let's discuss them in detail. 

1. Progressive Web Apps   

The next big thing that’s dominating the software development industry is the introduction of progressive web apps. PWAs are those apps that work like native mobile apps. 

The best part is that consumers need not worry about downloading these apps from the google play store or iOS store. 

Besides that, they love using PWAs as these type of web applications consumes 60% less data than regular web apps. They offer an app like user experience, and it feels natural to them by using “add it to home screen” feature. 

Unlike traditional mobile apps, PWA allows users to browse the content and interact with features even with poor or no internet connectivity. 

The most surprising benefit of PWAs is improvement in user engagement and conversion rate due to faster load time and offline accessibility. This is what Sean Swain (CEO of Detroit Furnished Rentals) said when he developed such web app for his business. 

Result – Their booking abandonment rates decreased by 18% because customers don’t want to download an extra mobile app that consumes their storage space. 

Their customer satisfaction scores increased by 12% as they can get native-like experience of finding secure accommodations using few clicks. 

Example of Progressive Web App 

Flipkart, the largest e-commerce platform developed a progressive web mobile app (Flipkart Lite) to take the user’s online shopping experience to the next adventure. The lite version of Flipkart is smaller in size, so it doesn’t take up loads of space on the user’s device. 

Users can enjoy their shopping experience as the app loads quickly because of service workers functionality. This means they can access the products quickly even if they’ve slow to low internet connectivity. 

The best part is that even if users access the web app through URL, they still get a native-like experience. 

2. Artificial Intelligence And Machine Learning   

Another latest trend in custom software development is integration of AI and ML in the development workflows. 

As you already know, data proves to be a goldmine for businesses as they can predict consumer behavior to make actionable decisions, here comes the need for AI and ML. 

For Instance – The increasing use of AI-powered chatbots on websites and mobile apps eliminated the need for customer support representatives. 

This intelligent move is helping businesses automate their complex tasks and, at the same time, provide a best-in-class experience to customers. 

Recently, Amazon introduced Alexa+, a voice assistant that uses generative AI technology to provide smarter, more natural, and more personalized responses. It makes you feel like you're interacting with your favorite friend and not talking to a chatbot. 

This conversational AI chatbot has a ChatGPT-like memory which can last longer, meaning it can remember your last conversation, the videos you watched, and the things you listened to most. 

It can read documents for you, reserve a spot at the restaurant you visit most frequently, and manage your daily schedule—something that can take you hours to do. 

That's how companies and industries that use machine learning algorithms are benefiting from AI. It can automate routine operations, enhance customer experiences, and create personalized marketing strategies that increase conversions. 

P.S - Need help in developing AI software for your business? 

3. Low Code/No Code Development   

Another game changing trend in the software development industry is using low code/no code tools.

Low-code/no-code platforms allow you to create software such as web or mobile apps using drag-and-drop functionalities.

Software developers need not worry about requiring top-notch coding skills to develop scalable apps, as low code/no code platforms speed up the development process.

According to Gartner, by 2025, 70% of new applications are developed using low code/ no code components. This means that developers need not worry about spending hours on writing the repetitive codebases and can develop digital products on the go. 

A few examples of low code and no code platforms include Zoho creator, QuickBase, Microsoft power apps, Visual Lansa, Air table, etc. 

Another popular example of a low code/no code platform is “CreateWith” that allows hoteliers to create a SEO friendly website, select the theme, manage inventory, etc., using drag-and-drop components. 

4. IoT (Internet of Things)  

It is 2025, and IOT device trends are skyrocketing like ever. Research from Statista says there are approximately 11 billion IoT devices, which is expected to increase by 29 billion by the year 2030. but what exactly is IOT?   

IoT refers to the devices that are interconnected with each other to facilitate data sharing. You might have come across billions of devices powered by IOT ranging from smart homes to connecting your home devices with your mobile phones and even when you are tracking your packages.

All thanks to IOT for making the lives of customers easy whizzy!   

One such example of using IoT is digital Twins. These are a replica of the real system and businesses can even experiment with them to ensure smoothness in their business operations. 

IoT technology introduces the concept of SMART HOMES, where you can control everything through a mobile app even if you are not in your house. Users can supervise lights, fans, and other home devices and adjust the temperatures remotely through IoT. 

Hershey’s candy manufacturer uses IoT sensors to track the moisture and temperature to create tantalizing candies. 

It also checks the size and shape of candy ensuring that there is no wastage. They kept the size of cocoa and peanut candies 1% smaller than above which results in savings of $500,000. 

5. Blockchain   

As there is hype around crypto and bitcoin, blockchain's popularity is also increasing daily.  

Blockchain is another technology which is considered as an important trend in custom software development in 2025, as this technology protects the systems from unauthorized access. 

Blockchain is a distributed ledger that stores transactions on the database.  

Consider blockchain as a google doc where users work on it and share it with others. In this case, there is a decentralized distribution between users, as everyone can modify it, add comments, etc. But blockchain is more than that. 

Not only this, blockchain systems ensure transparency in their operations as they provide exceptional levels of security. 

Blockchain technology is a game changer for businesses as they can automate their business processes, thereby reducing the need for human intervention. 

For Instance – IBM is using blockchain technology in the field of the supply chain, where supply chain leaders can estimate the location and status of a product in real time, ranging from raw material to distribution. 

Another example is the leading brand “Amazon,” which is using blockchain technology to launch its NFT marketplace next month, wherein users participating in crypto games would receive free NFTs. Now, customers can buy fashion related NFTs through their digital platform. 

6. Microservices 

As Aristotle rightly said," the whole is greater than the sum of parts." The objective of microservice architecture is to manage various application elements so they can work together. Here, containers as a tool are used to scale the business processes.

Earlier, developers had to rebuild the website from scratch if there was a change on the website. Now, developers can make small and incremental changes in the software whenever required, thereby improving the productivity of an organization.

Hence, many organizations use microservice architecture as the whole product is segmented into various modules. If the developer wants to bring some changes to it, the entire development process will not be disturbed.

So, if your business is looking to build software or apps customized as per user preferences, then leveraging microservice architecture is a profitable solution.

7. Cloud Computing   

The Covid pandemic has made you realize that companies using traditional mediums to store and manage data face challenges while retrieving it. 

This makes them realize the need to shift towards cloud architecture as they can tap into actionable insights that can help them to make business decisions and, at the same time, meet their customers' needs and preferences. 

Not only this, but Cloud computing also offers various benefits to businesses such as- 

The best part is that businesses prefer cloud computing because it saves their cost as it’s a pay-as-you-go pricing model, meaning you pay only for the space you use. This way, they can upscale or downscale their business operations without spending on physical servers. 

A research study highlights that 95% of companies are switching to cloud computing to save time, automate operations, and reduce unnecessary spending. 

Few examples of cloud computing platforms include google cloud, amazon web services, IBM cloud, Hadoop, Salesforce etc. 

For instance - Amazon web services is a cloud computing platform which is helping businesses to launch their websites, mobile applications and expand their storage limit on the go. 

8. DevSecOps   

DevSecOps stands for development and security operations. 

Hackers are always ready to do malicious activities and insert malware into an application, so organizations need to take cautious steps by integrating DevSecOps so that development and security fall under one umbrella. 

As you already know, cybersecurity is a significant threat for companies today, so the need for DevSecOps comes. 

DevSecOps is important in the custom software development domain because it offers the following advantages -  

GITLAB is the popular DevSecOps platform to build high quality applications through collaboration, ranging from planning to ensuring the security of the software. 

Also Read: Grafana vs Kibana

9. Web3.0  

Firstly, there was the web 1.0 era where you had boring websites that more or less looked like encyclopedias, and users could browse them to look for information as and when they needed it. 

Then, Web 2.0 came up with the arrival of social media platforms allowing users to create content on various platforms. 

Next comes web 3.0, where leading tech giants such as Facebook, Google, etc., can own the space.  

Web 3 is all about decentralization. Web 3 is considered the next evolution of the internet, where people can buy, sell, and own digital spaces. Web 3.0 has completely changed the way people use the internet. 

Web 3.0 is the next big thing in the world of social development and is changing how businesses conduct their operations. Web 3.0 promises to set a better future in custom software development -  

Here are some popular examples of web3.0 – 

10. Big data   

The next big trend in the software development industry is big data. More and more companies are harnessing big data to automate their business operations. 

 Big data means a massive collection of data produced by an organization that even traditional tools can’t store. Oracle says, “Big data is a more complex form of data” that is further used to solve business problems.    

Let’s throw some light on statistics to highlight the importance of big data –  

The research studies show that the size of the big data market was $91.11 billion in 2022 and is expected to increase $146.71 billion by 2027.  

Hence, organizations can use big data and other cloud computing platforms to predict future outcomes as to what works and what does not and make business decisions accordingly.   

How BigOhTech Can Help You with Custom Software Development?

With custom software solutions, you can customize the design of your product and integrate new features that are tailored for your audience. But this isn't the case with standard software. 

Let's say an e-commerce business has developed custom software for their audience and added AI integrations such as offering personalized product recommendations. This can supercharge your conversions and increase customer loyalty. 

As a custom software development company, we don't want you to settle for off-the-shelf software, especially when your business needs are different. We believe that a business grows when it adapts to changing customer needs. 

Keeping that in mind, we create innovative software solutions that are specifically designed for your business and speak to your target audience. To make your digital products future-ready, we integrate advanced features in your app such as AR/VR, AI/ML, and data analytics. 

FAQs  

Q1. What new trends are emerging in custom software development?  

1. Progressive web apps  

2. Artificial intelligence and machine learning  

3. Low code/ No code development  

4. IOT  

5. Blockchain  

6. Microservices  

7. Cloud computing  

8. DevSecops  

9. Web 3.0  

10. Big data   

Q2. How will AI and machine learning be incorporated into custom web development?  

Businesses are leveraging the use of AI-powered chatbots on websites and mobile apps to automate their complex business processes, enabling businesses to make faster decisions and simultaneously provide best-in-class customer experience. 

Q3. What role does cloud computing play in custom software development?  

Here is the pool of benefits businesses get by employing cloud computing in custom software development –

1. It facilitates better flexibility and collaboration 

2. Companies can access pay-as-the-go resources. All thanks to cloud computing capabilities 

3. It Provides a cost-effective option for businesses  

4. It Provides the ability to scale their business operations   

Q4. How are security concerns being addressed in custom software development?  

Here are the best practices businesses can adopt to develop secured and robust applications – 

1. Make sure your systems are updated  

2. Keep a checklist of security policies  

3. Train your developers about the probable security attacks   

Q5. What impact is the trend towards low code and no code development having on custom software development?  

Low code/no code platforms provide a competitive edge to software developers as they can quickly develop apps and software using drag-and-drop customizations. Hence, They need not worry about being an expert in programming languages.   

Also Read: In House vs Managed DevOps Services