Software Development Trends for 2023

The Covid-19 pandemic basically reshaped global society; it reinvented the way we work, our needs, and the way we do business. But one of the most tangible changes in the last two years is our increasing dependence on digital infrastructure and software development. 

After the pandemic, the software development market was expected to grow from $205.15 billion in 2021 to $260.38 billion in 2022 at a compound annual growth rate (CAGR) of 26.92%. However, the Russia-Ukraine war disrupted the efforts of global economic recovery and has led to economic sanctions on many countries and supply chain disruptions. As a result, the development world expects an increasing demand for customized apps to boost industry growth. On that note, the application development software is expected to grow to $703.13 billion in 2026 at a CAGR of 28.19%.

In this scenario, the aftershocks of the major health emergency and the current political crisis have caused major disruptions to the operations of development teams worldwide. These external factors, summed with internal industry trends and needs, have not only opened up new methods of working and tools to support them but also fueled new software development trends.

Therefore, understanding what is coming and adapting to it has become one of the best business skills for companies to have. Staying up to date can make your company more adaptable to change and, therefore, more efficient despite the global setup and the unique challenges we might encounter. With that in mind, here are six 2023 software development trends to know about:

1. Internet of Things

The Internet of Things (IoT) refers to the network of billions of physical devices - “things” around the globe that are connected to the internet and, therefore, constantly sharing data. Thanks to fast technological development, now it’s possible to connect almost anything to the web, from a small speaker to a rocket, and turn it into a part of the IoT. 

The Internet of Things market is huge, and nowadays, IoT devices are everywhere and part of our daily life, from smart cities to our cellphones, homes, and cars. According to ZDNet, tech statistics predict that in total, there will be 41.6 billion connected IoT devices by 2025, or "things." Consumer IoT spending was expected to hit $108 billion, making it the second-largest industry segment: smart homes, personal wellness, and connected vehicle infotainment will see much of the spending. 

The presence of IoT is increasing at an impressive speed, and we can deny that IoT has become an integral part of our lives. Therefore, there is no better time to seize the opportunity and get all the necessary insights on how to attract and capitalize talented developers to build IoT platforms to enter the market of the future.

2. Artificial Intelligence

Yes, it sounds like a sci-fi movie, but Artificial Intelligence (AI) is no longer fiction; in fact, it is part of our everyday life. From chatbots to face recognition technology, AI has become a part of our everyday lives. 

In our ever-increasing technological world, we cannot separate Artificial Intelligence (AI) from product development any longer. Having AI and machine learning knowledge allows real-time analysis and better interaction between people and machines for smarter task executions. As the level of communication between devices and humans through intelligent technology, the convergence of both through AI helps applications and solutions to make predictions based on the identification of data patterns to ease the interaction. 

Overall, because of AI’s potential across industries and applications, the technology has the potential to change how businesses operate.

3. Cloud Computing

During the pandemic, most companies shifted their structure to anywhere operations strategies, which prompted the rapid acceleration of cloud computing. Consequently, cloud computing technology is growing exponentially, allowing companies to be genuinely independent of the physical location of their employees.

Also, having secure remote access is a priority for any remote work, and cloud infrastructure is the only way to achieve it. On that note, cloud computing technology is here to stay as it allows companies to safely construct, design, and operate workloads directly developed through the cloud. 

4. Cybersecurity

Cybersecurity development is in a permanent state of evolution and expansion. However, since remote became the new normal, digital business and hybrid work models are changing how cybersecurity is understood. 

As technology and software development expands, so does the complexity of risk and threats; therefore, cybersecurity will be at the forefront of digital transformation. As both hackers and security experts are in a permanent battle to outsmart each other, it is crucial to rethink security and prepare for new threats. 

According to some figures, within the next five years, there will be 64 billion IoT devices installed around the world. This means we will be more dependent on technology than ever before, from online banking to downloading private information. On that note, safety and privacy will be at the forefront of anything we do online, and every new app developed will need to incorporate cybersecurity. 

5. Remote Work

For some years now (even before Covid-19 hit us, forcing us to adapt to a new reality of working), many companies have started following the increasingly common practice of having remote teams. Why? Because remote teams are a great way of cooperating and leveraging skilled specialists. In the case of software development, hiring a remote team of developers and engineers is a great strategy for success.

Remote became the new normal, and companies worldwide had a pleasant surprise: remote operations are not only possible, but they also come with plenty of advantages. Now more than ever, companies, big and small, around the globe are leveraging remote work to their advantage by hiring tech talent remotely. 

According to Gartner, through 2023, 40% of organizations will blend virtual and physical experiences, leading to increased workforce productivity and customer reach. So let's get something clear, the workplaces of the future will become more remote and less in-person. This will create a growing necessity for developers to create software to facilitate remote operations and allow businesses to evolve in response to the new normal, a world where employees, contractors, business partners, and customers will be remote from each other but more connected than ever.

6. Web 3.0

Web 3.0 is an idea for a new iteration of the World Wide Web, which incorporates concepts such as decentralization, blockchain technologies, and token-based economics (different from Web 2.0, where data and content are centralized in a small group of Big Tech companies). 

Since the platforms will no longer be centralized, there will be no fear of hacks of data. However, it is still too soon to know if this new idea will fully succeed. However, to some, Web3 represents the next phase of the internet and, perhaps, of organizing society. On that note, it is crucial for companies to keep an eye on this trend and follow its development closely.

As we navigate the last remains of the Pandemic and the current political crisis, CEOs and business leaders should be aware of emerging software development trends and be ready to identify which will shape the way business is done. Now more than ever, it’s crucial for companies to stay on top of the latest tech trends that will help them develop better solutions for their clients, so they don’t fall behind in the tech game.