Services
SERVICES
SOLUTIONS
TECHNOLOGIES
Industries
Insights
TRENDING TOPICS
INDUSTRY-RELATED TOPICS
OUR EXPERTS
Essential software development
statistics for 2025
July 29, 2025
Current software development market state
| The global custom software development market size was estimated at $43.16 billion in 2024 and is anticipated to grow at a CAGR of 22.6% from 2025 to 2030. Enterprise software accounted for 60% of the market, with large enterprises holding the largest revenue share of over 60% | |
|---|---|
| The global software market size was $736.96 billion in 2024 and is expected to reach around $2,248.33 billion by 2034, expanding at a CAGR of 11.8% from 2024 to 2034 | |
| North America dominated the global application development market in 2024, holding a share of 33.72% and amounting to $37.5 billion | |
| The software testing segment within the software engineering market is expected to hold a share of over 38% by 2032 | |
| The IT spending on software is expected to increase by 14.2% in 2025 globally | |
| The global IT services outsourcing market size was estimated at $744,623.5 million in 2024 and is projected to grow at a CAGR of 8.6% from 2025 to 2030. This growth is driven by rapid technology evolution, an increased focus on cybersecurity, and the ongoing shift towards digitalization across industries, which prompts companies to seek external IT expertise | |
| 72% of organizations outsource software development to achieve better access to talent (32%), meet increasing customer demands more efficiently (35%), optimize spending (34%), and improve quality or performance (33%) | |
| In 2024, total funding in tech startups almost reached $314 billion, demonstrating a slight increase of around 3% from the previous year |
Scheme title: Custom software development market | Size, by type, 2020-2030 (USD billion)
Data source: Grand View Research, 2024
Latest software development trends
Advancements in the tech industry are reshaping the way software is created, accelerating the development cycles, enabling developers to produce software of better quality, and ensuring better alignment with the market needs. Explore the most popular software development platforms, programming languages, and developer tools that are driving this transformation.
Software development platforms
| Remote access, real-time information availability, and no hardware-associated costs are expected to drive the growth of the web-based solutions segment, with CAGR of 21.1%a from 2025 to 2030 | |
|---|---|
| Holding a market share of 38% in 2024, the mobile app development segment is expected to grow the fastest in the coming years driven by the increasing adoption of mobile-first strategies across businesses to reach and engage with their target audience | |
| Desktop solutions continue to be important, especially for tasks that require more computing power or specialized tools, with 53% of developers writing code for desktop platforms |
Programming languages
With dozens of programming languages existing, organizations should carefully choose the technology for their software development projects that best suits their specific type of software and will ensure its high performance, easy maintainability, and long-term viability. The following stats show the most popular programming languages and frameworks both among developers and companies.
| JavaScript, Python, and SQL are highly-desired languages among programmers, but Rust continues to be the most-admired programming language with an 83% score in 2024 | |
|---|---|
| According to the combined ranking based on the code usage and discussion frequency, JavaScript, Python, Java, PHP, and C were the most popular programming languages in 2024 | |
| Python overtakes JavaScript after a 10-year run as the most used language, while TypeScript, a superset of JavaScript, continues strong growth as the 3rd most used language | |
| The more popular a programming language gets, the more developers take it up. For example, JavaScript has the largest community, with about 28 million developers worldwide, followed by Java (23.2 million), and Python (22.9 million). Swift (5.6 million) and Ruby (4.3 million) have seen a substantial increase in the number of developers using them, which appears to be attributed to the use of AI-assisted coding tools supporting these languages. Rust has managed to add around 1 million new coders every 12 months for the last four years, now having a community of 5.1 million developers | |
| Professional developers most frequently use React (41.6%), jQuery (22.5%), Angular (19.4%), Next.js (18.6%), and Vue.js (16.6%) as the frontend technologies. Node.js (40.7%), ASP.NET Core (19.1%), Express (18.2%), ASP.NET (14.3%), and Spring Boot (14.2%) are the most popular backend frameworks used in web development | |
| Python is the most sought-after programming language, with 42% of recruiters looking for candidates with Python skills, followed by JavaScript (41.57%), Java (39%), C# (25%), and SQL (24%) | |
| Python is the most in-demand language as of June 2025, accounting for 70,000+ job postings |
Scheme title: GitHut 2.0 | Github top languages stats
Data source: GitHub
Developer tools
AI-powered tools are increasingly used to write, test, and debug code, making it a prominent trend in the modern software development landscape.
| 76% of professionals are using or planning to use AI tools in their development process. They identify increased productivity (81%), faster learning (60.8%), and general efficiency (58.4%) as the most important benefits of using AI tools | |
|---|---|
| Among developers, 69% have tried ChatGPT for coding, with 49% using it regularly. 40% of developers have tried GitHub Copilot, the second most popular AI tool for developers, and 26% of respondents work with it regularly | |
| Among other developer tools used for compiling, building, and testing, professional developers most frequently use Docker, a platform that enables building and managing applications in containers (59%), and npm, the default package manager for Node.js (52.3%) |
Writing code
Debugging &
getting help
getting help
Generating
content or
synthetic data
content or
synthetic data
Testing code
Project planning
Deployment and
monitoring
monitoring
Search for answers
Documenting code
Learning about
a codebase
a codebase
Committing &
reviewing code
reviewing code
Predictive
analytics
analytics
Scheme title: The current use of AI in the development workflow
Data source: Stack
Overflow’s 2024 Developer Survey
Scheme title: The expected level of AI tool integration in developers’ workflows in 2025
Data source: Stack Overflow’s 2024 Developer Survey
Low-code development
Low-code development platforms enable IT teams and non-developers to quickly create applications using intuitive drag-and-drop interfaces, with minimum coding required. This approach considerably reduces time-to-market compared to custom software development, contributing to its expanding adoption globally.
| The low-code platform market is projected to reach $388.6 billion by 2030, growing at a CAGR of 37.7%, up from $57.0 billion in 2024. This growth is driven by the rising demand for custom applications and a global shortage of skilled software developers | |
|---|---|
| Low-code development is seen as a key component for enhancing flexibility and agility in software development. 81% of the companies consider low-code development to be of strategic importance in their organization and 80% of companies find it relevant for faster software development | |
| Increased process efficiency (53%) and employee productivity (51%) are named the most important benefits that low-code development adoption brings to companies | |
| 56% of companies globally have already implemented low-code development platforms. Among these, 55% favor Microsoft Power Apps, 48% opt for Oracle, and 41% choose Salesforce | |
| Companies across industries see low code platforms as a strategic asset. Financial services (for developing customer-facing applications, enhancing process automation, and strengthening regulatory compliance through quick modifications), healthcare (for creating patient management systems and telehealth solutions that improve patient engagement), and manufacturing (for streamline supply chain management and developing maintenance scheduling applications) are taking the lead |
Scheme title: Key areas for low-code app deployment
Data source: KPMG’s 2024 Low-code adoption as a driver of digital transformation study
Looking for a reliable software development partner?
Technology focus areas for 2025 & beyond
The technological environment is constantly evolving, with artificial intelligence gaining traction more than other technologies in 2025. Organizations across verticals are investing in AI to automate diverse workflows, improve business profitability, and keep up with the competition. Cloud computing, data analytics, and the Internet of Things also remain key areas of focus, having secured a stable presence in core business strategies.
Artificial intelligence
The field of artificial intelligence is rapidly evolving, attracting growing investments, expanding machine learning market coverage and use cases, revealing new trends in conversational AI, and bringing major implementation challenges to light.
| Almost one third of venture capital firms invested in AI-related companies in 2024, with total funding exceeding $100 billion and showing a year-over-year growth rate of over 80% | |
|---|---|
| 79% of organizations are already using or trying AI and ML PaaS services | |
| 88% of companies state that their digital transformation initiatives powered by AI and automation (including generative AI) have positively impacted their organization’s profitability | |
| Almost three-quarters of organizations see positive business outcomes from their AI investments, with only 31% achieving them at scale | |
| By deploying AI for data breach prevention, including attack surface management, red-teaming, and posture management, organizations can save up to $2.2 million on data breach costs | |
| Generative AI is the most frequently deployed AI solution in organizations (29%) | |
| 32% of business leaders would use proprietary AI technologies, 32% have no preferences, while 29% would opt for open-source AI. Among the latter portion of respondents, 63% name cost a key reason for their preference | |
| 61% of CEOs say their organization is actively adopting AI agents and preparing to implement them at scale | |
| IT service management (47%) and customer service/support automation (40%) are the top AI use cases that companies invest in | |
| AI initiatives are most advanced or scaled within organizations’ IT (28%), operations (11%), marketing (10%), customer service (8%), and cybersecurity (8%) functions | |
| Nearly three-quarters of respondents say their most advanced generative AI implementation initiative is meeting (43%) or exceeding (31%) their ROI expectations | |
| 9% of organizations are currently AI-mature, meaning they invest in foundational capabilities that will remain relevant regardless of further AI evolution and that allow them to scale their AI deployments efficiently and safely | |
| 78% of organizations expect to increase their overall AI spending in the next fiscal year | |
| Among the key challenges organizations face developing and deploying generative AI solutions are concerns about regulatory compliance (38%), risk management difficulties (32%), implementation hurdles (27%), and a shortage of technical talent and skills (26%) | |
| 49% of companies find it difficult to estimate and demonstrate the value of AI projects, surpassing other barriers, such as talent shortages, technical difficulties, data-related problems, and lack of business alignment and trust in AI | |
| Industries that heavily rely on data analysis, automated decision making, and word, image and sound processing, such as the Professional, Scientific, and Technical Services sector (13.8%), see higher rates of AI implementation than the US national average (3.9%) |
Scheme title: Benefits achieved vs benefits sought
Data source: Deloitte’s 2025 State of Generative AI in the Enterprise report
Q: What are the key benefits you hope to achieve through your Generative AI efforts? (Select up to three
benefits) To what extent are you achieving those benefits to date?
2021 2022 2023 First half of 2024 Second half of 2024
Scheme title: The number of business functions in which organizations use AI
Data source: McKinsey’s 2025 The state of AI report
Utilities
Energy
Media &
Telecommunications
Telecommunications
Government &
Public services
Public services
Real estate
Technology
Financial
services
services
Manufacturing &
Industrials
Industrials
Life sciences
Health care
Consumer
products
products
Automotive
Scheme title: Realized or planned adoption of AI, by industry
Data source: Deloitte’s Global Outsourcing Survey 2024
Cloud technologies
The increasing volumes of data handled by organizations and the need for scalable data storage together with the benefits of cloud-based applications, such as ease of access, flexibility, and cost-effectiveness, are driving the widespread adoption of cloud technologies.
| The global cloud computing market size was $752.4 billion in 2024. Driven by the demand for scalable and high-performance cloud infrastructures, it is projected to grow at a CAGR of 20.4% from 2025 to 2030 | |
|---|---|
| By 2028, over 90% of newly developed applications will be deployed in multicloud, architectured to run seamlessly across distributed platforms and leverage platform-native capabilities. Moreover, more than 60% of businesses will have modernized up to 50% of their cloud architectures by 2027 to encourage infrastructure and cost efficiency and enable business and technical innovation | |
| Amazon Web Services (AWS) is the most popular cloud platform among software developers worldwide, with around 48% having used it in 2024. Microsoft Azure ranks second, being used by 27.8% of developers | |
| 70% of companies adopt hybrid cloud strategies, employing at least one public and one private cloud | |
| 60% of all organizations turn to managed services providers to get assistance with managing their public cloud workloads | |
| In 2025, the cost of cloud services continues to be a key consideration, as enterprises spend on average 35% more on cloud resources than needed to meet their business objectives | |
| In cloud development, managing cloud spend has been the top challenge (84%) for the third year in a row. Other concerns include security (77%, previously the top challenge), managing software licences (75%), governance (75%), and lack of resources or expertise (75%) |
Image title: Organizations embrace multi-cloud
Image source: Flexera 2025 State of the Cloud Report
Image title: Hybrid cloud strategies organizations adopt
Image source: Flexera 2025 State of the Cloud Report
Data analytics & BI
With the growing volumes of data that organizations generate today, the need for robust data management and analytics solutions to process this information and derive valuable insights out of it becomes vital to support timely, informed decision-making.
| The global data analytics market size was estimated at almost $65 billion in 2024 and is projected to reach $402 billion by 2032 at a CAGR of 25.5% by 2032 | |
|---|---|
| 89% of companies state that their data and analytics-driven digital transformation efforts have positively impacted their organization’s profitability, representing an increase of 23% from 2023 | |
| In 2024, 81% of tech leaders reported that their organizations integrated embedded analytics and business intelligence apps into their products | |
| Because of continued data complexity and volumes, rising demand for simplified analytics solutions, advancements in AI/ML, and expanding adoption of self-service analytics, the augmented analytics market has been experiencing exponential growth in recent years and is expected to grow at a CAGR of 25.7% to $41.23 billion in 2029 | |
| By 2027, augmented analytics capabilities will evolve into autonomous analytics platforms that fully manage and execute 20% of business processes | |
| 68% of organizations are currently implementing or have already implemented predictive analytics |
Scheme title: Relevance of predictive analytics
Data source: Endava’s 2024 Emerging Tech Unpacked report
Note: Percentages may not total 100 percent
due to rounding
Internet of Things (IoT)
IoT technology is widely adopted across diverse industries and applications, from helping monitor patient health in healthcare to enabling predictive maintenance in industrial settings, transforming from an emerging technology into a critical business tool.
| The global IoT market size is projected to grow at a CAGR of 11.4% from 2024 to 2030 | |
|---|---|
| The number of connected IoT devices grew approximately 13% year-over-year, surpassing 18 billion in 2024, while enterprises started spending 10% more on IoT | |
| As of 2024, 54% of companies were rolling out or had rolled out IoT projects involving real-time tracking and inventory in their organizations, which positions these use cases as the most commonly adopted. This marks a 35% increase since 2021, driven by the need for optimized supply chain visibility and predictive logistics | |
| The transportation and logistics segment holds the largest share of the IoT-based asset tracking and monitoring market (over 25%), followed by the manufacturing segment |
Key stats about enterprise software development
With a year-over-year growth rate of over 10%, the enterprise software market is the fastest growing segment of the IT industry. Strong demand for software solutions targeting key business functions is expected to promote further expansion of the enterprise software market in the coming years.
| In 2024, IT spending on enterprise software amounted to over $1 trillion globally, an increase of 12% from the previous year | |
|---|---|
| While the large enterprise segment represented by large corporations accounted for over 60% of the global enterprise software market share, the percentage of small and medium-sized enterprises is expected to grow at a considerable rate of almost 14% by 2034 | |
| CRM is widely adopted in organizations across industries for streamlining customer service (79%), B2B marketing and sales automation (64%), and field service (62%). The adoption in different industries varies, with the strongest rates among manufacturers (71%) and business services (75%) | |
| It is expected that the CRM software market will continue to steadily grow further at an annual rate of 8% from 2025 to 2030 due to the increasing demand for such software worldwide, resulting in a market volume of over $145 billion by 2030 | |
| The need to manage and integrate complex processes across departments stimulates companies to implement ERP systems for real-time data sharing and analysis, improved efficiency, reduced operational costs, and faster, more informed decisions. This drives growth of the global ERP market, which is anticipated to grow at a CAGR of 11.7% from 2025 to 2030. The cloud ERP segment is projected to grow even faster (13.5%), with cloud technologies making ERP systems more affordable while offering unmatched accessibility, flexibility, and scalability | |
| The global supply chain management software market size was estimated at about $21 billion in 2024, with its growth fueled by the rising number of small and mid-sized companies, expansion of ecommerce, and the rising demand for medical supply distribution management. Among all supply chain management sectors, procurement and sourcing were at the top, accounting for a share of around 36%, as companies adopted this type of software to mitigate risks of supply disruptions, raw material cost fluctuations, and geopolitical uncertainty | |
| With the surge of the working population, employee bases become larger and more diverse, calling for more advanced solutions for effective workforce management. This drives the growth of the global human resource (HR) technology market, which was valued at $36 billion in 2024 and is projected to reach $69.6 billion by 2033 | |
| As companies increasingly rely on their business data to get actionable insights and support informed decision-making, Business Intelligence (BI) is projected to become the fastest-growing category within the enterprise software market from 2024 to 2031 |
Developer workforce, demographics & work environment
The global software development workforce continues to expand, representing a diverse talent pool in terms of age, experience, and education. While developers’ work priorities remain the same over time, team dynamics and work models are gradually changing.
| In 2024, the number of software developers worldwide reached about 19.6 million, with the largest number in China (3.9 million), the United States (2.9 million), and India (2.6 million) | |
|---|---|
| Around 27.1% of software developers have been coding for 5 to 9 years, and over 20% have 10 to 14 years of experience in coding | |
| In 2024, 41% of software developers globally held bachelor degrees, over 25% held master degrees, and around 4.9% had obtained some sort of professional degree | |
| With the possibilities generative AI gives to developers, it is predicted that the share of software development team members that come from nontraditional software engineering or technical educational backgrounds will rise from 20% in 2025 to 40% by 2028 | |
| 65% of developers spend from 50% up to over 90% of their working time on activities directly involving code, while the majority of developers (74%) spend from less than 10% up to 30% on meetings, work-related chats, and emails | |
| Half of the developers surveyed work in small teams of 2 to 7 people, while 88% reported working in teams of under 20 | |
| The number of developers sticking to the hybrid work model stayed consistent in 2024 with the previous years (42%), while the number of developers who worked in-person increased (20%) | |
| In 2024, developers named salary (53%), work-life balance (36%), and remote working options (31%) as their priorities, which remained unchanged compared to the previous year | |
| When considering changing jobs, developers primarily look for better advancement opportunities (52%) and higher salaries (48%) |
Scheme title: Number of professional developers by age groups (in millions)
Data source: JetBrains’ Data Playground
Scheme title: Years of professional work experience
Data source: Stack Overflow’s 2024 Developer Survey
Software development job market & average salaries
Despite some layoffs, the demand for software developers and related experts remains strong. However, employment opportunities vary significantly by region, with some developers finding local markets competitive.
| Employment for software developers, quality assurance analysts, and testers is projected to grow by 17% (much faster than the average across other occupations) from 2023 to 2033, adding approximately 327,900 jobs | |
|---|---|
| Strong demand for cloud-based services and data centers is expected to create new jobs in the computing infrastructure providers, data processing, web hosting, and related services, with employment in this industry projected to grow by 19.5% from 2023 to 2033 | |
| Almost half of developers (43%) reported there were small-scale or mass layoffs in companies they worked for in the past two years. However, only 11% claim to be insecure to some extent about losing their job | |
| 46% of software developers state that it’s somewhat or very challenging to get a job in their city or area | |
| The United States is the highest paying country for developers, with the median salary of $144,000. Other top-paying countries include the United Kingdom ($82,200), Canada ($80,100), and Germany ($75,200) | |
| 36.4% of developers earn between $50,001 and $200,000 per year, which highlights strong earning potential in the software development industry. Another 30.5% fall within the $10,001 to $50,000 range, representing a solid middle-income group. A smaller segment (7.9%) makes over $200,000 annually, reflecting the high-value IT roles. This diversity in compensation underscores the variety of career paths and opportunities within the developer community |
Build your software solution with Itransition’s experts
Software development methodologies & practices
The majority of organizations prefer Agile frameworks to other software development methodologies, although sequential methods prevail in certain contexts where preliminary planning is essential or iterative software releases are impractical.
| 71% of companies use Agile practices in their software development lifecycle (SDLC), with engineering/R&D being the fastest growing adopters of Agile | |
|---|---|
| 63% of Agile users prefer Scrum, making it the most popular team-level methodology. The Scaled Agile Framework (SAFe) remains the most preferred option at the enterprise level (26%), while 22% of enterprises report not following any mandatory framework | |
| 68% of companies report increased employee satisfaction as a result of their organization implementing SAFe for project management | |
| 42% of organizations say they use a hybrid SDLC model that encompasses Agile, DevOps, or other options | |
| Developers think that those who use generative AI coding tools to automate parts of their workflow can and should focus more on important collaborative tasks like security reviews (45%), planning (43%), and pair programming (43%) |
Current software development challenges
In 2025, organizations face a set of challenges, with security recognized as the most pressing concern among tech leaders. At the same time, talent shortages, especially in AI and cybersecurity-related roles, are putting additional strain on organizations.
| More than half of tech leaders (51%) have identified security as the biggest software development challenge for 2025. Companies also see the reliability of AI-generated code (45%), incorporation of AI into the development process (44%), and ensuring data privacy (41%) as top concerns | |
|---|---|
| One of the challenges that technology companies face in 2025 is the talent shortage, with respondents finding it difficult to fill in the roles of AI specialists (28%), IT security engineers (16%), and cybersecurity engineers (13%) | |
| Cybersecurity was named one of the major concerns (48%) across organizations, triggered by the rapid digitization of business processes, rising threat of ransomware attacks, and AI-driven cyber risks |
Our software development services
Itransition, a software engineering company with 25+ years of experience, keeps abreast of the latest trends in the IT industry to help businesses adopt suitable technologies and drive innovation, operational efficiency, and long-term competitive advantage.
Custom software development
Itransition delivers secure and high-performing solutions designed to support your unique business workflows and fit seamlessly into your IT environment.
Software product development
We build high-quality commercial software that effectively addresses the needs of your target industry and provides value to customers while delivering excellent user experiences.
SaaS development
Our team develops scalable, resilient SaaS platforms to help you provide on-demand access to your software product or services, establish a consistent revenue stream, and stand out among competitors.
Bring your software project to life with a trusted tech provider
Today, organizations feel the pressing need to adopt the latest technological advancements to stay competitive. However, they often struggle to confidently approach software development projects given the complexity and ever-changing nature of today’s technology environment as well as economic uncertainties. Collaborating with a reliable software development partner can offer the expertise and strategic guidance needed to foster innovation while effectively navigating potential challenges and ensuring successful software project outcomes.
Related cases
Service
Application Services
With 20+ years of software development experience, Itransition provides end-to-end app services to enterprises and SMBs. Get a quote now.
Service
IT Consulting Services. Software Consulting
Our technology consultants help enterprises across industries adopt the right software to achieve their business goals. Contact us to discuss your project.
Service
Dedicated Software Development Teams
Itransition provides professional dedicated development team services to help you successfully implement your IT project with optimal costs and high efficiency.
Service
Itransition: Software Development Outsourcing Company
Boost your software development capacity and speed up project delivery with Itransition, a leading software engineering company with 25+ years in business.
Service
DevOps Сonsulting Services
Go for DevOps-as-a-Service with Itransition. We provide full-cycle DevOps automation to help you adapt business processes and resources.
Insights
Software Development Risks: Types & Mitigation Strategies
Learn the common risks that can hamper successful completion of software engineering projects and the strategies companies can use to minimize them.