Software Development Trends in 2022

The rapid digitization that began in 2020 will continue in 2022. We are seeing more investment in automation of repetitive processes, providing multichannel customer experience; stronger focus on privacy, and greater adoption of new technologies across all sectors.

When building a digital solution, business owners must be well-informed on where the software industry is heading and strategize accordingly. Here are the key software development trends in 2022 that business owners need to keep their eye on as they plan for a new product.

Rapid Growth of the IT Sector

Although the IT industry was affected by the COVID-19 pandemic, which resulted in project delays and investment reductions, it managed to maintain its strong position compared to other industries.

Every firm is gradually becoming a software business. As the digital transformation accelerates, software will dramatically transform what companies do, how they do it, and what services they deliver to their clients. As a result, software development is becoming a game-changer for many organizations, if not a strategic imperative.

According to data from the consulting company Bain & Company, technology has driven worldwide economic growth. “Born tech” firms, which include technology as a core component of their identity, have seen the most growth. Since 2015, these companies have generated 52% of overall market value growth. Companies with a tech-led approach that augments more traditional methods accounted for another 20% of market value growth.

Opportunities for Low-Code Development

Another rising trend in software development is low-code development. Low-code platforms are becoming increasingly popular as the demand for building apps quickly and easily is growing. Essentially, anyone with a basic knowledge of programming can now try to create their own apps.

Low-code solutions are popular because they allow developers to speed up the development process. What is more, low-code development has become a popular option because the demand for software developers exceeds the available supply. However, low-code development is not a reliable long-term solution because the software built this way isn’t robust enough to handle your business’s changing requirements.

Nevertheless, with the world still battling with the pandemic and a strong need for software developers, you can expect low-code development to play a significant role in 2022.

Outsourcing Demand Will Continue to Grow

By 2022, the worldwide software industry is expected to reach $536.24 billion, with the offshore software development services market growing at a CAGR of 11.72%.

Many businesses are discovering that they lack the resources necessary to keep up with the industry’s ever-changing needs. Due to the difficulties to find talented IT specialists in the local market, businesses turn to custom software development companies for highly skilled specialists outside their area (either nearshore or offshore).

Outsourced teams can do a variety of tasks, including coding, testing, and product management and are competent in a variety of programming languages. Delegating software development to professionals from IT companies is on the rise and will become even more popular in 2022.

The growing demand for IT outsourcing can be explained by the companies’ need for fast and cost-effective adoption of innovations.

Besides fulfilling those needs, outsourcing helps companies to gain access to the most skilled specialists while remaining focused on their core competencies.

Since management tools are constantly improving, it is becoming easier to establish an efficient workflow and productive relationships between in-house and outsourced employees.

New Era of Cloud Computing

Migrating to the cloud isn’t a new software trend – it’s been around for a while. Regardless of the size and purpose, more and more organizations are switching to cloud computing, and this trend isn’t going away anytime soon.

According to Statista, the global public cloud computing market is estimated to exceed $482 billion next year.

Cloud migration has a wide range of applications. Machine learning and artificial intelligence, data analytics, web and mobile app migration, and other uses are all covered.

Most businesses choose to place their applications and systems in the cloud due to their easier maintenance and storage. It has also become a great facilitator for remote work. Companies managed to create working environments with the help of cloud services and tools and establish effective team collaboration.

SaaS, IaaS, and PaaS solutions are becoming more in demand as they are easier to adopt and roll out as well as they help cut down the expenses, which is particularly important in post-crisis times.

The Rise of E-Commerce Software

While most of the businesses were facing difficult economic times in 2021, the e-commerce market was at its height due to the COVID-19 pandemic. Many companies shifted to online retail and delivery services as it was the only possibility of safe shopping during the lockdown.

Nevertheless, the e-commerce sphere will continue developing after the pandemic. Statista states that businesses will keep with the trend and by 2023 the e-commerce market is expected to grow up to 22%, in comparison with 14.1% in 2019.

E-commerce applications have proved to be a great enhancement to customer experience and a significant push to the automation of business processes during the pandemic. Companies will continue to implement e-commerce digital solutions, making them more appealing to customers.

Continued Growth in Artificial Intelligence and Machine Learning

These disruptive technologies have the potential to change every industry by supporting organizations in accomplishing their business goals, making critical decisions, and generating innovative products and services.

Here are just some of the examples:

• Healthcare: assisting doctors in making diagnoses and prescribing treatment
• Logistics: vehicle management, drivers’ behavior analysis
• Education: automatized and fair grading
• E-commerce: better customer service empowered by chatbots
• Smart home: analyzing energy consumption
• Logistics: autonomous vehicles and route optimization
• Other: accelerating and smoothing processes, more accurate predictions

AI and ML allow delegating a wide range of tasks that are usually performed by people to computers which can resolve those tasks faster, more effectively, and eliminate mistakes.

By 2027, the AI/ML sector is expected to grow at a CAGR of 33%. According to estimates, by 2022, companies will have implemented at least 35 AI initiatives in their operations.

More IoT-Based Solutions

With the proliferation of smart devices, everything will soon become a part of IoT. According to Gartner, 61% of businesses have reached a high level of IoT maturity, and the hype surrounding this technology shows no signs of abating. This makes IoT some of the highest trending software development technologies.

The opportunities IoT has for businesses are significant: predictive equipment and facilities maintenance, real-time vehicle and cargo tracking as well as real-time patients’ health condition monitoring, enhanced property security, smart energy consumption, and many more. This technology is best represented in such industries as healthcare, logistics, public sector, manufacturing, hospitality, etc.

IoT is not a big thing; rather, it is a large number of small things that have the potential to greatly impact businesses and provide a competitive advantage in a short period of time. This is one of the most promising technologies these days, and its full potential will only be exploited in the future.

Blockchain-Empowered Security

The more processes depend on technologies, the higher the risks of any vulnerability. So, along with the number of software solutions, there grows a need for strong security. The best technology to protect systems and data is the blockchain that is why it will be widely used to develop secure and reliable software in healthcare, government, banking, gambling, logistics, and other industries.

Except for enhancing security, the blockchain solutions provide transparency of all the operations as well as introduce smart contracts to automate processes and improve trust between partners.

PWA Gaining Popularity

Progressive web applications have been around for quite some time due to their native app-like user experience. PWAs can be accessed from any browser and run on any device. Furthermore, PWAs are lightweight and provide easy access to web pages.

PWAs are a cost-effective approach for organizations to create a cross-platform mobile app without having to hire developers that specialize in native app development. Being a perfect option for an app with simple functionality, PWA also can be used for testing more sophisticated app ideas as an MVP (minimum viable product).

According to Statista, in 2021, 9% of e-commerce businesses invested in PWAs. Furthermore, 8% of e-commerce firms have already embraced PWA.

Cybersecurity Requires A Different Strategy

While it is critical to take digitization seriously, it is also crucial that businesses take cyber security seriously. The costs of random cybercriminal attacks are projected to rise dramatically in the coming years.

Cyber security attackers are operating with smarter techniques and traditional measures are no longer enough to safeguard companies against ransomware attacks. As a result, there should be more strategies to address security concerns.

Robotics Will Become More Prevalent

Robotics is predicted to become more prevalent in everyday life by 2022.

The healthcare, agricultural, automotive, warehousing, and supply-chain management industries will all benefit from robotics-based automation which will continue to advance.

For robotics companies in the logistics and retail industries, the COVID-19 pandemic poses both challenges and opportunities. Supply chain inefficiencies have been highlighted as a result of unexpected strains on supply systems and product shortages. It’s also clear that robots and automation give manufacturers a safe way to keep the business running.

Robotic process automation (RPA) facilitates the automation of activities that are performed repeatedly. In 2022, RPA is expected to expand and become a standard business technology. RPA is being used by chief information officers to relieve staff from monotonous, repetitive tasks and allow them to conduct more rewarding work.

Finally, nanorobotics, which are small sensors with limited processing power, are becoming more popular. Nanomedicine may be one of the earliest applications of these nanotechnologies. For example, biological machines are used to identify and destroy cancer cells or deliver drugs.

Looking Ahead

The ongoing COVID-19 pandemic has driven businesses to look beyond their established business models and adopt new digital strategies.

Every software trend has a developer behind it, working around the clock to improve customer experience.

If you have an idea for a current or new project in mind, contact our team. We will take a look at your business model, market, audience, and come up with the optimal tech stack that meets your needs.