Top Software Development Metrics to Consider for 2024

In today’s fast-paced business world, companies are increasingly turning to technology as a lifeline. A whopping 63% of Forbes Global 2000 CEOs believe that software development and digital innovation are crucial for future success. The rapid growth of AI, machine learning, and data science is fueling digital transformation efforts through innovative software solutions.

To help you make sense of this evolving landscape, we’ve compiled essential software development statistics for 2025. By understanding these trends, you can make smart choices about innovative software solutions that can boost your business growth.

Key Software Development Industry Insights

• Global IT spending is set to hit $5 trillion in 2024, up nearly 8% from 2023.
• The custom software development market is expected to grow at a CAGR of 22.5% (2024-2030), reaching $146.18 billion.
• There are over 26.3 million software developers worldwide, according to Evans Data Corporation.
• The global shortage of full-time software developers is predicted to jump from 1.4 million in 2021 to 4.0 million by 2025.
• This shortage may lead to higher salaries, with U.S. computer programmers earning a median of $130,160 yearly or $62.58 hourly.
• Companies investing in software development have seen an average 20% revenue growth.
• Software development projects typically cost between $15,000 to $100,000 or more, depending on complexity and other factors.
• 84.7% of software development projects are for enterprise applications.
• 53.6% of software development projects focus on business automation.
• 38.5% of software development projects are in the retail & e-commerce sector.

Software Development Market Growth and Projections

Curious about the size of the software development services’ market? Or the global software industry market? Let’s dive into the current market scenarios and future growth expectations:

• According to Statista, the global software development market was valued at about $659.01 billion in 2023 and is expected to exceed $898 billion by 2029.
• The global software development industry is projected to grow at a CAGR of 26.67% from 2024 to 2029.

These statistics highlight the rapid growth and increasing importance of software development across various industries. As businesses continue to digitize and automate their operations, the demand for skilled software developers and innovative solutions is set to soar. By staying informed about these trends, you can position your business to take advantage of the opportunities presented by the evolving software development landscape.

The software industry continues to grow at a rapid pace. Here are some key stats:

• Enterprise software market expected to reach $401.60 billion by 2029, growing at 6.35% CAGR from 2024-2029.
• Companies spend about $83 per employee on enterprise software in 2024.
• Software development makes up 64% of outsourced IT services.
• India is the top choice for 80% of US and European firms outsourcing IT work.
• Half of Fortune 500 companies outsource software projects to Indian IT firms.
• South Korea, USA, Germany, Japan and UK are leaders in adopting software solutions.

Why Invest in Business Software Development?

In today’s competitive landscape, software is essential for streamlining operations and boosting revenue. Let’s look at how businesses benefit from software development:

• 36% of companies use business process software for automation.
• 29% plan to implement automation software within 3 years.
• Software can reduce medical errors, which cause over 250,000 deaths yearly in the US.
• 25% of businesses saw accelerated growth after buying software; 58% had standard growth.
• 75% of fast-growing companies will increase software spending in 2024, up from 60% in 2023.
• 83% of firms now use custom software, up from 62% in 2018.
• Custom software can save 30-50% long-term vs. recurring license fees.
• 74% of businesses using CRM report stronger customer relationships.
• 70% of large companies use ERP software; 53% see positive ROI.
• 73% of warehouses plan to adopt mobile inventory management solutions.

Software Development Trends by Technology

Different technologies are shaping the software development landscape:

• AI market in software development to reach $126 billion by 2025.
• 63% of businesses using AI report increased productivity.
• 80% of enterprises have AI projects in production.
• Machine learning market to hit $117 billion by 2027, growing at 39% CAGR.
• 85% of businesses see big data as a game-changer.
• Cloud computing market to reach $1,554 billion by 2030, growing at 15.7% CAGR.
• 94% of enterprises use cloud services.
• IoT software market to reach $528 billion by 2027.
• 35% of manufacturers use IoT data to optimize operations.
• Blockchain in software development market to hit $469 million by 2025.

These statistics highlight the growing importance of software across industries. As businesses continue to digitize, demand for innovative software solutions will only increase. Staying informed about these trends can help you make smart decisions about leveraging software to drive growth and stay competitive in the digital age.

Choosing the Right Tech Stack for Software Development

Wondering which technologies are best for software development in today’s rapidly evolving landscape? Let’s explore some key trends and statistics to help guide your decision-making:

Cloud Computing: Enabling Flexibility and Efficiency

Cloud computing has become essential for modern software solutions:

• The global cloud computing market is projected to exceed $1.26 trillion by 2028, growing at a 15.1% CAGR (Markets and Markets).
• Gartner predicts that by 2025, over 95% of digital workloads will run on cloud-native platforms, up 30% from 2021.
• Cloud computing can boost app development and maintenance productivity by 38%, while reducing infrastructure costs by 29% (McKinsey).
• Fortune 500 companies have increased their cloud-based applications from 10% to 60%, generating $56 billion in development and maintenance revenue.
• Implementing resilient cloud infrastructure can cut downtime by 57% and reduce breach-related costs by 26%.

AI/ML and Automation: Powering Smart Solutions

Artificial intelligence, machine learning, and automation are revolutionizing software development:

• The AI market in software development is expected to reach $126 billion by 2025.
• 63% of businesses using AI report increased productivity.
• 80% of enterprises now have AI projects in production.
• The machine learning market is projected to hit $117 billion by 2027, growing at a 39% CAGR.
• 85% of businesses view big data as a game-changer for their operations.

These statistics highlight the growing importance of cloud computing, AI, and automation in software development. As user demands for smart, innovative, and flexible solutions continue to rise, incorporating these technologies into your development stack can provide significant advantages.

When choosing a tech stack, consider factors like:

• Scalability and performance requirements
• Development team expertise
• Integration capabilities with existing systems
• Long-term maintenance and support needs
• Cost considerations

By staying informed about these trends and carefully evaluating your specific needs, you can select the most appropriate technologies to drive your software development projects forward and meet the evolving demands of your users.

AI and Data Analytics for Business Growth

As we continue exploring key trends in software development, let’s dive into the transformative power of AI and data analytics:

AI Software: A Booming Market

The AI software market is experiencing explosive growth:

• Gartner forecasts global AI software spending to reach $297.9 billion by 2027, growing at a 19.1% CAGR over 5 years.
• Generative AI (GenAI) is expected to account for 35% of AI software spending by 2027, up from 8% in 2023.
• By 2026, an estimated 70% of independent software vendors will incorporate GenAI into their enterprise applications.
• Overall AI software growth is projected at 20.4% by 2027.

Business Process Automation: Driving Efficiency

Automation continues to revolutionize business operations:

• Cloud-based Business Process Automation (BPA) software is set to reach $41.8 billion by 2023, growing at an 11.8% CAGR.
• 36% of organizations globally already use business process management software for workflow automation, with 50% of leaders planning to implement it soon.
• 31% of businesses favor automation software for its potential labor cost savings.

Data Analytics: Unlocking Business Potential

Integrating data analytics into software ecosystems offers significant advantages:

• Organizations leveraging data analytics are 23 times more likely to acquire customers, 6 times more likely to retain them, and 19 times more profitable than those without it.
• Over 40% of businesses worldwide are harnessing the power of big data analytics.
• Big data analytics can improve strategic decision-making by 69%, optimize operational processes by 54%, enhance customer understanding by 52%, and increase cost efficiency by 47%.

Choosing the Right Development Methodology

When it comes to software development approaches, businesses often face a dilemma. However, many now prefer agile methodologies and DevOps for their numerous benefits.

It’s important to note that while agile and DevOps share some similarities, they are distinct approaches. Understanding their differences can help you choose the best fit for your projects.

By incorporating AI, automation, and data analytics into your software development strategy, you can unlock new levels of efficiency, innovation, and customer satisfaction. These technologies offer powerful tools to streamline processes, gain valuable insights, and create more intelligent, responsive solutions.

As you evaluate your software development needs, consider how these emerging technologies and methodologies can be integrated into your existing ecosystem. By staying ahead of these trends, you’ll be better positioned to meet the evolving demands of your users and maintain a competitive edge in the rapidly changing digital landscape.

Agile and DevOps: Transforming Software Development

As we delve deeper into software development trends, let’s explore the impact of Agile methodologies and DevOps practices:

Agile Methodologies: Boosting Productivity and Quality

Agile approaches have become increasingly popular among businesses:

• Nearly two-thirds (64%) of companies have adopted Agile methodologies to enhance software delivery and manage shifting priorities.
• 60% of businesses using Agile have seen improvements in team productivity and revenue growth.
• Over half (52%) of customer-focused companies use Agile to boost software quality.
• 51% of organizations leveraging Agile have experienced better delivery predictability.
• 45% of companies report improved software quality through Agile practices.
• 42% of businesses prioritizing Agile have realized some cost savings in development.
• When choosing development methodologies, 71% of businesses prefer Agile over the waterfall model.

DevOps: Driving Competitive Advantage

DevOps practices are becoming essential for modern software development:

• A whopping 86% of organizations worldwide consider DevOps crucial for gaining a competitive edge.
• DevOps engineers spend 54% of their time on code observability, monitoring, and security.
• Over 80% of organizations actively practice DevOps, with adoption expected to reach 94% in coming years.
• High-performing organizations can achieve a 2,555-times boost in deployment efficiency using DevOps practices.

Programming Languages: Staying Current with Trends

To create innovative software solutions that resonate with users, it’s crucial to stay informed about leading programming language trends. Here are some key statistics to consider:

By understanding these trends in Agile methodologies, DevOps practices, and programming languages, you can make informed decisions about your software development strategy. These approaches can help you improve productivity, quality, and efficiency while staying competitive in the rapidly evolving tech landscape.

Programming Languages and Technologies: Shaping the Development Landscape

Let’s explore the current trends in programming languages and technologies that are driving software development:

JavaScript: The Dominant Force

JavaScript continues to reign supreme in the programming world:

• Even decades after its creation, JavaScript remains the most popular language among developers, with a 63.61% preference rate according to the Stack Overflow Survey.
• In front-end development, HTML/CSS still forms the foundation, used by 52.97% of developers.

Backend and Database Technologies

The backend landscape is evolving:

• Python leads in backend and modern-edge applications, preferred by 49.28% of software engineers.
• For database query languages, PostgreSQL tops the list with a 45.55% preference rate.
• Following PostgreSQL are MySQL (41.09%), SQLite (30.9%), and MongoDB (25.52%).

Cloud Computing Platforms

Cloud technologies continue to shape the industry:

• AWS maintains its lead, used by 48.62% of cloud engineers.
• Microsoft Azure (26.03%) and Google Cloud (23.86%) follow in popularity.

Web Frameworks

The competition in web frameworks is heating up:

• Node.js has surpassed React, now preferred by 42.65% of developers.
• React follows closely with a 40.58% preference rate.
• It’s worth noting that Node.js is used for backend development, while React is for front-end applications.

By staying informed about these trends in programming languages and technologies, you can make strategic decisions about your tech stack and development approach. This knowledge can help you build more efficient, scalable, and innovative software solutions that meet the evolving needs of users and businesses alike.

Software Development Landscape: A Global Perspective

The software development industry continues to grow and evolve. Let’s dive into some key statistics that paint a picture of the current state of the field:

Global Developer Population

• Evans Data Corporation reports approximately 26.3 million software developers worldwide.
• Statista predicts this number may exceed 28.7 million in the coming years.

Developer Demographics and Work Environments

• Gender distribution: About 75% of developers are male, while 23% are female.
• Operating systems: 61% use Windows, 45% Unix/Linux, and 46% macOS for development.
• Work arrangements (Stack Overflow Survey):
  • 41.41% work remotely
  • 42.18% in hybrid setups
  • 16.41% fully office-based
• Employment status in the U.S.:
  • 69.28% full-time employed
  • 15.91% contractors, freelancers, or self-employed
  • Others: students, unemployed, part-time, retired, or not seeking work
• Similar trends in Germany and India, with slight variations in percentages.
• 59% of remote developers report higher productivity compared to office-based or hybrid work.

Industry-Specific Software Development Trends

Different industries have unique software development needs and trends. Understanding these can help businesses maximize the benefits of software in their specific sectors. Let’s explore some key statistics across various industries:

Healthcare Software Development

The healthcare industry is experiencing a digital transformation, with software playing a crucial role in improving patient care, streamlining operations, and advancing medical research.

The healthcare industry’s digital transformation continues to accelerate, with several key trends shaping the landscape:

• The global telemedicine market, valued at $130.5 billion, is projected to reach $503.8 billion by 2032, growing at a CAGR of 16.4% from 2024 to 2032.
• Electronic Health Records (EHR) software systems are also on the rise, with the market expected to grow at a 4.43% CAGR, reaching $43.36 billion by 2030 from $32.23 billion in 2023.
• AI in healthcare is experiencing explosive growth, with the software segment expected to expand from $11.7 billion to $281.2 billion by 2032, at a 39.2% CAGR (2024-2032). The drug discovery software segment alone accounts for 28.1% of this market.
• Generative AI is gaining traction, with EY reporting that 48% of healthcare and pharma companies plan to invest in GenAI solutions by 2025.
• AI has the potential to address the high failure rate in clinical drug development, which currently stands at around 90%.
• AI-powered healthcare software solutions can improve various aspects of the industry, including clinical trial design, quality control, drug discovery, and pharmaceutical product development.
• In drug discovery, AI solutions can potentially reduce time and costs by 25-50%.

Banking & Finance Software Development Statistics

The financial sector is also embracing technological advancements, with software playing a crucial role in transforming banking and finance operations. Let’s explore some key trends in this industry:

The fintech industry is poised for remarkable growth, with projections indicating it will join the ranks of trillion-dollar industries. By 2030, the market cap is expected to reach $1.5 trillion, according to BCG. Currently, fintech accounts for only 2% of the global financial services revenue, but this share could increase to 7% by 2030, potentially impacting 25% of banking valuations.

NeoBanks are set to play a crucial role in expanding financial access. The global neobanking market is forecasted to generate $364.6 billion in revenue by 2026, growing at a CAGR of 46.5%.

Mobile banking is another area of significant growth. The market size is projected to exceed $3.19 billion by 2031, up from $1.13 billion in 2022, with a CAGR of 12.2%.

Digital payment applications are gaining traction, with Statista estimating the global user base to surpass 4,805 million by 2028. This trend highlights the potential for investment in digital payment app development.

Retail & Ecommerce Software Development Statistics

As we shift our focus to the retail and ecommerce sector, we’ll explore how software development is reshaping the landscape of online shopping and consumer experiences.

The global eCommerce software market is on an upward trajectory. Statista projects its revenue to hit $9.75 billion by 2029, growing at a CAGR of 3.85% from 2024 to 2029. In the U.S. alone, retail and eCommerce software solutions generated $4,364 million in revenue in 2024.

Retail management systems software is also seeing significant growth. Verified Market Research reports its value at $2.73 billion, with expectations to reach $6.8 billion by 2031, growing at a CAGR of 12.06% from 2024 to 2031.

Turkey leads the global e-commerce development and sales segment with a CAGR of 11.58%, closely followed by Brazil (11.56%) and India (11.45%). This trend suggests potential investment opportunities in eCommerce marketplaces for countries like Mexico, Russia, Argentina, and Canada.

AI and ML implementation in retail businesses has shown a marked impact on revenue growth. In 2023 and 2024, businesses using AI/ML saw an 8.1% increase in revenue, compared to just 3.1% for those without these technologies.

Supply Chain & Logistics Software Development Statistics

The supply chain management software market is experiencing steady growth. Projections indicate a CAGR of 4.13%, with the market expected to reach $24.65 billion by 2029. Similarly, the logistics software market is set to expand, potentially hitting $22.3 billion by 2032 at an 8% CAGR.

McKinsey reports that 43% of supply chain businesses have digitized their operations, potentially boosting their annual revenue growth by 2.3%. Companies using data-driven software solutions can improve inventory management by 20% and productivity by 20-30%.

Warehouses, integral to supply chains and logistics, also benefit from specialized software. The warehouse management system market is forecasted to grow to $13.34 billion by 2030, with a CAGR of 19.5% according to Grand View Report. AI adoption in supply chain operations is also on the rise, with an expected adoption rate of 38% by 2025.

Software Development Challenges

Developers face various hurdles in their work. About 68% report unexpected challenges in nearly half of their projects. Rapid development strategies pose difficulties for 49% of developers, while 57% struggle with unclear requirements from clients or project management teams.

Last-minute changes are a major cause of delays, affecting 55% of projects. Remote work arrangements have led to collaboration issues for 50% of development teams. Choosing the right technology and tools is a challenge for 52% of associates. Additionally, 13% of businesses find it difficult to hire software developers that meet their specific needs.

Future Possibilities in Software Development

These statistics highlight the growing importance of software in supply chain management and logistics, as well as the challenges faced by developers. As businesses continue to digitize their operations, the demand for effective software solutions is likely to increase, presenting both opportunities and challenges for the industry.

According to Statista, the enterprise software market is set to reach $344.4 billion in revenue by 2027. Application development software is expected to hit $217 billion, system infrastructure software $156.4 billion, and productivity software $88.44 billion in the same timeframe.

The global AI software development market is projected to grow at a CAGR of 22.97%, reaching $1094.52 billion by 2032.

Spending on Generative AI in software development is forecasted to surge from $41 billion in 2023 to $287.4 billion by 2033, with a CAGR of 21.5%.

Wrapping Up

The software development field is in constant flux, driven by tech advancements, market shifts, and rising user expectations. These statistics paint a clear picture of current trends, challenges, and opportunities in the industry.

From AI and machine learning to cybersecurity and the need for flexible, scalable solutions, businesses must stay informed and adaptable to succeed in this tech-driven competitive landscape.