4 Major Software Development Trends in 2021

Did you know, according to reports by Insightpartners.com, it is estimated that the engineering software market will grow to USD 44.54 billion by 2025 from USD 25.60 billion in 2017, at a CAGR of 7.2% (2017-2025.)

The above statistics are an answer enough that despite the pandemic, the software development industry is on the verge of a massive breakthrough. 

Technology and innovation are the only two intersecting parallels. The parallels have expanded exponentially in the past few years or instead due to the Covid-19 as well. The shift in terms of technology and innovation has been like seismic waves; unpredictable.

As Newton’s 3rd law of motion states, “ For every action, there is an equal and opposite reaction.” Even though not motion, Newton’s third law has found generic application as well. Following the law, the world is pushing to innovate more and make the world more technologically driven. 2020 saw an expansion in the software development industry, and in 2021, experts claim that the industry could reach the apex. 

To begin with, is expected to be a year where major software development trends could be observed.

1. Artificial Intelligence

AI or Artificial Intelligence is one such concept that has kept many mathematicians, scientists, and philosophers interested since the 1950s. Alan Turing is known as the father of artificial intelligence. In his paper (approximately 70 years ago) “Computing Machinery and Intelligence,” Alan Turing reasoned the concept of machine intelligence and how machines could replicate human behavior and can compete with human intelligence.


What is artificial intelligence?

According to the official definition of AI by AILabs, “The design and development of computer systems that have the knowledge and skills required to perform the tasks which usually require human intelligence to undertake.”


Since the 1950s, progressive thought was sown in terms of technological advancement, which has been reaping results now for AI. In the year 2020, some significant advances in artificial intelligence have been spotted, such as OpenAI introduced GPT-3, DeepMind by Google released AlphaFold 2.

What can we expect in 2021?

2021 could be the year where software development trends see a breakthrough.
Some of the trends are

  • Hyperautomation:
    Hyperautomation is a combination of robotic process automation combined with artificial intelligence. Hyeperautomation is estimated to be the next wave in the software development trends in 2021.
  • AI-powered Chips:
    Artificial Intelligence-powered chips are the new trend that is likely to boom in 2021. AI runs on graphical chips which have a high capacity for parallel processing. AI chips have a much larger degree than CPU’s which is why AI-powered chips are on the verge of a sudden boom.
  • AI and Healthcare:
    AI is expected to expedite the healthcare sector and is likely to play a critical role in fighting Covid-19. The AI sector will likely develop the areas such as vaccine development, thermal screening, pandemic detection, and so on.

2. Blockchain

Blockchain is one such software development trend in 2021 that was first described in 1991 by Stuart Haber and W Scott Stornetta. But the term “Blockchain” only found relevance in 2008 when a person under the pseudonym name Satoshi Nakamoto released Bitcoin’s (cryptocurrency) Blockchain whitepaper.

Even though, mainly Bitcoin and Blockchain are two such terms that are used interchangeably by a layman. But both the terms are pretty distinct. Bitcoin is a cryptocurrency, whereas Blockchain is a technology.

Let us understand,

What is Blockchain?

So, Blockchain can be defined as a specific type of database. But it differs from the database in terms of storing information.
A blockchain is decentralized and immutable, meaning no single authority can control the whole system, and the data once entered into the Blockchain cannot be reversed.


The information in a Blockchain gets stored in the blocks, which are chained together. As soon as new data enters the block, a new block is formed, and once the block is completely filled, it gets chained to the previous block in a chronological pattern. This creates a blockchain.

What can we expect in 2021?

Software development trends in 2021 will try to put Blockchain on an explosive pedestal. In 2020, Blockchain technology grew manifolds due to cryptocurrency, and the main contributors to this are Bitcoin and Ethereum.

According to GlobeNewswire, “The Blockchain Supply Chain Market is expected to grow at a CAGR of 81.7% over the forecast period 2021 to 2026.”

In 2021, Blockchain technology is expected to be used more as a Smart contract mechanism. Other than that, Blockchains like Ethereum are likely to put code into the block.

3. Cloud Technologies

Cloud Technology is neither a new technology nor an old one. The overall concept of Cloud technology was started in 1999, approximately 30 years after the World Wide Web (WWW) was launched.

In 1999, Salesforce.com and Google were the initiators of Cloud Computing website services. Cloud Computing is a technology that is directly tied up with the development of the internet and business technology.

Let us get to know first,

What is are cloud technologies?

Cloud Computing is a virtual space that is available on-demand on the internet. Technically, Cloud Computing is delivering different types of computing services – from applications to storage and processing power.

Cloud storage

Cloud Technology resources have multiple tools and applications like data storage, servers, databases, networking, and software. Businesses can employ cloud technologies in various ways. Usually, businesses use a hybrid model, which includes using some data and applications on the private server while others on the Cloud.

What can we expect in 2021?

Albeit some industries, many industries suffered the side-effects of Covid-19. But cloud technology was one such industry that saw a pattern of growth in 2020 and is likely to continue an upward trend even in 2021.

  • In 2021, cloud computing is aiming towards centralized infrastructure. This means that there is a need for upscale in Cloud and a need for down-scale. That is to say, when industries like tourism experience a drop of more than 70%, they still have to maintain expensive data centers, which is why down-scaling in cloud computing is predicted. Cloud Migration will likely be a software development trend in 2021, which is also likely to generate massive demand for Cloud-Native Engineers in 2021.
  • A multi-cloud initiative has also been initiated and is likely to grip the software development trend in 2021.

4. Internet of Things (IoT)

The term “Internet of Things (IoT)” was coined by Kevin Ashton in 1999. Before 1999, IoT had various names such as “embedded internet” or “pervasive computing.” The principal concept of the Internet of Things (IoT) picked up steam in 2010.

 The Internet of Things evolved into a system that used multiple technologies by the year 2013. This ranged from the internet to wireless communication, from micro-electromechanical systems (MEMS) to embedded systems.

Now, let us take a glance at

What is the Internet of Things (IoT)?

The IoT or Internet of Things is such a system that follows the system of interrelatedness and interconnectedness. In this system, objects in real-time are connected to the internet, collecting and transferring data over a wireless connection and without human interference.

Innovative technology

What can we expect in 2021?

In 2021, the Internet of Things (IoT) is likely to expand and experience a boom, and experts also estimate that software developers can work majorly on the integration of IoT in 2021. According to a report, “The IoT market is on pace to grow to over $2.4 trillion annually by 2027.”

Some significant trends that we can observe in 2021 pertaining to IoT are:

  • IoT for WFH (work-from-home) and teams: WFH became a sudden phenomenon in 2020, changing the professional culture and dynamics. A lot of research and steps have been started towards integrating IoT with WFH for teams.
  • IoT for Healthcare: “Internet of things (IoT) applications to fight against COVID-19 pandemic” is a case study that shows that the main aim of IoT in 2021 is to help the patients who are affected by Covid-19 and also to help the public in identifying symptoms and provide better treatment rapidly.

Final Word

Multiple software development trends are being predicted in 2021, but these software trends are likely to be the market’s hottest. These four software development trends will likely open avenues for software developers. It remains to see how technology and innovation can lead to evolution and revolution from this point on.

We can place a lot of hope on these trends to build our organization’s future!

At eNest, we help businesses innovate and evolve with the popular software inclinations. We can create customized and result-oriented software products. These can be your competitive advantage regardless of the type and scope of the industry you are in.

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