5 application development trends to watch in 2025 and 2026

People in an office looking at computers

Authors

Mesh Flinders

Staff Writer

IBM Think

Ian Smalley

Staff Editor

IBM Think

As organizations start to look back on 2025 and plan for what’s ahead in 2026, it’s a good time to consider the trends that have had the most impact. It’s also a good time to consider what they might mean for the future.

In terms of digital transformation, the strategic application of digital technology across all levels of an organization, it’s hard to imagine a more critical component than application development (app dev).  

From a scrappy startup looking to build a new mobile app to a Fortune 500 company that needs to replace legacy workflows with new frameworks and automation tools, app development is central to the success or failure of digital transformation initiatives. Businesses that have success at application development can effectively streamline workflows, improve user experiences and gain a competitive edge.

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What is application development?

Application development is the process of building, testing and deploying software applications for businesses, mobile devices or the web—a process known as the application lifecycle. With the rise of the internet and the spread of mobile devices, remote work and cloud computing, app dev has become a core capability of most successful digital businesses.

App dev is closely related to DevOps, a method of software development that speeds the delivery of applications through automation, and closely follows the application lifecycle.

Stages of the application lifecycle

The following steps comprise the app dev lifecycle:

  1. Planning and requirements: Business units and engineers meet to discuss what an application needs to do and determine the scope of the project.
  2. Design: DevOps team members translate the requirements into a detailed plan for the application, including the user interface (UI) and user experience (UX).
  3. Development: Engineers write software code for the app based on the specifications laid out in the design phase.
  4. Testing: The app is tested to see whether it meets the performance and security standards of the business and to ensure that it is properly debugged before release.
  5. Deployment: The app is released to a production environment where employees or customers can use it.   
  6. Monitoring and maintenance: The app is constantly monitored and updated for performance issues and to ensure compatibility with new devices or technologies.
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Trends in application development

App development has accelerated rapidly alongside some of the most promising technological advancements of the new century, including mobile devices, cloud computing and the spread of 5G networks.

Today, newer technologies like generative AI (gen AI) and machine learning (ML) are transforming how development teams build, test and deploy apps. Here’s a look at some of the biggest trends in app dev and how they’re transforming software development.

1. The integration of artificial intelligence and machine learning

One of the latest development trends to impact application development has been the push to integrate artificial intelligence (AI) and machine learning (ML) capabilities into development lifecycles.

In the last year, developers have become more reliant on AI-powered tools and ML algorithms, adding advanced features like AI personalization, natural language processing (NLP) and gen AI coding. These new AI tools automate coding and reduce repetitive tasks that have slowed down the development process in the past.

AI and ML tools are also enhancing app development in real-world situations. For example, in industries like healthcare, retail and finance, AI-powered chatbots improve user engagement, streamline processes and reduce drudge work.

2. The rise of low-code and no-code platforms

Low-code and no-code platforms are user-friendly application platforms that allow people with little or no development experience to build engaging applications.

Using features like drag-and-drop interfaces and prebuilt components, individuals without a background in programming can use low-code and no-code platforms to build and deploy apps that solve various real-world problems.

Large global enterprises like Microsoft and Salesforce have made significant investments in the low-code or no-code space recently. These investments enable startups and small businesses to speed the delivery of mobile apps and web development projects without hiring their own software development teams.

According to a recent report, the worldwide low-code development platform market size was valued at USD 28.75 billion last year. It is expected to grow to USD 264 billion by 2032, a compound annual growth rate (CAGR) of 32%.1

3. The modernization of DevOps practices

The rise of cloud computing has transformed how DevOps teams build apps and manage them after they’ve been released.

Specifically, cloud-native application development (building applications out of discrete, reusable components known as microservices) has made it easier for DevOps teams to create scalable, portable and highly resilient apps.

Cloud-native app dev has moved DevOps practices away from monolithic architectures and manual practices toward modular, cloud-optimized processes that emphasize scalability, flexibility and continuous innovation.

Another trend in DevOps modernization has been the establishment of DevSecOps (development, security and operations), a relatively new approach to security in the application development lifecycle.

Until recently, apps were secured by a separate team after they were built. DevSecOps uses the latest cloud-native technologies and tools to automate and integrate security features during the app dev lifecycle, ensuring a smoother process and better outcomes.

4. The spread of Internet of Things (IoT) apps

Internet of Things (IoT) applications are applications designed to process real-time data collected by devices and sensors that are connected to the internet.

IoT application development is a trend that continues to push the boundaries of what’s possible for applications to do with the data they collect and process close to its source by using edge computing.

According to a recent report, the global market for IoT applications was valued at USD 595.73 billion in 2023. It is expected to reach USD 4,062.34 billion by 2032, a compound annual growth rate (CAGR) of 24.3%.2

IoT app dev spans a wide range of industries, with examples including wearable tech, smart appliances and industrial IoT (IIoT), which is the use of IoT technology for industrial or manufacturing purposes.

Organizations developing apps in the IoT space are focusing on scalable, secure solutions that integrate powerful IoT functionality without sacrificing security, functionality or scalability.

5. The growing popularity of progressive web apps (PWAs)

Progressive web applications (PWAs) combine the functionality of native apps (that is, apps built for specific operating systems or platforms) with the ease and accessibility of a simple web address.

PWAs typically feature push notifications and offline functionality to provide uninterrupted performance across a range of mobile devices.

PWAs are popular among organizations that don’t want to choose between iOS and Android users but also don’t want to have to maintain a separate code base for each instance.

PWAs allow enterprises to bridge the gap between the different operating systems and reach users of both using a single, cost-effective codebase without dropping performance or functionality.

How these trends affect business outcomes and user experience

As the year comes to a close and the impact these development trends have had becomes clearer, let’s look at how they’ve affected organizations and users.

  • User experience is more closely matching functionality: With so many ways to enhance UX, from dazzling visualizations to the integration of real-time data, customers expect a seamless, intuitive UX as well as advanced features and functionality. Apps like AirBnB and RobinHood have proven it’s possible to pair simple functionality (for example, booking a home rental, investing in stocks) with an immersive user experience.
  • Automation is reducing busy work: DevOps teams are dramatically streamlining development processes by leveraging new frameworks and AI-powered assistants to write code and build complex runtime environments. These new approaches lean heavily on gen AI capabilities and other tools to reduce the amount of time developers need to spend on repetitive tasks.
  • Organizations are increasingly focused on cybersecurity: Newer technologies like IoT and gen AI need massive datasets to function, which requires the fast, safe transfer of data across local and global networks. While these capabilities add many advanced features, they also broaden organizations’ attack surfaces, a measure of their potential vulnerabilities to cyberattacks. DevSecOps can streamline and automate aspects of cybersecurity to help ensure enterprises can continue to develop advanced features for their applications while keeping them safe from bad actors.
  • Real-world benefits are becoming a priority: Increasingly, industries like healthcare and finance are leveraging new trends in app development to create applications with real-world benefits. Examples include wearable tech that can monitor aspects of your health in real-time, AI-powered diagnostic tools that help doctors speed time-to-diagnosis, and AI-powered financial analysis that scours datasets for useful insights. As IoT and edge computing continue to push the envelope in terms of what’s possible, interest and investment in tangible, real-world benefits is likely to continue.

What these application development trends mean for your industry

Industries are reacting differently to the latest trends in app dev, but each one is taking notice and experimenting with new ways to leverage them for value. Here’s an industry-by-industry look at how trends in app development are impacting businesses.

Retail and e-commerce

Retailers and e-commerce businesses were among the first industries to experiment with some of the newer app dev trends this year, primarily by using mobile apps, PWAs and push notifications. AI-powered tools have been useful in building personalization engines based on customer searches that recommend relevant products.

IoT devices are being deployed to transmit real-time data over the internet to give in-store employees an up-to-the-second picture of inventory and even automate restocking and other aspects of supply chain management.  

Manufacturing and industrial IoT

Several of this year’s trends helped advance industrial IoT (IIoT), the incorporation of digital tech like sensors and software into industrial and manufacturing systems. New IoT apps, for example, have allowed enterprises to incorporate sensors and software even deeper into manufacturing processes than before, increasing real-time monitoring and predictive maintenance capabilities.

Additionally, augmented reality (AR) headsets that use IIoT capabilities are being used effectively for training purposes. According to a recent report by the IBM Institute for Business Value (IBV), companies that use AR have reported average productivity improvements of 32%. Together, these new capabilities help streamline operations, boost efficiencies and increase data-driven decision-making across organizations.

Government

This year, federal and local governments experimented with mobile and web development frameworks to add scalability and functionality to many of the services they provide citizens. In particular, governments used new capabilities in cybersecurity and automation to streamline services and add new features. 

The latest trends in application development have helped make government agencies faster, safer and more responsive. Examples span from more secure payment systems that allow citizens to pay for services directly from their mobile devices to real-time traffic and disaster alerts that speed emergency responses.

Healthcare

Arguably, no industry has implemented the latest trends in app dev more effectively than healthcare. From mobile apps that track a patient’s vital signs to AI-powered algorithms that speed diagnostics to AR and virtual reality (VR) tools that train surgeons and trauma specialists, healthcare is at the forefront of app dev innovation.

But the healthcare industry isn’t just using the latest tech to add features and increase capabilities. New capabilities in DevSecOps help ensure patient information remains confidential and that compliance with data security laws is robust.

What to expect in 2026

Application development has taken many leaps in 2025, but there’s no reason to think innovation will slow down in the year ahead. With gen AI and IoT capabilities at the forefront, it’s safe to expect these technologies will lead again in 2026.

With this in mind, enterprises will likely continue to grow their mobile-first strategies, an approach that prioritizes development for mobile devices at every stage of the application lifecycle, and leverage no and low-code platforms for cost savings.

As enterprises and startups continue to expand on the trends that shaped the industry this year, expect to see greater automation in the application lifecycle, more streamlined workflows, and an emphasis on even more dazzling end-user experiences.

The integration of AI and ML into app dev has been successful so far, automating and streamlining aspects of the application lifecycle and allowing developers to focus more time and energy on innovation. As AI and ML become more deeply integrated into frameworks, programming languages and platforms, the makeup and expertise of dev teams will likely change with an increased focus on roles that support DevSecOps initiatives. 

Finally, when looking back at the most impactful trends of 2025, it’s clear they were driven by business need more than technological advancement. It’s unlikely this will change soon. New technological advancements—as dazzling as they may appear to the naked eye—need to be grounded in a core business functionality to have a lasting impact.

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Footnotes

1. Low-code development platform market size, Fortune Business Insights, September 2025

2. Internet of Things (IoT) applications market size, Fortune Business Insights, September 2025