5 Top Industries For Software Engineering Startups In 2021

What is Software Engineering

There are several top industries for software engineering startups in 2021. According to recent studies, nearly half of IT industries are looking to hire new employees with programming skills. Therefore, software engineering is one of the most high-demand job titles across a wide span of industries. Indeed, software development employment growth has increased to nearly 22% in 2021. As a software engineer looking to launch a startup, you need to know which industries have the greatest demand. This way, you can put your company in a great position for long-term growth. Read on to discover the top industries for software engineering startups in 2021.

Healthcare Tech

First, US healthcare technology is one of the top industries for software engineering startups in 2021. According to recent data, the healthcare enterprise software market is projected to reach $76 billion by 2025. With annual growth rate of over 10%, health tech is booming as doctors look to provide new, innovative care options for patients. For example, many medical professionals now use cloud-based services to share patient data, analytics, and other vital information. In addition, some practices are using cloud-based services to alert their healthcare providers when patients need assistance. Of course, many doctors offices now need telehealth platforms to conduct and schedule remote appointments as well. Absolutely, healthcare tech is one of the top industries to launch your software engineering startup this year. 

Government & Defense

Next, government and defense are also among the top industries to launch your software engineering startup. Municipal, state, and federal government agencies are aggressively hiring software companies to code their applications with adequate cybersecurity. For example, some Departments of Defense are looking to adopt a DevSecOps approach to manage their secure software. Importantly, a DevSecOps pipeline integrates security throughout each step of development. This way, defense departments can keep their sensitive data safe at every step of the way. To get started with DevSecOps, you can install JFrog Pipelines to automate key stages in your SDLC. Notably, this tool employs fine-grained permissions and access control keep security first in your DevOps pipeline. Undoubtedly, specialize in government and defense software engineering if you have experience in DevSecOps. 

Transportation & Weather Industries

In addition, transportation and weather industries also have a high-demand for software engineering services. For example, many trucks and planes rely on software systems to schedule their routes and destinations. Notably, the logistics sector needs programmers to improve and update these tools. This way, transportation and shipping companies can make sure their deliveries are on-time and efficient. Simultaneously, consumers also use these tools to track their packages and mail online. Often, the transportation industry relies on weather prediction software for accurate delivery predictions as well. Indeed, weather algorithms and models are usually baked into complex logistics software. Since transportation and weather industries work so closely together to provide services, they are some of the best for software engineering.


Moreover, FinTech and digital banking is another one of the hottest startup industries for software engineering. Notably, many businesses are investing in FinTech software development for digital banking apps and cryptocurrency wallets. In addition, some companies are seeking custom financial management software as well. When developing applications for the FinTech industry, many engineers use blockchain technology to keep their transactions secure. Notably, many banks, corporations, and insurance companies need this distributed ledger technology to share data securely. In addition, blockchain tech usually comes with smart contracts. This way, invoices can trigger payment transactions automatically and improve efficiency. With such high demand and innovative blockchain tools, the FinTech industry is booming for software engineers.

Education Technology 

Furthermore, education technology is another major industry for software development. According to recent data, K-12 districts in the U.S. alone spent over $35 billion on software, curriculum resources, and networks. By 2027, this spending is projected to reach $285 billion. In many schools, COVID-19 sparked an increase in demand for education software. As schools switched to remote environments, they needed video conferencing software and other learning tools to maintain interactive environments. In addition, many teachers now use online curriculum resources, textbooks, and tutorials to support their students’ learning. Certainly, education technology is one of the top industries for software development in 2021.

There are several top industries for software engineering startups in 2021. First, healthcare tech is booming as doctors and patients seek new technologies for safe care. Next, government and defense industries are also investing in software engineering. In addition, the transportation and weather industries are in high-demand for developers as well. Moreover, FinTech is another major industry for software engineering. Furthermore, edTech is also booming as teachers strive to maintain engaging learning environments in digital spaces. Consider these points to learn about the top industries for software engineering startups in 2021.

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