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Custom Web Application Development: Types, Trends & Functionality

by | January 29, 2024

Table of Contents

Table of Contents

As consumers become increasingly reliant on technology, companies must evolve to create online solutions that facilitate their buyers’ journey. The key to this transformation? 

The adoption of custom-built web applications. 

As companies around the globe create their own applications, it makes their businesses more accessible worldwide, meaning they can expand their user base and reach a market they may not have had access to before. 

The custom application development service market share is becoming so popular that it’s expected to increase by USD 38.15 billion from 2021 to 2026, with 37% of the growth originating from North America. 

The success of a business’ application depends on the entire custom web application development process. To better understand the custom web app market, let’s discuss the different types of web applications, the development process, and emerging trends. 

What is a Custom Web Application? 

A custom web application is a tailor-made software solution developed specifically for a particular organization or reason. Custom applications aim to enhance customer satisfaction, reach a larger audience, boost business operations, and offer businesses a competitive advantage in the market.  

To create a successful application, custom web application developers work closely with their clients to create solutions that meet their target audience’s needs, prioritizing security, scalability, and efficiency. 

Types of Custom Web Applications by Industry 

With so many different industries, target audiences, and unique interests, there’s no one-size-fits-all approach to software. By opting for custom web app development, businesses can create solutions that fit the needs of their unique industry. To better understand how different industries leverage custom web applications, let’s dive deeper into this topic: 

Healthcare Industry 

The healthcare industry is vast, with different conditions, patient needs, and approaches. This diversity has paved the way for growth in healthcare apps, with the global digital health market expected to exceed 650 billion dollars by 2025. Healthcare app development allows professionals to offer their patients tailored solutions that cater to their needs, enhancing the patient-provider relationship and improving patient health outcomes. 


  • Electronic Health Records (EHR) and Electronic Medical Records (EMR) Systems: EHR software development provides accurate and up-to-date information about patients, allowing both patients and providers to securely and promptly share important health-related information. 
  • Patient Portal Applications: Patient portal software provides secure, online access to personal health information, such as medical records and appointments, and gives patients the opportunity to communicate with their providers. 
  • Telemedicine and telehealth: Telemedicine and telehealth app development connects patients with virtual healthcare services, allowing for affordable and remote access to medical care. 
  • Healthcare CRM Systems: Helps providers store and manage patient information, streamline communication with patients, and engage and retain patients. 
  • Medical Billing and Coding Applications: Improves the efficiency and accuracy of medical billing by automating billing tasks. 
  • Pharmacy Management Systems: Stores data, oversees medication inventory, and performs a variety of tasks that automate the workflow. 
  • Laboratory Information Management Systems (LIMS): Helps manage the flow of samples and associated data effectively, improving workflows in laboratories. 
  • Medical imaging applications: Captures, stores, and analyzes medical images, aiding in diagnosis and treatment planning. 
  • Healthcare Analytics and Reporting Tools: Analyzes patient data and gives doctors valuable insights to improve patient care. 
  • Health and Wellness Applications: Provides useful information to promote a healthy lifestyle, addressing fitness, mental health, diets, and a range of other areas. 
  • Regulatory Compliance and Quality Management Systems: Ensures healthcare organizations adhere to regulations and maintain high standards of care while ensuring quality control.  

E-commerce and Retail Industry 

Ecommerce has grown to an industry worth six trillion U.S. dollars, with B2C contributing to most of the spending. Ecommerce software development allows businesses to create bespoke web applications that are tailored to their clients’ specific shopping needs. Since retail encompasses a huge industry of buyers and sellers, custom applications allow businesses to showcase unique features that enhance customer satisfaction. 


  • Online Retail Platforms: Acts as a digital storefront that enables companies to manage their website and operations efficiently online, allowing them to reach a global audience. 
  • Marketplace development: Marketplace development brings together buyers and sellers of goods and services, each catering to a diverse customer base. 
  • Subscription Service Platforms: Enables businesses to sell products or services on a recurring basis, handling all aspects of the business, including payment processing and customer management. 
  • Inventory Management Systems: Enables businesses to track stocks, supplies, and sales through the supply chain. 
  • Customer Relationship Management (CRM) Systems: Helps manage customer data, deliver actionable insights, support sales management, and improve the customer experience. 
  • Payment and Transaction Processing Systems: Carries out a series of transactions made online, guaranteeing security and ensuring smooth transactions between buyers and sellers in online retail environments. 

Education and E-Learning Industry 

The e-learning software market size was valued at $210.18 billion in 2021 and is expected to reach $819.96 billion by 2030. Education software development helps students, teachers, and businesses adapt to the modern learning environment. By offering personalized learning experiences, custom web software development engages its users, caters to all types of students and learning preferences, and creates a more enjoyable learning experience. 


  • Learning Management Systems (LMS): Plans, implements, and assesses a specific learning process, giving educators the tools to track and manage their students’ progress. 
  • Virtual Classroom Platforms: Enables instructors and participants to connect in an online classroom, providing inclusive learning opportunities. 
  • Course Creation and Management Tools: Allows instructors to create, design, and deliver online courses for various needs. 
  • Student Information Systems: Stores and manages student data, including enrollment, attendance, grades, and other essential information. 
  • Educational Analytics and Reporting Tools: Analyzes student data to help educators discover, interpret, and communicate important information.  

Financial and Banking Industry 

As of 2020, approximately 60% of Americans now use online banking, up from 36% in 2010. Custom financial web development helps banks and financial institutions reach a larger audience and cater to the different financial needs of both businesses and individuals. Creating an intuitive user interface, building features that are unique to different areas of banking, and providing 24/7 access to financial services helps give banks and financial organizations a competitive edge. 


  • Online Banking Systems: Provides personal and business banking services such as the deposit of checks, balance inquiries, fund transfers, payment of bills, and more. 
  • Investment Management Platforms: Allows investors to manage their investments online, providing access to a range of investment products such as stocks, bonds, and mutual funds. 
  • Financial Planning and Advisory Tools: Helps individuals, businesses, and organizations manage their financial strategies and make informed decisions about investments, savings, and retirement planning. 
  • Loan Processing and Management Systems: Streamlines the loan application process, from initial submission to approval, disbursement, and ongoing management. 
  • Financial Analytics and Reporting Systems: Analyzes financial data to provide valuable insights and forecast possible future financial scenarios. 

Real Estate Industry 

The real estate market worldwide is expected to reach a staggering value of $637.80 trillion by 2024, with residential real estate being the leader in the market. Real estate software development helps companies stay competitive by keeping up with constantly changing industry standards. For a successful end product, custom web application developers work with their clients to create unique features and integrations that attract and retain clients in their niche industry. 


  • Property Listing and Management Systems: Aids the day-to-day operations of real estate professionals, helping with tasks such as property monitoring, inspection, and maintenance.  
  • Real Estate CRM Applications: Manages all communication between agents and clients, helping them to identify, track, and manage customer interactions. 
  • Virtual Tour Platforms: Gives buyers and renters virtual property tours, streamlining the entire process and enhancing customer satisfaction. 
  • Transaction Management Tools: Helps agents manage the entire transaction process, from offer submissions to compliance tracking.  

Enterprise and Business Management 

The enterprise software market is the fastest-growing segment in the overarching IT industry, with year-on-year growth frequently exceeding 10 percent. When businesses can’t find software services that meet their needs, they turn to custom web application development as a solution. By creating tailored solutions, businesses can improve operational efficiency, create custom security features, and integrate with their existing systems. 


  • Enterprise Resource Planning (ERP) Systems: Includes all the tools and processes required to manage core business functions, which may include the following subcategories: 
    Supply Chain Management: Coordinates the entire flow of products, allowing businesses to organize and track inventory items. 
    HR Management: Helps HR professionals manage and optimize daily tasks, such as employee information management and document routing. 
    Accounting: Assists bookkeepers and accountants in managing and recording a business’ financial transactions. 
    Inventory Control: Automates inventory management, managing various aspects of inventory, including purchases, storage, and shipping. 
  • Project Management Tools: Plans, organizes, and allocates resources for managing projects. 
  • Business Intelligence (BI) and Analytics Platforms: Gathers and analyzes data to provide valuable insights, encouraging businesses to make data-driven decisions. 
  • Customer Relationship Management (CRM) Systems: Provides a secure space where businesses can store data, track customer interactions, and nurture customer relationships. 

Media and Entertainment Industry 

The compound annual growth rate of entertainment and media spending worldwide has been predicted between 2022 and 2026 by sector, showing that data consumption will see the most compound annual growth, followed by virtual reality. Anyone in the entertainment industry knows that the key to obtaining a strong online presence is considering current trends, providing unique streaming services and personalized content recommendations, and creating bespoke web applications with interactive features that engage the audience. Media software development solutions help companies stand out from the crowd by offering features that adapt to industry trends. 


  • Streaming Services Platforms: Provides a variety of audio and video content over the internet, offering a wide range of entertainment options. 
  • Content Management Systems (CMS): Helps businesses create, edit, and organize digital content, providing precise functionality and seamless integrations. 
  • Interactive Entertainment and Gaming Platforms: Offers interactive digital experiences, including video games, virtual reality, augmented reality, and more. 
  • Digital Signage Systems: Digital signage systems boost revenue and enhance brand awareness. Digital signage solutions providers create quality web application software solutions to deliver captivating visual content and enhance brand visibility. 

Service and Hospitality Industry 

A recent study claims that one of the main ways this industry is currently looking to streamline its goods and services is by digitalizing. When executives in the global travel and hospitality industry were surveyed on the main business priorities in 2020, roughly half of respondents stated that new technology was a priority. The service and hospitality industries are constantly evolving, with every company offering a unique combination of products, services, and deals. To enhance business operations, attract more customers, and highlight unique offers, businesses should create custom web apps from scratch. 


  • Booking and Reservation Systems: Serves as a centralized platform that helps guests make and manage reservations, schedule appointments, and book services. 
  • Customer Service Management Tools: Streamlines customer service operations by helping businesses manage customer inquiries, complaints, and support requests. 
  • Event Management Platforms: Allows users to access and manage all aspects of an event in one place, providing tools for guest registration, planning, reporting, and more. 

Technology and IT Industry 

By 2023, IT spending had increased to over 1.3 trillion U.S. dollars globally. To keep up with the demand, companies that produce software, hardware, and other types of technology must rely heavily on their own technology for their success. Custom web software development is crucial in this industry, allowing businesses to create web apps that are tailored to their specific needs, address integration capabilities, adaptability, and scalability, and are equipped with the most advanced analytics. 


  • Data Management and Storage Solutions: Stores, organizes, and manages data for organizations, which may include cloud storage, software-defined storage, file storage, and more. 
  • Network Management Systems: Collects real-time data from networks and identifies, monitors, updates and troubleshoots network devices. 
  • Cybersecurity and Compliance Tools: Scans networks, tools, and processes to protect digital assets and ensure compliance with industry-specific security standards and regulations. 

Crypto and Blockchain Industry 

Revenue in the cryptocurrency market is projected to reach $51.5 billion in 2024. Custom web application development in the crypto and blockchain industries allows businesses to adapt as cryptocurrency and blockchain technologies evolve. With custom solutions, businesses can offer their users enhanced security, wallet management functionalities, real-time data, and other tailored features to attract their niche market. 


  • Cryptocurrency Exchange Platforms: Allows customers to buy, sell, and trade cryptocurrencies or digital currencies for other assets in a secure environment. 
  • Blockchain-based Application Development: Provides the required frameworks, libraries, and APIs to maintain and design blockchain applications and systems. 
  • Smart Contract Development and Management Tools: Assists developers in creating, testing, and deploying smart contracts on blockchain platforms. 
  • Wallet Applications for Digital Currencies: Allows users to store, access, and use their digital currencies for trading and investing. 
  • Decentralized Finance (DeFi) Applications: Enables cryptocurrency-based transactions and financial services, allowing users to lend, borrow, trade, and more. 
custom web application developers

Understanding Custom Web Application Development 

Custom web application development is a complex process that must be handled by experienced developers. Keep reading for an overview of the process, key technologies involved, and different approaches. 

Overview of the Web Development Processes

Here’s an outline of the steps that custom web application developers take to develop successful web applications: 


  • Initial requirement clarification period: The first step in custom web app development is to clarify the project’s requirements. What features should the web app have? What’s the budget? Expected timeline? Target audience? By clarifying the requirements, it guarantees that everyone involved has a clear idea of the project before moving on to the next step. 
  • Project proposal: Considering the information above, developers must make a formal proposal with rough estimates of the cost and timeline. 
  • Discovery phase: Once the proposal is approved, custom web app developers take a deep dive into the project and create an in-depth outline for both the team and the client to use as a reference. 
  • Design and architect: Custom web app developers will now create wireframes, prototypes, and design mockups. During this phase, they will also define the web application architecture and choose a technology stack that fits their projects’ requirements. 
  • Development: Developers will develop front- and back-end components, implement best security practices, write code, and essentially bring the clients’ ideas to life. 
  • Testing and deployment: The team will now test the web application to identify and fix potential bugs or errors. After resolving all issues and ensuring that the app is secure and user-friendly, the web application is sent for deployment. 
  • Maintenance support: Developers can also provide ongoing maintenance to address updates, scalability, and potential errors that the application may face in the future. 

Key Technologies Involved 

There are many technologies involved in web application development. Here are some of the key technologies worth noting: 


  • JavaScript: Programming language for the web used to create and control dynamic website content. 
  • Server-side languages: Sometimes referred to as back-end development, involves programs that run on a server. Popular server-side web languages include PHP, Python, Ruby, C#, and JavaScript (NodeJS). 
  • CSS: Used to style and lay out web pages. 
  • Web frameworks and libraries: Tools to help developers build and manage web apps, services, and websites. Examples include React, Angular, Vue.js, Express.js, Django, and Ruby on Rails. 
  • Development tools: Allows Custom web app developers to work with a variety of web technologies. Examples include IntelliJ IDEA, WebStorm, Visual Studio, Visual Studio Code, and more. 

Different Approaches to Custom Web Application Development 

What approaches can developers use during development? 

Let’s take a look at some of the common practices: 

Traditional or Sequential Approaches

This approach goes through each phase like a stream, completing each step one by one and not progressing until the previous step is completed. Examples of this include the Waterfall Model and Spiral Model.

Agile and Iterative Approaches

Adapts flexible methodologies, dividing projects into small pieces and allowing phases to overlap. This approach allows the client to give continuous feedback, enabling developers to adapt to changes throughout the development process. Examples include Agile Development, Scrum Framework, Extreme Programming (XP), Feature-Driven Development (FDD).

User-Centric and Collaborative Approaches

A progressive development model that emphasizes rapid prototyping and quick feedback. This approach relies on customer involvement for better alignment and accurate results. This is commonly seen in Joint Application Development (JAD) and Prototype Models.

Efficiency and Speed-Focused Approaches

Speed-focused approaches, such as lean development and rapid application development (RAD), prioritize rapid prototyping and frequent iterations, eliminating time-consuming tasks that don’t add value to the project. This approach is best for small projects with tight timelines.

Specialized or Niche Approaches

Creates a tailored strategy for specific project requirements or industries, working to address the unique challenges of niche industries in web application development. Popular examples include the DevOps Approach and Component-Based Development.

Types of Custom Web Applications by Functionality and Complexity 

There’s a large variety of custom web applications to choose from, all with different functionalities and purposes:  

Static Web Applications

Basic, low-complexity web apps with fixed content and simple HTML/CSS. These are one-way communication channels, meaning users can’t interact with the content. Ideal for informational sites like portfolios. 

Dynamic Web Applications

Medium to high complexity with server-side processing for dynamic content. Has the ability to change its content, appearance, and functionality in response to user input and information. Suitable for blogs, forums, and content-driven sites. 

Single Page Applications (SPAs)

Medium-complexity applications that load a single HTML page and dynamically update content. Great for fast, responsive user interfaces. 

E-commerce Applications

High-complexity applications that are used as virtual retail stores. Contains virtual shopping carts, payment processing, and customer management, acting as an essential point of sale for online stores and marketplaces. Our ecommerce portfolio shows how our developers have created successful applications for retailers. 

Portal Web Applications

High-complexity applications with user authentication and personalized access, which works to collect information from various sources and present it to users on one platform, such as educational portals or customer portals. They can be used for various purposes, like assisting property insurance providers in hiring and task management, as shown in this case study.  

Animated and Interactive Web Applications

Medium- to high-complexity applications with advanced animations and interactive elements. They add interactivity, visual appeal, and engagement to websites.

Web Applications with Real-Time Data

High-complexity applications for real-time data processing and updates. Allows users to receive and send data without refreshing the page or waiting for a response. Commonly used in chat apps, live data dashboards, and streaming services. Can also be used in niche industries, such as this biotech charting application or as a patient communication system with real-time collaboration

Multi-tenant Applications (SaaS)

Very high-complexity applications that serve multiple customers or tenants with data isolation, allowing multiple user groups to share an app and its resources. Common in SaaS platforms, such as AWS or GCP. 

Rich Internet Applications (RIA)

High-complexity applications with rich user interfaces. Function as traditional desktop applications that don’t need to be installed but often require additional software like Adobe Flash. Used for online gaming and multimedia content. 

API-Driven Web Applications

Medium to high complexity, backend-focused, where the core functionality and data interactions are primarily facilitated through APIs. Often the backbone for mobile apps and service integrations. A great example of this is Zoom Station, an interactive weather application with advanced features. 

Cloud-Native Web Applications

High complexity, designed for cloud environments, allowing you to build, deploy, and manage software applications in the cloud. Known for their scalability and flexibility, making them suitable for applications needing high availability.

Progressive Web Applications (PWAs)

Mediumto highcomplexity applications that are built and deployed on the web but offer an app-like experience, offline functionality, and responsiveness. Suited for mobile-first user experiences.

custom web software development

Selecting a Development Partner for Custom Web Applications Needs

Choosing the right custom web application developer is crucial to the success of your project, but what qualities are important in a web developer? 


  • Criteria for Choosing a Development Partner: There are many factors to consider when choosing a reliable software development partner, including: experience creating custom applications, portfolio, past reviews, technical skills, scalability, communication skills, budget, timeline, and post-launch support, among others. Each company will have different criteria depending on their goals, so make sure to have a clear idea of what you’re looking for. 
  • The Role of Collaboration and Communication: When choosing a development partner, you should prioritize transparent and open communication. Work with a company that values your insights, is open to receiving feedback, and gives you continuous updates on the progress of your project. This ensures the result matches your vision and goals. 
  • Evaluating Technical Expertise and Portfolio: Creating a custom solution for your company means that the company you work with should have the expertise to easily adapt to different requests. This means they should have a deep understanding of various technologies, programming languages, and industry best practices. To verify their skills, ask to see their portfolio and case studies to better understand their success rates and the types of clients they work with. 
  • Understanding Post-Development Support and Services: A big question you should ask yourself is, do you need post-development support? This should be discussed during the initial clarification period, as it can include (or not include) a range of services: updates and maintenance, troubleshooting errors, compatibility issues, and much more.

Emerging Trends and Best Practices

Consumers now interact with the internet differently than they did years ago, expecting the latest updates and newest technology. Developers must keep up with these trends in web development to enhance the success of their projects. In today’s world, that means implementing voice demand, using predictive analytics, creating AI assistants to automate chats and improve the customer experience, and leveraging IoT. 

Web application security best practices also means considering regulations and compliance throughout the entire development process. Some key aspects that developers consider are data privacy, intellectual property, security, licensing, and international considerations. Developers must also be up to date on industry-specific regulations, such as HIPAA compliance. Achieving HIPAA compliance is crucial for apps that handle sensitive healthcare data and patient records; it covers regular security audits and risk assessments, data encryption, secure coding practices, and more.

There are also accessibility and compliance standards that ensure that web applications are accessible to all individuals. Developers should always be up to date on these standards, ensuring that their projects comply with all regulations. 

And lastly, there are strategies that developers can implement for website performance optimization. This includes optimizing images, limiting the number of HTTP requests, enabling browser caching, compressing files, and more.  

As a bonus, experienced marketing teams can optimize websites for search engine optimization (SEO), which works to increase their visibility on Google and other search engines. This can be done through SEO best practices: leveraging keywords, writing compelling title tags and meta descriptions, providing alt tags for images, and creating high-quality content for the website and blog. 


An increasing number of businesses are opting for custom web software development to outperform competitors and offer their users an enhanced experience. Custom solutions offer better security, scalability, productivity, and flexibilityall important things in a constantly evolving environment. 

At Scopic, we prioritize creating tailored solutions that bring your vision to life. As an experienced software development company, we plan, build, and promote new applications. Contact us to get a quote on your next potential project. 

Custom Web Application Development FAQs

Why Choose Custom Web Application Development Over Off-the-Shelf Solutions?

Custom web application development focuses on creating solutions that cater to your target audience’s needs, offering unique features, scalability, and flexibility. Off-the-shelf solutions do not offer the same level of customization.

How Much Does Custom Web Application Development Cost?

The cost of custom web application development depends on the complexity of the project. That said, the price can range anywhere between $10,000 and $100,000.

How Long Does It Take to Develop a Custom Web Application?

The time it takes to develop a custom web application depends on the complexity of the project. Projects may take anywhere from 4 to 9 months but may require more time.

What are the Key Challenges in Custom Web Application Development?

Challenges related to custom web applications include security, integration, compliance, scope creep, and choosing the right technology stack. An experienced web application development company will know how to manage these challenges.

Can Custom Web Applications Be Integrated with Existing Systems?

Yes, custom web applications can integrate with existing systems. Though the process is complex, experienced developers know how to integrate systems to improve overall efficiency.

About Custom Web Application Development Guide

This guide was authored by Baily Ramsey, and reviewed by Nhat Bui, a Technical Lead with experience in leading and delivering complex software and application development projects.

Scopic provides quality and informative content, powered by our deep-rooted expertise in software development. Our team of content writers and experts have great knowledge in the latest software technologies, allowing them to break down even the most complex topics in the field. They also know how to tackle topics from a wide range of industries, capture their essence, and deliver valuable content across all digital platforms.

Note: This blog’s images are sourced from Freepik.

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