Low-Code vs Custom Development: Which One Is Best for Your Business?

Are you looking for faster delivery with less coding, or looking for a solution built exactly to your needs?

Both options are growing fast. 

In 2025, 70% of new apps will use low-code tools, while custom AI development is set to grow from $20.82B to $40.88B by 2030. These numbers show that businesses are using both methods, depending on their needs.

In this blog, we will explain what low-code and custom software development mean, how they are different, their advantages and disadvantages, and much more.

So let’s start!

What Is Low-Code Development?

Low-code development is a way to build apps quickly using simple tools like drag-and-drop and ready-made blocks. It helps you create applications with very little coding effort.

• Saves development time and cost
• Good for simple or mid-level business apps
• Can be used by both developers and non-tech users

This approach is best when you want to launch something fast or test an idea quickly. However, it may have some limits if your app needs complex features.

What is Custom Software Development?

Custom software development is the process of designing and building software specially made for a specific business or organization's needs and requirements. Unlike ready-made software that is made for general use, custom software is created to match the unique needs, goals, and processes of that business.

This type of software offers more control, better flexibility, and can fit perfectly into existing systems. It helps businesses solve their specific problems, improve workflow, and increase efficiency.

• Works as per your needs, goals, and workflow.
• You can add or change features anytime.
• It can be a mobile app, a web app, or full software.
• It helps you work faster, save time, and stay secure.
• It fits perfectly with other tools your business already uses.

Differences Between Low-Code and Custom Software Development

Advantages and Disadvantages: How It Impacts Your Business?

Low-Code Development

Advantages

Low-code development helps you build apps faster using visual tools and less coding. It’s a good choice when you want to save time and start small.

• Fast development with less effort
• Low cost compared to full custom apps
• Easy for non-tech users to work on projects
• Great for testing ideas quickly
• Good for simple and internal business apps

Low-code makes it easy for businesses to launch products quickly without waiting for long development cycles.

Disadvantages

Even though low-code is fast, it has some limits. It may not work well for complex apps that need custom features.

• Limited control over design and features
• Depends on the platform rules and updates
• Security options are not always strong
• Hard to handle very big or complex apps
• May face trouble if the platform shuts down

So, it’s not the best option for businesses that need full control or advanced custom solutions.

Custom Software Development

Advantages

Custom Software development gives you complete freedom to build your app exactly how you want. You can add, change, or design anything to fit your business.

• Full control over every feature
• Strong security and better data handling
• Built to match your exact business goals
• Easy to scale as your business grows
• Works well for complex or large systems

This makes it perfect for companies that have special needs or plan to grow in the future.

Disadvantages

Even though it offers many benefits, custom Software development takes more time and money. It also needs skilled developers to build and manage.

• Takes longer to build from scratch
• Higher development and support costs
• Needs a technical team for updates and fixes
• Not easy to change quickly once built
• More planning and testing are needed

It’s a good option when your business is ready for a long-term investment and needs a unique solution.

When to Choose the Right Approach: Business Scenarios  

Low-Code Development Scenarios

1. Quick Internal Software

• A company needs simple internal software to track employee tasks. With low- code, the team can build it in a few days without much coding.

2. Small Budget Projects

• A startup with a small budget wants to build a basic app, for example, a custom feedback app for customers. Low-code helps them launch fast without hiring developers.

3. Non-Technical Team Involvement

• A marketing team wants to create a form or mini-app for a campaign. Low-code platforms let them build it without waiting for the IT team.

4. Fast Prototyping

• A company wants to test a new idea. They create a prototype using low-code to get feedback before building a full version.

5. Apps with Standard Features

• A business wants a mobile app with simple login, forms, and notifications. Since the features are common, low-code works well.

Custom Software Development Scenarios

1. Unique Business Needs

• A bank wants to build a custom system with very specific features and strong security. Only custom development can handle this.

2. Large-Scale Applications

• An e-commerce company needs a website that supports millions of users. Custom development gives full control and high performance.

3. Complex Integrations

• A logistics company needs to connect multiple systems like tracking, payments, and warehouse tools. Custom development fits best here.

4. Long-Term Growth Plans

• A business wants a platform that can grow and change over time. Custom development gives them flexibility for future updates.

5. Full Ownership & Control

• A company wants to fully own the code and control everything from security to design. Custom-built apps give them complete freedom.

Hybrid Approach: The Best of Both Options?

Sometimes, businesses don’t need to choose only low-code or only custom Software development. A hybrid approach uses both methods, depending on the need.

For example, you can build the main structure with low-code to save time and cost, and use custom Software development for complex parts like advanced features or system integrations.

This approach is helpful when you want speed and flexibility at the same time. It also works well for scaling later, as you can update or replace low-code parts with custom code as needed.

In short, a hybrid gives you the freedom to balance cost, time, and performance all in one solution.

Real-World Case Studies

1. Thinkmoney- Fast Banking App with Low-Code

Thinkmoney, a UK-based banking company, needed a new digital banking app. Instead of taking the traditional route, they used the Mendix low-code platform to speed up the development process.

In just 14 weeks, business analysts and IT teams worked together and built the app successfully. This shows how low-code makes it easier for both technical and non-technical people to collaborate and launch products faster.

Key Highlights:

• Developed a full app in only 14 weeks
• Used the Mendix low-code platform
• 25% cost reduction
• 15% increase in customer satisfaction
• Faster development with less technical pressure

This case proves that low-code is a smart choice when time is short and collaboration between teams is needed.

2. Ricoh- Full Control with Custom Software Development

Ricoh, a global printing and electronics company, was using old legacy systems. These systems slowed down their business processes, so they decided to build a fully customized platform from scratch.

In just 7 months, Ricoh replaced its outdated systems with a new custom-built solution. This helped them integrate their hardware better and improve overall business performance.

Key Highlights:

• A custom platform built in 7 months
• Removed outdated legacy systems
• Achieved 253% ROI
• Improved system integration and operations
• Gained full control over software features

This case shows that custom software development is the best option when your business needs deep control, flexibility, and long-term value.

How AI & Trends Are Changing Development Approaches

Market Growth and Future Forecast

• The market for custom development in AI grew from $18.27 billion in 2024 to $20.82 billion in 2025, showing steady yearly growth.
• By 2030, this custom development market is expected to reach $40.88 billion, which means more businesses are choosing tailored AI solutions.
• With a fast growth rate of 14.36% every year, custom Software development for AI is becoming a popular and powerful choice in the tech industry.
• The low-code/no-code market is projected to reach $187B by 2030, powering 65%+ of all app development.
• According to Statista, by 2027, the global low-code platform market is expected to reach around $65B.
• In 2020, the low-code market was valued at $12.85B, growing to $65.15B by 2027 with a CAGR of 26.1%.
• The global low-code/no-code market was valued at $11.45B in 2019, expected to grow at a CAGR of 22.7% till 2027.
• A 40% year-over-year growth was observed in no-code/low-code development in 2022.

Enterprise Adoption Trends

• By 2025, 75% of large enterprises will use four or more low-code tools.
• By 2025, 70% of new apps built by enterprises will use low-code/no-code, up from 25% in 2020.
• By 2026, 80% of low-code users will be outside formal IT, showing wider accessibility.
• By 2029, 80% of all business apps will be developed using AI-powered low-code platforms.
• By the end of 2025, over 50% of new low-code customers will be business users, not IT teams.
• The hybrid model (low-code + traditional) is expected to be adopted by 75% of businesses.

Cost & Time Benefits

• Businesses save up to 40% in development costs using low-code tools.
• Development time can be reduced by up to 70–90% with low-code platforms.
• On average, companies avoid hiring 2 IT developers, saving $4.4M in 3 years using low-code.
• Low-code platforms reduce time-to-market by 25%, allowing quicker app delivery.
• Using low-code, businesses deliver apps 10x faster than traditional development.

User Experience and Accessibility

• In a Mendix survey, 24% of users had no prior coding experience before adopting low-code.
• By 2024, 65% of all app development will be done using low-code platforms.
• By 2025, 70% of apps will be built using low-code/no-code technologies.

Easy Steps to Decide the Right Development Approach

Choosing between Low-Code and Custom Software Development depends on your goals, team, and timeline. These simple steps will guide you in making the best choice for your business needs.

Step 1: Understand Your Project Requirements

• If your project is simple and needs basic features, low-code can be a great fit.
• But if your app needs complex logic or heavy customization, custom Software development is better.

Step 2: Check Your Budget and Resources

• Low-code is budget-friendly as it needs less time and fewer people to build apps.
• Custom software development costs more, but it gives you full control and flexibility.

Step 3: Look at Your Launch Timeline

• If you need to launch quickly, low-code helps build apps faster with less effort.
• For long-term, high-quality projects, custom development is worth the extra time.

Step 4: Know Your Team’s Technical Skills

• If your team doesn’t have strong coding skills, low-code is much easier to use.
• If you have developers who can handle complex code, go with custom software development.

Step 5: Think About Future Changes and Scaling

• Low-code is good for fast updates, but it might not handle big changes well.
• Custom development is great if you plan to grow and keep improving your app.

Step 6: Consider Security and Compliance Needs

• Low-code platforms may have limited control over data and security features.
• Custom-built apps allow you to build stronger security as per your business needs.

Step 7: Use a Mix of Both if Needed

• You can use low-code for simple sections and custom development for complex parts.
• This hybrid model saves time and money while still giving you strong performance.

Every business is different. Think clearly about your goals, budget, skills, and timelines, then pick the method that supports your vision.

Common Myths About Low-Code and Custom Software Development

Many people believe things about low-code and custom software development that aren't fully true. 

Let’s break these myths so you can make smarter decisions without confusion.

Myth 1: Low-code is only for beginners

• Low-code platforms are simple, but even big companies use them for fast development.
• Many professional developers also use low-code to save time on basic tasks.

Myth 2: Custom software development always gives better results

• Custom apps give control, but they take more time and money.
• Low-code can also give great results if used for the right type of project.

Myth 3: Low-code is not secure

• Not all low-code platforms are risky many offer strong security settings.
• You just need to choose a trusted platform and follow safety best practices.

Myth 4: Custom software development is too slow

• Custom apps do take longer, but planning and smart coding can speed things up.
• If your project is big and long-term, custom can still be the better choice.

Myth 5: You must pick only one method

• You don’t always need to choose just low-code or custom development.
• A hybrid approach often works best using both where they fit best.

Don’t let myths confuse your decision. Every project is different; the best path is the one that fits your business goals, budget, and timeline.

Essential Low-Code & AI Tools for Development in 2025

1. ChatGPT

ChatGPT is an AI tool that helps developers and non-developers write better and faster code using simple prompts.

• You just ask a question, and it gives ready-to-use code.
• It explains coding steps in a simple way, so even beginners can understand.
• It also helps fix errors, test code, and improve logic.
• Great for saving time and learning while coding.

ChatGPT is perfect for both low-code and custom development because it works like your coding buddy who’s always ready to help.

2. Claude

Claude is another smart AI assistant, like ChatGPT, built by Anthropic. It helps code and work with documents or logic.

• You can give it long instructions or files to analyze or write code from.
• It gives clear answers and helpful suggestions for technical work.
• Claude is known for safe and calm replies, which is good for complex tasks.
• It helps make the development process easy and smooth.

Claude is great for developers who want AI to assist with planning, writing, and testing code.

3. Agentic Mode with Cursor

Agentic mode with Cursor is like an advanced smart assistant inside your coding editor that thinks and codes like a team member.

• It understands full tasks and handles multi-step coding jobs.
• It writes and edits big chunks of code based on your instructions.
• It learns from your actions and keeps improving its help.
• Saves a lot of time in writing, editing, and fixing code.

This is super helpful for developers who want to automate big parts of their custom coding tasks quickly.

4. Visual Studio Code (VS Code)

VS Code is a powerful, free code editor that is widely used by developers around the world.

• It supports many programming languages like Python, JavaScript, and more.
• You can install helpful extensions like AI tools, code formatters, and debuggers.
• It’s light, fast, and works on all computers.
• Developers love using it for writing and testing custom code.

VS Code is the go-to place where you can combine tools like ChatGPT or Cursor to build software easily and faster.

Conclusion

Choosing low-code or custom software development depends on your business needs, budget, and project size. Both have benefits, and sometimes combining them works best. Knowing your options helps you make smarter choices for faster growth.

Need help in choosing the right development approach for your business? Book a free consultation call here. We’re happy to assist you! We’re here to help you!

Thanks for reading! Looking forward to helping you build amazing solutions. See you soon!