With headlines about layoffs and uncertainty, it’s normal to wonder: what industry is software engineering hiring in right now—and is it still a smart career move?
Here’s the reality: even as we go deeper into the AI era, software engineers are still in demand, and the work isn’t limited to “tech companies.” In fact, if you’ve ever asked where do software engineers work (or where do software developers work), the answer is: almost everywhere. Banks, hospitals, retailers, consultancies, and government agencies all run on software—and many are investing heavily in automation and AI that still requires human (software engineer) oversight.
The U.S. Bureau of Labor Statistics (BLS) currently projects 15% growth (2024–2034) for software developers, QA analysts, and testers, plus ~129,200 openings per year on average. BLS also notes that demand is driven in part by the expansion of software for AI, IoT, robotics, and automation.
Below, we’ll break down software engineer salaries, the best industries for software engineers, what you’ll build in each one, and how AI is reshaping the software engineer industry.
How much does a software engineer make?
Software engineer pay varies by experience, location, and specialization, but it remains strong. BLS lists $133,080 as the median annual pay for software developers (as of May 2024).
(And yes—industry matters. BLS shows higher median wages in sectors like software publishing and manufacturing.)
Which industries are hiring software engineers?
If you’re looking for the best place for software engineers to work, don’t limit yourself to startups or Big Tech. These five industry categories consistently hire—and even though they’re all being reshaped by AI, they still need skilled software engineers on their teams.
1) Retail and e-commerce
Retail is one of the biggest software engineer industries because every purchase relies on software: storefront UX, payments, fraud checks, inventory, logistics, and fulfillment.
In the U.S., e-commerce continues to grow. The Census Bureau reported Q3 2025 ecommerce sales of $299.6B, up year-over-year, and ecommerce accounted for 15.8% of total retail sales (seasonally adjusted).
Where AI shows up in retail engineering:
- Personalization and recommendations
- Demand forecasting and inventory optimization
- Fraud detection + risk scoring
- Customer support automation
Skills that travel well: Python/Java/TypeScript, distributed systems, data pipelines, experimentation/A-B testing.
2) Healthcare
Healthcare is a massive category of industries for software engineers, from hospitals and insurers to pharma and medical devices. The biggest themes software engineers tackle in healthcare fields: interoperability, privacy/security, patient experience, and modern analytics.
In 2025, Deloitte highlighted major tech shifts in life sciences and healthcare—pointing to rapid change across medtech and biopharma driven by new technology capabilities.
Where AI shows up in healthcare engineering:
- Clinical documentation and workflow automation
- Medical imaging support systems
- Claims automation and member services
- Predictive analytics for operations and outcomes
Important note: Healthcare work often requires extra rigor around security, compliance, and data handling.
3) Banking and financial services
Finance is one of the best industries for software engineers because it blends scale, security, and constant reinvention—mobile banking, fraud prevention, and real-time payments.
BLS data also shows finance and insurance as one of the largest employers of software developers.
Where AI shows up in finance engineering:
- Fraud detection and transaction monitoring
- Document intelligence (summaries, extraction, risk)
- Customer service automation
- Internal developer productivity tools
4) Business and IT services (consulting, systems integrators, enterprise IT)
Consulting and IT services firms build and run systems for companies across every other sector, making this one of the most flexible software developer industries. You might work on cloud migrations, data platforms, cybersecurity programs, or customer-facing apps.
Where AI shows up in business/IT services engineering:
- Enterprise search and knowledge assistants
- Analytics modernization (BI + genAI)
- Automation for IT ops and support
- Secure AI rollouts (governance, evaluation, monitoring)
This is also where “AI-native” roles are popping up (building internal tools, shipping prototypes fast, and operationalizing them).
5) Government and defense
Government and defense may not be the first answer people give when asked, “where do software engineers work,” but it’s one of the most consequential sectors: cybersecurity, aerospace, logistics, intelligence analysis, and public services.
Where AI shows up in government/defense engineering:
- Cyber defense automation and threat detection
- Decision support systems (with strict controls)
- Modernization of legacy systems
- Secure data platforms and auditability
Expect additional requirements (background checks, security clearance eligibility, etc.), plus strong emphasis on reliability and security.
AI is changing how engineers work (in every industry)
Even if your job title isn’t “ML engineer,” AI is already part of modern software work.
The 2025 Stack Overflow Developer Survey reports that 84% of respondents are using or planning to use AI tools in their development process, and 51% of professional developers use AI tools daily.
That means the “baseline” skill set for many roles is shifting toward:
- Working effectively with AI coding tools (without trusting them blindly)
- Evaluating outputs, writing tests, and validating security
- Shipping AI-enabled product features responsibly
Learn AI skills that map to real engineering work
We’re expanding our AI lineup, including comprehensive courses in our AI Software Engineering pathway. This is designed for engineers who want to build, integrate, and ship AI-powered software in real products.
Depending on your role and the industry you’re targeting, these AI courses can also fit naturally:
- AI-First Product Management: Product + engineering collaboration for AI-enabled features
- Business Intelligence with AI: Analytics workflows, decisioning, and AI-augmented BI
- AI Product Strategy: Identifying high-impact AI use cases, value, and risk
- Project Management Skills with AI: Delivery, planning, and execution with AI tools
Software engineer career paths (quick look)
Most engineers start as junior developers and grow into senior/lead roles—or specialize. Common paths include:
- Full-stack/back-end/front-end
- Platform or cloud engineering
- Security engineering
- Data engineering
- Machine learning/applied AI engineering
- Engineering management
(And increasingly: “AI-enabled” versions of all of the above.)
FAQs: Software engineer industries
1) What industry is software engineering used in?
Software engineering is part of the broader tech workforce, but it exists inside nearly every sector—retail, healthcare, finance, manufacturing, consulting, and government all hire engineers.
2) Where do software engineers work most often?
Large shares of software engineers and developers work in computer systems design/services, but also in finance and insurance, software publishing, manufacturing, and enterprise management—per BLS employer breakdowns.
3) What are the best industries for software engineers right now?
“Best” depends on what you value (pay, mission, stability, pace). Common high-opportunity picks are retail/ecommerce, healthcare, finance, business/IT services, and government/defense—especially where AI modernization and security needs are growing.
4) Will AI replace software engineers?
AI tools are increasingly used in development—Stack Overflow reports widespread adoption—but most teams still need engineers to design systems, validate outputs, ensure security, and ship reliable products.
5) Do I need a computer science degree to work in software engineering?
Many roles list a degree as “typical,” but hiring often focuses on demonstrable skills (projects, portfolios, problem-solving, teamwork). Alternative pathways like structured training and bootcamps remain common routes into the field.
Wondering if a career in software engineering is a good move? Sign up for our next info session to learn more.