Coding standards are significant in software development as they promote consistency, readability, and maintainability of code. Following well-defined standards helps teams collaborate more effectively, reducing the risk of errors and improving the software's overall quality. Consistent coding practices also facilitate easier onboarding of new developers, as they can quickly understand and navigate the codebase. Moreover, adherence to coding standards helps ensure compatibility across different systems and environments, enhancing the longevity and scalability of software applications.