If mathematical developments in physics count as "applied mathematics" there are many examples --- as requested by the OP here is a recent one (< 30 years old) and an older one: - Gauge theory spawned fundamental resuls in differential geometry, see for example <A HREF="https://arxiv.org/abs/1207.6271">A proof via the Seiberg-Witten moduli space of Donaldson's theorem on smooth 4-manifolds with definite intersection forms</A> (1995) - Dirac delta functions were introduced to simplify the normalization of quantum mechanical wave functions, and were formalized by Laurent Schwartz in the theory of distributions.