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The global virtual PLC & soft PLC market was valued at USD 865 million in 2023 and is estimated to grow at a CAGR of over 13% from 2024 to 2032. The increasing implementation of Industry 4.0 technologies is driving the demand for Virtual and Soft PLCs, which enable automation, real-time monitoring, and data analysis in manufacturing environments.
As industries embrace digital transformation, Virtual PLCs, integrated with cloud platforms and IoT devices, facilitate seamless communication and control across different production stages. Their flexibility and scalability make them essential for smart factories aiming to enhance productivity, reduce downtime, and optimize resource usage through intelligent automation.
For instance, in November 2023, Honeywell launched new soft PLC solutions that integrate seamlessly with existing industrial systems. These solutions are designed to enhance operational efficiency and reduce costs through advanced software capabilities.
The rising trend of remote operations and management in industries is another key growth driver. Virtual PLCs, enabled through cloud-based platforms, allow engineers and operators to monitor, control, and troubleshoot automation systems from any location. This capability is particularly valuable for industries with distributed operations, such as oil & gas, utilities, and manufacturing, where real-time remote control can significantly enhance operational efficiency and reduce downtime, driving market adoption.
Report Attribute | Details |
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Base Year: | 2023 |
Virtual PLC & Soft PLC Market Size in 2023: | USD 865 Million |
Forecast Period: | 2024 – 2032 |
Forecast Period 2024 – 2032 CAGR: | 13% |
2024 – 2032 Value Projection: | USD 2 Billion |
Historical Data for: | 2021–2023 |
No. of Pages: | 210 |
Tables, Charts & Figures: | 310 |
Segments covered: | Component, Product Type, Control Level Type, Deployment Type, Operating System, Communication Protocol, Application |
Growth Drivers: |
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Pitfalls & Challenges: |
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One of the most significant trends in the Virtual and Soft PLC market is the growing integration with Industrial IoT (IIoT) ecosystems. As industries increasingly embrace IoT, Virtual PLCs enable seamless connectivity between factory equipment and cloud systems for real-time monitoring, control, and analytics. IIoT-enabled Virtual PLCs can communicate with multiple sensors, devices, and systems, providing centralized control and better data-driven decision-making. This trend is particularly prominent in sectors like manufacturing, utilities, and oil & gas, where real-time data is essential for optimizing operations, improving energy efficiency, and enabling predictive maintenance.
Cloud computing and edge computing are transforming how industrial automation is implemented, and Virtual PLCs are at the heart of this shift. Cloud-based Virtual PLCs allow for remote access, monitoring, and control, reducing dependency on physical infrastructure and offering greater flexibility in scaling operations. Edge computing enhances this by bringing computational power closer to the equipment, enabling faster data processing and minimizing latency in critical applications. This combination is driving interest in Virtual PLCs, particularly in industries requiring real-time control, such as automotive, smart manufacturing, and utilities, where localized and remote data processing both play crucial roles.
Another emerging trend in the Virtual and Soft PLC market is the shift towards open-source platforms and standardization in automation. Traditional PLC systems often lock users into proprietary solutions, but Virtual PLCs and Soft PLCs are increasingly being developed on open-source platforms that support interoperability between different devices and systems. This trend is enabling industries to customize their automation solutions, reduce vendor dependency, and achieve more seamless integration across various technologies. Standardization efforts, such as the adoption of OPC UA (Open Platform Communications Unified Architecture), are also promoting compatibility between Virtual PLCs and diverse industrial equipment, further accelerating their adoption across multiple sectors.
One of the major concerns surrounding Virtual and Soft PLCs is the increased risk of cyberattacks, as these systems are often integrated with cloud platforms and connected to the Internet. The reliance on virtual systems makes them more susceptible to hacking, malware, and other cybersecurity threats. Industries dealing with sensitive data or critical infrastructure may be hesitant to adopt these solutions without robust cybersecurity measures in place. This vulnerability can slow down adoption rates, especially in sectors where data security is paramount.
Based on control level type, the virtual PLC & soft PLC market is divided into field level, process level, supervisory level, enterprise level. The field level segment is expected to register a CAGR of over 13% over the forecast period.
Based on deployment type, the market is divided into On-premises, cloud-based. The cloud-based segment is projected to account for USD 1 billion by 2032.
North America dominated the global virtual PLC & Soft PLC market in 2023, accounting for a share of over 35%. The United States is a key player in the market, with the country’s leading manufacturing, energy, and automotive sectors driving demand for advanced automation technologies. The U.S. has been at the forefront of adopting Industry 4.0, and Virtual PLCs are being increasingly implemented in factories to enable real-time monitoring, predictive maintenance, and scalable automation. The country’s focus on cloud infrastructure and remote operations, especially in sectors such as oil & gas and utilities, has led to greater reliance on Virtual PLCs, which offer cost-effective solutions for managing complex industrial systems remotely. The presence of major automation companies and software providers in the U.S. further accelerates the market’s growth, as companies seek to integrate next-generation automation solutions into their operations.
Japan market is closely tied to the country’s push for innovation through initiatives like Society 5.0, which aims to integrate advanced technologies such as IoT, robotics, and AI into the industrial sector. Japan’s leading manufacturing sectors, including automotive and electronics, are increasingly turning to Virtual PLCs to enhance production efficiency, streamline processes, and reduce operational costs. The country’s strong focus on robotics and smart factories also drives demand for flexible automation solutions that Virtual PLCs can provide. Additionally, Japan’s ongoing efforts to combat labor shortages through automation have spurred interest in virtualized control systems, which can be integrated into existing infrastructure with minimal hardware upgrades.
China Virtual and Soft PLCs market is fueled by the government’s “Made in China 2025” initiative, which prioritizes the adoption of advanced manufacturing technologies. The country’s vast manufacturing base, particularly in industries like electronics, automotive, and consumer goods, is rapidly moving toward automation to improve productivity and meet growing domestic and international demand. Virtual PLCs are increasingly being deployed to enable efficient, scalable automation across these industries, particularly in large-scale smart factories. China’s focus on industrial IoT (IIoT) and the integration of cloud platforms with industrial control systems is also propelling the adoption of Virtual PLCs, as they offer cost-effective and flexible solutions for managing complex production processes.
South Korea Virtual PLC & Soft PLC market is growing significantly as the government’s focus on digital innovation and smart manufacturing is a major driver for the adoption of Virtual and Soft PLCs. The country’s electronics and automotive industries are highly automated, and Virtual PLCs provide enhanced flexibility, allowing these sectors to innovate and optimize their production processes. South Korea’s investments in 5G technology and industrial IoT are further facilitating the growth of Virtual PLC adoption, as industries look for faster, real-time data processing capabilities. The integration of AI and edge computing into South Korea’s industrial ecosystem is also a key trend, with Virtual PLCs playing a vital role in enabling these technologies within the country’s manufacturing plants and smart factories.
For instance, in May 2024, Siemens introduced a new virtual PLC solution designed to enhance automation processes in manufacturing environments. This solution allows for flexible deployment on standard hardware and offers improved integration with IoT devices.
In the Virtual PLC & Soft PLC industry, companies such as ABB Ltd., Beckhoff Automation, and Rockwell Automation face competition centered around innovation, calculation, and integration capabilities. Price is a key factor, particularly as industries seek cost-efficient alternatives to traditional hardware PLCs. However, product differentiation through advanced software capabilities—such as real-time data processing, compatibility with IoT platforms, and cloud integration—has become increasingly vital.
Companies like Siemens AG and Honeywell focus on flexibility and ease of use, while Mitsubishi Electric and Omron Corporation emphasize seamless integration with existing automation systems. Distribution networks and global presence, particularly for firms like Emerson Electric and Delta Electronics, Inc., also play a critical role in market leadership, ensuring localized customer support and rapid deployment of solutions across different sectors. Enhanced cybersecurity, technical support, and after-sales service are additional competitive factors driving success in this market.
Major players operating in the virtual PLC & Soft PLC industry are:
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Market, By Component
Market, By Product Type
Market, By Control level type
Market, By Deployment mode
Market, By Operating System
Market, By Communication Protocol
Market, By Application
The above information is provided for the following regions and countries: