Virtual PLC & Soft PLC Market - By Component, Product Type, Control Level Type, Deployment Type, Operating System, Communication Protocol, Application & Forecast, 2024 - 2032

Virtual PLC & Soft PLC Market Size

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.
 

Virtual PLC & Soft PLC Market Trends

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.
 

Virtual PLC & Soft PLC Market Analysis

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.
 

• In the market, the Field Level refers to the physical layer where sensors, actuators, and other field devices interact directly with machinery and production processes. Virtual and soft PLCs control and monitor these devices by processing real-time data collected from them.
   
• Competition in this segment focuses on creating reliable, real-time communication between software-based control systems and field devices, ensuring accuracy, speed, and flexibility. Companies like Beckhoff Automation and Phoenix Contact offer robust solutions that provide seamless integration with industrial IoT, supporting smart manufacturing initiatives with minimal hardware dependency.
   

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.
 

• The Cloud-Based segment represents the future of virtual and soft PLC solutions, where the software is hosted and managed on cloud platforms, offering benefits such as scalability, cost-efficiency, and remote access. Cloud-based PLC systems allow for real-time monitoring, control, and analysis from anywhere, enabling greater flexibility for global operations and predictive maintenance.
   
• Companies like Beckhoff Automation and Emerson Electric Co. compete in this space by offering innovative cloud-enabled solutions that integrate with industrial IoT and advanced analytics, providing companies with the ability to optimize operations remotely while reducing infrastructure costs. Cloud-based solutions are particularly advantageous for organizations looking to scale quickly and incorporate advanced data-driven insights into their automation processes.
   

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.
 

Virtual PLC & Soft PLC Market Share

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.
 

Virtual PLC & Soft PLC Market Companies

Major players operating in the virtual PLC & Soft PLC industry are:

• ABB Ltd.
• Advantech Co., Ltd.
• Beckhoff Automation
• Bosch Rexroth
• Delta Electronics, Inc.
• Emerson Electric Co.
• Hitachi Industrial Equipment Systems
• Honeywell International Inc.
• Koyo Electronics Industries Co., Ltd.
• Lenze
• Mitsubishi Electric
• Omron Corporation
• Phoenix Contact
• Pilz GmbH & Co. KG
• Red Lion Controls
• Rockwell Automation
   

Virtual PLC & Soft PLC Industry News

• In July 2023, Schneider Electric announced a partnership with leading software vendors to enhance the integration of soft PLCs into their EcoStruxure platform. This collaboration aims to provide customers with more flexible and scalable automation solutions.
   

• In September 2023, ABB introduced new virtualized control solutions that leverage soft PLC technology to enhance industrial automation processes. These solutions aim to improve system responsiveness and reduce operational costs.
   

This virtual PLC & Soft PLC market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) from 2021 to 2032, for the following segments:

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Market, By Component

• Software
  • Soft PLC software
  • Standalone soft PLC
  • Embedded soft PLC
• Virtual PLC Software
  • Cloud-based virtual PLC
  • On-premises virtual PLC
• Services
  • Consulting and integration services
  • Support and maintenance services
  • Training and education services

Market, By Product Type

• Virtual PLC
• Soft PLC

Market, By Control level type

• Field level
• Process level
• Supervisory level
• Enterprise level

Market, By Deployment mode

• On-premises
• Cloud-based

Market, By Operating System

• Windows-based
• Linux-based
• Others

Market, By Communication Protocol

• Ethernet/IP
• Profinet
• Modbus TCP
• CANopen
• Others

Market, By Application

• Discrete manufacturing
  • Assembly line automation
  • Packaging automation
  • Material handling systems
• Process manufacturing
  • Chemical process control
  • Food and beverage processing
  • Pharmaceuticals
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa