Virtual Controller Market to Reach $4.5B by 2035: SDA Drives Growth
Virtual Controller Market to Reach $4.5B by 2035: SDA Drives Growth
Software-Defined Automation Paves Way for Industrial Transformation
Key takeaways
- Virtual and soft controllers within SDA are projected to reach $4.5 billion by 2035.
- Represents a 28.2% CAGR over the next decade.
- Growth driven by modernization needs, efficiency gains, and workforce shortages.
SDA Momentum: Why It’s Accelerating Now
The market for software-defined automation (SDA) is experiencing rapid growth as industries seek to modernize their automation systems, according to new findings from ABI Research. This transition is prompted by the need for increased operational efficiency and the challenges posed by workforce shortages, making it difficult for companies to continue relying on outdated infrastructure.
Forecast: Virtual and Soft Controllers Surge to $4.5B
ABI Research projects that the virtual and soft controller sector within SDA will reach a value of $4.5 billion by 2035, representing a compound annual growth rate (CAGR) of 28.2% over the next decade.
James Prestwood, Senior Analyst at ABI Research, noted that the industrial automation landscape is moving towards a software-centric model, with early adoption by large manufacturers and strong interest from technology vendors. The shift towards SDA is particularly attractive for new facilities, though older plants are also expected to upgrade as legacy hardware becomes obsolete.
Who’s Leading the Charge
Leading suppliers driving this evolution include Bosch Rexroth, CODESYS, Phoenix Contact, Schneider Electric, Siemens, and SUPCON. These companies are actively developing SDA solutions and encouraging clients to embrace virtual and soft controllers.
From Rigid to Flexible: What Changes on the Plant Floor
Prestwood highlighted the broader impact of SDA, saying it will transform manufacturing operations from rigid, closed systems to flexible, IT-driven environments. Such flexibility is essential for future-proofing industrial processes and meeting changing production demands. The adoption of virtual controllers is seen as a central component in this evolution, promising robust growth for the sector.
Why It Matters
- Decouples software from hardware, enabling faster iteration and scaling.
- Eases skill constraints by leveraging IT-native tools and workflows.
- Supports greenfield deployments while offering clear upgrade paths for brownfield sites.
Report Source and Context
The insights are drawn from ABI Research’s latest market data report on industrial automation, which focuses on software-defined automation trends and is part of their comprehensive research into industrial and manufacturing technologies.
About ABI Research
ABI Research is recognized for its expertise in connecting technology providers with end users. The firm offers in-depth research and guidance to support successful technology adoption and customer retention strategies.
For more information about ABI Research and its services, interested parties can visit the company’s website or contact their global offices.
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