Synthetic Data Market Report 2025

This Synthetic Data market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The synthetic data market size has grown exponentially in recent years. It will grow from $0.51 billion in 2024 to $0.69 billion in 2025 at a compound annual growth rate (CAGR) of 35.2%. The growth in the historic period can be attributed to growth in data generation from IoT devices, growth in automation, growth in synthetic data for autonomous vehicles, growth in virtual simulations for product testing, and increasing need for data diversity in training models.

The synthetic data market size is expected to see exponential growth in the next few years. It will grow to $2.28 billion in 2029 at a compound annual growth rate (CAGR) of 35%. The growth in the forecast period can be attributed to increasing demand for data privacy solutions, increasing volume of unstructured data, rising concern over data security, increasing investments in AI research, and growing demand for scalable data solutions. Major trends in the forecast period include technological advancements, machine learning models, digital twin technology, data privacy, and cybersecurity.

The anticipated growth of the synthetic data market is expected to be driven by the rise in digitalization. Digitalization involves converting information and processes into a digital format to enhance efficiency, accessibility, and innovation. The push towards digitalization stems from the need for greater operational efficiency, improved customer experiences, and the desire to remain competitive in a rapidly evolving market. Synthetic data plays a key role in this process, supporting various aspects of digitalization such as training, testing, compliance, and innovation, thereby facilitating safer and more effective digital transformation. For instance, a report from the Department for Science, Innovation, and Technology in February 2024 noted that the UK digital sector contributed £158.3 billion ($199.46 billion) to the UK economy in 2022, accounting for 7.2% of the total UK gross value added (GVA), an increase from 7.1% in 2021. Thus, the rise in digitalization is fueling the growth of the synthetic data market.

Leading companies in the synthetic data market are concentrating on developing advanced solutions such as synthetic data generation platforms to provide scalable, cost-effective, and privacy-compliant data. A synthetic data generation platform is a software tool designed to create artificial datasets that mimic real-world data for training, testing, and validating AI models and other digital applications. For example, in October 2023, K2view, an Israel-based software development company, launched the K2view Synthetic Data Management solution to address the growing demand for realistic and compliant synthetic data. This solution combines generative AI and rule-based synthetic data generation with a patented business-entity data model, ensuring exceptional accuracy and compliance. By integrating four data generation techniques generative AI, a rules engine, entity cloning, and data masking the solution effectively supports diverse use cases, including software testing, machine learning model training, and data collaboration, while maintaining referential integrity across structured and semi-structured data.

In April 2024, Cloud Software Group Inc., a US company that specializes in cloud-based enterprise software, partnered with Microsoft Corp. to enhance its cloud services. This collaboration aimed to bolster Cloud Software Group Inc.'s cloud offerings by integrating with Microsoft Azure, with a focus on improving cloud security, scalability, and performance for enterprise customers. Microsoft Corp. is recognized for its extensive cloud platform and leadership in AI and cloud services.

Major companies operating in the synthetic data market are Amazon.com Inc., Google LLC, Microsoft Corporation, Truata Limited, International Business Machines Corporation, Meta Platforms Inc., NVIDIA Corporation, Genpact Limited, OpenAI, Informatica LLC, Syntho, Delphix Corp., Anthropic, Tonic.ai, DataGen Technologies Ltd., Synthesis AI, Gretel Labs, CVEDIA Inc., Neuromation, Mostly AI Inc., AI.Reverie, ANYVERSE, Hazy, Aircloak, Replica Analytics Ltd., Diveplane Corporation, Predibase Inc.

North America was the largest region in the synthetic data market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the synthetic data market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the synthetic data market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Synthetic data refers to data that is artificially generated to resemble real-world data in structure and characteristics. This data is created using algorithms, simulations, or other computational methods rather than being collected from actual events or observations. It is used in various fields, including machine learning, data analysis, and software testing, to either supplement or replace real data, particularly when real data is scarce, sensitive, or restricted due to privacy concerns. Synthetic data is a valuable tool in situations where real data is limited, costly, or sensitive, facilitating innovation and development while mitigating potential risks.

Synthetic data offerings primarily include fully synthetic data, partially synthetic data, and hybrid synthetic data. Fully synthetic data is created to replicate the statistical properties of real data without incorporating any actual data points from the original dataset. It encompasses various types of data, such as tabular, text, and image or video data, and supports both direct and agent-based modeling. This type of data is utilized for purposes such as data protection, data sharing, predictive analysis, natural language processing, and computer vision algorithms. It is applied across various end-use industries, including banking, financial services, and insurance; healthcare and life sciences; transportation and logistics; information technology and telecommunications; retail and e-commerce; manufacturing; consumer electronics; and others.

The synthetic data market research report is one of a series of new reports that provides synthetic data market statistics, including synthetic data industry global market size, regional shares, competitors with a synthetic data market share, detailed synthetic data market segments, market trends and opportunities, and any further data you may need to thrive in the synthetic data industry. This synthetic data market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The synthetic data market consists of revenues earned by entities by providing services such as data augmentation, model validation and testing, data balancing and data integration. The market value includes the value of related goods sold by the service provider or included within the service offering. The synthetic data market also includes sales of data simulation platforms, predefined synthetic datasets, synthetic data management platforms and data visualization tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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