Synthetic Data Solution Market Report 2026

The synthetic data solution market size has grown exponentially in recent years. It will grow from $2.88 billion in 2025 to $3.52 billion in 2026 at a compound annual growth rate (CAGR) of 22.3%. The growth in the historic period can be attributed to increasing data privacy concerns, growing adoption of artificial intelligence, rising need for model training data, expanding digital transformation initiatives, and increasing regulatory compliance requirements.

The synthetic data solution market size is expected to see exponential growth in the next few years. It will grow to $7.81 billion in 2030 at a compound annual growth rate (CAGR) of 22%. The growth in the forecast period can be attributed to growing demand for scalable data generation, increasing integration of synthetic data in automation, rising focus on bias reduction in datasets, expansion of machine learning deployments, and growing emphasis on secure data sharing. Major trends in the forecast period include technology advancements in generative models, innovations in privacy-preserving synthesis, developments in multimodal synthetic data, research and developments in synthetic data quality, and advancements in automated data labelling systems.

The growth of the synthetic data solution market is expected to be driven by the rise in digital transformation. Digital transformation involves integrating digital technologies into all aspects of business to improve operations, enhance value delivery, and foster innovation while promoting agile and data-driven practices. Synthetic data solutions accelerate this transformation by providing instant, privacy-safe access to high-quality datasets, enabling faster experimentation and innovation across teams. They streamline data workflows by removing compliance barriers, supporting scalable AI development and modern analytics, and enhancing organizational agility. For example, in July 2024, the Office for National Statistics, a UK-based government agency, reported that the digital infrastructure program received a $535 million (£434 million) investment by 2022, with an additional $907 million (£736 million) allocated for the period from 2023 to 2025. As a result, the rise in digital transformation is driving the growth of the synthetic data solution market.

Major companies in the synthetic data solution market are focusing on developing advanced solutions, such as synthetic text generation, to address AI training bottlenecks, ensure data privacy, and unlock high-value proprietary data. Synthetic text generation refers to AI-powered systems that create highly realistic and statistically representative artificial text data, preserving the patterns and insights of original datasets without containing any real, sensitive information. For example, in October 2024, Mostly AI, an Austria-based synthetic data generation company, launched its advanced Synthetic Text solution. This platform generates privacy-safe, synthetic versions of text-based datasets, enabling organizations to use and share sensitive information such as customer feedback, contracts, or emails for AI training and analytics without legal or ethical risks. It includes advanced context preservation and semantic consistency features, allowing for high-fidelity model training and innovation on previously unusable data. Additionally, it offers scalable generation and seamless integration with existing data stacks, accelerating AI development cycles and reducing the compliance burden for data teams across industries.

In October 2025, KPMG LLP, a US-based professional services firm, acquired the intellectual property and technology assets of YData Labs Inc. for an undisclosed amount. This acquisition allows KPMG to establish a synthetic-data center of excellence and integrate YData’s platform to offer end-to-end synthetic data solutions for clients requiring privacy-preserving datasets. YData Labs is a US-based provider of synthetic data generation platforms and toolkits, specializing in privacy-preserving data synthesis for model training and analytics.

Major companies operating in the synthetic data solution market are Google LLC, Microsoft Corporation, International Business Machines Corporation, NVIDIA Corporation, Datavant Inc., Epistemix Inc., Tonic AI Inc., Gretel Labs Inc., Datagen Technologies Ltd., Parallel Domain Inc., Rendered.ai Inc., Synthesis AI Inc., Syntho B.V., Syntegra Limited, YData S.A., MOSTLY AI Solutions MP GmbH, syntheticAIdata, Synthesized Ltd., GenRocket Inc., Simulacra Synthetic Data Studio.

North America was the largest region in thesynthetic data solution market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the synthetic data solution market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the synthetic data solution market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have had a limited direct impact on the synthetic data solution market due to its software driven nature, though indirect effects arise from higher costs of imported computing hardware and cloud infrastructure components. Regions relying on cross border semiconductor supply chains, particularly Asia-Pacific, experience greater cost sensitivity. Cloud based synthetic data platforms are less exposed, accelerating SaaS adoption. In some cases, tariffs have encouraged localized data center investments and strengthened regional AI ecosystems.

A synthetic data solution is a software or platform designed to generate artificial datasets that mimic real-world data while ensuring privacy and compliance with data protection regulations. It serves as a tool for organizations to access safe, realistic data for training AI/ML models, performing analytics, and conducting testing. By providing a scalable, privacy-preserving alternative to real-world data, it accelerates innovation, facilitates digital transformation, and supports data-driven decision-making while mitigating privacy risks. This solution is particularly valuable in industries where sensitive data, such as healthcare, finance, and legal, must be handled with care.

The core elements of the synthetic data solution consist of the solution or platform and services. The solution or platform refers to integrated software tools and platforms that allow organizations to generate, manage, and use synthetic data effectively. Deployment modes include both on-premise and cloud options. Data types encompass tabular data, image data, video data, text data, and audio data. The technological solutions make use of generative adversarial networks, autoregressive models, agent-based modeling, statistical models, and rule-based systems. Major industries adopting these solutions include healthcare, retail and e-commerce, IT and telecommunications, automotive, and government and defense.

The synthetic data solution market consists of revenues earned by entities by providing services such as synthetic data generation, data anonymization, data augmentation, simulation-based data creation, and automated dataset labeling. The market value includes the value of related goods sold by the service provider or included within the service offering. The synthetic data solution market also includes sales of synthetic image datasets, synthetic tabular datasets, synthetic time-series datasets, synthetic text datasets, and synthetic video datasets. 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.

This product will be delivered within 1-3 business days.