AI in Synthetic Data Market Report 2026

The artificial intelligence (AI) in the synthetic data market size has grown exponentially in recent years. It will grow from $1.97 billion in 2025 to $2.75 billion in 2026 at a compound annual growth rate (CAGR) of 40%. The growth in the historic period can be attributed to increasing demand for data-driven insights, growing awareness of privacy risks associated with using real data, rising regulatory emphasis on data protection and governance, shortage of high-quality annotated datasets, and the need to reduce data collection and labeling costs.

The artificial intelligence (AI) in the synthetic data market size is expected to see exponential growth in the next few years. It will grow to $10.48 billion in 2030 at a compound annual growth rate (CAGR) of 39.7%. The growth in the forecast period can be attributed to increasing enterprise adoption of synthetic data for model development and testing, growing demand for privacy-preserving data-sharing mechanisms, rising requirements for synthetic datasets in regulated industries such as healthcare and finance, expanding commercialization of synthetic data services and managed offerings, and increasing need for cross-border collaborative research data that does not expose personal records. Major trends in the forecast period include advancements in generative adversarial networks, development of diffusion-based generative models, integration of synthetic data with federated learning approaches, improvements in evaluation metrics for data fidelity and utility, and automation of end-to-end synthetic data generation pipelines.

The growing volume of unstructured data from the Internet of Things (IoT) is expected to drive the growth of the artificial intelligence (AI) in synthetic data market in the coming years. Unstructured data refers to schema-less outputs such as sensor logs, telemetry data, images, and free-form device signals generated continuously by IoT systems. This data volume is rising due to the rapid expansion of global broadband usage and the increasing number of connected devices producing high-velocity data streams. AI in synthetic data supports this trend by efficiently processing unstructured IoT data, converting high-velocity sensor signals, logs, and device outputs into structured, synthetic datasets, thereby enhancing analytics, automation, and decision-making across connected environments. For example, in May 2025, the Organisation for Economic Co-operation and Development (OECD), a France-based intergovernmental body, reported that the average monthly data usage per mobile broadband subscription in OECD countries surged 65% in one year and more than doubled over two years, rising from 8 GB in June 2022 to 17 GB by June 2024. Hence, the increasing unstructured data volume from IoT is fueling growth in the AI in synthetic data market.

Major companies in the artificial intelligence (AI) in synthetic data market are focusing on developing enterprise-grade synthetic data platforms, such as high-fidelity tabular and relational data synthesizers, to enhance data accessibility, accelerate model training, and strengthen privacy compliance. High-fidelity tabular and relational data synthesizers are AI-powered tools that generate artificial datasets replicating the statistical properties and relationships of real-world structured data while preserving confidentiality. For example, in December 2023, DataCebo, a US-based AI software company, launched Synthetic Data Vault. This scalable system builds custom generative AI models on-premises to create synthetic data from complex relational databases, significantly reducing the risk of exposing sensitive information. It can handle up to 100 tables and allows users to specify the data they need, enabling seamless data generation for testing and development without manual intervention. The platform also incorporates core algorithms validated by an active open-source community with over a million downloads, extending the reliability and utility of synthetic data for operators in finance, healthcare, and other sectors.

In November 2024, SAS Institute, a US-based provider of analytics and AI software, acquired the principal software assets of Hazy Ltd. for an undisclosed amount. Through this acquisition, SAS aims to integrate Hazy’s synthetic data capabilities into its analytics platform, enabling customers to generate privacy-preserving synthetic datasets for production analytics, testing, and governance. Hazy Ltd. is a UK-based company offering AI-powered synthetic data solutions for privacy-safe analytics.

Major companies operating in the artificial intelligence (AI) in synthetic data market are Shaip Inc., Kinetic Vision Inc., Parallel Domain Inc., Datagen Technologies Inc., Sky Engine Ltd., MDClone Ltd., Synthesis AI Inc., Cvedia Inc., Mostly AI GmbH, YData Ltd., Epistemix Inc., GenRocket Inc., Rendered.ai Inc., Syntho B.V., Betterdata Inc., Anyverse AI, Neurolabs Inc., Coohom Cloud Inc., Zumo Labs Inc., Cognata Ltd.

North America was the largest region in the artificial intelligence (AI) in the synthetic data market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in synthetic data market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI) in synthetic data 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 moderate impact on the artificial intelligence in synthetic data market by increasing costs associated with imported computing hardware, GPUs, and specialized infrastructure used for data generation and model training. The impact is more visible in hardware-dependent segments and in regions reliant on cross-border technology trade, particularly Asia-Pacific and North America. Software-centric synthetic data platforms face relatively lower tariff exposure, encouraging cloud-based and subscription-driven deployments. In some cases, tariffs have supported regional investment in local data infrastructure and domestic AI software development.

Artificial intelligence (AI) in synthetic data refers to the application of advanced algorithms and machine learning techniques to generate realistic, high-quality artificial data that replicates real-world datasets. It allows for the creation of diverse, scalable, and privacy-compliant data without relying on sensitive or limited real data. This technology accelerates data-driven research, testing, and development by providing consistent and controllable datasets for analysis and model training.

The main components of AI in synthetic data include software and services. Services refer to AI-driven solutions that enable the generation, management, and optimization of synthetic datasets, supporting secure and efficient data use for training and testing AI models. Data types include tabular data, image data, text data, and video data. Applications include data augmentation, model training and testing, data privacy and security, and fraud detection, serving end-users such as government, IT and telecommunications, retail and e-commerce, automotive, healthcare, and banking, financial services, and insurance (BFSI).

The artificial intelligence (AI) in synthetic data market consists of revenues earned by entities by providing services such as quality assurance services, synthetic dataset management services, and artificial intelligence model training and testing services. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence in synthetic data market includes sales of data anonymization tools, synthetic image generators, synthetic video generators, and synthetic voice and audio generators. 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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