Synthetic Data Generation Market Global Report 2026

The synthetic data generation market size has grown exponentially in recent years. It will grow from $0.56 billion in 2025 to $0.8 billion in 2026 at a compound annual growth rate (CAGR) of 42.9%. The growth in the historic period can be attributed to increasing concerns regarding data privacy, rising expenses associated with real-world data collection, growing demand for accessible data resources, expanding utilization of datasets for model training, and increasing need for rare and sensitive datasets.

The synthetic data generation market size is expected to see exponential growth in the next few years. It will grow to $3.29 billion in 2030 at a compound annual growth rate (CAGR) of 42.5%. The growth in the forecast period can be attributed to increasing demand for privacy-preserving data solutions, growing adoption of synthetic data for AI model development, rising need for scalable training datasets, expanding use of synthetic data across regulated industries, and increasing demand for cost-effective data generation. Major trends in the forecast period include growing adoption of privacy-preserving synthetic datasets, increasing use of synthetic data for rare-event simulation, rising demand for high-fidelity synthetic data generation, growing adoption of synthetic data for model validation and testing, and increasing use of synthetic data to address data scarcity challenges.

The increasing frequency of cyberattacks is expected to drive the growth of the synthetic data generation market going forward. Cyberattacks refer to deliberate attempts by adversaries to steal data, compromise accounts, or divert funds through unauthorized digital access. The frequency of cyberattacks is increasing because growing digitalization is expanding the attack surface, providing hackers with more entry points to exploit sensitive systems. Synthetic data generation can support cyberattacks by enabling threat actors to produce realistic simulated datasets for training malicious AI models, testing system vulnerabilities, and developing more sophisticated and evasive attack techniques in controlled environments. For instance, in November 2023, according to the Australian Signals Directorate, an Australian-based government agency, Australia experienced a significant increase in cyber threats during 2022-23, with nearly 94,000 cybercrime reports submitted, representing a 23% increase from the previous year, while the cost of cybercrime to businesses increased by 14% compared to the previous financial year. Therefore, the increasing frequency of cyberattacks is driving the growth of the synthetic data generation market.

Key companies operating in the synthetic data generation market are focusing on developing innovative platforms such as end-to-end enterprise platforms to automate, scale, and ensure compliance of realistic synthetic data creation across complex multi-system environments for AI, testing, and analytics use cases. An end-to-end enterprise platform is a unified software system that manages a business process from start to finish, integrating all stages, tools, and data within one connected solution. For example, in October 2023, K2view Ltd., an Israel-based data management provider, launched a comprehensive synthetic data management solution designed to generate high-quality synthetic datasets for enterprise use cases. The platform integrates generative AI with rule-based synthesis, entity cloning, and data masking techniques to produce structured and semi-structured synthetic data with improved accuracy and compliance. Additionally, it supports critical applications such as software testing, machine learning model training, and secure data collaboration while preserving business-entity relationships and ensuring referential integrity across datasets.

In November 2024, SAS Institute Inc., a US-based software company, acquired Hazy for an undisclosed amount. Through this acquisition, SAS aims to enhance its generative AI and privacy-focused data capabilities by incorporating synthetic data technology, thereby supporting faster and more secure enterprise AI development and analytics modernization. Hazy Ltd. is a UK-based company that develops synthetic data generation software and privacy-preserving data platform solutions.

Major companies operating in the synthetic data generation market are K2View Ltd, Parallel Domain Inc, Clearbox AI Solutions Srl, Tonic.ai Inc, Sky Engine AI Inc, MDClone Ltd, Synthesis AI Ltd, Sarus Technologies, Facteus Inc, Synthesized Ltd, Accelario Ltd, Anyverse SL, Betterdata Pte Ltd, GenRocket Inc, Howso Inc, Octopize SAS, Syntho B.V, VEIL.AI Ltd, Mostly AI Inc, Future Agi India Private Limited.

North America was the dominant region in the synthetic data generation market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the synthetic data generation 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 generation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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