Synthetic Data Generation Market: Boosting Privacy and Security Practices

The global synthetic data generation market was valued at USD 218.4 million in 2023 and is projected to reach USD 1,788.1 million by 2030, growing at a CAGR of 35.3% from 2024 to 2030. This rapid expansion is primarily driven by the increasing adoption of technologies such as Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT), along with the rising use of connected devices across industries.

As data becomes vital to business operations—particularly in sectors such as entertainment, media, and retail—the demand for synthetic data continues to rise. Synthetic data is widely used for training AI/ML models, developing vision algorithms, and creating predictive analytics solutions. Highly regulated, customer-facing industries such as healthcare, finance, and real estate rely on synthetic data for research, marketing content development, and secure content delivery while maintaining strict privacy compliance.

The rapid pace of digital transformation, combined with automation under Industry 4.0 and the expansion of IoT, has significantly influenced sectors like manufacturing. However, stringent data privacy regulations, growing concerns over data security, and the difficulty of obtaining high-quality real-world datasets create obstacles for businesses. Synthetic data is increasingly being used to overcome these barriers by offering safe, scalable, and reliable alternatives for training and testing advanced systems.

In manufacturing, synthetic data helps address data availability challenges, supports the training of machine-learning models, and enables the implementation of technological solutions for quality control. The automotive industry, in particular, uses synthetic data for simulation and virtual testing, anomaly detection, fault diagnosis, and sensor validation. This supports manufacturers in lowering development costs, improving safety, and reducing time-to-market. For example, in August 2023, Tech Mahindra Limited collaborated with Anyverse SL to enhance computer vision-powered solutions for autonomous applications.

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Key Market Trends & Insights

• North America led the global market with a 34.5% share in 2023, supported by strong adoption rates, numerous application areas, and the presence of advanced synthetic data generation solutions. The region also benefits from strict data privacy regulations and a high concentration of major financial, automotive, and retail companies that require synthetic data for advanced AI/ML model training.
• By data type, the tabular data segment dominated with a 38.8% revenue share in 2023. Its structured format, versatility, and suitability for statistical analysis make it highly applicable across healthcare, e-commerce, software development, manufacturing, and other sectors. The scalability, cost-effectiveness, and privacy-preserving characteristics of tabular synthetic data support its widespread adoption.
• By modelling, the direct modeling segment is projected to experience significant growth. This method uses Generative Adversarial Networks (GANs), Variational Autoencoders (VAEs), and related advanced algorithms to replicate data distributions. It is widely utilized in sectors such as healthcare, finance, automotive, computer vision, and data augmentation.
• By offering, the fully synthetic data segment is expected to dominate the market. Fully synthetic datasets are created entirely using algorithms, without incorporating any real-world data, making them ideal for industries with strict privacy regulations such as healthcare, finance, and automotive. Key benefits include cost efficiency, rapid data generation, and high versatility.
• By application, the Natural Language Processing (NLP) segment held the largest revenue share in 2023. Synthetic data is used to generate human-like text, augment datasets, and mask sensitive information. Template-based generation and GANs are among the commonly used techniques to support NLP applications.
• By end use, the consumer electronics segment is expected to register the fastest CAGR from 2024 to 2030. Companies in consumer electronics and retail are leveraging synthetic data to train AI/ML models that analyze consumer behavior, preferences, spending patterns, and payment behaviors. This supports improved marketing strategies, targeted content distribution, and stronger customer engagement.

Market Size & Forecast

• 2023 Market Size: USD 218.4 Million
• 2030 Projected Market Size: USD 1,788.1 Million
• CAGR (2024-2030): 35.3%
• North America: Largest market in 2023
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Leading companies in the synthetic data generation market include Hazy Limited, kymeralabs, YData, MDClone, and Informatica Inc. To remain competitive in the rapidly expanding market, these companies are focusing on partnerships, product enhancements, service expansions, and technological innovation.

• Hazy Limited offers a comprehensive synthetic data platform with multi-table capabilities, support for over 50 data types, differential privacy, automatic analytics, time-series generation, and model comparison tools.
• MDClone specializes in synthetic data solutions for healthcare and life sciences. Its ADAMS Healthcare Data Platform enables organizations to unlock data value, reduce inefficiencies, and gain competitive advantages through advanced technology-driven insights.

Key Players

• MOSTLY AI
• Synthesis AI
• Statice
• YData
• Ekobit d.o.o. (Span)
• Hazy Limited
• SAEC / Kinetic Vision, Inc.
• kymeralabs
• MDClone
• Neuromation
• Twenty Million Neurons GmbH (Qualcomm Technologies, Inc.)
• Anyverse SL
• Informatica Inc.

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Conclusion

The global synthetic data generation market is poised for exceptional growth as industries increasingly rely on AI, ML, and IoT technologies. The need for high-quality, privacy-compliant data is driving widespread adoption across sectors such as healthcare, finance, automotive, manufacturing, and consumer electronics. With synthetic data enabling faster innovation, improved model performance, and reduced regulatory risks, the market is expected to reach USD 1,788.1 million by 2030, growing at a remarkable CAGR of 35.3%. As digital transformation accelerates, synthetic data will play a pivotal role in shaping the future of advanced analytics, automation, and intelligent systems worldwide.