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Artificial Intelligence (AI) In Synthetic Data Market Size Forecast: How Large Could The Market Become By 2030?
The artificial intelligence (AI) in the synthetic data market size has experienced rapid expansion in recent years. It is projected to expand from $1.97 billion in 2025 to $2.75 billion in 2026, demonstrating a compound annual growth rate (CAGR) of 40.0%. This historical growth can be attributed to a heightened demand for data-driven insights, an increasing understanding of privacy risks associated with using real data, a growing regulatory focus on data protection and governance, a scarcity of high-quality annotated datasets, and the imperative to lower data collection and labeling expenditures.
The artificial intelligence (AI) in the synthetic data market is projected to experience rapid expansion over the upcoming years. By 2030, this market is anticipated to reach $10.48 billion, demonstrating a compound annual growth rate (CAGR) of 39.7%. This projected growth is driven by several factors, including the rising adoption of synthetic data by businesses for model development and testing, a surging need for privacy-preserving methods of data sharing, escalating demands for synthetic datasets within regulated sectors like healthcare and finance, the expanding availability of commercial synthetic data services and managed solutions, and a greater necessity for collaborative, cross-border research data that safeguards personal information. Key trends anticipated during this period encompass progress in generative adversarial networks, the creation of diffusion-based generative models, the incorporation of synthetic data into federated learning strategies, enhancements in metrics used to assess data fidelity and usefulness, and the automation of complete synthetic data generation pipelines.
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Artificial Intelligence (AI) In Synthetic Data Market Opportunity Drivers: What Is Creating New Revenue Potential?
The expanding volume of unstructured data originating from Internet of Things (IoT) devices is anticipated to drive the advancement of the artificial intelligence (AI) in synthetic data market in the future. This growth in unstructured data signifies a rise in schema-less outputs, including sensor logs, telemetry data, images, and various free-form device signals, consistently produced by IoT systems. This increase in data volume stems from a significant expansion in global broadband usage, fueled by an escalating number of connected devices that generate high-velocity data streams. The artificial intelligence (AI) in synthetic data market bolsters data ecosystems by effectively processing the growing influx of unstructured data from Internet of Things (IoT) sources. It enhances data usability through the transformation of high-velocity sensor signals, logs, and device outputs into organized, synthetic datasets, thereby improving analytics, automation, and decision-making processes within connected environments. A notable example is provided by the Organisation for Economic Co-operation and Development, a France-based intergovernmental body, which reported in May 2025 that the average monthly data usage per mobile broadband subscription in OECD countries saw a 65% rise in one year and more than doubled over two years, escalating from 8 GB in June 2022 to 17 GB by June 2024. Consequently, the escalating volume of unstructured data originating from IoT is a key factor propelling the expansion of the artificial intelligence (AI) in synthetic data market.
Artificial Intelligence (AI) In Synthetic Data Market Segments: Where Are The Largest Growth Opportunities?
The artificial intelligence (AI) in synthetic data market covered in this report is segmented –
1) By Component: Services, Software
2) By Data Type: Tabular Data, Image Data, Text Data, Video Data
3) By Application: Data Augmentation, Model Training And Testing, Data Privacy And Security, Fraud Detection
4) By End-User: Government, Information Technology (IT) And Telecommunications, Retail And E-commerce, Automotive, Healthcare, Banking, Financial Services And Insurance (BFSI)
Subsegments:
1) By Services: Data Annotation, Data Verification, Data Labeling, Synthetic Data Generation, Consulting
2) By Software: Data Synthesis Platforms, Simulation Engines, Data Augmentation Tools, Privacy Preserving Tools, Model Training And Testing Tools
Artificial Intelligence (AI) In Synthetic Data Market Trends: What Is Shaping Future Industry Growth?
Key companies in the artificial intelligence (AI) in synthetic data market are focusing on developing enterprise-grade synthetic data platforms, particularly high-fidelity tabular and relational data synthesizers. This development aims to enhance data accessibility, accelerate model training, and bolster privacy compliance. High-fidelity tabular and relational data synthesizers are AI-powered tools that produce artificial datasets, mirroring the statistical properties and relationships of real-world structured data while maintaining confidentiality. For instance, in December 2023, DataCebo, a US-based AI software company, launched Synthetic Data Vault. This specific high-fidelity tabular and relational data synthesizer is a fully scalable system capable of building custom generative AI models on-premises to create synthetic data from complex relational databases, significantly reducing the risk of exposing sensitive information. It includes the capability to handle up to 100 tables and enables users to simply describe the data they require, allowing for seamless data generation for testing and development without operator intervention. Moreover, it incorporates proven core algorithms validated by an active open-source community with over a million downloads, thus extending the utility and reliability of synthetic data for ground operators in finance, healthcare, and other sectors.
Artificial Intelligence (AI) In Synthetic Data Market Major Participants And Competitive Dynamics
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.
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Artificial Intelligence (AI) In Synthetic Data Market Regional Analysis: Which Region Leads By Revenue?
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.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
