Top Growth Driver In The Synthetic Data Market 2025: Rising Digitalization Fuels Growth In The Market

LONDON, GREATER LONDON, UNITED KINGDOM, March 4, 2025 /EINPresswire.com/ -- The synthetic data market has shown remarkable growth in recent years, poised to swell from $0.51 billion in 2024 to $0.69 billion in 2025, registering an impressive compound annual growth rate CAGR of 35.2%. Factors bolstering this growth include increased data generation from IoT devices, the rise of automation technology, the growing application of synthetic data for autonomous vehicles, the expansion of virtual simulations for product testing, and the escalating need for data diversity in training models.

What Propels Future Growth In The Synthetic Data Market?

Looking further into the future, the synthetic data market size expects to continue its exponential growth trajectory. By 2029, the market value is set to reach $2.28 billion, with a sustained CAGR of 35.0%. Underpinning this forecast growth are trends such as the mounting demand for data privacy solutions, the burgeoning volume of unstructured data, heightened concern over data security, increased investments in AI research, and the growing demand for scalable data solutions. Technological advancements, the incorporation of machine learning models, proliferation of digital twin technology, and an increased focus on data privacy and cybersecurity are all identified as significant trends moving into the forecast period.

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How Is Increasing Digitalization Fuelling The Synthetic Data Market?

A key factor expected to fuel future market growth is the ongoing increase in digitalization. As both information and operations shift into a digital format to boost efficiency, accessibility, and innovation, synthetic data's role will become more critical. The swell in digitalization stems from the need for heightened efficiency and productivity, the quest for improved customer experiences, and the imperative need to remain competitive in a rapidly transforming marketplace. Synthetic data proves to be a versatile tool that supports an array of digitalization aspects, varying from training and testing to compliance and innovation, making the digital transition easier and more secure for organizations.

Compelling evidence of this trend came in February 2024, when a report published by the Department for Science, Innovation, and Technology, a UK-based ministerial department, revealed that the UK's digital sector contributed £158.3 billion $199.46 billion to the UK economy in 2022. This figure accounted for 7.2% of the total UK gross value added GVA, an increase from 7.1% in 2021. Such stark numbers underscore how the increase in digitalization continues to drive the growth of the synthetic data market.

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Which Key Players Are Steering The Synthetic Data Market?

Key industry players operating in the synthetic data market include, amongst others, Amazon.com Inc., Google LLC, Microsoft Corporation, Truata Limited, International Business Machines Corporation, Meta Platforms Inc., NVIDIA Corporation, Genpact Limited, OpenAI, Informatica LLC, Syntho, Delphix Corp., Anthropic, Tonic.ai, DataGen Technologies Ltd., Synthesis AI, Gretel Labs, CVEDIA Inc., Neuromation, Mostly AI Inc., AI.Reverie, ANYVERSE, Hazy, Aircloak, Replica Analytics Ltd., Diveplane Corporation, Predibase Inc.

What Trends Are Emerging In The Synthetic Data Market?

Among emerging trends in the market, a key focus on developing advanced solutions, such as synthetic data generation platforms, stands out. These platforms provide scalable, cost-effective, and privacy-compliant data, creating artificial data sets that closely mimic real-world data for training, testing, and validating AI models and other digital applications. For instance, in October 2023, Israel-based software development company K2view launched its Synthetic Data Management solution. This innovative solution addresses the growing demand for realistic and compliant synthetic data by combining generative AI, rule-based synthetic data generation, and a patented business-entity data model to ensure exceptional accuracy and regulatory compliance.

How Is The Synthetic Data Market Segmented?

Key to understanding market dynamics is the breakdown of the synthetic data market's various segments:

1 By Offering: Fully Synthetic Data; Partially Synthetic Data; Hybrid Synthetic Data
2 By Data Type: Tabular Data; Text Data; Image And Video Data
3 By Modeling Type: Direct Modeling; Agent-Based Modeling
4 By Application: Data Protection; Data Sharing; Predictive Analysis; Natural Language Processing; Computer Vision Algorithms; Other Applications
5 By End Use Industry: Banking, Financial Services, And Insurance; Healthcare And Life Sciences; Transportation And Logistics; Information Technology And Telecommunication; Retail And E-Commerce; Manufacturing; Consumer Electronics; Other End User Industries.

Subsegments include Fully Synthetic Data categorized into Tabular Synthetic Data; Image Synthetic Data; Text Or Document Synthetic Data; Speech Or Audio Synthetic Data; Video Synthetic Data; Synthetic Time Series Data. For Partially Synthetic Data, the subsegments are Mixed Tabular Data; Augmented Image Data; Textual Data with Real Labels; Synthetic Audio with Real Sound Samples; Partially Simulated Time Series. Finally, the Hybrid Synthetic Data subsegments comprise Synthetic-to-Real Transfer Learning Data; Realistic Virtual Environment Data; Synthetic Anonymized Data; Augmented Reality AR Training Data; Real-And-Synthetic Blended Image Data.

How Does Regional Growth Compare In The Synthetic Data Market?

Taking a broad view, in 2024, North America was the largest region in the synthetic data market. However, the fastest-growing region in the forecast period is expected to be Asia-Pacific. Areas covered in this report span Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

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