Synthetic Data Generation Market size is expected to reach USD 12.45 Billion by the end of 2036, growing at a CAGR of 35% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of synthetic data generation was USD 340 Million. AI systems for computer vision and autonomous driving already depend heavily on this developing technology. Car makers may construct realistic datasets and simulated landscapes at scale without actually driving by combining techniques from the film and gaming industries (simulation, CGI) with generative neural networks (GANs, VAEs). In 2021, there was a 3% year-over-year growth in the production of motor cars, with around 80 million vehicles produced worldwide.
In addition, the main corporations planning to expand their portfolios will benefit greatly from the urgency with which privacy legislation, such as GDPR, must be followed. Other growing uses of generated data include ramping up model development and training models in the absence of real data. Artificial data is a valuable resource for training and fostering models prior to the availability of real data while also reducing costs.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
~ 35% |
Base Year Market Size (2023) |
~ USD 340 Million |
Forecast Year Market Size (2036) |
~ USD 12.45 Billion |
Regional Scope |
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Data Type (Tabular Data, Text Data, Image & Video Data)
Based on data type, tabular data in the synthetic data generation market is anticipated to hold largest revenue share of about 50% during the forecast period. Recently, privacy concerns have made it difficult for businesses to get real-life data. Due to these difficulties, synthetic data that resembles real data is produced and can be kept in an organized tabular manner. This increases the need for tabular data, which is anticipated to increase at a notable CAGR over the course of the projected period. Businesses can improve operational data security and privacy by utilizing Generative Adversarial Networks (GANs) to create synthetic tabular data.
Research analysts predict that by 2030, the use of artificial tabular data to train AI models will expand at a rate that is around three times faster than that of real structured data.
Application (AI Training & Development, Test Data Management, Data Sharing & Retention, Data Analytics)
Based on application, test data management segment in the synthetic data generation market is attributed to hold largest share of about 35% during the forecast period. The market will be driven by the requirement for representative, varied, and high-quality data for testing and validation. Synthetic data can help businesses improve the efficacy and efficiency of their testing procedures, which will improve product quality, accelerate time-to-market, and save costs compared to standard test data management techniques. Due to the test data manager's growing requirement for the lowest collection of data for data testing and data masking, this market segment has the biggest share. It also seeks to avert GDPR-related legal issues. Due to the challenge’s businesses face when exchanging data across borders, the corporate data sharing market is expanding significantly.
Our in-depth analysis of the global synthetic data generation market includes the following segments:
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Deployment Mode |
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Modelling Type |
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Offering |
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North American Market Forecast
Synthetic data generation market in North America region is attributed to hold largest revenue share of about 33% during the forecast period. North America is a centre for technical development, with a particular emphasis on data-driven breakthroughs, AI, and machine learning. Due to the abundance of start-ups, tech firms, and research institutions in this area, there is a strong need for high-quality synthetic data for performing experiments and training AI models. North America is home to an astounding 291 start-up ecosystems among the top 1,000 worldwide. The United States maintains its leadership position with 252 of these coming from the country. Canada, which has its own thriving start-up ecosystem, contributes 39 ecosystems. The market production in this area is further propelled by the existence of significant competitors in the area.
APAC Market Statistics
Synthetic data generation market in Asia Pacific projected to hold second largest revenue share of about 38% during the forecast period. This is a result of the region embracing an increasing number of cutting-edge technologies. In addition, the Asia-Pacific region's synthetic data creation market in China had the most market share, while the market in India was expanding at the fastest rate. Due to growing adoption of AI/ML and cloud-based services across several industries for secure corporate infrastructure, Asia Pacific is expected to develop at the fastest compound annual growth rate.
Author Credits: Abhishek Verma
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