Synthetic Data Generation Market Outlook:
Synthetic Data Generation Market size was over USD 447.16 million in 2025 and is projected to reach USD 8.79 billion by 2035, witnessing around 34.7% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of synthetic data generation is evaluated at USD 586.81 million.
The market growth can be primarily attributed to the rising utilization of synthetic data in calibrating and developing sensors used in autonomous vehicles. Additionally, automotive engineers utilize synthetic data to fabricate virtual environments that stimulate real-world driving conditions. It has been estimated that by 2035, autonomous driving could create USD 300 billion to USD 430 billion in revenue. The data published by the National Association of Insurance Commissioners; expects there to will be 4.5 million self-driving vehicles on the roads in U.S. roads by 2030. These factors are projected to fuel the synthetic data generation market during the forecast period.
Synthetic data is used to train AI models in various fields to enhance the model performance by eliminating bias and adding fresh domain knowledge. Other growing uses of generated data include training models in the absence of real data. Research Nester suggests that currently 34% of the companies currently using Artificial Intelligence and an additional 42% are exploring the field. In the rapidly evolving domain of artificial intelligence, the utilization and creation of synthetic data sets have become increasingly significant.
