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Forrester report: Generative AI set to deliver significant returns for enterprises in the coming years
The global synthetic data market is expected to grow from $0.3 billion in 2023 to $2.1 billion by 2028 at a compound annual growth rate (CAGR) of 45.7% during the forecast period. The growth of the market is driven by the increasing demand for synthetic data in various industries, such as banking, financial services, and insurance (BFSI), healthcare and life sciences, retail and e-commerce, automotive and transportation, government and defense, IT and ITeS, energy and utilities, manufacturing, and other verticals.
Synthetic data is created artificially and does not contain personally identifiable information (PII). It is generated using statistical methods and machine learning algorithms to replicate the characteristics and patterns of real data. Synthetic data can be used for various purposes, such as data democratization, AI/ML training and development, data anonymization, test data management, enterprise data sharing, data analytics and visualization, data monetization, and others.
According to a report by MarketsandMarkets, the BFSI vertical will likely dominate the market during the forecast period. This is due to banks’ and financial institutions’ increasing adoption of synthetic data to address privacy and compliance concerns. Synthetic data can be used to train AI/ML models without compromising sensitive customer data. This helps banks and financial institutions to improve risk management, fraud detection, and customer analytics.
The image and video segment may record the highest market share during the forecast period. This is due to the increasing demand for synthetic image and video data for training computer vision models. Synthetic image and video data can create realistic datasets that cover a wide range of scenarios, lighting conditions, and object variations. This helps improve computer vision models’ performance for applications such as autonomous driving, surveillance, and medical imaging.
The Asia Pacific region will likely record the highest growth during the forecast period. This is due to the rapid digital transformation and increasing adoption of AI and ML technologies in the region. Asia Pacific organizations use synthetic data to address data-driven challenges, comply with regulations, enhance AI and ML model performance, strengthen cybersecurity measures, and drive innovation.
The synthetic data market is still in its early stages of development, but it is growing rapidly. The market will likely expand in the coming years due to the increasing demand for synthetic data in various industries.