Synthetic Data Statistics: Benefits, Vendors, Market Size [2023]

Are you looking to enhance privacy, improve machine learning models, and future-proof your data practices? If so, synthetic data should be on your radar.

Synthetic data creates simulated datasets that retain the statistical richness of real data without exposing actual personal information. Recent statistics point to massive growth ahead for synthetic data, driven by surging demand for privacy protection, balanced training data, and test data management.

Let‘s explore the latest synthetic data statistics highlighting the market size, top vendors, benefits for machine learning, and more. By the end, you‘ll see why synthetic data is becoming essential for forward-thinking firms.

Rapid Growth Ahead for Synthetic Data Market

Multiple forecasts predict the synthetic data market will expand at over 10% annually in the coming years. What‘s driving this boom?

• Test data management – expected to rise at 11.6% CAGR Source
• AI/ML training data – projected 22.2% CAGR growth Source

Gartner also estimates that by 2024, 60% of data for developing AI and analytics will be synthetic. Source

Clearly synthetic data adoption is accelerating across industries. But how big is the current market size?

• The synthetic data market was valued at $1.1 billion in 2021. Source
• It‘s projected to reach $6.1 billion by 2028. Source

Table showing regional synthetic data market growth projections. Source: Fortune Business Insights

This tremendous growth demonstrates the soaring demand for synthetic data solutions. What‘s driving this demand? Let‘s look at the benefits propelling adoption.

Myriad Benefits Expanding Synthetic Data Use

Synthetic data unlocks game-changing benefits for privacy protection, security, and machine learning. For example:

• Synthetic data retains up to 99% of the statistical value of real data while preventing re-identification risks. Source
• Generating synthetic training data delivers up to 20% higher ML model accuracy by preventing bias. Source
• Synthetic data reduces false alerts by 50-70% in predictive scenarios like volcano eruption forecasting. Source
• Synthesizing credit card data could prevent 80% of owners being re-identified from just 3 purchases. Source

Let‘s explore a few more real-world examples where synthetic data has delivered game-changing results:

• Enhancing cancer detection: One study used synthetic chest X-rays to improve machine learning screening for lung cancer with 97% accuracy. Source
• Self-driving cars: Synthetic sensor data has allowed researchers to train autonomous vehicles to handle hazardous edge cases without real-world risks. Source
• Retail forecasting: A grocery chain synthesized purchasing data to develop a demand prediction model, increasing revenue by 5.6%. Source

The evidence is overwhelming – synthetic data unlocks immense value for machine learning, privacy, security and more.

Top Synthetic Data Vendors Attract Major Funding

Given the enormous potential, synthetic data startups are attracting big investments from leading firms:

• TwentyBN – raised $12.5M over 2 rounds. Source
• Hazy – raised $6.8M over 5 rounds. Source
• Mostly AI – raised $31.1M over 3 rounds. Source
• AI.Reverie – raised $5.8M over 4 rounds. Source
• DataGen – raised $72M over 3 rounds. Source

Table showing top synthetic data startup funding. Source: Crunchbase

Major backers include Insight Partners, Khosla Ventures, GV (formerly Google Ventures) and more. These substantial investments signal massive confidence in the future of synthetic data.

In addition to funding rounds, recent synthetic data acquisitions and partnerships include:

• Splunk acquired TruSTAR for $200 million to enhance data privacy and security. Source
• NVIDIA partnered with LexSet to accelerate synthetic data for training AI models. Source
• TD Synnex invested in DataGen to provide synthetic data solutions. Source

As use cases grow, investments and partnerships in the synthetic data ecosystem will continue rising sharply.

Synthetic Data Job Market Growing Quickly

With demand booming, top vendors are aggressively expanding their talent pool:

• TwentyBN employs 11-50 people currently. Source
• Hazy has 11-50 employees. Source
• Mostly AI staff grew to 11-50. Source
• Smaller player AI.Reverie has 1-10 on staff. Source
• DataGen employs 11-50 presently. Source

And it‘s not just startups hiring. Demand is exploding more broadly:

• Synthetic data job postings on LinkedIn rose 450% from 2018 to 2021. Source
• Median salary for synthetic data scientists is $150K in major metros. Source

Ready to advance your career by applying synthetic data? Now is the time!

Synthetic Data Adoption Accelerating

In summary, current adoption trends and growth forecasts make it clear – synthetic data is reaching an inflection point.

• Market expansion over 10% annually as demand for AI training, testing, and privacy protection surges.
• Major benefits being proven across machine learning, security, risk management and more.
• Large funding rounds, acquisitions and partnerships accelerating ecosystem maturity.
• Job market growing quickly as demand for expertise spikes.

The bottom line? Synthetic data is becoming essential for any organization leveraging data while protecting user privacy. By adopting synthetic data solutions now, pioneering firms will gain a competitive advantage as this transformational technology enters the mainstream.

The future is synthetic – are you ready to join the revolution?