South Korea Synthetic Data Generation Market Research Report By Component (Solution, Services), By Deployment Mode (On-Premise, Cloud), By Data Type (Tabular Data, Text Data, Image and Video Data, Others), By Application (AI Training and Development, Test Data Management, Data Sharing and Retention, Data Analytics, Others), and By Industry Vertical (BFSI, Healthcare and Life Sciences, Transportation and Logistics, Government and Defense, IT and Telecommunication, Manufacturing, Media and Entertainment, Others)-Forecast to 2035

South Korea Synthetic Data Generation Market Overview

As per MRFR analysis, the South Korea Synthetic Data Generation Market Size was estimated at 8 (USD Million) in 2023.The South Korea Synthetic Data Generation Market is expected to grow from 11.7(USD Million) in 2024 to 35 (USD Million) by 2035. The South Korea Synthetic Data Generation Market CAGR (growth rate) is expected to be around 10.474% during the forecast period (2025 - 2035).

Key South Korea Synthetic Data Generation Market Trends Highlighted

The market for synthetic data production in South Korea is expanding significantly due to a number of important market factors. Businesses are looking for synthetic data solutions that allow them to improve their algorithms while maintaining data privacy as a result of the quick development of artificial intelligence and machine learning technology.

The need for synthetic datasets is being fueled, in particular, by South Korea's strong emphasis on technology development and its drive towards digital transformation in sectors like finance, healthcare, and autonomous driving.

Furthermore, businesses are being encouraged to investigate synthetic data as a compliant substitute for raw data because to strict laws pertaining to data privacy and protection, such as the Personal Information Protection Act (PIPA).

This market offers some noteworthy prospects for investigation. Through strategic objectives and research and development spending, the South Korean government has been encouraging artificial intelligence (AI) and creating an atmosphere that encourages innovation in data generation technologies.

As they seek to use synthetic data for better model training and testing, this creates opportunities for cooperation between digital startups and well-established businesses. Additionally, businesses are becoming more aware of how synthetic data can improve simulation capabilities and improve decision-making.

In South Korea, synthetic data solutions are increasingly being used in a variety of industries, according to recent developments. Organizations in the automotive and educational sectors are incorporating synthetic data to enhance their AI model training procedures.

Additionally, there is a discernible trend toward tailoring synthetic datasets to particular industry requirements, which is essential for regional companies looking to obtain a competitive advantage. These trends' congruence with South Korea's digital projects highlights the growing contribution of synthetic data generation to the country's technological environment.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

South Korea Synthetic Data Generation Market Drivers

Growing Demand for Artificial Intelligence and Machine Learning Applications

The South Korea Synthetic Data Generation Market is witnessing robust growth due to the increasing demand for artificial intelligence (AI) and machine learning (ML) solutions across various sectors, including finance, healthcare, and autonomous systems.

A report from the South Korean Ministry of Science and ICT indicates that the AI industry is expected to contribute approximately 10 percent to the national GDP by 2030, equating to about 120 billion USD. With companies like Samsung Electronics investing heavily in AI and ML technologies, the need for synthetic data, which helps train these algorithms without privacy concerns, is rapidly increasing.

As such, the South Korea Synthetic Data Generation Market is projected to expand significantly, catering to these advanced technological needs, as businesses aim to enhance their data-driven decision-making capabilities.

Increased Focus on Data Privacy Regulations

With the implementation of stricter data privacy regulations in South Korea, such as the Personal Information Protection Act (PIPA), organizations are compelled to find solutions that comply with these laws while still harnessing the power of data. PIPA enforces stringent measures on how personal data should be processed and shared.

As a result, companies are turning to synthetic data generation as a viable alternative to using real data, thus driving the South Korea Synthetic Data Generation Market. For instance, financial organizations, such as KB Financial Group, have started exploring synthetic data to ensure compliance with regulatory standards while maintaining the integrity of their data analytics efforts.

Advancements in Cloud Computing Infrastructure

The evolution of cloud computing in South Korea has significantly influenced the South Korea Synthetic Data Generation Market, making it easier for organizations to access scalable resources and sophisticated data manipulation tools.

According to the Korea Information and Communication Technology Association, the cloud computing sector is projected to grow by over 20 percent annually, emphasizing the increased capacity for organizations to utilize synthetic data generation tools that require substantial computational power.

Major cloud service providers like Naver Cloud and LG CNS are investing in advanced cloud infrastructure that supports synthetic data generation, catering to the needs of various industries, including healthcare and automotive, thereby fueling market growth.

Rising Importance of Data Quality and Enrichment

In the South Korean market, the significance of high-quality data for insights and decision-making is gaining traction. Organizations are increasingly recognizing that data quality directly impacts their competitiveness and success.

According to a study by the Korean National Information Society Agency, businesses that invest in data quality initiatives experience up to a 25 percent increase in operational efficiency. In this context, synthetic data generation plays a crucial role in enriching datasets, allowing companies to enhance their data assets without compromising on data integrity.

Companies in sectors such as healthcare and e-commerce, like Coupang, are adopting synthetic data strategies to ensure that their data not only meets quality standards but also supports rigorous analysis.

South Korea Synthetic Data Generation Market Segment Insights

Synthetic Data Generation Market Component Insights

The South Korea Synthetic Data Generation Market, particularly focusing on the Component segment, is rapidly evolving to meet the needs of diverse industries. Within this segmentation, the key areas are Solution and Services, both of which are essential for the effective deployment and management of synthetic data technologies.

The component of Solutions incorporates various software platforms and tools designed to generate, manage, and analyze synthetic data. This is crucial as organizations strive for data-driven decision-making while adhering to privacy regulations that restrict the use of real data.

The Solutions aspect empowers businesses to simulate a variety of scenarios, augmenting their datasets without exposing sensitive information.

On the other hand, the Services component encompasses consultative and technical support, ensuring that organizations harness the full potential of synthetic data technologies. This includes training, implementation assistance, and ongoing maintenance, all of which are essential for successfully integrating synthetic data generation into existing infrastructures.

South Korea's strong focus on technology innovation, combined with significant government support for Research and Development in artificial intelligence and data analytics, further drives the expansion of these components in the Synthetic Data Generation Market.

As industries in South Korea increasingly recognize the importance of valid yet anonymous data, the demand for comprehensive solutions and reliable services continues to grow. The integration of synthetic data technologies facilitates breakthroughs in various fields, notably in healthcare and finance, where data privacy is paramount.

By leveraging synthetic data, organizations can overcome barriers related to data scarcity, thereby promoting significant advancements in their respective fields.

Overall, the Component segment, encompassing both Solutions and Services, stands at the forefront of the South Korea Synthetic Data Generation Market, reflecting a significant shift towards innovative data practices that align with contemporary legal and ethical standards.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Synthetic Data Generation Market Deployment Mode Insights

The South Korea Synthetic Data Generation Market, particularly in the Deployment Mode segment, has shown significant growth and transformation in recent years. The two primary Deployment ModesOn-Premise and Cloudeach offer distinct advantages that cater to varying business needs.

Organizations in South Korea increasingly rely on Cloud-based solutions due to their flexibility, scalability, and lower initial costs. This mode supports rapid development cycles, making it particularly appealing for businesses that heavily incorporate Artificial Intelligence and Machine Learning into their operations.

On the other hand, On-Premise deployment remains significant for enterprises prioritizing data security and compliance concerns, especially in regulated industries like finance and healthcare. The rising need for privacy and tighter data regulations in South Korea has contributed to a notable demand for On-Premise solutions.

Furthermore, as South Korea advances in its digital transformation journey, adoption rates for both modes are expected to rise, driven by the increasing necessity for high-quality synthetic data in scenarios like model training and testing. Thus, the deployment modes will likely continue to evolve as businesses assess their unique operational needs and external compliance landscapes.

Synthetic Data Generation Market Data Type Insights

The South Korea Synthetic Data Generation Market showcases a diverse array of data types that play pivotal roles in various industries. Among these, Tabular Data stands out as a fundamental form, typically used in scenarios involving structured datasets where relationships among attributes need to be preserved.

The increasing reliance on machine learning applications creates substantial demand for accurately synthesized tabular datasets. Text Data serves as another crucial segment, vitally supporting developments in natural language processing and AI-driven communication systems.

This segment's growth is fueled by the surge in automation and customer interaction technologies requiring rich textual information for model training.

Image and Video Data, on the other hand, are essential in sectors like healthcare, automotive, and security, where visual data is critical for training robust AI models. The ability to generate synthetic images and videos can mitigate real-world data limitations due to privacy concerns or scarcity, addressing significant challenges within these sectors.

Furthermore, the 'Others' category encompasses various data types such as audio or multi-modal data, catering to niche applications that require a blend of different data forms. As South Korea continues to innovate within the tech space, these diverse data types are expected to support advancements across multiple domains leading to improved efficiencies and outcomes.

Synthetic Data Generation Market Application Insights

The South Korea Synthetic Data Generation Market reflects a robust application landscape that encompasses various critical uses such as AI Training and Development, Test Data Management, Data Sharing and Retention, Data Analytics, and others.

The increasing need for robust artificial intelligence models has fueled the demand for synthetic data, enabling organizations to enhance the efficiency and accuracy of AI systems without compromising data privacy. Test Data Management plays a vital role, providing organizations with high-quality data sets to perform more effective testing and validation, ultimately streamlining development processes.

Data Sharing and Retention have gained prominence as regulations around data use tighten, encouraging companies to utilize synthetic data for compliance and risk mitigation. Meanwhile, Data Analytics is becoming a cornerstone of many industries, driving demand for realistic yet non-sensitive data streams that can support informed decision-making.

The overall South Korea Synthetic Data Generation Market segmentation continues to evolve, propelled by advancements in technology and the growing awareness of data security among enterprises.

As businesses in South Korea increasingly recognize the importance of synthetic data for innovation and operational efficiency, these applications are expected to hold significant roles in shaping the future landscape of data usage.

Synthetic Data Generation Market Vertical Insights

The South Korea Synthetic Data Generation Market is multifaceted, reflecting an array of industry verticals that contribute to its overall dynamics and growth. The BFSI sector leverages synthetic data for enhanced fraud detection and risk assessment, facilitating robust financial services.

Meanwhile, Healthcare and Life Sciences increasingly utilize synthetic data to drive innovations in patient care and accelerate Research and Development initiatives, addressing challenges like data privacy. Transportation and Logistics make significant use of synthetic data to optimize operations and improve delivery efficiency in urban areas.

Government and Defense sectors rely on it for simulations and training, enhancing security measures without exposing sensitive information. The IT and Telecommunication sector adopts synthetic data for network management and testing, helping to improve services while maintaining user data privacy.

Manufacturing integrates synthetic data in predictive maintenance and supply chain management, driving efficiency and reducing downtime. Lastly, the Media and Entertainment industry taps into synthetic data for content creation and audience targeting, which is essential for personalized marketing strategies.

Overall, these sectors underscore the growing significance of the South Korea Synthetic Data Generation Market, emphasizing its pivotal role in bolstering innovation and operational excellence across various industries.

South Korea Synthetic Data Generation Market Key Players and Competitive Insights

The South Korea Synthetic Data Generation Market is evolving rapidly due to growing demand for innovative solutions in data management and artificial intelligence.

As businesses increasingly rely on data-driven decision-making, synthetic data emerges as a pivotal component that enables organizations to generate vast datasets for training machine learning models while safeguarding privacy and minimizing bias.

This market is characterized by a blend of established players and new entrants who are leveraging advanced algorithms and machine learning techniques to provide high-quality synthetic data solutions. The competitive landscape is marked by the companies' focus on technological advancements, partnerships, and strategic investments to enhance their capabilities and market reach in South Korea.

ParallelM has carved out a significant niche in the South Korean synthetic data generation landscape through its robust offerings tailored to the unique needs of local enterprises. The company's strengths lie in its ability to rapidly generate realistic synthetic datasets that help mitigate issues related to sensitive information while ensuring compliance with data regulations.

By providing solutions that enhance data quality and support various machine learning applications, ParallelM is fostering innovation among its clients. The company has established a solid presence in the South Korean market by collaborating with several influential organizations, which has further amplified its brand recognition and credibility in this fast-evolving sector.

NVIDIA stands as a formidable player in the South Korea Synthetic Data Generation Market, leveraging its deep expertise in graphics processing and AI technologies. The company offers a range of key products and services, including advanced AI frameworks and simulation tools that facilitate the creation of high-fidelity synthetic data.

NVIDIA's strengths include its powerful hardware solutions, which underpin numerous data-intensive applications, and its ability to integrate cutting-edge software to enhance user training and model performance.

Through strategic mergers and acquisitions, NVIDIA has augmented its technology portfolio, enabling it to provide comprehensive solutions that are essential for driving advancements in artificial intelligence across various sectors within South Korea.

The company's commitment to innovation and user engagement, coupled with its strong market presence, has positioned NVIDIA as a leader in the synthetic data space, essential for fostering growth in industries such as healthcare, finance, and autonomous driving.

Key Companies in the South Korea Synthetic Data Generation Market Include

• ParallelM
• NVIDIA
• TIBCO Software
• Synlogic
• AWS
• Fractal Analytics
• AnyLogic
• Google
• Microsoft
• DataRobot
• SAS
• IBM
• Civis Analytics
• H2O.ai

South Korea Synthetic Data Generation Market Developments

NVIDIA opened a new AI facility in Seoul in June 2025, setting up more than 2,000 H100 GPUs to facilitate advanced model training and the creation of synthetic data for Korean enterprises. Finance and healthcare companies can now create datasets that protect privacy thanks to AWS's expansion of its Seoul Region in April 2025 and the integration of specific synthetic-data pipelines into SageMaker.

Microsoft's "Azure AI for Manufacturing" effort was introduced in Korea in May 2025. The initiative uses synthetic data workflows to streamline supply chains for major automakers. To enhance diagnostic AI capabilities, Google Cloud and Seoul National University teamed in March 2025 to test synthetic-data augmentation for rare-disease imaging datasets.

In order to facilitate smart factory transitions, AnyLogic began providing synthetic-data-driven simulation models in February 2025 that were specifically designed for South Korea's manufacturing and logistics industries. A synthetic-data toolset for Korean banks was jointly published by Fractal Analytics and IBM in January 2025, improving the strength of fraud detection models while protecting consumer privacy.

These concerted efforts show how international AI infrastructure providers and analytics experts are giving South Korea's public and business sectors the resources and synthetic-data capabilities they need to boost AI innovation and guarantee growth that is responsible and data-driven.

South Korea Synthetic Data Generation Market Segmentation Insights

Synthetic Data Generation Market Component Outlook

• • Solution
  • Services

Synthetic Data Generation Market Deployment Mode Outlook

• • On-Premise
  • Cloud

Synthetic Data Generation Market Data Type Outlook

• • Tabular Data
  • Text Data
  • Image and Video Data
  • Others

Synthetic Data Generation Market Application Outlook

• • AI Training and Development
  • Test Data Management
  • Data Sharing and Retention
  • Data Analytics
  • Others

Synthetic Data Generation Market Vertical Outlook

• • BFSI
  • Healthcare and Life Sciences
  • Transportation and Logistics
  • Government and Defense
  • IT and Telecommunication
  • Manufacturing
  • Media and Entertainment
  • Others

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	8.0(USD Million)
MARKET SIZE 2024	11.7(USD Million)
MARKET SIZE 2035	35.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	10.474% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	ParallelM, NVIDIA, TIBCO Software, Synlogic, AWS, Fractal Analytics, AnyLogic, Google, Microsoft, DataRobot, SAS, IBM, Civis Analytics, H2O.ai
SEGMENTS COVERED	Component, Deployment Mode, Data Type, Application, Industry Vertical
KEY MARKET OPPORTUNITIES	Artificial Intelligence applications growth, Enhanced data privacy solutions, Demand in healthcare analytics, Advancement in machine learning models, Increasing regulatory compliance needs
KEY MARKET DYNAMICS	increased data privacy regulations, rising AI adoption, growing demand for data diversity, enhanced data quality requirements, expanding applications in various sectors
COUNTRIES COVERED	South Korea