Synthetic Media Market Size, Share and Trend Analysis, By Type (Text-to-Image, Text-to-Video, Audio Synthesis), Technology (NLP, GANs, Others), By Deployment Model (On-premise, Cloud, Hybrid), By Application), and By Region, Forecast 2024-2031

Global Synthetic Media Market Overview and Key Insights:

The global synthetic media market size reached USD 4.17 Billion in 2023 and is expected to register a revenue CAGR of 13.6% during the forecast period. The rising consumption of personalized content, owing to increased internet penetration, is a key factor driving the market revenue growth of the global synthetic media market.

According to the International Telecommunication Union (ITU), 67% of the global population, equivalent to 5.4 billion people, is now online. This marks a 4.7% growth since 2022, a notable growth compared to the 3.5% increase registered between 2021 and 2022.

Market Drivers:

The growing adoption of synthetic media in media and entertainment production is significantly driving the market revenue growth of synthetic media market. Film production companies, visual effects (VFX) artists, and directors are in increasingly leveraging synthetic media to create new generation of movies and videos. Synthetic media is highly effective in applications such as Artificial Intelligence (AI)-driven dubbing, voice over and the use of avatars, enabling film and media production companies to create multilingual video and audio content without compromising quality. Synthetic media is further used in news production, while advertising companies are leveraging synthetic media tools to create product demonstrations videos and marketing or promotional videos. These applications are significantly contributing to the market revenue growth of the synthetic media market.

Rapid advancements in technologies such as DALL-E 2, DALL-E 3, DALL-E 4, Nuwa, Stable Diffusion, Google’s Imagen AI and other innovations are enabling users as well as companies to digitally develop hyper-realistic avatars, voices, and backdrop scenes for movies. These innovations are expected to accelerate the market revenue growth over the forecast period.

Market Opportunity:

Global 5G penetration and increased social media usage are driving market revenue generating opportunity. According to the GSM Association, globally 5G connections are expected to surpass 2 billion by 2025. Synthetic media technologies are highly effective in content creation, as a result several content creators and digital media production companies are adopting synthetic media platforms and tools for creating videos more cost and time effectively. Furthermore, according to research around 5.22 billion people, or 63.8% of the global population, are actively using social media, which are actively generating opportunities for synthetic media market.

Recent Trends:

Synthetic media is increasingly utilized for content development in the metaverse, augmented reality (AR), virtual reality (VR), mixed reality (MR). Synthetic media offer pixel-perfect 3D annotations, enabling the creation of highly robust digital human models for metaverse applications at a fraction of cost and time required by traditional methods. These applications are further accelerating advancements in content creation for gaming and e-learning, is major recent trends in synthetic media market.

Restraints & Challenges:

Rising concerns about deepfakes and malicious applications are expected to hinder market revenue growth over the forecast period. Some users are exploiting synthetic media tools to manipulate or alter visual and information to create convincing fake content including images, audio, and video. According to the World Economic Forum (WEF), 60% of Americans expressed being very concerned about deepfakes, more than any other AI-related risk to society.

Governments in countries such as the U.S. are drafting new regulations to combat harmful deepfake content. The U.S. Federal Trade Commission (FTC) has expressed concerns regarding the rise in deepfake technology. The FTC warns that misuse of advanced technology is leading to a significant increase in deepfakes being used to defraud unsuspecting individuals. These concerns are challenging the market revenue growth of synthetic media market.

Type Segment Insights and Analysis:

Based on the type, the synthetic media market is segmented into text-to-image, text-to-video, audio synthesis.

Text-to-Image contributed largest share and highest revenue growth in 2023. Text-to-image tools are highly effective in generating high-quality, visually compelling images from text prompts, a large number of business and individuals are highly using these tools to reduce production cost of and time. Moreover, new product developments in stock photos creation, are expected to contribute the market revenue growth.

For instance, on January 2024, Getty Images introduced a new text-to-image solution by iStock, a new text-to-image powered by Nvidia’s Picasso platform. The new functionality is intended for both individual and business creators who want to create visual material without worrying about copyright violations.

Text-to-Video segment is expected to register fastest revenue growth over the forecasted period. Text-to-Video has the ability to generate high-quality video content from simple text prompts. This type of technology is highly adopted in the application such as entertainment, gaming and education. Also, these tools help in scaling large format content creation more efficiently and affordable.

Technology Segment Insights and Analysis:

Based on the technology, the synthetic media market is segmented into natural language processing (NLP), generative adversarial networks (GANs), computer vision, deep learning and others.

Natural Language Processing (NLP) segment contributed largest share in 2023. NLP technology powers synthetic media that mimics human-like communication with remarkable accuracy. NLP generates highly realistic and interactive synthetic media by leveraging machine learning (ML) and reinforcement learning (RL) algorithms instead of human input. These technologies are significantly adopted across applications such as media and entertainment, education.

Generative Adversarial Networks (GANs) expected to account fastest revenue growth by 2031. GANs uses a dual-network approach that improves quality of synthetic outputs, as a result these technologies are highly useful in creating content gaming, entertainment, and advertising, where immersive experiences and hyper-realistic visuals are key enablers of user engagement. Also, GANs are increasingly used to generate synthetic medical images for various training and research, which are further expected to drive the revenue growth over the forecast period.

Application Segment Insights and Analysis:

Based on the application, the synthetic media market is segmented into media and entertainment, education and training, advertising and marketing, social media, gaming and others.

Media and entertainment segment contributed largest share in 2023. Synthetic media tools are highly adopted in media and entertainment for rapid creation of hyper-realistic visuals, dynamic voiceovers, and virtual characters. These tools are cost-effective and delivers immersive visuals, as a result film production and visual effects (VFX) immersive are highly utilizing these tools to deliver contents.

Advertising and Marketing segment accounted for the fastest growth rate during the forecasted period. Synthetic media are highly adopted by marketing and advertising company to develop brand or marketing campaigns at scale. Synthetic media tools such as text-to-image, text-to-video, audio synthesis leverage advertisers to create high-quality visuals and promotional materials for diverse audiences.

Geographical Outlook:

North America holds highest market share in synthetic media market in 2023. Increasing usage of synthetic media owing to internet penetration is significantly driving market revenue growth of synthetic media market in this region. According to the National Telecommunications and Information Administration (NTIA), 83% of individuals aged three and older in the U.S. are using the internet in 2023.

Smartphones are widely used in the U.S., and as a result, the demand for content creation is expected to grow over the forecast period. According to the United States Census Bureau, smartphones were the most common computing devices in U.S. households in 2021, with 90% of households owning them.

Moreover, the development of deepfake detection and attribution technology are further expected to accelerate market revenue growth over the forecast period. For instance, On December 2024, the U.S. Defense Innovation Unit and U.S. Department of Defense (DoD) collaborated to strengthen synthetic media detection capabilities.

Asia-Pacific expected to register fastest revenue growth by 2031. The usage of internet and social media application by youth population are expected to accelerate the revenue generation of synthetic media market over the forecast period. According to the United Nations (UN), Asia-Pacific region contains 60 % of the world’s youth population, or 750 million young population are aged between 15 to 24 years.

Rising 5G penetration in the region has contributed to the revenue growth of synthetic media market in this region. According to the GSM Association, Asia-Pacific exceeded 1.2 billion with a penetration rate of just under 45% of the population in 2021.

Europe expected to account significant growth rate over the forecast period. Rapid investment in companies to develop synthetic media platforms are key contributor of revenue generation of synthetic media market in Europe. For instance, On September 2024, Munich, Germany based AI-powered media platform company VidLab7 raised USD 3.75 Million in a seed funding round led by EQT Ventures.

Moreover, the strategic collaboration between companies is playing crucial role in driving revenue growth of synthetic media market in this region. On, January 2024, Barcelona, Spain based GRUP MEDIAPRO and Microsoft Corporation collaborated on a project to design, develop and deployment of artificial intelligence (AI) and synthetic media laboratory for audiovisual applications.

Competition Analysis:

The synthetic media market is characterized by a fragmented structure, with several players competing across various segments and regions. List of major players included in the synthetic media market report are:

• Synthesia Limited
• Meta Platforms, Inc.
• At Hour One Ltd.
• Microsoft Corporation
• Midjourney, Inc.
• De-Identification Ltd.
• Colossyan Inc.
• Runway AI, Inc.
• Resemble AI
• Boomy Corporation
• VidLab7 GmbH
• DuckDuckGoose B.V.

• Synthesia
• Rephrase AI
• Other Companies

Strategic Developments in Synthetic Media Market:

• In June 2023, Synthetic media company Synthesia has secured USD 90 million in a Series C funding round led by Accel, with participation from Nvidia and other investors. Synthesia leverages AI to create virtual humans capable of realistically replicating individuals’ appearance and voice for video and audio productions. This investment will enhance its video avatars, making them more natural in terms of movement, expression, and voice, while offering more customization options.
• In September 2022, Rephrase.ai, raised USD 10.6 million in a Series A funding round led by Red Ventures, with additional participation from Silver Lake and 8VC. Rephrase has been proactive in securing high-profile enterprise contracts, with a customer base that includes teams from Johnson & Johnson, Amazon, and Castrol.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2021 to 2022, with 2023 serving as the base year for market size calculations. The forecast period extends from 2024 to 2031.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

 Scope And Key Highlights of The Synthetic Media Market Report:

The synthetic media market report offers a detailed analysis of market size, including historical revenue (in USD Billion) data for 2021-2022 and revenue forecasts for 2024-2031 across the following segments:

• Type Outlook (Revenue, USD Billion; 2021-2031)
  • Text-to-Image
  • Text-to-Video
  • Audio Synthesis

• Technology Outlook (Revenue, USD Billion; 2021-2031)
  • Natural Language Processing (NLP)
  • Generative Adversarial Networks (GANs)
  • Computer Vision
  • Deep Learning
  • Others

• Deployment Model Outlook (Revenue, USD Billion; 2021-2031)
  • On-premise
  • Cloud
  • Hybrid

• Application Outlook (Revenue, USD Billion; 2021-2031)
  • Media and Entertainment
  • Education and Training
  • Advertising and Marketing
  • Social Media
  • Gaming
  • Others

• Regional Outlook (Revenue, USD Billion; 2021-2031)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Benelux
    • Nordic Countries
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Oceania
    • ASEAN Countries
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Turkey
    • Rest of MEA

Frequently Asked Questions (FAQ) about the Synthetic Media Market report