PUBLISHER: The Business Research Company | PRODUCT CODE: 1877826
PUBLISHER: The Business Research Company | PRODUCT CODE: 1877826
A model validation platform is a system designed to evaluate the accuracy, reliability, and performance of predictive or analytical models. It systematically tests models against predefined criteria and benchmarks to ensure compliance with required standards. The platform helps detect weaknesses, biases, and areas for improvement in model design and implementation, enabling robust, consistent, and trustworthy outcomes while supporting continuous optimization and adherence to regulatory requirements.
The key components of a model validation platform are software and services. Software refers to tools and applications that test, monitor, and validate predictive models to ensure accuracy, reliability, and compliance. These solutions are deployed through on-premises and cloud-based models and are used by enterprises of all sizes, including large enterprises and small and medium enterprises. They are applied in areas such as risk management, compliance, fraud detection, model monitoring, performance analytics, and other applications, and are utilized by end-users including banking, financial services, and insurance (BFSI), healthcare, retail, manufacturing, information technology (IT) and telecommunications, government, and other organizations.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The model validation platform market research report is one of a series of new reports from The Business Research Company that provides model validation platform market statistics, including model validation platform industry global market size, regional shares, competitors with the model validation platform market share, model validation platform market segments, market trends, and opportunities, and any further data you may need to thrive in the model validation platform industry. This model validation platform market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The model validation platform market size has grown rapidly in recent years. It will grow from $2.17 billion in 2024 to $2.52 billion in 2025 at a compound annual growth rate (CAGR) of 15.9%. The growth in the historic period can be attributed to rising adoption of risk management tools, increasing demand for regulatory compliance, growing complexity of financial models, expansion of data analytics in banking, and heightened focus on governance and audit readiness.
The model validation platform market size is expected to see rapid growth in the next few years. It will grow to $4.50 billion in 2029 at a compound annual growth rate (CAGR) of 15.6%. The growth in the forecast period can be attributed to increasing emphasis on automated model lifecycle management, rising demand for scalable cloud-based validation platforms, expansion of fintech and digital banking ecosystems, growing focus on explainable AI and transparency, and rising adoption of integrated risk management frameworks. Key trends in the forecast period include technological advancements, innovation in artificial intelligence (AI) and machine learning (ML) algorithms, development of automated validation workflows, investment in research and development, and emergence of advanced analytics capabilities.
The rising adoption of artificial intelligence (AI) and machine learning (ML) is expected to drive the growth of the model validation platform market going forward. Artificial intelligence and machine learning are technologies that allow computer systems to perform tasks requiring human-like intelligence, including pattern recognition, decision-making, and predictive analysis. Adoption of AI and ML is increasing due to digital transformation initiatives, as organizations across industries integrate these technologies into core operations to improve efficiency and maintain competitive advantage. The growing use of AI and ML supports model validation platforms by creating a key need for specialized tools that systematically test, verify, and validate the accuracy, performance, and reliability of AI and ML models before deployment, ensuring these complex algorithms function correctly and comply with regulatory standards across applications. For example, in March 2025, according to the Office for National Statistics, a UK-based government agency, AI adoption in 2023 reached 9% of firms in the services sector and 5% in the manufacturing sector, with overall adoption projected to rise to 22% in 2024. Therefore, the increasing adoption of AI and ML is driving the growth of the model validation platform market.
Key companies operating in the model validation platform market are focusing on innovative solutions such as AI-driven bias detection to ensure fair, reliable, and accurate model performance. AI-driven bias detection uses AI tools to automatically identify and assess unfair or skewed outcomes in models, helping ensure equitable decisions, improve accuracy, and build trust by mitigating biases before deployment. For instance, in March 2024, Kolena Inc., a US-based software company, launched its AI and ML Model Quality Platform, a comprehensive solution designed to rapidly test, validate, and monitor AI systems. The platform enables developers to detect biases, assess data quality, and evaluate model performance across diverse scenarios, including computer vision, language models, and multi-modal AI, ensuring fair and high-performing models before deployment. Automating testing workflows reduces the time and effort required for model validation, allowing teams to identify hidden flaws, monitor model degradation, and address data drift in real time. The platform also supports pre-deployment and post-deployment monitoring, offering a holistic approach to AI quality assurance that enhances transparency, accountability, and trust in AI systems.
In August 2023, Synopsys Inc., a US-based electronic design automation (EDA) company, acquired PikeTec GmbH for an undisclosed amount. Through this acquisition, Synopsys aims to strengthen its automotive software testing and verification capabilities, providing automotive companies with more efficient and comprehensive solutions to develop software-defined vehicles faster, safer, and more securely. The acquisition addresses growing vehicle software complexity, virtualizes testing environments, and enables early-stage validation across all phases of development. PikeTec GmbH is a Germany-based software company specializing in automotive software testing through its test automation tool, TPT (time partition testing).
Major players in the model validation platform market are International Business Machines Corporation (IBM), PricewaterhouseCoopers International Limited (PwC), Ernst & Young Global Limited (EY), KPMG International Limited, Capgemini SE, BlackRock Inc., HCL Technologies Limited, Wolters Kluwer N.V., Moody's Analytics Inc., Equifax Inc., Protiviti Inc., SAS Institute Inc., Fair Isaac Corporation (FICO), The MathWorks Inc., Experian plc, ValidMind Inc., DataRobot Inc., Encord Ltd., LogicManager Inc., Yields MRM Ltd., Fiddler Labs Inc., ArthurAI Inc., ModelOp Inc., and Deepchecks Ltd.
North America was the largest region in the model validation platform market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in model validation platform report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the model validation platform market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The model validation platform market includes revenues earned by entities by providing services such as third-party model certification services, performance drift remediation services, regulatory audit readiness services, model governance policy design services, and validation data management services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Model Validation Platform Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on model validation platform market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for model validation platform ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The model validation platform market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.