Published: December 2022 | Report Code: 11857 | Available Format: PDF
The global AI in education market size stood at an estimated revenue of $2,126 million in 2022, and it is expected to advance at a compound annual growth rate of 36.6% during 2022–2030, to reach $25,772 million by 2030. This is primarily ascribed to the increasing investment in AI technology, the surging demand for personalized education based on AI, and the rising need for automating administrative tasks.
After the pandemic, the whole scenario has changed, and many schools across the world have adopted several technologies, such as chatbots, virtual reality (VR), learning management system (LMS), and assign coursework, to improve their educational processes. Moreover, several service providers are innovating various solutions or services for AI in academics, which link with such platforms. For instance, in December 2021, as per the Shanghai Daily, several tech companies partnered with colleges and universities for introducing new training structures for talent in the AI field.
The solution category is estimated to have held a larger market share, of 77.4%, in 2022, and it is also expected to retain its position in the coming years. This is majorly attributed to the rising demand for AI academic solutions to enable educators to automate administrative tasks and explore more possibilities for improving the effectiveness of classroom teaching. Several key players are more focused on the enhancement of education systems day by day. In addition, the rising number of smartphone users, improving internet connectivity, increasing government initiatives, and surging acceptance of digital payment are driving the market in this category.
The cloud category accounted for a larger market share, as estimated in 2022, and it is expected to witness the same trend in the coming years as well. This is attributed to the surging usage of cloud platforms to support IT modernization and increasing focus on reducing the total cost of ownership. Additionally, cloud technology enables students to enhance their knowledge and helps manage business processes, which results in increased pupil engagement and improved performance.
Moreover, AI-enabled teaching solutions deployed on a cloud network offer several advantages such as developing responses to mitigate risk, automated updating of software, 24x7 support availability, reducing IT operational costs, and doing away with the need for updating internal systems. Now with this technology, learners can extract any documents from any smart device. It also provides access to learners on STEAM programs, and it saves time because teachers do not need to update their systems on daily basis.
The learning platforms category is estimated to have accounted for the largest revenue share in 2022, and it is expected to remain the largest during the forecast period. This is primarily ascribed to the rising preference for online and distance teaching courses by professionals and pupils, the increasing trend of self-learning through online platforms, the developing of soft skills of learners, surging focus on the integration of next-generation technologies in the education sector, and providing enhanced teaching platforms. As a result, market players are focusing on the launch of platforms that offer customized teaching services.
North America is estimated to have generated the highest revenue, of $887 million, in 2022, and it is expected to remain in its position over the next few years. This is because the region has a highly developed educational infrastructure, a high focus on reducing the burden on teachers with respect to administrative tasks, huge spending on EdTech, an increased need for personalized learning in classrooms, and a surge in demand for intelligent solutions to improve students’ academic performance in the region. Furthermore, several key players are more focused on academic content in the form of audio, video, and charts, which is enabled by AI to enhance pupils’ knowledge.
The growing preference for smart content is a major trend witnessed in the AI in the education market. Smart content is gaining traction in schools and other educational institutions, as it allows educators to achieve better understanding with respect to learning platforms, which, in turn, plays a vital role in the teaching process. A smart digital content platform provides interactive study material by integrating gamification techniques, thus creating a realistic and fun classroom environment.
Therefore, companies are increasingly focusing on providing smart digital content solutions that allow students to practice exercises, get personalized content solutions, and obtain real-time feedback based on their progress. For instance, Netex Knowledge Factory S.A., a Europe-based provider of digital learning services, offers a digital tool, contentCloud, which allows educators to modify the content according to the learning model. Besides, it enables them to support their content with videos, audio, animation, augmented reality (AR), and other features.
The rising investments in the AI in the education sector can be viewed as one of the key opportunities for industry players. The investments are supporting the adoption of personalized learning systems, which, in turn, help reduce the workload of teachers, improve the learning process, and facilitate real-time feedback to students on topics requiring improvement.
Report Attribute | Details |
Historical Years |
2017-2022 |
Forecast Years |
2023-2030 |
Market Size in 2022 |
$2,126 Million |
Revenue Forecast in 2030 |
$25,772 Million |
Growth Rate |
36.6% CAGR |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Component; by Deployment; By Technology; By Application; by End Use; By Region |
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With the increasing focus on digitization and e-learning, conversational learning is becoming a crucial aspect of education across the world. It is a concept in which content is presented as a two-way conversation. Teaching this way makes the process more interesting, interactive, and customized for students.
Moreover, chatbots play a great role in the process of conversational learning, as they can be programmed according to learners’ requirements. Also, chatbots offer relevant content, which further results in the successful completion of the course and helps save time. With this, pupils can interact with the chatbot through text or voice for information on course structure, timetable, and campus facilities. Besides, it connects students with personal tutors for other education-related queries.
The increasing demand for automating administrative tasks is another key factor driving the adoption of AI learning solutions in the education industry. Educators generally spend a lot of time performing administrative duties such as grading exams, enrolling students, defining policies, and assessing homework. AI, in this regard, helps reduce workload and pressure on teachers by automating administrative activities, which, in turn, encourages them to pay more attention to the learning aspect for students. For instance, ALEKS, an online tutoring platform offered by McGraw-Hill Education Inc., helps simplify the grading process by generating a customized progress report for each student, thereby facilitating customized feedback for students.
The surging need for AI-supported personalized education solutions is a key factor driving the growth of the market. These solutions help in the better understanding of students, their educational background, interests, and academic goals, which, in turn, helps in creating a customized experience. Students can design courses according to their needs and also obtain feedback related to their progress throughout the course.
A provider of language courses, Lingvist Technologies OU launched an AI-powered language learning platform called Course Wizard. The platform allows users to create and customize courses based on their hobbies, interests, and career, by typing or speaking keywords. With the help of ML algorithms, the platform decides which words or phrases the users are familiar with and which ones demand more practice.
The rising focus on the utilization of AI-powered teaching assistants is another key opportunity for market players. With the help of AI-based teaching assistants, repetitive tasks of educators can be minimized, such as grading papers, monitoring student engagement, and analyzing classroom behavior. Moreover, AI-powered teaching assistants facilitate reduced operational costs, improved teaching efficiency, enhanced responsiveness of an institution toward students, and streamlined admission process.
As a result, industry players are focusing on the development of AI-based teaching assistants for classrooms. With facial recognition technology, the teacher can detect which students attended a class. The teacher can also prepare customized assignments for each student, generate real-time results, and suggest corrections through interactions with students by leveraging speech recognition technology.
This report offers deep insights into the market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.
Based on Component
Based on Deployment
Based on Technology
Based on Application
Based on End Use
Geographical Analysis
The AI in education market size stood at an estimated revenue of $2,126 million in 2022.
During 2022–2030, the growth rate of the AI in education market will be around 36.6%.
Learning Platforms is the largest application area in the AI in education market.
The major drivers of the AI in education market include the increasing demand for professional services worldwide; the surging demand for maintenance, training, and support services from schools and higher institutions deploying AI solutions; and the rising number of collaborations among tech companies and educational organizations.
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