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AI in Education Market to Generate Revenue Worth $25.7 Billion by 2030

Published Date:   February 2020

Valued at $1.1 billion in 2019, the global artificial intelligence (AI) in education market is projected to reach $25.7 billion in 2030, advancing at a CAGR of 32.9% during the forecast period (2020–2030). Under segmentation by component, the market is expected to witness faster growth in the service category, and this can be attributed to the rising demand for professional services globally, particularly in China, the U.S., Canada, the U.K., and Germany. Increasing demand for maintenance, training, and support services from schools and higher institutions deploying AI solutions is driving the market for professional services.

Among various technologies, machine learning (ML) is expected to register the fastest growth in the AI in education market during the forecast period. This can be ascribed to the growing demand for automated grading systems, increasing emphasis on intelligent decision-making among educators, and growing need for creating customized assignments for each student based on his/her strengths and weaknesses to improve the overall learning process and feedback.

Growing Need for Automating Administrative Tasks Escalating the Market Growth

Growing need for automating administrative tasks is a key factor driving the adoption of AI learning solutions in the education industry across the world. 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 of education 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.

Increasing AI Investments in Education Sector – A Major Market Opportunity

Rising investments pertaining to AI in the education sector can be viewed as one of the key opportunities in the AI in education market. These 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. For instance, in June 2018, Reliance Industries Limited (RIL) announced that it acquired a 73% stake in AI-based education technology provider Indiavidual Learning Private Limited and would invest $180 million in the company over the next three years. The acquisition was aimed at increasing the research and development (R&D) spending on AI in education to enhance the learning process in K–12 education, higher education, and corporate training.

Lack of Skilled Professionals Impacting the Market Growth

The lack of professionals with the required skill set to run AI-enabled educational platforms is the major factor restraining the growth of the AI in education market. To adapt to the AI-based teaching model, educators need to acquire additional skills and certification. As teachers continue to play a primary role in the learning process, it is imperative for them to understand learning platforms and gain insights from them to further offer real-time guidance and feedback to students. Hence, educators are required to acquire competencies, such as management skills, research and data analytical skills, and deeper understanding of the AI-powered educational platform, to ensure its effective utilization in schools and colleges.

Segmentation Analysis of AI in Education Market

AI in Education Market

  • In 2019, the natural language processing (NLP) category held the largest share in the AI in education market. This can be ascribed to the increase in demand for a natural language conversational experience among students and educators. NLP helps in processing speech and text in an electronic format from chats and discussions on portals, which, in turn, assists students in writing assignments and educators for better assessment and analysis, thus enhancing the learning model. Thus, with the growing utilization of the NLP technology, the market is expected to witness significant growth in this category in the near future.
  • The higher education category is expected to witness the fastest growth in the AI in education market during the forecast period. This can be mainly attributed to the rising demand for personalized counseling among students, increasing need for automating administrative tasks during admission processes, such as enrollment and course registration, and rising demand for AI-supported learning platforms.

Geographical Analysis of AI in Education Market

The AI in education market, during the forecast period, is expected to witness the fastest growth in APAC. This can be ascribed to the ongoing transformation in the education sector, increasing trend of smart learning, and growing investments in EdTech in regional countries, including China and India. As a result, startups in the region are witnessing ample opportunities for growth and focusing on the launch of interactive learning platforms, thereby driving the market growth.

Browse report overview with detailed TOC on "AI in Education Market Research Report: By Component (Solution, Service), Deployment (Cloud, On-Premises), Technology (Natural Language Processing, Machine Learning), Application (Content Delivery Systems, Learning Platforms, Virtual Facilitators, Intelligent Tutoring Systems), End Use (K–12 Education, Higher Education, Academic Research, Corporate Training) – Global Industry Size, Share, Trends, Forecast to 2030" at:

Competitive Landscape of AI in Education Market

The global AI in education market is highly fragmented in nature, characterized by the presence of a large number of global and regional players. Major players in the market, including IBM Corporation, Microsoft Corporation, Nuance Communications Inc., Pearson plc, Carnegie Learning Inc., and Google LLC, are focusing on product launches and partnerships to increase their footprint in the market. For instance, in September 2018, U.S.-based provider of educational technology Carnegie Learning Inc. released MATHia, an AI-based math learning solution for students of 6–12 grades. It provides a personalized learning experience with real-time assessment and feedback. Moreover, it is equipped with the text-to-speech feature, which helps teach students by reading topics in their preferred language.

Some of the other important players operating in the AI in education market are Blackboard Inc., Amazon Web Services Inc., Jenzabar Inc., and Cognii Inc.