AI in Education Market to Generate $25,772 Million Revenue by 2030

The global AI in education market size is expected to advance at a CAGR of 36.6% during 2022–2030, to reach $25,772 million by 2030. The growth can be mainly ascribed to the increasing demand for professional services worldwide, mainly in China, India, the U.S., the U.K., and Germany; 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.

For instance, in July 2021, Intel Corporation collaborated with CBSE, the Ministry of Education, to create a digital-first perspective and increase AI skills required for employment. In India, the AI For All program is a social responsibility of Intel, which is aimed at democratizing AI.

Machine Learning Category To Witness Faster Growth

The machine learning category is expected to grow at a higher CAGR during the forecast period. The growth can be mainly due to the rising demand for automated grading systems, increasing emphasis on intelligent decision-making among educators, and the surging need for creating customized assignments for each student based on his/her strengths and weaknesses to improve the overall learning process and feedback.

Asia-Pacific Is the Fastest-Growing Market

The APAC market is expected to grow at the highest CAGR during the forecast period. This can be attributed to the presence of key players in the region such as TechNode, Squirrel AI, BYJU'S, and Liulishuo; improvements in AI technology; and a rise in investments and expenditure by governments and private organizations. After COVID-19, the usage and implementation of AI in education have increased in the region mainly in India. Also, as learners are now more eager for new technologies, schools and universities are quickly adopting AI to enhance educational content.

Service Category To Record Significant Growth

The service category is projected to expand at a significant growth rate in the coming years. This can be attributed to the increasing number of people preferring online education, especially during the pandemic. Moreover, the rising investment in AI-driven education for advancements in the education sector is boosting the market growth in this category. For instance, as per the Organization for Economic Cooperation and Development (OECD) report, venture capitalists invested over $75 billion in AI startups in 2020, many of which are offering solutions to the education sector.

Based on deployment, the on-premises category is expected to witness significant growth over the next few years. The growth can be primarily ascribed to the rising concerns about the privacy of documents and data of pupils. The on-premises deployment helps keep safe these types of details.

Higher Education Dominates the Industry

The higher education category accounts for the largest revenue share. This is due to the growing educational standards and the moving focus on pupils' critical thinking abilities, problem-solving, practice for higher study, and career opportunities. Moreover, the rapidly shifting industry scenarios and the rising number of competitors in the market are some of the major factors forcing higher education communities to use advanced technologies to improve educational processes.

Some of the major players operating in the AI in education market are IBM Corporation, Microsoft Corporation, Nuance Communications Inc., Google LLC, Amazon Web Services Inc., Cognii Inc., Carnegie Learning Inc., Blackboard Inc., Jenzabar Inc., and Pearson plc.