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Applied AI in Education Market Trends

ID: MRFR//10652-HCR | 128 Pages | Author: Shubham Munde| July 2024

Applied AI in Education Market Overview


Applied AI in Education Market Size was valued at USD 3.13 billion in 2022. The Applied AI in Education Market industry is projected to grow from USD 4.0 billion in 2023 to USD 28.99 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 24.6% during the forecast period (2023 - 2032).


Applied AI in education refers to the utilization of artificial intelligence (AI) technologies for the improvement and enrichment of various aspects of the educational system. This includes enhancing teaching, learning, administration, assessment, and personalization. It involves incorporating AI tools and techniques to optimize learning experiences, assist educators, and simplify administrative processes. An instance of applied AI in education is the implementation of intelligent tutoring systems, in which AI algorithms are employed to provide personalized instruction and feedback to students. These systems are capable of adjusting to individual learning styles, pace, and preferences to deliver tailored content and support, thereby enhancing learning outcomes. AI can also aid educators by automating administrative tasks like grading and organizing academic resources. It can analyze substantial amounts of data to identify patterns in student performance, offering valuable insights to teachers and facilitating informed decision-making and interventions. Additionally, applied AI can enable adaptive assessments, wherein AI algorithms generate and evaluate test questions customized for each student, leading to a more accurate evaluation of their knowledge and skills.


FIGURE 1: APPLIED AI IN EDUCATION MARKET SIZE 2018-2032 (USD BILLION)


Applied AI in Education Market Overview


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Applied AI in Education Market Trends


Growing demand for personalized learning


Personalized learning is an emerging trend in the field of applied artificial intelligence (AI) in education. This concept involves using AI technologies to tailor educational experiences and content to suit the unique needs, preferences, and learning pace of each individual student. Various tools and techniques, such as adaptive learning platforms, intelligent tutoring systems, and data analytics, can be applied to achieve personalized learning in education. These technologies collect and analyze data on students' performance, behavior, and learning patterns, enabling personalized recommendations, feedback, and interventions. The adoption of personalized learning in education brings several benefits. Firstly, it allows students to receive customized content and resources that align with their knowledge level and learning style, resulting in improved engagement and comprehension. Secondly, it assists educators in offering targeted and timely support, giving them insights into areas where students may require additional assistance. Moreover, personalized learning helps ensure education is more inclusive by catering to diverse learning needs and moving away from traditional one-size-fits-all approaches. Additionally, the application of AI in education supports scalability and efficiency by automating administrative tasks, providing real-time insights, and reducing the workload of teachers. It also contributes to the accumulation of valuable educational data, which can be further utilized for academic research, program enhancement, and policy decisions.


Global Applied AI in Education Market- Segment Insights


Global Applied AI in Education Market- Component


The global Applied AI in Education market, in this report, has been segmented based on component into Solutions, Services.


The segment- Solution is expected to grow in the forecasted period. The demand for AI-powered educational solutions is on the rise as educational institutions strive to enhance learning outcomes and offer personalized education experiences to their students. AI solutions have the capability to analyze large amounts of student data and offer customized recommendations and interventions to improve learning effectiveness. Furthermore, AI-based solutions in education are gaining popularity because they can automate administrative tasks such as grading, scheduling, and student assessment. By automating these tasks, educators are able to save time and effort, allowing them to dedicate more attention to instructional activities. Moreover, AI solutions can also provide virtual learning environments and virtual tutors, enabling students to access educational resources and receive personalized support remotely. This flexibility is especially advantageous in situations such as the COVID-19 pandemic, where remote learning has become a necessity. In conclusion, the increasing demand for personalized education, automation of administrative tasks, and the provision of virtual learning environments are driving the growth of the solutions segment in the applied AI in education market.


Global Applied AI in Education Market- Deployment Insights


The global Applied AI in Education market, in this report, has been segmented on the basis of deployment into (Cloud-based, On-premises)


The deployed cloud-based segment is demonstrating rapid growth in the applied AI in the education market. This is due to an increased adoption of cloud-based solutions by educational institutions, prompting more education vendors to offer their AI solutions through cloud platforms in order to expand their customer base. The numerous advantages associated with cloud-based AI solutions, including easy deployment, scalability, minimal maintenance, and flexible payment models, are driving higher adoption rates among educational organizations. Additionally, the web-based nature of cloud deployment enables users to access AI solutions from any location. Conversely, on-premises solutions necessitate substantial investments in infrastructure and dedicated IT staff for maintenance, thereby restricting their widespread use. Consequently, the cloud-based segment is projected to dominate the applied AI in education market and experience rapid growth in the upcoming years.


Global Applied AI in Education Market- Technology


The global Applied AI in Education market, in this report, has been segmented based on Technology into Machine Learning, Computer Vision, Virtual Assistants/Chatbots.


The segment- Virtual Assistants/Chatbots is expected to grow in the forecasted period. The education sector is experiencing a rapid growth in the adoption of virtual assistants and chatbots, primarily because they offer round-the-clock support to students. These chatbots utilize conversational AI technology, allowing them to engage with students using natural language. They can effectively address common queries, guide students towards relevant study resources, and provide aid with assignments. By facilitating independent learning and alleviating the workload of teachers, these chatbots play a crucial role. As natural language processing continues to advance, chatbots are projected to witness a significant increase in their usage within education. Consequently, more educational institutions are integrating chatbots into their online platforms and digital learning solutions.


Global Applied AI in Education Market Application


The global Applied AI in Education market, in this report, has been segmented based on Application into Virtual Facilitators for IT Automation, Intelligent Tutoring Systems, Content Delivery Systems, Fraud and Risk Management, Student-centric Recommendation Systems.


FIGURE 2: GLOBAL APPLIED AI IN EDUCATION MARKET, BY APPLICATION, 2022 VS 2032 (USD BILLION)


GLOBAL APPLIED AI IN EDUCATION MARKET, BY APPLICATION, 2022 VS 2032


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


The segment- Virtual Facilitators for IT Automation is expected to grow in the forecasted period. The education technology industry has experienced significant growth in the implementation of artificial intelligence and automation solutions. One area that is predicted to witness substantial expansion is the utilization of virtual facilitators for automating IT tasks in educational institutions. As schools and universities continue to expand their IT infrastructures in terms of size and complexity, effectively managing and maintaining these systems has become a major hurdle. However, virtual facilitators that employ AI and machine learning have the ability to automate various routine IT tasks such as deploying software, managing patches, updating security measures, and more. By doing so, these virtual facilitators relieve overburdened IT staff, allowing them to focus on more strategic initiatives. Additionally, virtual facilitators offer the advantage of round-the-clock operation without requiring additional hiring. The cost savings resulting from reduced IT overhead, coupled with enhanced systems management, can then be invested in improving digital learning experiences. Consequently, virtual facilitators for IT automation are anticipated to play a significant role in driving the growth of the applied AI market within the education technology sector.


Global Applied AI in Education Market- Regional Insights


Based on Region, the global Applied AI in Education is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Further, the major countries studied in the market report are the U.S., Canada, Germany, UK, Italy, Spain, China, Japan, India, Australia, UAE, and Brazil.


North America is currently dominant and is expected to maintain its leadership in the upcoming years. This can be attributed to the substantial size of the K-12 and higher education sectors in the United States and Canada, which provide a massive customer base for AI education technologies. Furthermore, North America has become a fertile ground for education AI startups due to the early adoption of digital learning tools and the significant allocation of education budgets for innovative classroom solutions. The presence of leading technology companies that are spearheading AI advancements in education is also contributing to the growth of the market. With the increasing implementation of adaptive learning systems, virtual teaching assistants, intelligent tutoring, and other cognitive technologies in schools and universities, the demand for specialized AI education vendors will continue to rise. Therefore, due to the vast market size and high demand, North America holds the largest share in the applied AI in education industry.


Asia-Pacific region has become the largest and fastest growing market for applied artificial intelligence. Countries like China, India, Japan, and South Korea have demonstrated strong dedication to integrating AI into mainstream education. This commitment is fueled by factors such as increasing student populations, higher education budgets, and government initiatives to equip young learners for a future that relies on AI technology. Moreover, the presence of prominent tech companies and edtech startups in the region has accelerated the adoption of AI. Consequently, the Asia-Pacific market for applied AI in education is projected to experience the highest annual growth rate globally in the next five years. The widespread utilization of AI in adaptive learning, virtual facilitators, intelligent tutoring systems, and automated student assessments will allow for more inclusive access to high-quality education. If this momentum persists, the Asia-Pacific region is likely to maintain its leadership position in market value and innovative AI-driven education models.


FIGURE 3: APPLIED AI IN EDUCATION MARKET SIZE BY REGION 2022 VS 2032


APPLIED AI IN EDUCATION MARKET SIZE BY REGION 2022 VS 2032


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Global Applied AI in Education Market- Key Market Players and Competitive Insights


The applied AI in the education market consists of a combination of technology giants, specialized edtech companies, and startups. Notable participants in this market include Microsoft, IBM, Google, AWS, Pearson, Knewton, and others. These companies are primarily focused on creating AI-powered learning platforms, virtual learning tools, and intelligent tutoring/assessment systems. Moreover, they are actively seeking partnerships with educational institutions to test new AI applications. Startups in this sector concentrate on specific areas such as adaptive learning, personalized recommendations, and virtual labs/simulations. To maintain a competitive edge in this rapidly evolving field, companies are making significant investments in research and development. Additionally, strategic collaborations and mergers and acquisitions are common as companies aim to expand their capabilities and market share.


Global Applied AI in Education Market- Key Companies Include




  • Microsoft Corporation




  • IBM Corporation




  • Google LLC




  • Amazon Web Services




  • Cognizant Technology Solutions




  • Pearson PLC




  • Samsung Electronics




  • Blackboard Inc.




  • Educomp Solutions Limited




  • SAP SE.




Global Applied AI in Education Market- Industry developments


August 2023, The Bill & Melinda Gates Foundation announced a new $100 million grant to support the development of AI-powered educational tools for low-income countries. This grant will be used to develop tools that can help students learn essential skills, such as reading and math.


May 2023, The European Commission announced a new €1 billion program to support the development of AI in education. This program will be used to develop new AI-powered tools and resources for teachers and students.


Global Applied AI in Education Market- Market Segmentation


Global Applied AI in Education Market- Component Outlook




  • Solutions




  • Services




Global Applied AI in Education Market- Deployment Outlook




  • Cloud-based




  • On-premises




Global Applied AI in Education Market- Technology Outlook




  • Machine Learning




  • Computer Vision




  • Virtual Assistants/Chatbots




Global Applied AI in Education Market- Deployment Outlook




  • Virtual Facilitators for IT Automation




  • Intelligent Tutoring Systems




  • Content Delivery Systems




  • Fraud and Risk Management




  • Student-centric Recommendation Systems




Global Applied AI in Education Market- Regional Outlook




  • North America



    • US




    • Canada




    • Mexico






  • Europe



    • Germany




    • Denmark




    • UK




    • Italy




    • Rest of Europe






  • Asia-Pacific



    • China




    • India




    • Japan




    • Australia




    • Rest of Asia-Pacific






  • Middle East & Africa



    • Saudi Arabia




    • UAE




    • South Africa




    • Rest of the Middle East & Africa






  • South America



    • Brazil




    • Argentina




    • Rest of South America





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