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Artificial Intelligence Education Market Analysis

ID: MRFR//4904-CR | 100 Pages | Author: Shubham Munde| March 2023

The environment in the artificial intelligence market is breaking through all limits, altering traditional modes of learning implementation. Educational technology that makes use of AI has become a promising new realm with enormous development potential. Another motivating force behind this industry is the trend for specialized teaching. The power of the student data is that AI algorithms can use these strengths and weaknesses to customize pace and contents. Such flexibility naturally boosts student participation and achievement levels overall. Through trends in education, the methods of traditional learning are being implemented quite differently.


With the advance of technology, however, applications for AI in education are rapidly increasing, and there is much more potential ahead. The rise of customized education is another factor spurring this business. Most AI enables an objective assessment of a student's strengths and weaknesses to then custom-tailor the content and pace of classes. This flexibility also increases the level of student motivation and school academic achievement. The popularity of online learning systems has driven a need for similar AI-backed services. Naturally, digital learning systems produce vast amounts of data that is ideal for the development of artificial intelligence. What details about the performance, preferences and behavior of its students can be extracted from these large-scale data sets by means of machine learning? This data-driven methodology also makes it convenient to continuously improve the content and methods of instruction.


How does the emphasis on skill development and workforce preparation change market behavior? The main purpose of AI in education is to assist pupils acquire the scholarly ability and knowledge required for a rapidly changing job market. Educational materials driven by artificial intelligence (AI) have the capacity to replicate real-world scenarios, improving students' practical abilities and preparing them for the demands of a tech-driven economy. However, there are challenges in the market. Privacy and data security are important concerns, especially when managing sensitive student data. A crucial problem that stakeholders must address is ensuring safeguards for privacy while taking advantage of AI's benefits. There is also a need for public knowledge and training to ensure that academics can successfully integrate AI tools into their teaching methods.

Covered Aspects:

Report Attribute/Metric Details
Segment Outlook Application, Technology, Deployment Type, Component, and Region

Artificial Intelligence in Education Market Overview


Artificial Intelligence in Education Market Size was valued at USD 2.5 billion in 2022. Artificial Intelligence in the Education market industry is projected to grow from USD 3.45 Billion in 2023 to USD 23.82 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 38.00% during the forecast period (2024 - 2030). More educational institutions are utilizing AI services; increasing focus on the effective use of digital resources and industry-wide digital transformation are the key market drivers enhancing the AI in education market growth.


Figure 1: Artificial Intelligence in Education Market Size, 2024-2032 (USD Billion)


Artificial Intelligence in Education Market
Source Secondary Research, Primary Research, MRFR Database and Analyst Review


Recent Developments of Artificial Intelligence in Education Market


When ChatGPT became widely accessible last month, it swept the globe. It could respond to questions with remarkable fluency and coherence using artificial intelligence, and among other things, it might pass muster as a respectable written response to a class assignment.


In this series, educators will discuss their thoughts on how recent breakthroughs in AI technology may impact our classrooms.


On May 13, 2022, the inaugural Day of AI brought artificial intelligence literacy to classrooms around the globe. Day of AI is an initiative of MIT Responsible AI for Social Empowerment and Education (RAISE), and it gives instructors the chance to discuss artificial intelligence (AI) with K–12 students from all backgrounds about its application in their daily lives.


Artificial Intelligence in Education Market Trends




  • AI technology is strengthening and raising the experience and knowledge of teachers and pupils, will market growth




Vendors of AI technology are creating electrical gadgets with AI capabilities by creating sophisticated learning systems that enhance learning procedures. To survive in a cutthroat world, educational institutions must provide the finest learning environment. For instance, Century Intelligent Learning created a classroom employing AI technology that allows professors to create academic curricula online, allowing students to access their curricula whenever they choose. Moreover, based on the aptitude test results that the student administered, AI technology is utilized to spot knowledge gaps and suggest courses for them to study. AI technology examines these questions to determine the pupils' strengths and shortcomings. The instructors' and students' experience and knowledge are improved through AI-enabled educational products and services. Teachers and parents may better understand their students' performance using these products and services.


Increasing focus on effectively using digital resources to encourage managed service sector growth. The managed service market sector, which falls under services, held a sizeable Artificial Intelligence in Education market share in 2022 and is projected to expand considerably between 2023 and 2032. Using reliable technologies to automate processes and give assistance, managed IT services help schools and other educational institutions operate more efficiently when necessary. This frees up teachers' time to concentrate on teaching and to learn rather than technology administration. Also, the requirement for managed IT services to help educational institutions make efficient use of their digital resources has been greatly driven by the increasing focus that educational institutions are placing on cost reduction.


The education sector is being digitally transformed, increasing demand for on-premise AI. In 2022, the on-premise sector of Artificial Intelligence in the Education market reached a valuation of over USD 3 billion. The use of an on-premises AI model has increased due to the digital revolution in the education industry since it can successfully engage students and boost income through new conversational channels. Also, many academic institutions are investing in upskilling their students to stay up with the rapidly changing digital Technology. Thus, driving the Artificial Intelligence in Education market revenue.


Artificial Intelligence in Education Market Segment Insights


Artificial Intelligence in Education Application Insights


Based on Application, the Artificial Intelligence in Education Market segmentation includes Content Delivery Systems. The Content Delivery Systems segment dominated the market, accounting for 35% of the Artificial Intelligence in Education market revenue. A network of proxy servers and accompanying data centers that are geographically dispersed is known as a content delivery network or content distribution network. Spreading the Service spatially to end customers aims to deliver high availability and performance.


Artificial Intelligence in Education Technology Insights


The Artificial Intelligence in Education Market segmentation, based on Technology, includes Machine Learning, Natural Learning Processes. The Machine Learning category generated the most income. The expansion of virtual assistance in K–12 and high school classrooms, fueled by increasing educational institutions' expenditures in AI technology, is responsible for the rise of Artificial Intelligence in the Education market segment. The AI in education market is divided into Natural Language Processing (NLP) and Machine Learning based on Technology. Also, the use of ML technology in the education industry has grown due to the development of tools for reading knowledge that has been recorded digitally and tools for using data sets to interpret human language.


Artificial Intelligence in Education Deployment Type Insights


Based on deployment type, the global Artificial Intelligence in the Education industry has been segmented into On-Cloud and On-Premise. On-Cloud held the largest segment share in 2022. Reduced ownership costs and a growing demand for educational data sharing among international campuses are two reasons that have contributed to the expansion of the cloud segment. Moreover, it enables academic institutions to integrate cutting-edge AI technology into their current operating model without increasing their capital expenditures.


Figure 1 Artificial Intelligence in Education Market, by Deployment Type, 2022 & 2030 (USD billion)


Artificial Intelligence in Education Market, by Deployment Type, 2022 & 2030


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


Artificial Intelligence in Education Component Insights


Based on Components, the global Artificial Intelligence in the Education industry has been segmented into Services and Software. Service held the largest segment share in 2022. Due to expanding government backing and technical improvements, there is a growing need among educational organizations for AI-enabled products and services.


Artificial Intelligence in Education Regional Insights


By Region, the study provides AI in education market insights into North America, Europe, Asia-Pacific and the Rest of the World. North American Artificial Intelligence in the Education market area will dominate this market. This is attributable to the Region's early embrace of cutting-edge technologies. Also, a strong educational system, particularly in the United States and Canada, is projected to fuel market expansion. The market is expanding due to the increasing use of sophisticated tutoring systems, chatbots, and other tools for higher-quality education, as well as better learning tactics that use deep learning and machine learning approaches.


Further, the major countries studied in the AI in education market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 2 ARTIFICIAL INTELLIGENCE IN EDUCATION MARKET SHARE BY REGION 2022 (%)


ARTIFICIAL INTELLIGENCE IN EDUCATION MARKET SHARE BY REGION 2022


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


Due to the Region's highly established educational infrastructure, Europe Artificial Intelligence in the Education market is predicted to have considerable development in industry. Over the projected period, rising digitalization initiatives and AI investments are also anticipated to promote market expansion. Further, Germany's Artificial Intelligence in the Education market held the largest market share, and the UK Artificial Intelligence in the Education market was the fastest-growing market in the European Region.


Due to the increasing need for digitization and government efforts like e-governance in India towards Digital India, the Asia Pacific Artificial Intelligence in the Education market is predicted to have significant development. Furthermore, to help students become the leading innovators of the AI revolution, the Indian government is supporting the use of Technology in teaching in schools and colleges. Aside from that, the worldwide artificial Intelligence in education market is anticipated to grow throughout the forecast period, 2019–2026, due to the Indian government's Digital India project, which aims to increase the rate of digital literacy in various technologies, including AI. Moreover, China's Artificial Intelligence in the Education market held the largest market share, and India's Artificial Intelligence in the Education market was the fastest-growing market in the Asia-Pacific region.


Artificial Intelligence in Education Key Market Players & Competitive Insights


Leading industry companies are investing significantly in R&D to broaden their product offerings, which will spur further expansion of Artificial Intelligence in the Education market. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. Artificial Intelligence in the Education industry must offer products at reasonable prices to grow and thrive in a more cutthroat and competitive environment.


One of the primary business strategies manufacturers employ in Artificial Intelligence in the Education industry to benefit customers and expand the market sector is local manufacturing to reduce operating costs. Some of the biggest medical benefits in recent years have come from Artificial Intelligence in the Education sector. Major players in the Artificial Intelligence in Education market, including IBM Corporation (US), Microsoft Corporation (US), Google (US), com Inc. (US), Cognizant (US), Pearson (UK), Bridge-U (UK), DreamBox Learning (US), Fishtree (US), Jellynote (France), Jenzabar Inc. (US)., and others, are attempting to increase market demand by investing in research and development operations.


With its headquarters in Armonk, New York, and operations in more than 175 nations, the International Business Machines Corporation, sometimes known as Big Blue, is an American global technology company. SXiQ, an Australian provider of digital transformation services focused on cloud platforms, cloud apps, and cloud cybersecurity, was acquired by IBM Corporation in November 2021. The acquisition is anticipated to improve IBM Consulting's capacity to update technological infrastructure and cloud-based applications in New Zealand and Australia.


K–12 education services for math, literacy and ELA, foreign languages, and applied sciences are offered by Carnegie Learning, Inc. Pittsburgh, Pennsylvania's Union Trust Building is home to Carnegie Learning, Inc. At a price of USD 15 million, Carnegie Learning Inc., a top provider of K–12 education solutions, bought Scientific Learning Company in September 2020. This purchase aims to improve learning outcomes and boost the company's portfolio of educational technologies.


Key Companies in the Artificial Intelligence in the Education market include



  • Google com Inc. (US)

  • IBM Corporation (US)

  • Pearson (UK)

  • Bridge-U (UK)

  • DreamBox Learning (US)

  • Cognizant (US)

  • Fishtree (US)

  • Jellynote (France)

  • Microsoft Corporation (US)

  • Jenzabar Inc. (US).


Artificial Intelligence in Education Industry Developments


July 2021 The Central Board of Secondary Education (CBSE) has partnered with the renowned technology business Intel Corporation. This partnership aims to introduce the AI Students Community learning platform (AISC). To learn from Intel's AI-certified specialists, it will also incorporate students from both non-CBSE and CBSE institutions.


January 2020 Pearson PLC, a supplier of educational publishing and assessment services, has purchased the ed-tech start-up The Smart Sparrow Pty Ltd. This purchase aims to strengthen the business's current capabilities for adaptive learning. It will also direct the implementation of Pearson's Global Learning Platform (GLP).


Artificial Intelligence in Education Market Segmentation


Artificial Intelligence in Education Application Outlook



  • Content Delivery Systems


Artificial Intelligence in Education Technology Outlook



  • Machine Learning

  • Natural Learning Process


Artificial Intelligence in Education Deployment Type Outlook



  • On-Cloud

  • On-Premise


Artificial Intelligence in Education Component Outlook



  • Service

  • Software


Artificial Intelligence in Education Regional Outlook




  • North America



    • US

    • Canada




  • Europe



    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe




  • Asia-Pacific



    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific




  • Rest of the World




    • Middle East




    • Africa




    • Latin America





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