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South Korea Applied Ai In Education Market

ID: MRFR/ICT/63177-HCR
200 Pages
Aarti Dhapte
October 2025

South Korea Applied AI in Education Market Research Report By Component (Solutions, Services), By Deployment (Cloud-based, On-premises), By Technology (Machine Learning, Computer Vision, Virtual Assistants/Chatbots) and By Application (Virtual Facilitators for IT Automation, Intelligent Tutoring Systems, Content Delivery Systems, Fraud and Risk Management, Student-centric Recommendation Systems)- Forecast to 2035

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South Korea Applied Ai In Education Market Summary

As per MRFR analysis, the South Korea applied AI in education market size was estimated at 139.57 USD Million in 2024. The South Korea applied ai-in-education market is projected to grow from 178.54 USD Million in 2025 to 2094.36 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 27.92% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The South Korea applied AI-in-education market is experiencing robust growth driven by innovative solutions and supportive policies.

  • Personalized learning solutions are becoming increasingly prevalent, catering to diverse student needs.
  • AI-driven administrative efficiency is streamlining operations in educational institutions, enhancing productivity.
  • Enhanced learning analytics are providing educators with deeper insights into student performance and engagement.
  • The growing demand for EdTech solutions and government initiatives are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 139.57 (USD Million)
2035 Market Size 2094.36 (USD Million)
CAGR (2025 - 2035) 27.92%

Major Players

Google (US), Microsoft (US), IBM (US), Pearson (GB), Coursera (US), Duolingo (US), Knewton (US), Squirrel AI (CN), Edmodo (US)

South Korea Applied Ai In Education Market Trends

The is experiencing significant growth, driven by advancements in technology and increasing demand for personalized learning experiences. In South Korea, educational institutions are increasingly adopting artificial intelligence tools to enhance teaching methodologies and improve student engagement. This trend is supported by government initiatives aimed at integrating technology into the education system, which fosters innovation and encourages the development of AI-based educational solutions. As a result, various stakeholders, including educators, students, and technology providers, are collaborating to create a more effective learning environment. Moreover, the applied ai-in-education market is characterized by a focus on data-driven decision-making. Educational institutions are leveraging AI to analyze student performance and tailor educational content accordingly. This approach not only helps in identifying areas where students may struggle but also allows for the creation of customized learning paths. The emphasis on data analytics is likely to continue shaping the market, as institutions seek to enhance educational outcomes and ensure that students receive the support they need to succeed. Overall, the applied ai-in-education market in South Korea appears poised for further expansion, with ongoing investments in technology and a commitment to improving educational quality.

Personalized Learning Solutions

The applied ai-in-education market is increasingly focused on personalized learning solutions. Educational institutions are utilizing AI algorithms to analyze individual student data, enabling tailored educational experiences. This trend enhances student engagement and improves learning outcomes by addressing unique learning styles and paces.

AI-Driven Administrative Efficiency

Another emerging trend is the use of AI to streamline administrative processes within educational institutions. By automating tasks such as grading, scheduling, and resource allocation, AI technologies are helping educators focus more on teaching and less on administrative burdens, thereby improving overall efficiency.

Enhanced Learning Analytics

The application of advanced learning analytics is gaining traction in the applied ai-in-education market. Institutions are employing AI to gather and analyze vast amounts of data related to student performance and engagement. This information is crucial for making informed decisions that enhance educational strategies and improve student success.

South Korea Applied Ai In Education Market Drivers

Government Initiatives and Funding

Government initiatives aimed at promoting digital transformation in education are significantly influencing the applied ai-in-education market. The South Korean government has allocated substantial funding to enhance the integration of AI technologies in educational settings. In 2025, it is estimated that public investment in educational technology will exceed $500 million, focusing on AI research and development. These initiatives aim to improve educational outcomes and ensure that students are equipped with the necessary skills for the future workforce. Consequently, the applied ai-in-education market is likely to experience accelerated growth as educational institutions align with government policies and funding opportunities to implement AI solutions.

Growing Demand for EdTech Solutions

The increasing demand for educational technology (EdTech) solutions in South Korea is a primary driver for the applied ai-in-education market. As educational institutions seek to enhance learning experiences, the integration of AI technologies becomes essential. In 2025, the EdTech market in South Korea is projected to reach approximately $3 billion, reflecting a compound annual growth rate (CAGR) of around 15%. This growth indicates a strong inclination towards innovative educational tools that leverage AI for personalized learning, adaptive assessments, and intelligent tutoring systems. The applied ai-in-education market is poised to benefit significantly from this trend, as schools and universities invest in AI-driven platforms to meet the evolving needs of students and educators alike.

Rising Adoption of AI in Learning Environments

The rising adoption of AI technologies in learning environments is a crucial driver for the applied ai-in-education market. Educational institutions in South Korea are increasingly implementing AI tools to facilitate personalized learning experiences and enhance student engagement. By 2025, it is anticipated that over 60% of schools will utilize AI-driven platforms for various educational purposes, including curriculum development and student assessment. This trend suggests a shift towards more interactive and tailored educational experiences, which could lead to improved academic performance. The applied ai-in-education market stands to gain from this widespread adoption, as educators seek innovative solutions to address diverse learning needs.

Increased Investment in Research and Development

Increased investment in research and development (R&D) within the education sector is a significant driver for the applied ai-in-education market. South Korean educational institutions are allocating more resources to explore innovative AI applications that can transform teaching and learning processes. By 2025, R&D spending in educational technology is projected to reach $200 million, focusing on developing AI algorithms and tools tailored for educational purposes. This investment indicates a commitment to advancing educational practices through technology. The applied ai-in-education market is likely to benefit from these advancements, as new AI solutions emerge to address the evolving needs of educators and learners.

Focus on Skill Development and Workforce Readiness

The emphasis on skill development and workforce readiness in South Korea is driving the applied ai-in-education market. As industries evolve, there is a growing need for educational programs that equip students with relevant skills. In 2025, it is projected that 70% of educational institutions will incorporate AI technologies to align curricula with industry demands. This focus on practical skills and competencies is likely to enhance employability among graduates. The applied ai-in-education market is expected to thrive as institutions adopt AI-driven tools to create dynamic learning environments that prepare students for the challenges of the modern workforce.

Market Segment Insights

By Component: Solutions (Largest) vs. Services (Fastest-Growing)

In the component segment of the South Korea applied ai-in-education market, solutions account for the largest share, driven by increasing adoption rates in educational institutions. The demand for innovative teaching tools and tailored learning solutions is creating a robust market for technology-driven applications, which are perceived to enhance student engagement and learning outcomes. On the other hand, services are witnessing rapid growth as educational sectors seek ongoing support and consultation for implementing AI-driven technologies effectively. This shift underscores an increasing recognition of the need for specialized services to maximize the implementation of AI tools. The growth trends in this segment are primarily fueled by advancements in technology and increasing investments in digital transformation in education. Educational institutions are increasingly recognizing the value of integrating AI into their curricula, which is driving demand for both solutions and services. The fastest-growing services are often those that provide training, support, and resources for effective adoption of AI solutions, indicating a trend towards a blended approach in education. Effective service delivery is essential for ensuring that these innovative solutions achieve their intended impact, thus attracting more investment into the services sector.

Solutions: Dominant vs. Services: Emerging

In the component segment, solutions are clearly the dominant force, characterized by their foundational role in integrating AI into educational environments. They encompass a wide range of applications, including personalized learning platforms and intelligent tutoring systems, which greatly enhance the learning experience. The demand for these solutions is bolstered by their ability to cater to diverse learning needs, providing custom learning paths for students. Meanwhile, services are emerging as a crucial complement to solutions, providing essential support in the form of training and integration assistance. As institutions transition to AI-driven methodologies, the focus on services is intensifying, addressing the gaps in implementation and ensuring that solutions are utilized effectively for maximum educational impact.

By Deployment: Cloud-based (Largest) vs. On-premises (Fastest-Growing)

In the South Korea applied ai-in-education market, cloud-based deployment has emerged as the largest segment, owing to its scalability and accessibility. Institutions favor cloud solutions for their cost-effectiveness and ability to facilitate collaborative learning environments. On-premises solutions, although smaller in market share, are gaining traction as educational organizations seek enhanced control and security over their data. Growth trends indicate a robust demand for both deployment types, with cloud-based solutions driven by advancements in technology and increasing internet penetration. Conversely, the fastest growth for on-premises deployment is propelled by concerns surrounding data privacy and the desire for customized applications by educational institutions. This duality in deployment preferences vividly illustrates the evolving landscape of the South Korea applied ai-in-education market.

Cloud-based (Dominant) vs. On-premises (Emerging)

The cloud-based deployment segment is characterized by its significant advantages such as flexibility, lower upfront costs, and ease of updates, making it the dominant choice among educational institutions in South Korea. With major players investing in robust cloud infrastructures, the segment is poised for sustained growth. In contrast, the on-premises segment is showing signs of emerging importance as more institutions recognize the necessity for tailored solutions that address unique security and compliance needs. As data privacy regulations become increasingly stringent, schools and universities are gravitating towards on-premises setups, aiming to retain tighter control over their systems and data.

By Technology: Machine Learning (Largest) vs. Virtual Assistants/Chatbots (Fastest-Growing)

In the South Korea applied ai-in-education market, Machine Learning holds a significant market share, dominating the landscape with its ability to personalize education and enhance learning outcomes. Virtual Assistants and Chatbots are rapidly gaining traction, contributing to an increasingly competitive environment as educational institutions recognize their potential in providing timely support and engagement to students. Growth in this segment is driven by increasing investment in AI technologies and a rising demand for personalized learning experiences. Machine Learning is being leveraged for data analysis and adaptive learning solutions, while Virtual Assistants and Chatbots are emerging as essential tools for facilitating interactions between educators and students. This convergence of technologies is shaping the future of education in innovative ways.

Technology: Machine Learning (Dominant) vs. Virtual Assistants/Chatbots (Emerging)

Machine Learning stands as the dominant technology in the South Korea applied ai-in-education market, offering robust solutions that tailor educational content to individual learning needs. Its sophistication allows for deep analytics and predictive insights, making it invaluable for institutions aiming to enhance their educational offerings. On the other hand, Virtual Assistants and Chatbots are emerging technologies that provide essential support, creating more interactive and engaging learning environments. Their ability to respond to student inquiries in real-time is transforming the way students interact with educational content. Together, these technologies highlight a shift towards more responsive and personalized education systems.

By Application: Intelligent Tutoring Systems (Largest) vs. Student-centric Recommendation Systems (Fastest-Growing)

In the South Korea applied ai-in-education market, Intelligent Tutoring Systems hold the largest share due to their widespread adoption across various educational institutions. These systems enhance the learning experience by providing personalized guidance, making them a preferred choice among educators and learners alike. On the other hand, Student-centric Recommendation Systems are rapidly gaining traction, reflecting a growing emphasis on tailored educational experiences and engagement. Their ability to analyze student behavior and preferences contributes to a more effective learning journey. Growth trends indicate a significant increase in the utilization of both segment values, driven by the demand for improved educational outcomes and technological advancements. The rising prevalence of online learning platforms further propels the need for Intelligent Tutoring Systems. Meanwhile, Student-centric Recommendation Systems are being recognized for their potential to shape personalized education, leading to their status as the fastest-growing segment. Factors like increasing digital literacy and a shift towards individualized learning paths are essential drivers of this growth.

Intelligent Tutoring Systems (Dominant) vs. Student-centric Recommendation Systems (Emerging)

Intelligent Tutoring Systems play a dominant role in the education landscape by delivering customized learning experiences that adapt to individual student needs. They leverage artificial intelligence to provide real-time feedback and streamline educational processes, ensuring high engagement levels among students. These systems are particularly valuable in addressing diverse learning preferences and challenges, promoting better educational outcomes. In contrast, Student-centric Recommendation Systems are emerging as a vital part of the educational ecosystem, focusing on offering personalized content and learning paths based on user interactions and performance. Their ability to enhance student engagement through tailored recommendations is crucial in today's competitive learning environment, making them a significant area of interest for future investment and development.

Get more detailed insights about South Korea Applied Ai In Education Market

Key Players and Competitive Insights

The applied ai-in-education market in South Korea is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for personalized learning experiences. Major players such as Google (US), Microsoft (US), and Squirrel AI (CN) are at the forefront, leveraging their technological prowess to enhance educational outcomes. Google (US) focuses on integrating AI into its educational tools, aiming to create more interactive and engaging learning environments. Meanwhile, Microsoft (US) emphasizes partnerships with local educational institutions to tailor its offerings, thereby enhancing its market penetration. Squirrel AI (CN), known for its adaptive learning technologies, is expanding its reach by collaborating with South Korean schools to implement AI-driven personalized learning solutions. Collectively, these strategies foster a competitive environment that prioritizes innovation and localized solutions.

Key business tactics within this market include the localization of educational content and the optimization of digital platforms to cater to diverse learning needs. The competitive structure appears moderately fragmented, with a mix of established global players and emerging local firms. This fragmentation allows for a variety of educational solutions, although the influence of key players remains substantial, as they set benchmarks for quality and technological integration.

In October 2025, Google (US) announced the launch of its AI-powered learning analytics tool, designed to provide educators with real-time insights into student performance. This strategic move is significant as it not only enhances the teaching process but also positions Google (US) as a leader in data-driven educational solutions, potentially reshaping how educators approach student engagement and assessment.

In September 2025, Microsoft (US) expanded its partnership with a prominent South Korean university to develop a customized AI curriculum. This initiative underscores Microsoft's commitment to fostering local talent and adapting its offerings to meet specific educational needs. By aligning its resources with local institutions, Microsoft (US) strengthens its foothold in the market while promoting innovation in AI education.

In August 2025, Squirrel AI (CN) secured a collaboration with a major South Korean educational publisher to integrate its adaptive learning technology into existing curricula. This partnership is pivotal as it allows Squirrel AI (CN) to leverage established content while enhancing its technological capabilities, thereby increasing its market share and influence in the region.

As of November 2025, current trends in the applied ai-in-education market include a pronounced shift towards digitalization and the integration of AI technologies. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to pool resources and expertise. Looking ahead, competitive differentiation is likely to evolve from traditional price-based strategies to a focus on innovation, technological advancements, and the reliability of supply chains. This shift suggests that companies prioritizing cutting-edge solutions and collaborative approaches will be better positioned to thrive in this rapidly changing environment.

Key Companies in the South Korea Applied Ai In Education Market market include

Industry Developments

The South Korea Applied AI in Education Market has been witnessing significant developments recently. In September 2023, SK Telecom announced an investment in applied AI technology to enhance personalized learning solutions within its educational platforms. Naver and Daekyo have partnered to integrate advanced AI features into their existing educational software, improving student performance tracking and adaptive learning techniques. In terms of market dynamics, companies like Kakao and Samsung Electronics are increasingly focusing on AI-enhanced tools for language learning, responding to the rising demand in the online education sector.

The market valuation for applied AI in education is expected to grow due to increasing investments in EdTech from both private and public sectors, as per governmental initiatives designed to promote innovation in education. Over the past two years, notable movements included Pearson's joint venture with local firms in December 2022 to develop AI-driven learning materials tailored for South Korean students. The market is also seeing a push towards collaboration among key players like YBM and Megastudy to enhance their AI capabilities. The fusion of AI with education technology is prompting a holistic transformation across South Korea’s educational landscape, fostering enhanced learning experiences.

Future Outlook

South Korea Applied Ai In Education Market Future Outlook

The Applied AI in Education Market is projected to grow at a 27.92% CAGR from 2024 to 2035, driven by technological advancements, increased investment, and demand for personalized learning solutions.

New opportunities lie in:

  • Development of AI-driven personalized learning platforms for diverse learning styles.
  • Integration of AI analytics tools for real-time student performance tracking.
  • Creation of virtual AI tutors to enhance remote learning experiences.

By 2035, the market is expected to be robust, driven by innovation and widespread adoption.

Market Segmentation

South Korea Applied Ai In Education Market Component Outlook

  • Solutions
  • Services

South Korea Applied Ai In Education Market Deployment Outlook

  • Cloud-based
  • On-premises

South Korea Applied Ai In Education Market Technology Outlook

  • Machine Learning
  • Computer Vision
  • Virtual Assistants/Chatbots

South Korea Applied Ai In Education Market Application Outlook

  • Virtual Facilitators for IT Automation
  • Intelligent Tutoring Systems
  • Content Delivery Systems
  • Fraud and Risk Management
  • Student-centric Recommendation Systems

Report Scope

MARKET SIZE 2024 139.57(USD Million)
MARKET SIZE 2025 178.54(USD Million)
MARKET SIZE 2035 2094.36(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 27.92% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Google (US), Microsoft (US), IBM (US), Pearson (GB), Coursera (US), Duolingo (US), Knewton (US), Squirrel AI (CN), Edmodo (US)
Segments Covered Component, Deployment, Technology, Application
Key Market Opportunities Integration of personalized learning solutions leveraging artificial intelligence to enhance student engagement and outcomes.
Key Market Dynamics Rising demand for personalized learning solutions drives innovation in the applied ai-in-education market.
Countries Covered South Korea

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FAQs

What is the projected market size of the South Korea Applied AI in Education Market in 2024?

The projected market size of the South Korea Applied AI in Education Market in 2024 is valued at 173.95 USD Million.

What is the expected market size for the South Korea Applied AI in Education Market by 2035?

By 2035, the South Korea Applied AI in Education Market is expected to reach a value of 2368.6 USD Million.

What is the expected compound annual growth rate (CAGR) for the market from 2025 to 2035?

The expected CAGR for the South Korea Applied AI in Education Market from 2025 to 2035 is 26.794%.

Which component of the South Korea Applied AI in Education Market is expected to have the largest market size in 2035?

The Solutions segment is expected to dominate the market with a size of 1360.4 USD Million in 2035.

How much is the Services segment of the market projected to be valued at in 2024?

The Services segment of the South Korea Applied AI in Education Market is projected to be valued at 69.75 USD Million in 2024.

Who are the key players in the South Korea Applied AI in Education Market?

Key players in the market include Naver, Woowa Brothers, Chegg, SK Telecom, and Samsung Electronics.

What are the growth drivers for the South Korea Applied AI in Education Market?

The growth drivers for the market include increasing digital adoption in education and demand for personalized learning solutions.

What challenges does the South Korea Applied AI in Education Market face?

Challenges include data privacy concerns and the need for continuous technology updates in educational institutions.

What is the expected market value of the Services segment by 2035?

The Services segment of the South Korea Applied AI in Education Market is expected to be valued at 1008.2 USD Million by 2035.

What are the emerging trends in the South Korea Applied AI in Education Market?

Emerging trends include the integration of AI-driven analytics in learning management systems and the increased focus on adaptive learning technologies.

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