Artificial Intelligence (AI) in Education Market Size, Share, Growth, and Industry Analysis, By Type (Machine Learning and Deep Learning and Natural Language Processing), By Application (Virtual Facilitators and Learning Environments, Intelligent Tutoring Systems, Content Delivery Systems, Fraud and Risk Management, and Other), and Regional Insights and Forecast to 2033

ARTIFICIAL INTELLIGENCE (AI) IN EDUCATION MARKET OVERVIEW

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The global artificial intelligence (ai) in education market size stood at USD 1.5 billion in 2024 and is projected to reach USD 1.68 billion in 2025, growing further to USD 4.24 billion by 2033 at an estimated CAGR of 12.2% from 2025 to 2033.

AI in education is a platform for learning and training purposes for the students. It uses artificial intelligence technologies and techniques to develop learning and teaching practices. The system can automate administrative tasks, offer adaptive learning platforms, and facilitate intelligent tutoring systems. It connects the use of intelligent systems and algorithms to analyze data. They offer personalized recommendations and assists in instructional activities.

The rising demand for innovative educational tools and systems that exploit the power of AI with the proliferation are expanding the market growth. The accessibility and user-friendliness of digital devices and technology have formed a favorable environment and provided chances for the designers to produce more novel products.

COVID-19 IMPACT

Artificial Intelligence (AI) in Education Industry Had a Positive Effect Due to Demand for Online Learning Platforms during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The pandemic changed learning institutions’ operations and revised the norms. Both educators and students have to change, find new methods to communicate, and make use of previously available but underutilized resources. The pandemic has increased the usage of online learning, which provides a chance to integrate AI tools such. The growing development of interactive e-learning platforms, the COVID-19 had a favorable impact on AI in the education sector.

LATEST TRENDS

AI technology is Strengthening and Raising the Experience and Knowledge of Teachers and Pupils to Drive Market Growth

Vendors of AI technology are creating electrical gadgets with AI capabilities by creating sophisticated learning systems that enhance learning procedures. Furthermore, 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’ experiences and knowledge are improved through AI-enabled educational products and services.

ARTIFICIAL INTELLIGENCE (AI) IN EDUCATION MARKET SEGMENTATION

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By Type

Based on Type, the global market can be categorized into machine learning and deep learning and natural language processing

• Machine Learning and Deep Learning: These algorithms have proven to be highly effective in processing and analyzing large volumes of educational data and they can detect patterns, identify drift, and make predictions based on the data.

• Natural Language Processing: The NLP technology is expected to grow because of the growing demand for virtual support in K-12 schools and universities. It is coupled with rising investments in advanced technology by educational institutes.

By Application

Based on application, the global market can be categorized into virtual facilitators and learning environments, intelligent tutoring systems, content delivery systems, fraud and risk management, and other

• Virtual Facilitators and Learning Environments: This platform is used in education to give access to education content online via computers and mobile devices.

• Intelligent Tutoring Systems: The system provides interactive and adaptive learning experiences offering real-time feedback as well as guidance to students across various subjects and skill levels.

• Content Delivery Systems: In this segment, the system supports students and educators by answering questions. They can also provide information, and facilitate communication within educational platforms and systems.

• Fraud and Risk Management: This segment also used AI systems to identify and mitigate academic dishonesty and is adopted by many institutes.

• Other: There are other application areas where the system is highly deployed such as personalized learning, learning analytics, student recruitment and retention, administrative processes, and others.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Personalized Education and Adaptive Learning to Boost the Market

One of the attributes for the artificial intelligence (AI) in education market growth is the requirement for adaptive and personalized learning for market enlargement. Through this, it can provide personalized learning experiences for specific students. AI systems can analyze enormous volumes of data, including student performance, learning preferences, and learning styles are boosting market growth. Students can learn at their own pace, concentrate on areas where they need to improve, and explore complex ideas when they are ready due to personalized learning are important attractive benefits to increase demand for the product.

Virtual Assistants and Smart Tutoring to Expand the Market

The creation of intelligent tutoring platforms and virtual assistants is another impelling aspect for the market growth. AI algorithms are used by smart tutoring systems to understand students’ strengths and limitations, spot misconceptions, and deliver dedicated education and feedback. Virtual assistants use conversational AI and natural languages processing to give students rapid access to knowledge and direction. They are able to respond to queries, clarify ideas, and offer other resources. Learning may be made easier by combining these virtual assistants into LMS, internet platforms, and even physical gadgets are attractive factors for students.

Restraining Factor

Scarcity of Funds for IT Infrastructures to Potentially Impede Market Growth

A restraining factor for the market growth is the lack of funds for basic IT infrastructure requirements in developing nations. AI-enabled deployments rely entirely on existing IT infrastructure, data, and internet of things sensors to gather instances and produce accurate results.. Furthermore, in order to achieve a successful outcome, designers must be implemented in both online and offline environments. Although established countries have a high level of technical adaptation, emerging economies are predicted to have a slower pace of digitization, resulting in a slower development rate of AI in the education market.

Opportunity

Expansion in Emerging Markets to Create Opportunity for the Product in the Market

A substantial opportunity for the growth of AI in the EdTech sector is the emerging markets. These regions are experiencing rapid technological adoption and burgeoning demand for quality education. The lack of access to conventional educational resources in many of these areas creates a unique niche for AI-driven solutions. It offers scalability and affordability access to quality education, overcoming geographical and socioeconomic barriers. Additionally, emerging economic countries are increasingly funding digital infrastructure and education, further facilitating the adoption of AI technologies. The combination of technological readiness and a growing emphasis on education reform in these markets offers a fertile ground for the expansion of AI application education.

Challenge

Integration with Existing Educational Infrastructure Could Be a Potential Challenge for Consumers

A significant challenge is the integration of AI technologies with existing educational infrastructures. Advancing these systems to sustain AI technologies requires large spending in hardware and software and training for educators and administrative teams. Many educational institutions operate on legacy systems that are not readily compatible with the latest solutions. There is often struggle to change among stakeholders, stemming from concerns over the intricacy and effectiveness of new technologies hindering the market growth.

ARTIFICIAL INTELLIGENCE (AI) IN EDUCATION MARKET REGIONAL INSIGHTS

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• North America

North America is the highest growing region in artificial intelligence (AI) in education market share. The region’s advanced technological infrastructures and high investment in education technology propelling the market growth. The United States artificial intelligence (AI) in education market is escalating because the rising desire for personalized learning experiences is motivating educational institutions to adopt AI-powered solutions that meet the individual needs and learning styles.

• Europe

Europe is estimated to witness a high growth rate owing to embracing of digital learning solutions and the thrusting for personalized education across various European countries. Government projects are promoting the integration of AI technologies in schools and universities to improve teaching and learning processes. In addition, the growing demand for intelligent tutoring systems and virtual learning environments are boosting ventures in educational tools.

• Asia

Asia is anticipated to register as the fastest growing region because of the increasing implementation of digital learning platforms and AI technologies in China, India, and Japan. There is a strong emphasis on attractive educational quality and accessibility. The rapid expansion of e-learning solutions is in response to heightened demand for AI-based educational tools. Government initiatives meant at integrating technology into education and fostering innovation are supporting market growth.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through Innovation and Market Expansion

The AI in education market is a vibrant and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. Various companies are investing extensively in R&D to broaden their product offerings to expand their market reach. The makers are working on innovation of their product line to supply the huge population in diverse regions.

List of Top Artificial Intelligence (AI) In Education Companies

• Google (U.S.)
• IBM (U.S.)
• Pearson (U.K.)
• Microsoft (U.S.)
• AWS (U.S.)
• Nuance (U.S.)
• Cognizant (U.S.)
• Metacog (U.S.)
• Quantum Adaptive Learning (U.S.)
• Querium (U.S.)
• Third Space Learning (U.K.)
• Aleks (U.S.)
• Blackboard (U.S.)
• BridgeU (U.K.)
• Carnegie Learning (U.S.)
• Century (India)
• Cognii (U.S.)
• DreamBox Learning (U.S.)
• Elemental Path (U.S.)
• Fishtree (U.S.)
• Jellynote (France)
• Jenzabar (U.S.)
• Knewton (U.S.)
• Luilishuo (China)

KEY INDUSTRY DEVELOPMENT

September 2024: PowerSchool unveiled the launch of its new powerBuddy AI products: PowerBuddy for College and Career and PowerBuddy for Custom AI. These tools are designed to enhance connectivity among various associated members of school and universities from teachers to learners and the community and assist students in exploring and taking steps towards achieving success in college careers, and life.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The artificial intelligence (AI) in education market is poised for a continued boom pushed by the requirement for custom-made and adaptive learning that are pushing AI in the education sector. The creation of intelligent tutoring platforms and virtual assistants are drivers of AI in education. Challenges comprise the integration of AI technologies with existing educational infrastructures and the lack of funds for basic IT infrastructure requirements in developing nations. Emerging markets provide a substantial opportunity for the growth of the EdTech sector and experiencing rapid technological adoption, together with a budding demand for quality education. Top companies are investing significantly in R&D to expand their product offerings, which will prompt further expansion of AI in the market.