Artificial Intelligence (AI) in Education Market Size, By Model (Learner, Pedagogical, Domain), By Deployment (On-Premise, Cloud), By Technology (Machine Learning, Deep Learning, Natural Language Processing (NLP)), By Application (Learning Platform & Virtual Facilitators, Intelligent Tutoring System (ITS), Smart Content, Fraud & Risk Management), By End-Use (Higher Education, K-12 Education, Corporate Learning), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Spain, Australia, China, India, Japan, South Korea, Brazil, Mexico, GCC, South Africa), Growth Potential, Competitive Market Share & Forecast, 2018 – 2024

Industry Trends

AI in Education Market size estimated at over USD 400 million in 2017 and is anticipated to grow at a CAGR of more than 45% from 2018 to 2024.
 

Canada AI in Education Market Size, By Application, 2017 (USD Million)

Get more details on this report - Request Free Sample PDF
 

AI in education market is gaining traction due to the proliferation of smart devices and the rapid digitalization across the globe. AI in education uses deep learning, machine learning, and advanced analytics to monitor the student’s learning process such as individual learning speed and marks obtained in tests. This helps the student to learn at their own pace through personalized learning and monitoring in every course offered to them. This also enhances the teachers’ knowledge level and experience. 
 

The rise in multilingual translators integrated with AI technology is expected to drive the AI in education market growth. The growing importance of higher technical education in a specific professional field is expected to propel the market growth. This helps professionals to learn at their own pace & timeline and obtain certification, supporting their career growth. The growing use of AI chatbots in the education sector will enhance adaptive learning solutions and teaching as support tools. This will improve the role of content providers that turns AI tools into curate & create content resources automatically.
 

 By Model

The domain model is projected to exhibit more than 50% CAGR over the forecast timeline due to the growing demand among learners to learn difficult subjects, such as genetic inheritance and mathematical procedures, through well-structured, clearly defined, and basic level models. The model is anticipated to enhance the quality of education, predominantly in areas across science, engineering, and mathematics, through personalized learning and tutoring. It provides efficient support while testing & refining the teaching and learning processes.
 

By Deployment

Italy AI in Education Sector Size, By Application, 2017 (USD Million)

Get more details on this report - Request Free Sample PDF
 

The on-premise deployment model held over 83% of the market share and will dominate the AI in education market share over the forecast timeline as it offers control over data and has a low maintenance cost, providing control over the data. This reduces the risk of data leakage and offers extra security for data protection in educational institutions.
 

Cloud deployment is estimated to grow significantly during the forecast period at a CAGR of over 52%. The cloud deployment mode offers cost-effectiveness for several applications such as Learning Management Systems (LMS) and virtual assistance. It reduces capital expenditure and provides automatic software updates and flexibility in the demand for bandwidth.
 

By Technology

Natural Language Processing (NLP) held more than 68% of the market share in 2017 and is anticipated to dominate the AI in education market share over the forecast timeline due to the increasing demand among educational institutions to enhance the assessment & curriculum processes. It processes the increasing available speech & text in electronic format from chat rooms, discussion forums, and peer-to-peer review system to enhance the overall educational process.
 

Deep learning is estimated to grow substantially with more than 53% CAGR over the forecast timeline. Deep learning offers hands-on training in AI and accelerates computing to solve real-world problems. An AI-based bot is expected to offer frontline tutoring assistance that will help learners to complete their assignments. Deep learning will analyze huge data sets of information related to education, which will enhance the student’s experience. Deep learning deploys several approaches including inductive logic programming, Bayesian network decision tree learning, clustering, and reinforcement learning to personalize & enhance the learning process.
 

 By Application

The Intelligent Tutoring System (ITS) application segment is projected to grow with more than 50% CAGR over the forecast timeline due to the increasing demand to develop & test models of the cognitive processes involved in instruction and to provide sophisticated instructional advice on a one-on-one basis. This enhances student learning process through personalized courses and offers flexible learning period. It tracks a student’s progress that identifies any deviation from the model, which is further notified to students as an error. This enhances the learning environment with a focus on implementing analytical and experimental learning, which helps learners to attain a clear understanding of the concept.
 

The fraud & risk management segment held a significant market share in 2017 and is expected to maintain the artificial intelligence (AI) in education market share over the forecast timeline due to the growing demand from the BFSI industry to learn about the fraud & risk management. The rising number of frauds across the BFSI sector and the lack of skilled fraud & risk management personnel are propelling segment growth. The enterprises working in these sectors are providing training on fraud & risk management to their employees to improve the efficiency of AI deployment to reduce fraud risks.
 

By End-Use

The higher education segment held more than 51% of the AI in education market share in 2017 and is anticipated to dominate the market share over the forecast timeline. The market growth is attributed to the increasing demand among the administration of educational institutions to offer quicker and personalized admission process for the students. The advent of AI chatbots is expected to enhance the communication with prospective students, which will aid in the improvement of the prospective conversion rate for educational institutions. For instance, in May 2018, Google launched Google Duplex, which makes outgoing calls in a realistic human voice to perform low-level tasks such as scheduling a live counselor to call a prospect student and provide notes as to the nature of the conversation.
 

Corporate training is estimated to exhibit more than 51% CAGR over the forecast timeline. AI in corporate training offers unique learning methods, such as story-line based game courses, which enhance the efficiency of the course. Additionally, it helps the trainer to continuously monitor and track the learner’s progress, reducing the training gap in the course. It also supports the L&D department to create strategic sessions, such as face-to-face training, to enhance human interaction.
 

 By Region

Brazil Artificial Intelligence (AI) in Education Market Share, By End-Use, 2017 (USD Million)

Get more details on this report - Request Free Sample PDF
 

Asia Pacific AI technology in education sector is projected to grow substantially with more than 52% CAGR over the forecast timeline due to rapid digitalization in the region. The rising internet penetration coupled with the proliferation of smartphones is supporting the growing digitalization. Supportive government policies and the rise in investments from private & public sectors are anticipated to create a revolution in the education system with a result-driven approach. For instance, Toppr, an AI-based startup in India uses AI and machine learning to map out the weakness and strength using individual learning speeds and records.
 

Competitive Market Share

The AI in education market is highly competitive due to the presence of several startups, regional players, and key global players. Multinational companies, such as Google, Microsoft, AWS, IBM, and Nuance Communication, are dominating the market. However, some regional players, such as Cognii, Sofia Labs, PLEIQ, Knewton, Luilishuo, and Brainly, are also contributing significantly to the market.
 

Prominent global market players are focusing on strategic alliances, such as partnerships, mergers, and acquisitions, to expand their geographical presence. For instance, in August 2019, Edmentum, a provider of online curriculum, courses, and assessments for K-12 and adult learners acquired Calvert Education Services that provides online homeschool programs & other digital tools to support home learners. This acquisition will help Edmentum gain access over 600,000 students across 90 countries with the help of Calvert.
 

Industry Background

Get more details on this report - Request Free Sample PDF
 

The deployment of AI technology in the education system is enhancing the learning experience through interactive and smart learning. The emergence of artificial intelligence including deep learning, machine learning, and predictive analytics is improving both teaching and learning processes. It helps teachers to monitor, track, and understand the learners’ progress and support learners with flexible course timing and personalized learning experience.AI in education is still at its primitive stage and with hefty venture funding; hence, market players are expected to spend heavily in R&D activities to enhance its features for learners. The rapid adoption of AI in education by private & government-owned educational institutions will enhance the education system.

What Information does this report contain?