Artificial Intelligence (AI) in Education Market Size By Component (Solution, Service [Professional Service, Managed Service]), 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), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Jun 2021  |  Report ID: GMI2639  |  Authors: Preeti Wadhwani, Smriti Loomba

Report Format: PDF   |   Pages: 270   |   Base Year: 2020

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Artificial Intelligence (AI) in Education Market size exceeded USD 1 billion in 2020 and is expected to grow at a CAGR of over 40% between 2021 and 2027. Rising demand for interactive learning solutions to enhance the learning experience is likely to drive the industry growth. It helps in improving students’ learning styles and offering personalized tutoring and high-quality education to the students by gauging their pre-existing knowledge and learning.

With AI, students feel comfortable making the errors necessary for learning, which they would otherwise be hesitant to make in front of their human tutors and peers. AI solutions also provide students with immediate feedback required for improvement, driving the demand of AI in education sector.

AI in Education Market

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The recent COVID-19 outbreak has increased the demand for online learning platforms across the globe. The increasing demand for online learning platforms has enabled enterprises to develop innovative AI-based learning solutions. The COVID-19 positively impacted AI in the education market due to the growing development of interactive e-learning platforms.

In Canada, the rising demand for integration of ITS in-learning process is fueling the market revenue

Global AI in Education Market By Region

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The AI in education solution in Canada held over 70% market revenue share in 2020 owing to the rising emphasis on the growing integration of Intelligent Tutoring System (ITS) in learning process. ITSs have a common aim of enabling learning in an effective manner, spurring their demand in the market. The increasing integration of ITS in-learning process has assisted in improving students learning styles, offering personalized tutoring, and high-quality education to the students.

Increasing research & development activities in deep learning are supporting the UK market growth

In the UK AI in education market, the deep learning segment is projected to expand around 40% CAGR through 2027 as it offers collaborative learning methodology between teachers, students, and a wider environment with strong social and team-related skills. This technology helps in protecting the teaching profession against automation as important tasks, such as developing soft skills amongst students, cultivating pupils, and assisting them to flourish as people, are not the skills that can be cultivated by a robot or an algorithm.

The rising emphasis on improving the quality of higher education in Germany is fueling the market demand

In Germany, higher education accounted for about 50% of the AI in education market share in 2020 on account of increasing demand for a specialized workforce to deploy AI across various educational institutes and industries. The higher education institutes are shifting to AI to assist them with course recommendations, administrative assistance, and career path options for students. The other benefits it offers to the students include personalized learning and the provision of smart classrooms, delivering quality education.

Growing demand for virtual classrooms across the corporates in China is augmenting the market outlook

China AI in Education Market By Application

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In China, the learning platforms & virtual facilitators segment is anticipated to garner the maximum revenue of more than USD 800 million by 2027 propelled by the increasing demand for virtual classrooms across corporates. Virtual classrooms are driven by the need for effective training for the dispersed population at a reasonable cost. They help organizations to offer valuable learning experiences for customers, employers, and channel partners while avoiding travel and lodging costs. Virtual facilitators play a key role in developing and maintaining online programs that will support planned learning outcomes.

Rising demand for virtual classrooms across the corporates in India

The cloud deployment model in India is estimated to register a CAGR of over 60% from 2021 to 2027 impelled by the increase in the usage of cloud-based technologies to improve the educational experience. The rising trend of BYOD, rising acceptance of wearable e-learning devices, and advancements in education-related cloud-based gamification and virtual reality will boost the segment demand.

North America dominated the Artificial Intelligence (AI) in education market in 2020

North America AI in Education Market By Country

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The North America AI in education market is poised to witness a 40% CAGR through 2027 led by the availability of huge government funds and the presence of tech giants including Microsoft, Google, and IBM. The growing dependence on mobile devices, such as smartphones, tablets, and laptops, to access teaching programs and study materials has given an upsurge to software developers for designing software compatible with these mobile devices.

Innovative product development is the key market strategy adopted by the leading market players

Companies are emphasizing on development of AI-based learning platform to improve the learning experience. For instance, in September 2020, GoLearn Education Ltd. launched AI-based English Language Teaching & Learning (ELTL) platform – GoLearn. This product launch helped the company to offer AI-based interactive learning platform for English teachers and learners.  

Some of the players operating in the AI in education market are Amazon Web Services, Inc., Blackboard Inc., Blippar, Century Tech Limited, Cerevrum Inc., CheckiO, Pearson PLC, TrueShelf, Querium Corporation, Knewton., Cognii Inc., Google Inc., Microsoft Corporation, Nuance Communication Inc., IBM Corporation., Jenzabar Inc., Yuguan Information Technology LLC, Pixatel Systems, PleiQ Smart Toys SpA, and Quantum Adaptive Learning LLC.

This market research report on AI in education includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Component

  • Solution
  • Service
    • Professional Service
    • Managed Service

Market, By Technology

  • Machine Learning
  • Deep Learning
  • Natural Language Processing
  • Others

Market, By Deployment Model

  • Cloud
  • On-premise

Market, By Application

  • Learning Platforms & Virtual Facilitators
  • Intelligent Tutoring System
  • Smart Content
  • Fraud & Risk Management
  • Others

Market, By End-Use

  • Higher Education
  • K-12 Education
  • Corporate Training

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa

Frequently Asked Questions (FAQ) :

Artificial intelligence (AI) in education industry valued at USD 1 billion in 2020 and will expand at a CAGR of more than 40% up to 2027, says this GMI report.
The revenue of AI in education solutions across Canada surpassed 70% of the total revenue share in 2020 and will grow with the rising demand for Intelligent Tutoring System (ITS) in learning processes.
The regional industry size from the cloud deployment segment is pegged to record a CAGR of around 60% through 2027.
The higher education end-use segment in Germany held over 50% of the revenue share in 2020 and will rise with the increasing need for specialized workforces across various educational institutes and industries.
North America AI in education industry size is slated to rise at a 40% CAGR up to 2027 owing to the higher availability of large government funds and the presence of bigwigs like Microsoft, Google, and IBM in the region.

Premium Report Details

  • Published Date: Jun 2021
  • Pages: 270
  • Tables: 275
  • Charts / Figures: 38
  • Companies covered: 20
  • Countries covered: 18

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