Home > Sustainable & Smart Technologies > Artificial Intelligence (AI) in Education Market
Industry Drivers
AI in Education Market size valued at USD 4 billion in 2022 and is anticipated to witness over 10% CAGR from 2023 to 2032, owing to the growing inclination towards personalized learning.
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Increasing reliance on technological reinforcement and conventional techniques has rendered traditional education models no longer sufficient to sustain the sector. In order to fulfill the evolving demands of students and educators, edtech startups are transforming and improving the education sphere by disrupting traditional technologies and advancing existing learning methods. As of January 2023, there are 30 EdTech Unicorns worth $89 billion worldwide.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 4 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 10% |
| 2032 Value Projection: | USD 30 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 300 |
| Tables, Charts & Figures: | 430 |
| Segments covered: | Component, Technology, Deployment Type, Application, End-use, and Region |
| Growth Drivers: | |
| Pitfalls & Challenges: |
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Lack of skilled professionals to hamper the industry growth
The lack of skilled professionals is a major factor restricting the adoption of AI across the education industry. The demand-supply gap is widening as the workforce is lagging and needs to adapt to keep up with high-tech advancements. However, governments around the world are recognizing the need for upskilling or reskilling in the realm of AI and are launching numerous projects. For instance, in April 2020, non-profit organizations NASSCOM and MEITY (Ministry of Electronics and Information Technology) launched the FutureSkills PRIME initiative in India to retrain and up-skill IT workers in 10 developing fields, including AI.
Growing adoption of IoT devices to propel the smart content segment growth
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On the basis of application, the AI in education market share from the smart content segment is slated to showcase more than 25% CAGR during the forecast timeline. AI smart content creation stimulates the real-life experience of graphical web-based study environments and improves learning experiences using robots, audio & video, and 2D -3D visualization. The surging incorporation of IoT in education and services in order to make the most of this technology while making education more engaging and collaborative is projected to increase the demand for smart content.
Government efforts to boost product utilization for higher education end-uses
| Segment | Market Share, 2022 (%) |
|---|---|
| Higher Education | 50% |
| K-12 Education | 34.6% |
| Corporate Training | 15.4% |
| Total | 100% |
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Based on end-use, the higher education segment held around USD 2 billion revenue in 2022. The soaring adoption of AI by numerous universities globally since the COVID-19 outbreak to bridge learning gaps and improve the learning pace, coupled with significant government efforts to enhance educational standards. For instance, in August 2022, India’s Ministry of Electronics and Information Technology collaborated with the University Grant Commission to offer specialized digital courses through the e-resources portal to millions of students in rural areas.
Mounting focus on the development of advanced educational software solutions to foster the solution segment expansion
The AI in education market share from the solution segment is set to exhibit an over 20% growth rate through 2032, as a result of the ongoing development of sophisticated platforms and massive investments in portfolio expansion by several technology companies to address the growing need for AI-powered educational software solutions, including adaptive learning technology tools, virtual learning assistants, and so on. For instance, in September 2021, educational technology developer Blackboard and Anthology, a leading software company, inked a deal to expedite the transformation of educational institutions and learning environments to promote student success rates.
Growing prominence of virtual classrooms to favor the cloud segment growth
As per deployment, the artificial intelligence (AI) in education market the cloud segment is estimated to depict more than 30% CAGR till 2032, attributed to the prevalent adoption of cloud computing technologies due to their simplicity & flexibility. Notably, many higher education institutions in key regions are implementing cloud technology to improve information sharing across campuses worldwide. Additionally, the growing preference for virtual cloud classrooms to run a class or course remotely is likely to support industry growth.
NLP technology to witness high adoption for synthesizing student information
By technology, the natural language processing segment is predicted to reach USD 20 billion by 2032. Advancements in educational technologies and access to previously unprecedented amounts of educational text and speech are fostering the adoption of NLP to meet the demands of both students and educators. Moreover, the growing use of NLP to automate the assessment of student texts based on linguistic parameters, such as grammatical accuracy or organizational structure.
Proliferating data utilization to augment the Europe industry revenues
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Regionally, Europe AI in education market is expected to account for over 15% of the global industry revenue by 2032. The mounting adoption of AI across the region, as well as the continually developing AI systems that are bolstering data utilization, has increased the demand for advanced education and training. Furthermore, rising digitalization, the booming Edtech sector, and an upsurge in AI investment are projected to boost regional market expansion. For instance, in August 2022, Luven-based firm, DPhi, raised €300k in new funding to complement its goal of democratizing access to AI education.
Adoption of innovative technologies to strengthen industry outlook
Some of the leading companies operating in the global AI in education market are Blackboard Inc., IBM Corporation, Amazon Web Services (AWS), Google Inc, IBM Corporation, Knewton, and Squirrel AI. These companies are concentrating on the integration of technologies to meet the demand from various geographical areas. In March 2022, Google integrated interactive lessons and real-time feedback into its online learning platform Google Classroom. This upgradation helped the company offer students a more personal learning experience through interactive lessons and real-time feedback.
Impact of COVID-19 on the AI in education industry trends
The COVID-19 outbreak posed several obstacles for enterprises and institutions, including schools, colleges, and universities. Governments worldwide implemented social isolation policies and lockdowns to prevent the virus’ spread, causing all levels of education—from elementary to universities entirely to move toward online learning management systems. According to UNESCO, in April 2020, higher education institutions (HEIs) were shut down in 185 countries, affecting over 1,000 million students worldwide. The pandemic accelerated digitalization across educational institutions, favorably impacting the industry growth.
This AI in Education Market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD from 2018 to 2032, for the following segments:
Market, By Component
- Solution
- Services
- Professional services
- Managed services
Market, By Deployment
- Cloud
- On-premises
Market, By Technology
- Machine Learning
- Natural Language Processing (NLP)
- Deep Learning
- Others
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
- Italy
- Spain
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- Saudi Arabia
- South Africa
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