Artificial Intelligence (AI) in Education Market size worth $20 Bn by 2027
Published Date: June 22, 2021 Authors: Preeti Wadhwani, Smriti Loomba
Artificial Intelligence (AI) in Education Market size is set to surpass USD 20 billion by 2027, according to a new research report by Global Market Insights, Inc.
Growing adoption of AI technology across the education sector is driving the industry growth. The emergence of AI in the education sector has created huge benefits for the education providers by reducing costs, increasing administrative efficiency, and improving IT security on campuses by recognizing the threats earlier and providing rapid interventions. Due to these benefits, various vendors operating in the AI domain have partnered with education providers for the generation of next-level AI-driven economy.
Rising investment in AI technology is fueling the AI in education market growth
The investment in AI by tech giants, such as Google, Microsoft, IBM, and AWS, is the primary factor driving the market demand. The growing investments in technology are attributed to the wide applications of AI technology along with advanced analytics, machine learning, and cognitive solutions. Internal corporates investment by technology companies in R&D for enhancing AI capabilities accounts for the major share in the investments in AI. Technology giants are also focusing on strategic acquisitions of AI-based start-ups not only to acquire clients and technology but also for securing qualified talent.
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Growing demand for outsourcing the management of the AI in educational platform
The AI in education market from managed service is projected to grow at 50% CAGR through 2027 due to increasing demand for outsourcing of the AI in education platforms. The managed services help the educational institutes to reduce the cost associated with the maintenance of AI in education platforms. The educational institutes deploy managed services to increase their focus on improving the educational content.
Browse key industry insights spread across 270 pages with 375 market data tables and 38 figures & charts from the report, “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” in detail along with the table of contents:
Natural Language Processing (NLP) technology is expected to dominate the NLP market
The Natural Language Processing (NLP) captured over 60% if the AI in education market share in 2020 on account of the advantages it offers such as synthesizing the student information for finding out the results. Using the NLP algorithms, the companies develop a curriculum script deployed on the educational organizations Learning Management System (LMS). Students can carry out self-study using this AI in education platform and as they answer questions, they obtain immediate assessment, feedback, hints, and guidance until the students achieve mastery in that particular subject.
Cost-effectiveness of AI-based training model is driving the AI in education market revenue across the corporate sector
Corporate training segment is estimated to expand at a CAGR of around 40% through 2027. The rising shift toward offering corporate training in AI reduces costs and improves employee productivity, job satisfaction, and skills. These training programs offer customized performance by responding to individual needs. As each employee has a distinct learning style, these adaptive programs could bring about variations in the training content as per requirements. For instance, machine learning could convert a part of the written coursework into visual content for visual learners, providing an enhanced learning experience.
ITS is set to witness significant growth over the forecast period
Intelligent Tutoring System (ITS) is poised to hold more than 20% of the AI in education market share by 2027 as educational institutions have understood the importance of communication between teachers and students, increasing the importance of applications in the education industry. The market for ITS is growing as many educational institutions are looking for applications that can help professors in determining what knowledge the student already has through an assessment and then updating the student model status as per the instructions. Moreover, the increase in the use of smartphones and BYOD applications helps students and professors to connect more.
On-premise deployment model accounted for the major market share
On-premise deployment model accounted for the maximum revenue of over USD 1 billion in 2020 as these solutions can engage learners effectively and increase the revenue for the businesses with new conversational channels. Around 90% of the schools and universities store the student’s demographic data, attendance, grades, and test scores electronically in the school database. The on-premise storage of this data helps in providing instant access to the data as and when required with a complete control over the system.
Supportive government initiative is expected to fuel the Asia Pacific market statistics
The Asia Pacific AI in education market is forecast to register growth rate of about 50% till 2027 led by rising investments in AI technology and increasing digitalization in the region. China leads the investments in technology and accounts for a dominant market share in the global external investments in AI. Increasing investments by Chinese players is also one of the major factors driving the market growth. Furthermore, increasing digitalization and supportive government initiatives in the region are also estimated to have a significant impact on the market.
Development of innovative solutions is the key strategy adopted by leading market players
The major companies in the industry are developing innovative AI in education platforms to strengthen their market position. For instance, in May 2021, Juana Technologies introduced Edufiq, an AI-based learning platform. This new solution helped the company to improve the learning experience for students aged between 8-18 years.
Major AI in education market players 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.
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