AI In Education Market Size, Share & Trends Analysis Report By Component (Solutions, Services), By Deployment, By Technology, By Application, By End-use, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The global AI in education market size was exhibited at USD 2.52 billion in 2022 and is projected to hit around USD 56.25 billion by 2032, growing at a CAGR of 36.4% during the forecast period 2023 to 2032.

Key Pointers:

• North America dominated the market with a revenue share of over 36.9% in 2022. 
• Asia Pacific is expected to be the fastest-growing region during the forecast period. 
• The solutions segment accounted for the largest revenue share of over 71.0% in 2022
• The services segment is anticipated to expand at the highest CAGR of 37.9% 
• The cloud segment dominated the market with a revenue share of over 56.0% in 2022 
• The machine learning (ML) segment accounted for the largest revenue share of over 61.0% in 2022. 
• The higher education segment accounted for the largest revenue share of over 41.0% in 2022. 
• The learning platform and virtual facilitators segment dominated the market with a revenue share of over 46.5% in 2022 
• The smart content segment is expected to expand at the fastest CAGR of 38.9% during the forecast period. 

Factors such as increasing investments in AI and EdTech by private as well as public sectors and the increasing penetration of edutainment are driving the demand for Artificial Intelligence (AI) in education. Additionally, the advancement in technology is fueling the demand for AI in education around the world. The COVID-19 pandemic severely impacted industries across the world. However, the market witnessed a significant rise in the demand for innovative AI-based education solutions during the pandemic. According to a survey published by the University Professional and Continuing Education Association in 2021, 51% of the faculty in the U.S. are more confident about online education than they were before the outbreak. In May 2021, Jenzabar, Inc., a technology innovator for higher education, announced the launch of the Jenzabar Unity platform to improve operational efficiency and reduce technical barriers associated across campus with the help of iPaas integration.

The AI in education component involves providing a better experience to the students, teachers, and educators. Various service providers are innovating different solutions or services for AI in education that connect to various education platforms. Additionally, the increasing adoption of online education for the development of skills is boosting the demand for AI in education.

Moreover, the demand for AI in education is high due to the pandemic but the lack of skilled professionals is restraining the market growth. In 2022, tech companies partnered with universities for introducing new training formats for talent in the AI field to better align with the development trends and newest industry shifts as there is an increase in AI-backed industry applications.

North America dominated the market with a revenue share of over 36.9% in 2022. Factors such as the existence of leading companies that develop the solutions and services, technology infrastructure facilities, and the enormous number of end-users utilizing educational devices for AI in education are the factors driving the market in the region. For instance, in October 2022, IBM corporation announced to provide 30 million people with new skills with more than 170 industry and academic partnerships by 2030, which would help to fill the growing skills gap, democratize opportunity, and give new generations of employees the skills they needed to build a better future.

Asia Pacific is expected to be the fastest-growing region during the forecast period. The growth of the regional market can be attributed to the existence of market players in the region. Baidu, TechNode, Squirrel AI, BYJU'S, Noodle Factory PTE. Ltd., and Liulishuo are a few tech giants and startups operating in the region. Advancements in AI technology, increasing investment and expenditure by governments, and new technology adoption in the education sector in the region are the key factors boosting the market growth. For instance, in July 2021, the Prime minister of India announced AI for All program by the Central Board of Secondary Education (CBSE) in partnership with Intel and the SAFAL assessment system. AI for All is a four-hour, self-paced learning session that demystifies artificial intelligence in a way that is accessible to everyone.

AI In Education Market Segmentation

AI In Education Market Key Players And Regions