The artificial intelligence in education market is valued at US$3.186 billion in 2020. The market is estimated to grow at a CAGR of 32.74% to reach a market value of US$23.143 billion by 2027.
The growing adoption of artificial intelligence in the education sector due to the ability of these solutions to enhance the learning experience is one of the key factors which is anticipated to propel its adoption across the globe for educational purposes. The proliferation of smart devices and the rapidly growing trend for digitalization across numerous sectors is also driving the demand for artificial intelligence solutions in the education sector.
Artificial intelligence majorly uses deep learning, machine learning, and advanced analytics, especially for monitoring the learning process of the learner, such as the marks obtained and the speed of a particular individual, among others. Also, these solutions offer a personalized learning experience and high-quality education and help learners enhance their pre-existing knowledge and learning.
The growth of the market is also anticipated to be driven by the growth in the use of multilingual translators, which are integrated with AI technology.
Furthermore, artificial intelligence solutions also give customizable learning experiences depending on the requirements of the end-user, student path prediction, suggestion of learning path, and identification of weakness, and they also help the learners to analyze their areas for improvement and help them to improve their capabilities. However, the lack of a skilled workforce, and high investment costs coupled with the growth in the risk of data security on account of a surge in the number of cyber-attacks is one of the major factors which is anticipated to hamper the growth of artificial intelligence in the education market.
The integration of AI-empowered educational games is also projected to boost the adoption of these solutions across the K-12 education segment, as the learning for the students becomes highly interactive and further helps the teachers to uplift the learning experience of the students. In addition, the integration of AI in the education sector has revolutionized the overall learning experience across all learning areas through its result-driven approach. Furthermore, the use of artificial intelligence in education can also be used for automating the basic activities in the education sector, which includes grading and assessment purposes, among others. This, in turn, leads to saving the teachers time to stay more focused on the quality of education and the professional development of the students.
Services are projected to show good growth opportunities
By offering, the market has been segmented into solutions and services. The services segment is estimated to show decent growth opportunities during the forecast period and beyond on account of the rising awareness among education providers regarding the adoption of AI technology for providing high-quality education. Furthermore, the growing trend of professional training services is also leading to the high adoption of AI-powered solutions for corporate learning purposes, which also supports the growth of this segment during the next five years.
Corporate learning expected to grow substantially over the forecast period
The corporate learning segment is anticipated to show decent growth over the forecast period on account of the growing adoption of these solutions by corporate companies in order to enhance the skills of their employees with an aim to meet the growing competition. Thus, to enhance the skills of their employees, key players heavily invest in developing new platforms and courses so as to attract big companies and expand their competitive edge in the market. Furthermore, big companies at the global level are adopting AI solutions for corporate learning to equip the global workforce with the skills and knowledge to succeed in the rapidly changing economy, further showing the growth potential of artificial intelligence in the education market for the corporate learning segment.
The academic learning segment is projected to hold a decent share in the market owing to the high adoption of these solutions across the school level for enhancing the quality of education and building the careers of students. Also, the use of AI techniques for learning purposes helps the students to focus more on self-development.
North America expected to hold a substantial market share
Geographically, the global market has been segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. North America is projected to hold a noteworthy share in the market on account of its well-established infrastructure and early adoption of technology. Furthermore, the presence of a state-of-the-art education system also bolsters the growth of the market in the North American region. Robust growth is predicted in the Asia Pacific region over the next five years due to the growing adoption of AI-based solutions across major developing countries, such as China and Indonesia. The education system in China is one of the most reputed across the globe. On the other hand, it is also the most challenging and competitive. India is one of the largest education industries. Thus, the presence of well-established education systems in the country is expected to supplement the growth of the market during the next five years.
Globally, the COVID-19 outbreak severely impacted economies and industry verticals. However, the COVID-19 outbreak increased the importance of online education. The lockdown resulted in a complete shutdown of educational institutes, which led to a decline in investment in artificial intelligence at educational centres. In order to improve the learning experience of their customers, major online education platforms have incorporated AI technologies. Further, industry leaders report that AI-powered software platforms are in high demand across diverse geographies. Adaptive learning technologies, virtual learning assistants, etc., are offered by these participants. Additionally, several technology companies are expanding their portfolios and developing advanced platforms by investing large amounts of money in the market. Many schools and universities are investing in technology like the University of Florida invested $70 million in AI in education partnering with Nvidia as per the press release of Nvidia in July 2020.
|Market Size Value in 2020||US$3.186 billion|
|Market Size Value in 2027||US$23.143 billion|
|Growth Rate||CAGR of 32.74% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Offering, Technology, End User, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||IBM Corporation, Amazon Web Services Inc., Microsoft, Google LLC, AI Brain Inc., Cognizant, Nuance Communications, Inc., Dailo, Cognii, Inc.|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the artificial intelligence in education market size by 2027?
A1. The artificial intelligence in education market is estimated to reach a market size of US$23.143 billion in 2027.
Q2. What is the size of the global artificial intelligence in education market?
A2. Artificial Intelligence in Education Market was valued at US$3.186 billion in 2020.
Q3. What are the growth prospects for the artificial intelligence in education market?
A3. The global artificial intelligence in education market is estimated to grow at a CAGR of 32.74% during the forecast period.
Q4. What factors are anticipated to drive the artificial intelligence in education market growth?
A4. The artificial intelligence in education market growth of the market is also anticipated to be driven by the growth in the use of multilingual translators, which are integrated with AI technology.
Q5. Which region holds the largest market share in the artificial intelligence in education market?
A5. North America is projected to hold a noteworthy share in the artificial intelligence in education market on account of its well-established infrastructure and early adoption of technology.
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Artificial Intelligence In Education Market Analysis, By Offering
6. Artificial Intelligence In Education Market Analysis, By Technology
6.2. Deep Learning
6.3. Machine Learning
6.4. Natural Language Processing
7. Artificial Intelligence In Education Market Analysis, By End User
7.2. Academic Learning
7.2.1. K-12 Education
7.2.2. Higher Education
7.3. Corporate Learning
8. Artificial Intelligence In Education Market Analysis, By Geography
8.2. North America
8.3. South America
8.4.3. United Kingdom
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.6. Asia Pacific
8.6.3. South Korea
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. IBM Corporation
10.2. Amazon Web Services Inc.
10.4. Google LLC
10.5. AI Brain Inc.
10.7. Nuance Communications, Inc.
10.9. Cognii, Inc.
Amazon Web Services Inc.
Nuance Communications, Inc.
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