AI in Education Market

According to a research report "AI In Education Market by Software Type (Learning Management System (LMS), Adaptive Learning Platform, Chatbot & Virtual Assistant, Plagiarism Detection Tools), Technology, Academic Application (Predictive Analysis, Gamification) - Global Forecast to 2030" published by MarketsandMarkets, the AI in Education market is expected to reach USD 5.82 billion by 2030 from USD 2.21 billion in 2024, at a CAGR of 17.5% during 2024–2030.

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The rising demand for customized educational experiences is a key driver of growth in the AI in education market. AI-based education systems enable adaptive learning, adjusting content in real-time based on student performance, which boosts engagement and motivation. Intelligent tutoring systems function as virtual tutors, providing personalized feedback and support to help students master complex concepts. By analyzing student data, AI can recommend resources tailored to individual interests and learning goals. Additionally, automated assessments deliver instant feedback, allowing students to identify areas for improvement quickly. AI also supports diverse learners by detecting challenges early and offering targeted interventions. This data-driven approach provides educators with valuable insights into performance trends, empowering them to make informed instructional decisions. As a scalable solution, AI-powered personalized learning can be implemented across a variety of educational settings, making high-quality education more accessible to a broader audience.

“Rising demand for customized educational experiences through AI in personalized learning.”

The AI in education market is projected to grow from USD 2.21 billion in 2024 to USD 5.82 billion by 2030, at a compound annual growth rate (CAGR) of 17.5% during the forecast period. The demand for personalized learning through AI is growing due to several key factors. The increasing recognition of individualized education, which caters to diverse learning styles and paces, drives the need for AI's data-analysis capabilities to create tailored learning pathways. The rise of online education also contributes to this trend, as AI offers on-demand resources and adaptive content that align with students' preferences and progress. AI-driven platforms provide real-time feedback, helping students understand their strengths and weaknesses, thereby enhancing learning outcomes and fostering student ownership. Additionally, the demand for lifelong learning in both academic and corporate sectors has led to customized training programs that meet individual career goals. Parental advocacy for personalized education further fuels the trend, prompting schools to adopt AI solutions. These factors collectively drive the demand for AI-powered tools for personalized learning experiences across the educational sector.

“In services, professional development program to lead the market during the forecast period.”

Professional development programs assist educators in improving their knowledge, skills, and expertise in knowledge sharing. This program aims to enhance the knowledge and techniques needed to upgrade teaching skills effectively and develop better learning environments for students. Approaches to professional development include consultation, coaching, mentoring, and technical assistance. The focus is mostly on collaboration and evaluation of educators to enhance student outcomes. These development programs aim to enhance teaching and coaching practices along with better teaching strategies associated with specific curriculum content.

“By Academic application, the predictive analysis segment will grow at a rapid pace during the forecast period.”

The utilization of predictive analysis tools in education could uncover trends that can enhance learner responsiveness and overall performance to improve student engagement. Colleges, universities, and training centers provide quality education to students irrespective of geographical barriers, improve quality education, and better refine curriculum and teaching strategies. Predictive analysis plays a pivotal role in student management as it analyzes students' historical performance data which supports colleges or universities in creating more robust education system for immersive learning experiences.

“In deployment mode, the cloud segment will contribute the higher market share during the forecast period”

Cloud deployment is poised to capture a larger share of the AI in education market due to several compelling advantages it offers to educational institutions. Cloud-based platforms facilitate cost-efficiency by reducing the need for extensive physical infrastructure and maintenance costs. Institutions can leverage cloud services on a pay-as-you-go basis, making it financially viable for many organizations to adopt advanced AI technologies. The shift towards online learning, accelerated by global events, has further emphasized the necessity of cloud solutions, which enable access to educational resources and AI tools from any location at any time. Moreover, cloud deployment allows for enhanced real-time data analytics and feedback mechanisms. Educators can monitor student progress more effectively and adapt teaching strategies based on immediate insights, thereby personalizing learning experiences. The integration of AI in educational content creation and management processes also benefits from the cloud's capabilities, as it supports the delivery of dynamic and interactive learning environments.

“By region, Asia Pacific to register the highest CAGR market during the forecast period.”

The Asia Pacific region is poised to exhibit the highest CAGR in the AI in education market, driven by several key factors that highlight its rapid expansion and adoption of advanced educational technologies. Generative AI tools facilitate tailored educational content, allowing students to engage with materials that match their individual learning styles and paces. For instance, AI-driven platforms can adapt lessons in real time based on student performance, fostering greater engagement and understanding. Additionally, these technologies empower educators by automating administrative tasks and providing insights through data analytics, enabling more effective teaching strategies. Furthermore, initiatives in these countries emphasize ethical AI use and teacher training, ensuring that educators are well-equipped to harness AI's potential responsibly. Overall, the effective application of generative AI in education across the Asia-Pacific is paving the way for innovative teaching and learning practices.

Some major players in the AI in education Market include Microsoft (US), IBM (US), Google (US), Alibaba Cloud (China), AWS (US), Adobe (US), Pearson (UK), Baidu (China), OpenAI (US), Duolingo (US),  Cengage Group (US), Knewton (US), Skillsoft (US), Udacity (US), Stride (US), HPE (US), Carnegie Learning (US), Dreambox Learning (US), Quizlet (US), Grammarly (US), Vimeo (US), Riiid (South Korea), Cognii (US), Elsa Speak (US), Memrise (UK), Alef Education (UAE), Querium (US), Amira Learning (US), Knowre (US), Century Tech (UK), Thinkster Math (US), Quizizz (India), Khan Academy (US), Sana Labs (Sweden), Teachmint X (India), 360Learning (US), Mainstay (India), Blippar (UK), Blue Canoe Learning (US), Otter.ai (US), Quillbot (US), Nolej (France), and Speechify (US).

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