Artificial Intelligence (AI) in Education Market size to exceed $30 bn by 2032

Artificial Intelligence (AI) in Education Market size is predicted to reach USD 30 billion by 2032, according to a new research report by Global Market Insights Inc.
 

AI and ML are transforming education models and drastically modifying teaching and learning methods from the elementary level to higher education, K12, and lifelong learning. Cutting-edge technologies are assisting in identifying & attracting students to universities, forecasting enrolment, predicting outcomes, and recognizing at-risk students with personalized material and AI-enabled teaching assistants and tutors, which is likely to impel the market development. For instance, in November 2021, Indian Edtech company Square Panda unveiled 2 home-grown apps, SquareHub and Square Activity, to offer AI-powered customized learning experiences for instructors and early learners.
 

Growing adoption of AI services at educational institutions to foster segment growth

In terms of components, the artificial intelligence (AI) in education market from the services segment is projected to cross USD 10 billion by 2032. The expanding use of AI in schools and universities to improve student learning through individualized learning programs and the incorporation of smart learning content to make teaching and learning more comfortable is foreseen to complement segment expansion. Furthermore, AI services can make educational classes available to all students throughout the world, including those with visual or hearing disabilities or who speak various languages.
 

Rising emphasis on efficient use of digital resources to foster managed service segment expansion

Under services, the managed service segment is held a sizable market share in 2022 and is anticipated to grow significantly between 2023 and 2032. Managed IT services assist schools and education providers in being more efficient by automating tasks with robust technologies and offering support when needed, allowing educators to focus on teaching and learning rather than technology management. Furthermore, the rising emphasis of educational providers on cost reduction has considerably influenced the need for managed IT services to aid them in making effective use of their digital resources.
 

Digital transformation of the education industry to raise on-premise AI demand

The artificial intelligence (AI) in education market from the on-premise segment amassed a valuation of over USD 3 billion in 2022. The digital transformation in the education sector has escalated the deployment of an on-premises AI model as it can engage learners effectively and increase business revenue with new conversational channels. Moreover, the surging number of educational institutes are investing in upskilling to keep up with the evolving digital technologies.
 

Browse key industry insights spread across 300 pages with 389 market data tables and 41 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, 2023 – 2032” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/artificial-intelligence-ai-in-education-market
 

R&D efforts to advance machine learning deployment in the education sector to fuel the market revenue share

Based on technology, the machine learning segment accounted for 20% share of the artificial intelligence in education market revenue in 2022. A growing number of educators are utilizing machine learning (ML) to identify struggling students earlier and take action to improve performance and retention. Through localization, transcription, text-to-speech, and personalization, ML is increasing the impact and reach of online learning content. In addition, researchers are accelerating R&D efforts using ML to discover innovative breakthroughs and insights.
 

Increasing application of AI to impart quality education to support learning platform & virtual facilitators segment growth

By application, the AI in education market from the learning platform & virtual facilitators segment is estimated to witness over 20% CAGR from 2023 to 2032, due to the use of technologies by educational institutions to improve the quality of education for students. Virtual facilitators are essential in the development and maintenance of online programs that support planned learning outcomes. Furthermore, the increasing willingness and capacity of parents to pay for online tutoring platforms is expected to favor the segment.
 

Growing need for employee training to augment corporate learning segment revenues

In terms of end-use, the artificial intelligence (AI) in education market from corporate learning segment is set to hold 15% share by 2032. Organizations are turning toward AI to keep up with the latest advances to mitigate the skills gap and train the increasing number of young workers, which is poised to propel industry revenue. To cite an instance, in May 2022, UNESCO's Education Sector set up an online training platform for unemployed corporate industry individuals to improve job-related skill sets and advance their careers.
 

Booming smartphone penetration to complement APAC industry share

The Asia Pacific AI in education market is slated to expand at 30% CAGR during the forecast timeframe, owing to the increasing number of EdTech start-ups establishing their presence in the APAC education industry attributing to increasing smartphone penetration rate across the region. Additionally, the rising demand for extracurricular support and customized tutoring has attracted massive investments in the sector, thereby impelling regional industry progress. In October 2022, Sequoia India announced plans to invest $50 million in K12 Techno Services, an Edtech startup that offers varied services to educational institutions.
 

Increased investment by prominent players to strengthen market presence

Major players involved in the artificial intelligence (AI) in education market include Blackboard Inc., Knewton, IBM Corporation, IBM Corporation, Google Inc., Amazon Web Services (AWS), and Squirrel AI. These businesses are concentrating on improving processes and putting expansion plans into action. For instance, in March 2022, Scribble Data, an Indian ML business, acquired USD 2.2 million in investor funding to develop tailored AI solutions and algorithms for the U.S. market.