Artificial Intelligence in Education Market

Market Overview

Artificial Intelligence in Education Market was valued at USD 390.23 million in 2017 and expected to grow at CAGR 36.4% over the forecast period 2019–2026.

Artificial intelligence (AI) provides machine intelligent solutions such as learning, identify data patterns, processing, speech recognition, and others. Additionally, AI in education sector has resulted into a vital term that offers features such as personalized learning, educational support, assessment, and student engagement improving the quality of education by tackling the learning challenges faced in past. This is attributed to influence the AI in education market to grow positively. Implementation of AI in education is expected to bring in opportunities for time management including grading & admissions, and behavior management of students through face recognition capabilities. AI integrated with augmented and virtual reality installed on digital devices such as smartphones, tablets and wearable devices for students are expected to drive the artificial intelligence in education market during the forecast period, 2019–2026.

Market Dynamics

Artificial intelligence in education market is expected to witness exponential growth during the forecast period, 2019–2026. This is attributed to increased adoption of advanced technologies in education sector such as intelligent tutoring systems (ITS), chatbots, and others for better understanding of concept among students. Additionally, rapid adoption to digitization and cloud-based technologies are expected to boost the AI in education market.

The wide range of benefits offered by AI in education sector such as improved learning strategy, personalized tutoring, quality education, and others is expected to be the major driving factors that are likely to propel the growth of artificial intelligence in education market. The advantage of accessing wide variety of information by individuals to better educate themselves is expected to be the growing opportunity in AI in education market. Increasing adoption of machine learning and deep learning technologies in education sector is expected to boost the market growth during the forecast period.

Segmental Analysis

Artificial intelligence in education market is segmented by component, deployment type, technology, application, end user, and region.

On the basis of component, the artificial intelligence in education market is segmented into solution and services. Automated grading and managed administrative functions using AI solutions and services is expected to impel the market growth in this segment.

Based on deployment mode, the artificial intelligence in education market is segmented into on-premises and cloud-based. Cloud technology being user-friendly and cost-effective is likely to boost the artificial intelligence in education market in the deployment mode segment.

By technology, the artificial intelligence in education market is segmented into machine learning, deep learning, natural language processing (NLP), and others. Analyzing of large inputs of data generated by education software is processed by NLP technology. This results to increased usage of NLP technology in educational applications to synthesize the generated educational data owing to rise in demand for NLP technology in artificial intelligence in education market. Integration of NLP technology in educational institutes assists in developing an effective e-learning content thus improving the academic performance. Moreover, NLP technology also helps in content development and process digital content through web-based information thus resulting to propel the AI in education market growth in this segment. Additionally, machine learning offering features such as customized machine learning experience, identify weakness and analyzing the areas of improvement, and others are projected to drive the market growth during the forecast period, 2019—2026.

In terms of application, the artificial intelligence in education market is segmented into intelligent tutoring systems, virtual facilitators, content delivery systems, interactive systems, chatbots, and others.

On the basis of end user, the artificial intelligence in education market is segmented into higher education institutes, universities, K-12 education, corporate training, and others. Growing awareness about technologies and tech-savvy nature of students is likely to surge the market growth during the forecast period. This will be credited to higher education being the primary end user of the artificial intelligence in education market.

Regional Analysis

Geographically, the artificial intelligence market is segmented into North America, Asia Pacific, Europe, and Latin America, Middle East & Africa (LAMEA).

North America is expected to dominate the global artificial intelligence in education market during the forecast period, 2019–2026. This is attributed the early adoption of innovative and advanced technologies in the region. Additionally, well developed educational infrastructure especially in U.S. and Canada is likely to drive the market growth in the region. Growing adoption of advanced tutoring systems, chatbots among others for enhanced quality education, and improving learning strategies utilizing deep learning and machine learning techniques are driving the market growth. For instance, in June 2018, IBM Watson Education collaborated with Scholastic and Edmodo, to design and develop customized tools and cognitive library services for students on existing Edmodo’s e-learning platform which would emphasize educators to understand the need of each student and reduce learning gaps.

Europe is expected to witness significant growth in global artificial intelligence in education market due to highly developed education infrastructure in the region. Furthermore, increasing digitization initiatives and growing investments in AI is expected to foster the market growth in the region during the forecast period.

Asia Pacific is expected to witness substantial growth in the global artificial intelligence in education market owing to the growing requirement for digitization, and government initiatives such as e-governance in India towards Digital India is likely to foster the growth of the market in the region. Moreover, the Indian government is promoting the use of technology education in schools and universities for shaping students into foremost innovators of AI revolution. Apart from this, the Digital India initiative by Indian government to improve the digital literacy rate in different technologies such as AI is expected to boost the global artificial intelligence in education market during the forecast period, 2019–2026.

LAMEA is expected to witness considerable growth in global artificial intelligence in education market during the forecast period. This is attributed to the adoption of AI along with e-learning platforms for clear understanding of concept among students. Additionally, easy availability of AI technologies is expected to foster the market growth.

Artificial Intelligence in Education Market Segmentation

By Component

• Solution
• Services

By Deployment type

• On-premises
• Cloud-based

By Technology

• Machine Learning
• Deep learning
• Natural Language Processing (NLP)
• Others

By Application

• ITS
• Virtual facilitators
• Content delivery systems
• Interactive websites
• Chatbots
• Others

By End User

• Higher Education Institutes
• Universities
• K-12 Education
• Corporate training
• Others

By Region

• North America
• Europe
• Asia Pacific
• LAMEA