AI in Education Market By Solution Type (Learning Management Systems (LMS), Virtual Classrooms, Tutoring Systems, Assessment and Evaluation Tools, Content Creation and Management), By Technology (Machine Learning, Natural Language Processing (NLP), Predictive Analytics), By Deployment Mode (Cloud-based Solutions, On-premises Solutions), By End User (Educational Institutions, Corporate Training, EdTech Companies), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the AI in Education Market was valued at USD 2.1 billion in 2023 and will surpass USD 5.2 billion by 2030; growing at a CAGR of 13.8% during 2024 - 2030.

The AI in Education Market is witnessing rapid growth, driven by technological advancements, rising investments in educational technologies, and an increasing demand for personalized learning experiences. Artificial intelligence (AI) is transforming the education sector by enhancing the learning process, optimizing educational institutions’ operations, and delivering real-time data analytics for better decision-making.

Learning Platforms Segment is Largest Owing to Increasing Demand for Personalized Learning

In the AI in Education Market, the learning platforms segment stands as the largest contributor due to the growing demand for personalized learning solutions. These platforms utilize AI to create customized learning experiences by analyzing student behavior, preferences, and learning patterns. As a result, they can adapt content and provide real-time feedback tailored to the needs of individual learners. The increasing popularity of e-learning, particularly accelerated by the COVID-19 pandemic, has further amplified the growth of AI-powered learning platforms.

The largest subsegment within learning platforms is AI-enabled adaptive learning systems, which allow educators to deliver personalized lessons and activities based on each student’s learning curve. This technology optimizes learning efficiency by addressing knowledge gaps and reinforcing concepts where students struggle, contributing to improved outcomes. The integration of natural language processing (NLP) and machine learning into these systems allows for seamless interaction between students and platforms, fostering a more engaging learning environment.

Intelligent Tutoring Systems Segment is Fastest Growing Due to Rising Demand for Real-Time Assistance

The intelligent tutoring systems (ITS) segment is poised for significant growth, making it the fastest-growing segment within the AI in Education Market. ITS leverages AI to provide real-time tutoring and support to students, filling the gap left by traditional teaching methods. These systems are designed to monitor student progress, identify weaknesses, and offer tailored instructional support, all without the need for direct human intervention.

The fastest-growing subsegment within intelligent tutoring systems is AI-based virtual tutors, which offer real-time, interactive learning experiences. Virtual tutors can answer questions, explain complex concepts, and provide feedback in a conversational manner, mimicking human tutors. These systems are increasingly being adopted by educational institutions seeking cost-effective ways to scale personalized tutoring, particularly in subjects like mathematics, science, and language learning.

Assessment and Evaluation Segment is Largest Due to Efficiency in Grading and Feedback

The assessment and evaluation segment holds a significant share of the AI in Education Market, driven by the efficiency and accuracy that AI brings to grading and feedback processes. Educational institutions are increasingly utilizing AI-powered assessment tools to automate grading, reduce biases, and provide faster feedback to students. This shift not only improves operational efficiency but also enables educators to focus on higher-order tasks such as curriculum design and student mentoring.

The largest subsegment within assessment and evaluation is automated grading systems, which are widely adopted in both higher education and K-12 settings. These systems leverage machine learning algorithms to assess open-ended responses, essays, and other qualitative work with greater accuracy and consistency than traditional grading methods. Automated grading reduces the workload of educators while ensuring timely and impartial evaluations, making it an indispensable tool in modern education.

Administrative Tasks Segment is Fastest Growing as Institutions Seek Operational Efficiency

The administrative tasks segment is expected to witness rapid growth, making it one of the fastest-growing segments in the AI in Education Market. Educational institutions are increasingly adopting AI to streamline administrative processes such as enrollment, scheduling, and resource management. AI-driven tools help automate routine tasks, allowing administrative staff to focus on strategic planning and improving the student experience.

The fastest-growing subsegment within administrative tasks is AI-based student information systems (SIS). These systems utilize AI to manage student data, track academic progress, and predict outcomes such as graduation rates and potential dropouts. By providing real-time insights into student performance, AI-based SIS helps institutions make data-driven decisions and allocate resources more effectively, enhancing both operational efficiency and student success.

Learning Management Systems (LMS) Segment is Largest Owing to Adoption in Higher Education

The learning management systems (LMS) segment remains one of the largest in the AI in Education Market, driven by the widespread adoption of LMS platforms in higher education and corporate training environments. These systems offer a centralized platform for managing, delivering, and tracking educational content and assessments, making them essential for institutions seeking to modernize their learning infrastructure.

The largest subsegment within LMS is AI-powered content management systems, which help educators curate and deliver personalized learning materials based on the needs and progress of individual students. These systems use AI to recommend relevant resources, monitor student engagement, and adapt the learning journey accordingly, ensuring that each student receives the appropriate level of challenge and support.

North America is Largest Region Owing to High Adoption of EdTech Solutions

Geographically, North America holds the largest share in the AI in Education Market, attributed to the region’s high adoption rate of educational technologies and substantial investments in AI research and development. The United States, in particular, is home to some of the world’s leading AI innovators, and the education sector has embraced AI to enhance learning outcomes and streamline institutional operations.

The U.S. government’s support for AI in education, coupled with the presence of major technology companies and startups, has led to widespread implementation of AI solutions in K-12 schools, higher education, and corporate training programs. Additionally, the increasing demand for personalized learning experiences, particularly in online and hybrid learning environments, has further accelerated the adoption of AI in education across North America.

Competitive Landscape and Leading Companies

The AI in Education Market is highly competitive, with a mix of established technology companies and emerging startups driving innovation. Key players are focusing on expanding their AI capabilities through acquisitions, partnerships, and the development of advanced AI-powered educational tools.

The top 10 companies leading the AI in Education Market include:

1. Microsoft Corporation – A pioneer in AI-driven educational tools, offering a wide range of AI solutions for both students and educators.
2. Google LLC – Known for its AI-powered tools like Google Classroom and personalized learning algorithms.
3. IBM Corporation – Provides AI-based learning platforms and intelligent tutoring systems through its Watson platform.
4. Amazon Web Services (AWS) – Offers cloud-based AI solutions for educational institutions to enhance learning experiences.
5. Pearson PLC – A global leader in educational content and technology, focusing on AI-driven personalized learning.
6. Blackboard Inc. – Specializes in AI-enhanced LMS and SIS platforms for higher education institutions.
7. Cognizant Technology Solutions – Provides AI-powered analytics and insights for improving educational outcomes.
8. Knewton (Wiley) – An adaptive learning company that leverages AI to deliver personalized content.
9. Edmentum – Offers AI-driven virtual learning environments and assessment tools.
10. Carnegie Learning – Focuses on AI-based tutoring and instructional systems for K-12 and higher education.

The competitive landscape is characterized by rapid advancements in AI technologies and the growing need for personalized, data-driven learning solutions. Companies are increasingly focusing on enhancing their AI offerings to gain a competitive edge in this burgeoning market.

Report Objectives:

The report will help you answer some of the most critical questions in the AI in Education Market. A few of them are as follows:

1. What are the key drivers, restraints, opportunities, and challenges influencing the market growth?
2. What are the prevailing technology trends in the AI in Education Market?
3. What is the size of the AI in Education Market based on segments, sub-segments, and regions?
4. What is the size of different market segments across key regions: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa?
5. What are the market opportunities for stakeholders after analyzing key market trends?
6. Who are the leading market players and what are their market share and core competencies?
7. What is the degree of competition in the market and what are the key growth strategies adopted by leading players?
8. What is the competitive landscape of the market, including market share analysis, revenue analysis, and a ranking of key players?

Report Scope: