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The Artificial Intelligence (AI) Market in the Education Sector size is estimated to grow at a CAGR of 41.14% between 2022 and 2027 and size of the market is forecast to increase by USD 1,100.07 million. The report includes historic market data from 2017 to 2021. It also extensively covers market segmentation by end-user (higher education and k-12) and geography (North America, Europe, APAC, South America, and Middle East and Africa). This report also includes an in-depth analysis of drivers, trends, and challenges.
The growing emphasis on customized learning paths using AI is notably driving the market growth. The use of chatbots is becoming more and more popular in schools and universities. In addition to storing, processing, and exchanging information with students, Chatbots use advanced artificial intelligence, machine learning, and deep learning technologies. They are capable of performing a wide range of tasks, such as talking to students and replying to questions. They'll be able to perform a wide range of tasks. They might also be used for the purpose of evaluating and correcting assessments made by students. However, chatbots can keep track of the subjects learned by students using deep learning technology, identify the time during which a student may have forgotten the learned concepts, and repeat the old lessons in varied time intervals. They are increasingly being used in some colleges and universities to identify the study pattern of students and enable the teacher to offer personalized learning pathways to students. Such factors will increase the demand for chatbots in the education sector during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
2U Inc. - The company offers artificial intelligence in education through its subsidiary Querium.
The artificial intelligence market in the education sector market report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
North America is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The AI market in the education sector in North America is anticipated to rise steadily during the forecast period, owing to technological advancements and the continuous implementation of technology in the education sector. The US and Canada dominate the AI market for education in the region. Multiple universities in the US are continuously opting for research on AI such as Stanford University and Duke University. Universities in the US also receive adequate funding for research on AI. However, Technological advancements in AI such as ITS, adaptive learning, and virtual tutors are increasing the growth of the market. Universities are opting for in-house research to understand ways in which AI can be practically implemented in the education sector. For instance, the Institute for Creative Technologies at the University of Southern California (USC) has several projects exploring the implementation of Captivating Virtual Instruction for Training (CVIT). It is a distributive learning strategy that aims at integrating live classroom methods with appropriate virtual technologies that include virtual facilitators, augmented reality, intelligent tutors, and other remote learning technologies. In Canada, extensive research on AI technology has paved the way for the growth of the market. Therefore, the regional AI market in the education sector in this region is expected to grow during the forecast period.
The market share growth by the higher education segment will be significant during the forecast period. The AI market in the higher education sector is expected to record a steady growth rate globally during the forecast period.
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The higher education segment was valued at USD 47.26 million in 2017 and continued to grow until 2021. Colleges and universities globally are increasingly opting for tools that improve the quality of education and ensure that students are provided with an experiential learning environment. Universities are increasingly offering personalized learning to students by delivering content using AI solutions. However, to provide experiential learning environments, universities are increasingly using AI solutions such as Watson by IBM to automate various administrative tasks at a lower cost and with fewer errors. Universities and institutions are focusing on the use of AI as virtual assistants that can tutor and guide students and teachers, respectively.
For instance, Carnegie Mellon University has been working on AI-based cognitive tutors for several years as part of its Open Learning Initiative (OLI). The increase in federal funding toward R&D in the field of AI, the increase in the number of partnerships and collaborations across the world, and the increasing emphasis on chatbots and AI as virtual assistants and ITS in universities will drive the growth of the global AI market in the education sector during the forecast period.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increased emphasis on chatbots is the key trend shaping the artificial intelligence market in the education sector. The use of chatbots is being promoted more and more by schools and universities. The chatbots are using artificial intelligence, machine learning and deep learning technology for the storage, processing and transmission of information to students. A Chatbot might function in numerous ways, including talking with students and answers to questions. They have a broad range of tasks to perform. They may also be used as a way of assessing and correcting the assessment made by students.
However, chatbots can assist students learn at spaced intervals. It can also keep track of the subjects learned by students using deep learning technology, identify the time during which a student may have forgotten the learned concepts, and repeat the old lessons in varied time intervals. Chatbots are increasingly being used in some colleges and universities to identify the study pattern of students and enable the teacher to offer personalized learning pathways to students. They function as virtual assistants to both students and teachers. Hence, these factors will increase the demand for chatbots in the education sector during the forecast period.
The high cost associated with AI may hinder market growth. As new technologies emerge, budgets will have to increase to cover expenses. Apart from the installation of AI software, schools and colleges will need to consider the cost of maintaining the software. Therefore, for installation, these institutions require significant funding and investments and extensive research on its applicability. However, there is steady growth in the availability of AI solutions, and the high cost of developing and implementing them hinders their adoption in many public schools and colleges.
Moreover, a few government initiatives and the steady decline of state and local government funding further aggravates the problem. The high cost associated with AI restricts schools from providing students with better learning environments and resources. AI-based education materials such as smart content and IAL systems are also costly to procure. The high R&D costs associated with the development of AI solutions, high capital expenditure, and the risk of product sustainability limit the demand for AI solutions, thereby restricting the entry of companies into the market. Thus, the high cost of AI is expected to hamper the growth of the global AI market in the education sector during the forecast period.
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Artificial Intelligence Market in the Education Sector Market Customer Landscape
In 2020, due to the outbreak of COVID-19, lockdowns imposed in the region to contain the spread of the disease resulted in the shutdown of educational institutions. However, with the shift to remote learning, there was an increased demand for AI-based educational technologies to supplement traditional classroom teaching. AI-powered tools such as virtual tutors, chatbots, and personalized learning platforms have gained popularity as they provide students with individualized learning experiences that are not always possible in a traditional classroom setting. These institutions are increasingly investing in AI-based technologies to improve the quality of education and better prepare students for the job market. Such factors wil increase the market growth in this region during the forecast period.
The artificial intelligence (AI) market in the education sector market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Artificial Intelligence Market In The Education Sector Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 41.14% |
Market growth 2023-2027 |
USD 1,100.07 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
33.25 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
2U Inc., Alphabet Inc., Amazon.com Inc., Brainly, Carnegie Learning Inc., Century Tech Ltd., Cognii Inc., Cognizant Technology Solutions Corp., DreamBox Learning Inc., Fishtree Inc., International Business Machines Corp., Jenzabar Inc., John Wiley and Sons Inc., Kaltura Inc., LAIX Inc., McGraw Hill LLC, Microsoft Corp., n2y LLC, Pearson Plc, and Quantum Adaptive Learning LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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