Artificial Intelligence (AI) Market in Education to Grow by USD 2.32 Billion by 2028, Emphasis on Customized Learning Paths Boosts Market, Report on How AI is Driving Transformation - Technavio

NEW YORK, Feb. 4, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global artificial intelligence (ai) market in education sector size is estimated to grow by USD 2.32 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of about 52.65% during the forecast period. Growing emphasis on customized learning paths using ai is driving market growth, with a trend towards increased emphasis on chatbots. However, high cost associated with ai poses a challenge. Key market players include 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.

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Market Driver

Artificial Intelligence (AI) is revolutionizing the education sector with EdTech companies leading the way. AI in education, also known as Edutainment, is transforming online learning through intelligent systems and algorithms. Skilled professionals are in demand for AI startups developing adaptive learning platforms and intelligent tutoring systems. Machine learning (ML) and computer vision are key technologies, providing personalized recommendations and feedback. Higher education and K-12 schools are adopting AI for student engagement and educational outcomes. Corporate training is leveraging AI for skills gap analysis and personalized learning experiences. AI technologies are enhancing teaching experiences, streamlining administrative tasks, and providing real-time communication. Cloud-based solutions and on-premises infrastructure are both used for content delivery and learning pathways. Deep learning and data analysis help educational institutions map academic progress and assess student performance. AI-enabled solutions are also used for peer-to-peer learning and educational experiences. AI platforms offer managed services and professional services for digitalization and administrative workload reduction. Overall, AI is enabling innovative educational tools and models for a more effective and efficient learning experience. 

Artificial Intelligence (AI) is revolutionizing the education sector through the implementation of chatbots. These digital assistants utilize AI, Machine Learning (ML), and deep learning technologies to interact with students, answer queries, and perform various functions. Chatbots can store, process, and communicate data efficiently, offering a diverse range of benefits. They can assess and correct assessments, facilitate learning through spaced repetition, and keep track of subjects learned using deep learning technology. As the education industry continues to explore the potential of chatbots, vendors are presented with new business opportunities. 

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Market Challenges

• Artificial Intelligence (AI) is revolutionizing the education sector through EdTech, Edutainment, and online learning. Skilled professionals in AI are in high demand for developing intelligent systems like adaptive learning platforms and intelligent tutoring systems. AI startups are creating innovative educational tools using machine learning (ML), computer vision, and deep learning. Higher education and K-12 schools are adopting AI for personalized recommendations, instructional activities, and student engagement. Corporate training is leveraging AI for skills gap analysis and tailored content delivery. AI technologies are enhancing teaching experiences by providing personalized feedback, real-time communication, and educational experiences. Virtual facilitators and smart content are making learning more interactive and engaging. Technology infrastructure, including cloud-based solutions and on-premises systems, is essential for delivering AI-enabled solutions. AI is also transforming administrative tasks, such as data management and assessment processes, making them more efficient and effective. AI platforms are providing learners with personalized learning experiences, adapting to their individual needs, and improving student performance. The future of education lies in AI-driven digitalization, offering adaptive learning pathways, peer-to-peer learning, and administrative workload reduction.
• The integration of Artificial Intelligence (AI) in the education sector is a significant trend, offering numerous benefits such as personalized learning and improved student outcomes. However, the high cost of developing and implementing AI solutions remains a major challenge. Schools and educational institutions must consider the expenses involved in procuring and maintaining AI software. The adoption of AI in education requires substantial investment and research into its applicability. Despite the growing availability of AI solutions, their implementation in many public schools and colleges is hindered by the significant financial commitment required.

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Segment Overview 

This artificial intelligence (ai) market in education sector report extensively covers market segmentation by

• End-user
• Higher Education
• K-12
• Learning Method
• Learner Model
• Pedagogical Model
• Domain Model
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

1.1 Higher education- The global AI market in education is experiencing consistent growth as institutions worldwide adopt AI solutions to enhance the quality of education and create personalized learning experiences for students. Universities are leveraging AI to automate administrative tasks, such as grading, at a lower cost and with fewer errors. IBM's Watson is an example of an AI solution being used in this way. Additionally, AI is being used to provide experiential learning environments and act as virtual tutors and assistants for both students and teachers. Carnegie Mellon University's Open Learning Initiative (OLI) is an example of this, with its AI-based cognitive tutors. Gradescope is another AI-powered tool that simplifies the grading process by sorting and analyzing student work, saving time and providing valuable feedback. Federal funding, collaborations, and the growing emphasis on AI as virtual assistants and ITS are key drivers of market growth in this sector.

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Research Analysis

Artificial Intelligence (AI) is revolutionizing the education sector by enhancing learning experiences and automating administrative tasks. EdTech companies are integrating AI technologies like machine learning (ML) and deep learning into their platforms to provide personalized recommendations based on learner and pedagogical models. Adaptive learning platforms use intelligent systems and algorithms to analyze data and deliver knowledge in real-time, adapting to each learner's unique needs. Intelligent tutoring systems offer one-on-one instructional activities, while AI-driven content generation creates engaging Edutainment experiences. AI in education is transforming online learning by making it more effective and efficient, with cloud-based and on-premises solutions catering to the needs of skilled professionals and institutions. AI-driven data analysis and administrative task automation are streamlining administrative processes and freeing up time for educators to focus on teaching. The future of education is here, and AI is leading the way.

Market Research Overview

Artificial Intelligence (AI) is revolutionizing the education sector with its ability to provide personalized learning experiences, enhance teaching experiences, and automate administrative tasks. EdTech, online education, and Edutainment are embracing AI to deliver intelligent systems that use machine learning (ML) algorithms for data analysis and personalized recommendations. AI startups are developing adaptive learning platforms and intelligent tutoring systems that provide tailored content and individualized instruction, addressing learning gaps and student engagement. Technology infrastructure, including cloud and on-premises solutions, enables the delivery of digital education and interactive learning tools. AI-enabled solutions are transforming K-12 schools, higher education, and corporate training, providing educational experiences and real-time communication. AI technologies, including computer vision and deep learning, are used for content delivery systems, learning pathways, and assessment processes. The integration of AI in education is bridging the skills gap, improving educational outcomes, and providing innovative educational tools for learners.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Higher Education
• K-12
• Learning Method
• Learner Model
• Pedagogical Model
• Domain Model
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio