AI In Education Global Market Report 2025

Artificial intelligence (AI) in education involves the application of AI technologies within the classroom and educational administration to enhance teaching and learning practices and address educational challenges. The primary objective of incorporating artificial intelligence in education is to improve student learning outcomes while automating administrative tasks that traditionally require significant time from teachers and administrators.

The main components of artificial intelligence (AI) in education are categorized into solutions and services. AI solution components utilize artificial intelligence to automate, assist, or customize processes by making predictions based on the user's context or needs. These solutions leverage technologies such as natural language processing (NLP) and machine learning. They can be deployed in both cloud and on-premises infrastructure. AI in education is applied across various applications, including learning platforms and virtual facilitators, intelligent tutoring systems (ITS), smart content, fraud and risk management, among others. These solutions find application in different educational settings, such as K-12 education, higher education, corporate training, and learning.

The artificial intelligence (AI) in education market research report is one of a series of new reports from The Business Research Company that provides artificial intelligence (AI) in education market statistics, including artificial intelligence (AI) in education industry global market size, regional shares, competitors with artificial intelligence (AI) in education market share, detailed artificial intelligence (AI) in education market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in education industry. This artificial intelligence (AI) in education market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The AI in education market size has grown exponentially in recent years. It will grow from $5.47 billion in 2024 to $7.57 billion in 2025 at a compound annual growth rate (CAGR) of 38.4%. The growth in the historic period can be attributed to digital learning platforms, personalized learning initiatives, adaptive learning systems, big data and analytics, early ai tutoring systems

The AI in education market size is expected to see exponential growth in the next few years. It will grow to $30.28 billion in 2029 at a compound annual growth rate (CAGR) of 41.4%. The growth in the forecast period can be attributed to remote and hybrid learning, ai-enabled assessment tools, growing edtech investments, teacher support systems, teacher support systems. Major trends in the forecast period include ai-powered learning analytics, augmented reality (AR) and virtual reality (VR) in education, ethical AI in education, ai-enhanced language learning, gamification and ai.

The expanding user base of smartphones is anticipated to be a driving force behind the growth of artificial intelligence (AI) in the education sector. Smartphone users access multifunctional cellular devices equipped with computing capabilities, a web browser, an operating system, and the capacity to run various software programs. Leveraging AI technology within educational applications and platforms tailors learning experiences to suit individual needs. Moreover, smartphones facilitate real-time interaction and engagement, enabling seamless communication between students and AI-powered virtual assistants (tutors). The widespread adoption of smartphones amplifies the reach and impact of AI in education, fostering accessible and personalized learning experiences for a broader population. For instance, as per the Ericsson Mobility Report 2022 by Ericsson, a networking and telecommunications company based in Sweden, smartphone subscriptions reached 6,420 million in 2022 and are projected to grow to 7,740 million subscriptions by 2028. Thus, the rising number of smartphone users is set to propel the AI in education market.

The growing adoption of online education is expected to drive the expansion of artificial intelligence (AI) in the education market in the coming years. Online education, also known as e-learning or virtual learning, involves delivering educational content and instruction through the internet or other digital technologies. The incorporation of AI technologies into online learning platforms enhances the overall learning experience. For example, in December 2023, according to Eurostat, a Luxembourg-based Directorate-General of the European Commission, 30% of EU internet users aged 16 to 74 engaged in online courses or utilized online learning materials in 2023, marking a 2 percentage point increase from 2022. The Netherlands experienced the largest rise in adoption, increasing by 12 percentage points to 54%. As a result, the rising adoption of online education is set to boost the AI in education market.

Product innovation emerges as a pivotal trend driving market traction in the realm of artificial intelligence (AI) within the education sector. Major industry players are intensively focused on pioneering advanced solutions to fortify their market presence. For instance, in February 2023, Nerdy Inc., a US-based platform for live online learning, introduced two groundbreaking products such as an AI-Generated Lesson Plan Creator and AI-Generated Chat Tutoring, both seamlessly integrated with ChatGPT across its suite of offerings. Leveraging ChatGPT, an AI chatbot employing natural language processing for human-such as conversational dialogue, the AI-generated lesson plan creator generates diverse content for experts, providing comprehensive suggestions on structuring lessons and maximizing content utilization. Simultaneously, AI-enabled chat tutoring delivers real-time support to consumer learning membership customers 24x7, delivering prompt and accurate responses to student queries.

Strategic partnerships are a prominent trend gaining traction in the AI in education market. Leading companies in the AI education sector are concentrating on forming strategic alliances to bolster their market position. For example, in May 2024, Khan Academy, a U.S.-based non-profit educational organization, and Microsoft Corporation, a U.S.-based technology firm, collaborated to enhance access to AI-powered teaching tools. This partnership aims to improve personalized learning experiences and alleviate teacher workloads. Microsoft's contribution includes donating Azure infrastructure and developing small language models, which will be made available to all K-12 educators in the U.S. at no cost, particularly focusing on enhancing AI-driven math tutoring and scaling educational resources.

In July 2024, Schoolnet, an India-based provider of transformative education solutions, acquired Genius Teacher for an undisclosed amount. This acquisition is intended to bolster Schoolnet's presence in the private school market, enhance its AI-driven educational solutions for both teachers and students, broaden its reach, and improve learning outcomes through advanced technology. Genius Teacher is an India-based mobile platform utilizing AI to offer various exam preparation solutions.

Major companies operating in the AI in education market include Alphabet Inc., Microsoft Corporation, Amazon Web Services Inc., IBM Corporation, Cognizant Technology Solutions Corporation, Harbinger Group, Pearson plc, Nuance Communications Inc., McGraw Hill Education Inc., Blackboard Inc., Coursera Inc., Duolingo Inc., D2L Corporation, Age of Learning Inc., Jenzabar Inc., Netex Knowledge Factory S.A., Carnegie Learning Inc., DreamBox Learning Inc., Third Space Learning, Kadenze Inc., Knewton Inc., BridgeU Ltd., Century-Tech Limited, Cognii Inc., Fishtree Ltd., Prazas Learning Inc., Wooclap SA, YiXue Squirrel AI Learning Inc., Jellynote, Querium Corporation

North America was the largest region in the artificial intelligence (AI) in education market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the ai in education market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the ai in education market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The artificial intelligence (AI) in education market includes revenues earned by providing personalized learning, administrative tasks, tutoring, learning management systems, grading, and assessment. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in the education market also includes sales of smart boards, tablets, voice-controlled assistants, sensors, cameras, virtual reality (VR), and augmented reality (AR) devices which are used in providing AI in education services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

AI In Education Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on ai in education market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for ai in education ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The ai in education market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Component: Solutions; Services
• 2) By Technology: Natural Language Processing (NLP); Machine Learning
• 3) By Deployment: Cloud; On-Premises
• 4) By Application: Learning Platform And Virtual Facilitators; Intelligent Tutoring System (ITS); Smart Content; Fraud And Risk Management; Other Applications
• 5) By End-User: K-12 Education; Higher Education; Corporate Training And Learning
• Subsegments:
• 1) By Solutions: Learning Management Systems (LMS); Intelligent Tutoring Systems; Assessment And Testing Solutions; Content Creation Tools; Student Engagement Platforms
• 2) By Services: Consulting Services; Integration Services; Support And Maintenance Services; Training And Development Services; Data Analytics Services
• Companies Mentioned: Alphabet Inc.; Microsoft Corporation; Amazon Web Services Inc.; IBM Corporation; Cognizant Technology Solutions Corporation
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.