The global AI in education market was valued at USD 2,126 million in 2022, and this number is expected to reach USD 25,772 million by 2030, advancing at a CAGR of 36.6% during 2022–2030, as per P&S Intelligence. This growth can be credited to the snowballing expenditure in AI technology, the increasing need for personalized education based on AI, and the growing requirement for automating organizational tasks.
The whole scenario has changed after the pandemic, and numerous educational institutes throughout the globe have accepted numerous technologies, including virtual reality, chatbots, assign coursework, and learning management systems, for the betterment of their educational processes. Furthermore, numerous service providers are inventing many services for AI in academics.
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| AI in Education Industry Revenue Estimation & Growth Forecast to 2030 |
In 2022, the solution category held a higher revenue share, of 77.4%, and it is projected to continue its dominance in the coming years as well. This is mainly credited to the surging need for AI academic services to allow educationalists to automate organizational tasks and discover more possibilities for improving the efficiency of classroom education.
Moreover, numerous major players are concentrating more on the improvement of education systems step by step. Additionally, the increasing number of mobile phone users, growing government initiatives, improving internet connectivity, and surging acceptance of digital payment is contributing to the market growth in this category.
In 2022, the cloud category held a larger share of AI in the education market and is also projected to remain in the leading spot in the coming years. This is ascribed to the increasing utilization of cloud platforms to aid in IT modernization and the growing concentration on decreasing the total price of ownership. Moreover, cloud technology allows students to develop their knowledge and aids in managing business processes, which results in improved student engagement and better performance.
In 2022, North America generated the highest revenue, of USD 887 million, and it is projected to remain the market leader in the future as well. This is because the region has an advanced educational system, a high emphasis on lowering the burden on educators concerning administrative tasks, huge expenditure on EdTech, a growing necessity for personalized learning in teaching space, and a hike in demand for intelligent solutions to advance students’ academic performance in the continent.
The growing need for automating organizational tasks is another major reason driving the acceptance of AI learning solutions in the education sector. Teachers usually devote a lot of time to performing administrative tasks, including enrolling students, grading exams, assessing homework, and defining policies. AI can be very helpful in this regard, by reducing workload and stress on educators by automating administrative events, which, indeed, motivates them to pay more attention to the learning part for students.
Hence, the snowballing expenditure in AI technology, the increasing need for personalized education based on AI, and the growing requirement for automating organizational tasks are major factors driving the AI in education market growth.
