USD 88.2 Billion Artificial Intelligence in Education Market to Reach by 2032 at 43.3% CAGR
Surge in demand for personalized education and adaptive learning, virtual assistants and smart tutoring and improvements in administrative efficiency are primarily driving the growth of artificial intelligence in the education market. However, privacy and ethical issues and access issues and equity concerns hamper the market growth to some extent. Moreover, enhanced motivation and engagement of students and data-driven decision making are expected to provide lucrative opportunities for market growth during the forecast period.
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The global artificial intelligence in education market was valued at USD 2.5 billion in 2022, and is projected to reach USD 88.2 billion by 2032, growing at a CAGR of 43.3% from 2023 to 2032.
Artificial intelligence in education market is segmented into Application, End User, Component, Deployment Mode, and Technology. On the basis of component, it is segregated into solution and services. On the basis of deployment mode, it is segregated into on-premise and cloud. On the basis of technology, it is segregated into machine learning and deep learning, and natural language processing (NLP). On the basis of application, it is segregated into learning platform and virtual facilitators, smart content delivery, fraud and risk management, intelligent tutoring system (ITS), and others. On the basis of end user, it is segregated into higher learning, corporate learning, K-12 education, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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By component, the solution segment held the major share in 2022, garnering more than two-thirds of global artificial intelligence in education market revenue, owing to rising usage and development of artificial intelligence technologies in the educational sector propels the market growth significantly. The services segment would also showcase the fastest CAGR of 45.6% during the forecast period, owing to gain knowledge about learning patterns, instructional efficacy, and student outcomes, these platforms gather and analyze enormous volumes of educational data, including student performance, engagement, and behavior.
By end user, the higher education segment accounted for more than two-fifths of the global artificial intelligence in education market share in 2022, and is expected to rule the boost by 2032, owing to improve teaching, learning, and administrative procedures in colleges and universities. The K-12 education segment would also display the fastest CAGR of 46.5% throughout the forecast period, the need to give students more individualized and effective learning experiences are driving the development and expansion of AI in education.
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By region, North America garnered the highest share in 2022, holding nearly two-fifths of the global artificial intelligence in education market revenue in 2022, and is projected to retain its dominance by 2032, owing to the increasing technical developments that are entirely revolutionizing the landscape of the IT industry and, in turn, encouraging the drive for the implementation of efficient servers and networking solutions. The Asia-Pacific region would also portray the fastest CAGR of 48.0% during the forecast period, owing to the increase in the efficacy and quality of education that has increased due to the sizeable population and growing emphasis on education in Asia-Pacific.
The market players operating in the marketing technology market analysis are AWS, Inc., Google LLC, Microsoft Corporation, Oracle Corporation, SAP SE, Apple, Inc., Adobe Inc., Salesforce Inc., Aptean Inc., Zebra Technologies.
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● The COVID-19 pandemic had compelled education institutions to switch to online instruction, which increased the reliance on AI-driven learning resources. These resources include computerized grading systems, intelligent teaching programs and virtual classrooms.
● Online learning platforms are in high demand as schools and collage shutdown due to pandemic. By offering intelligent virtual coaching, individualized learning opportunities, and automated grading system, AI has significantly aided this shift.
Due to the restrictions on in-person exams, the use of AI for distant assessments has become more popular. Academic integrity is ensured by using AI-powered proctoring systems to monitor and authenticate students throughout online exams.
The integrity of the evaluation process is maintained by these systems using facial recognition, eye tracking and behavior analysis algorithms to identify any suspect activity.
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