Key Driver Reshaping the Artificial Intelligence (AI) In Higher Education Market in 2025: Online Education On The Growth Of The AI In Higher Education Market

What Are the Projections for the Size and Growth Rate of the Artificial Intelligence (AI) In Higher Education Market?
The market size of artificial intelligence (AI) in the higher education sector has seen tremendous growth recently. Its expansion is projected to increase from $2.24 billion in 2024 up to $3.03 billion by 2025, with a compound annual growth rate (CAGR) of 35.1%. This growth during the historical period can be traced back to the growing need for personalized education, increased rates of enrollment calling for scalable solutions, the rise of online education promoting AI adoption, the focus on personalized learning paths through AI, and a surge in demand for AI in the higher education sector.

The market size of artificial intelligence (AI) in the higher education sector is predicted to experience considerable growth in the upcoming years, expanding to $10 billion in 2029 with a compound annual growth rate (CAGR) of 34.8%. This escalation during the forecast period can be credited to the surging need for mixed learning models, heightened demand for AI incorporation, institutions seeking AI solutions to enhance student engagement, rising interest in online learning, and emphasis on continuous learning, all of these factors are pushing the move towards AI adoption. The period is forecasted to witness significant trends like technological evolution, progress in AI technologies, increased funding in EdTech, growth of AI-powered research tools, and progress in intelligent content.

What Are the Main Catalysts for Growth in the Artificial Intelligence (AI) In Higher Education Market?
The expansion of online learning is projected to fuel the progression of AI in the higher education market. Online learning involves the delivery of educational content and experiences via digital channels, offering students the opportunity to engage with education remotely through the internet. The rise in online learning is fueled by its flexibility, convenience, and accessibility, accommodating diverse student needs and schedules by allowing learning to occur anytime and anywhere. AI elevates online learning through personalized learning experiences, the automation of administrative duties, and the introduction of intelligent support systems, all of which enhance student engagement and boost teaching efficiency. For example, the World Economic Forum, a non-profit organization based in Switzerland, reported in January 2022 that Coursera recorded a tripling of new registrations for online courses, hitting 71 million in 2020 and 92 million in 2021, a result of the transition to remote work during the pandemic era. Consequently, the surge in online learning is stimulating the development of AI in the higher education market.

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Which Businesses Are at the Forefront of Artificial Intelligence (AI) In Higher Education Market Development?
Major companies operating in the artificial intelligence (AI) in higher education market are Amazon.com Inc., Google LLC, Microsoft Corporation, Intel Corporation, International Business Machines Corporation, Oracle Corporation, Cognizant Technology Solutions India Private Limited, Adobe Inc., Pearson Plc, Century Communities Tech Limited, John Wiley and Sons Inc., 2U Inc., Coursera Inc., Instructure Holdings Inc., D2L Inc., Kaltura Inc., Jenzabar Inc., Carnegie Learning Inc., Brainly Inc., Quantum Adaptive Learning LLC, Knewton Inc., BridgeU Ltd., Fishtree Inc., Querium Corporation, Cognii Inc

Which Businesses Are at the Forefront of Albuminar-5 Market Development?
Leading corporations in the AI in higher education sphere are introducing cutting-edge AI-enabled tools specifically tailored for the education sector. These tools are aimed at promoting a more personalized learning environment, increasing engagement, streamlining administrative work, providing prompt assistance, and boosting the overall productivity and proficiency of educational processes. Education-focused AI tools capitalize on smart learning experiences, tailor-made instruction, automated administrative duties, and technology-assisted support systems for both students and teachers. For example, Pearson Plc, a learning company based in the UK, rolled out a generative AI-powered tool for educators in July 2024. This AI tool developed by Pearson aids teachers in efficiently producing customized assignments for students. Incorporated within this tool are Pearson's MyLab and Mastering, which are teaching and learning platforms, aiming to revolutionise faculty teaching methods. What sets Pearson's AI tool apart is its efficiency in expediting assignment creation.

How Is the Artificial Intelligence (AI) In Higher Education Market Segmented?
The artificial intelligence (AI) in higher education market covered in this report is segmented -

1) By Component: Solution, Services
2) By Deployment Mode: Cloud-Based, On-Premise
3) By Technology: Machine Learning (ML), Natural Language Processing (NLP), Computer Vision, Other Technologies
4) By Application: Learning Platforms And Virtual Facilitators, Intelligent Tutoring System, Smart Content, Fraud And Risk Management, Other Applications

Subsegments:
1) By Solution: AI-Powered Learning Management Systems (LMS), Personalized Learning Platforms, Predictive Analytics Tools, Intelligent Tutoring Systems, AI-Driven Assessment Tools, Chatbots for Student Support, Curriculum Development Tools
2) By Services: Consulting Services, Implementation Services, Training and Support Services, Maintenance and Upgradation Services, Data Analytics and Reporting Services

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Where Is the Artificial Intelligence (AI) In Higher Education Market Growth Most Prominent?
North America was the largest region in the AI in higher education market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in higher education market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Artificial Intelligence (AI) In Higher Education Global Market Report?

- Market Size Analysis: Analyze the artificial intelligence (ai) in higher education Market Size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the artificial intelligence (ai) in higher education market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall artificial intelligence (ai) in higher education market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the artificial intelligence (ai) in higher education market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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