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Impact of Online Learning Adoption on the Growth of Generative AI in Education Driver: A Crucial Influence on the Generative Artificial Intelligence (AI) In Teaching Market's Transformation in 2025

02-19-2025 06:05 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Generative Artificial Intelligence (AI) In Teaching Market Size

Generative Artificial Intelligence (AI) In Teaching Market Size

What Is the Expected Size and Growth Rate of the Generative Artificial Intelligence (AI) In Teaching Market?
The market size of generative artificial intelligence (AI) in the teaching sector has witnessed remarkable growth recently. Expectations are that it will expand, rising from $1.07 billion in 2024 to $1.53 billion in 2025, reflecting a compound annual growth rate (CAGR) of 44.0%. The significant growth in the past period is due to several factors: the surge in demand for personalized learning approaches, the dominance of online education, broader access to digital gadgets, an increasing requirement for scalable education tools, and the need for data-driven insights for enhancing education outcomes.

The market for generative artificial intelligence (AI) in education is anticipated to experience rapid expansion in the coming years. Expected to surge to $6.54 billion in 2029, with a compound annual growth rate (CAGR) of 43.7%. The projected growth can be credited to an increased craving for personalized education experiences, wider use of digital learning tools, a growing necessity for scalable academic solutions, enhancements in AI's capacity to produce interactive content, increased curiosity in data-backed educational insights, and the broadening of distance and blended learning settings. The forecast period will see significant trends like the incorporation of AI-based adaptable education platforms, improved content creation utilities, progress in real-time language conversion and support, evolution in virtual teaching assistants, and automation in administrative duties.

What Factors Are Fueling Growth in the Generative Artificial Intelligence (AI) In Teaching Market?
The surge in online learning usage is anticipated to boost the generative artificial intelligence (AI) in the teaching market. Online education, which involves knowledge and skill acquisition through digital platforms and internet tools, is gaining momentum due to its flexibility, affordability, diversity of courses, cost-effectiveness, international reach, inclusiveness, and its easy access from anywhere at any time. Online education is enhanced by generative AI as it personalizes content, offers immediate feedback, and creates engaging materials with round-the-clock support, thereby enhancing the effectiveness and reach of education. For example, Eurostat, a government agency based in Luxembourg, reported in January 2024 that within the three months leading up to the survey, 30% of European internet users aged 16 to 74 had participated in an online course or used online learning materials. This indicates a 2% increase from 2022. Hence, the burgeoning adoption of online learning is propelling the development of the generative AI in the teaching market.

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Which Leading Companies Are Shaping the Growth of the Generative Artificial Intelligence (AI) In Teaching Market?
Major companies operating in the generative artificial intelligence (AI) in teaching market are Google LLC, Microsoft Corporation, International Business Machines Corporation, Adobe Inc., Pearson plc, OpenAI, Pegasystems Inc., Duolingo, Coursera Inc., Elevate K-12, Kahoot, Quizlet Inc., Carnegie Learning Inc., Nearpod, DreamBox Learning, Moodle Pty Ltd., Khan Academy Inc., Brainly, Knewton Inc., Sana Labs AB, Cerego Inc., Kidaptive Inc., nolej AI, Squirrel Ai Learning, Speechify

Which Key Developments Are Influencing the Generative Artificial Intelligence (AI) In Teaching Market?
Leading firms in the generative artificial intelligence (AI) for teaching market are focusing on incorporating natural language processing (NLP) into AI-based digital learning to improve learning strategies and boost student engagement. NLP equips generative AI with the ability to perceive and react to the unique needs of each student, by deciphering their communication and language patterns. The outcome is personalized learning content and feedback which enhances understanding and memorization. For example, in June 2024, CK-12 Foundation, a non-profit educational institution in the US, introduced Flexi, an AI-based tutoring assistant on WhatsApp for users across India. This initiative improves accessibility to education by fusing cutting-edge AI technology with the CK-12 curriculum. Flexi is engineered to aid students in solving math problems, elucidating concepts, and offering study advice, while supporting over 300 languages and dialects. Using natural language processing, the AI tutor accurately understands and responds to student queries, and constantly enhances its capabilities through machine learning by assessing user interactions and feedback.

What Are the Key Segments of the Generative Artificial Intelligence (AI) In Teaching Market?
The generative artificial intelligence (AI) in teaching market covered in this report is segmented -

1) By Component: Software; Services
2) By Application: Content Creation For The Course; Personalized Lessons; Course Design; Chatbots For Student Support; Data Analytics For Students' Performance; Restoring Old Learning Material; Tutoring; Other Applications
3) By End-User: Higher Education; K-12 Education; Corporate Training And Learning

Subsegments:
1) By Software: AI-Powered Learning Management Systems (LMS); Adaptive Learning Platforms; Virtual Tutoring Software; AI-Driven Assessment And Grading Tools; Gamification And AI-Based Learning Tools
2) By Services: AI-Driven Curriculum Development Services; Teacher Training And Support Services; Integration And Implementation Services; AI-Based Educational Content Creation Services; Consulting Services For AI in Education

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Which Region Dominates the Generative Artificial Intelligence (AI) In Teaching Market?
North America was the largest region in the generative artificial intelligence (AI) in teaching market in 2024. The regions covered in the generative artificial intelligence (AI) in teaching market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Generative Artificial Intelligence (AI) In Teaching Global Market Report?

- Market Size Analysis: Analyze the generative artificial intelligence (ai) in teaching Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the generative artificial intelligence (ai) in teaching 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 generative artificial intelligence (ai) in teaching market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the generative artificial intelligence (ai) in teaching market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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