2025-2034 AI In Education Market Evolution: Disruptions, Innovations, and Untapped Opportunities

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What Is the Expected CAGR for the AI In Education Market Through 2025?
The market size for AI in education has seen a significant surge in its growth in the past few years. It is projected to increase from $5.47 billion in 2024 to $7.52 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 37.5%. The expansion during the historical period can be credited to elements such as digital learning platforms, personalized education strategies, adaptive learning systems, substantial data and analytics, and early AI tutoring systems.

What's the Projected Size of the Global AI In Education Market by 2029?
Expectations for the AI in education market size predict exceptionally rapid expansion in the upcoming years. The forecast growth rate is anticipated to be $29.89 billion by 2029, with a compound annual growth rate (CAGR) of 41.2%. The growth seen in the projected period can be credited to factors such as the usage of AI in remote and hybrid learning environments, the development of AI-enabled assessment tools, an increase in investments in edtech, and teacher support systems. Significant trends in the forecasted period consist of AI-infused learning analytics, the integration of augmented reality (AR) and virtual reality (VR) in education, the application of ethical AI in education, the enhancement of language learning through AI, and the fusion of gamification and AI.

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Top Growth Drivers in the AI In Education Industry: What's Accelerating the Market?
The growth of the artificial intelligence (AI) in education market is anticipated to gain traction due to the burgeoning number of smartphone users. These users utilize cell phones that merge the features of a computer and a typical phone, boasting a web browser, an operating system, and the ability to operate software applications. The integration of AI technology into education apps and platforms offers smartphone users a customizable, flexible learning experience. Moreover, smartphones facilitate real-time interaction and engagement, enabling students to interact effortlessly with AI-driven virtual tutors. This wide-scale acceptability of smartphones enhances the influence and range of AI in education, making high-quality, personalized learning easily accessible to a broader population. For instance, Ericsson, a Swedish telecommunications and networking company, in its Ericsson Mobility Report 2022, stated that smartphone subscriptions amounted to 6,420 million in 2022 and are anticipated to hit 7,740 million by 2028. Hence, the increasing number of smartphone users is predicted to promote AI in the education market.

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What Trends Will Shape the AI In Education Market Through 2029 and Beyond?
Innovation in products is a primary strategy for obtaining recognition in the AI in education market. Many significant players in the AI in education market are aiming to develop inventive solutions to elevate their market position. Take for example, Nerdy Inc., an American tech platform catering to virtual learning for students, introduced two novel products, an AI-Generated Lesson Plan Creator and AI-Generated Chat Tutoring, to their extensive product range in February 2023. These are incorporated with ChatGPT, an AI chatbot that utilizes natural language processing to fabricate a conversation similar to human dialogue. The Lesson Plan Creator, designed by the product's AI, is capable of creating a diverse range of content for experts, offering comprehensive suggestions on lesson structuring and optimal use of content. Meanwhile, the AI-powered chat tutoring offers round-the-clock support to consumer learning membership clients by rapidly and accurately answering student queries.

What Are the Main Segments in the AI In Education Market?
The ai in educationmarket covered in this report is segmented -

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

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Which Top Companies are Driving Growth in the AI In Education Market?
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

Which Regions Will Dominate the AI In Education Market Through 2029?
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

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