AI In Education Market Size To Reach $32.27 Billion By 2030

The AI in education market was valued at USD 5.88 billion in 2024 and is projected to grow at a CAGR of 31.2% from 2025 to 2030. This growth is driven by the increasing demand for personalized learning experiences and the wide-ranging applications of artificial intelligence (AI) to enhance both teaching and learning processes. AI-powered tools are revolutionizing traditional educational methods by introducing intelligent tutoring systems (ITS), chatbots, and learning analytics to optimize engagement and efficiency.

The need for data-driven decision-making in institutions drives the growing adoption of AI in education industry. Educational institutions are utilizing AI-based analytics to monitor student performance, predict dropout rates, and design intervention strategies for at-risk students. The increasing role of AI in skill development and workforce training, mainly through online courses and certifications, is also contributing to market growth. Governments across various countries are supporting artificial intelligence (AI) initiatives in education through funding programs and policy frameworks, further accelerating adoption.

The rapid expansion of virtual learning environments, which rely heavily on AI for customization and scalability, is driving the market growth. AI-integrated platforms are improving accessibility by offering language translation, speech recognition, and assistive technologies for students with disabilities. The proliferation of 5G networks and smart devices is enabling seamless access to AI-powered educational solutions, increasing adoption globally. Furthermore, the shift towards hybrid learning models is creating long-term opportunities for AI-based solutions as institutions increasingly blend in-person and online education.

Detailed Segmentation:

Component Insights

The solutions segment led the AI in education market with a dominant revenue share of 70.3% in 2024. This leadership is attributed to the widespread adoption of AI-powered Learning Management Systems (LMS) and Intelligent Tutoring Systems (ITS). These AI solutions offer personalized learning experiences by enabling adaptive learning paths, automating grading processes, and providing real-time analytics for educators. Such solutions significantly enhance teaching efficiency, making them highly sought after across educational institutions, driving their market dominance.

Deployment Insights

The cloud segment held the largest revenue share of 60.1% in 2024, driven by the growing adoption of cloud-based platforms. These platforms enable seamless access to learning resources anytime and anywhere, providing unparalleled flexibility for both students and educators. Cloud solutions facilitate the faster deployment of AI-powered tools, including virtual classrooms, ITS, and LMS, which enhance operational efficiency and scalability. The accessibility and ease of integration offered by cloud technologies are key factors contributing to their widespread use.

Technology Insights

The machine learning (ML) segment dominated the market with a revenue share of 64.7% in 2024. Machine learning is the core technology driving personalized learning experiences and adaptive education platforms. Through ML algorithms, AI systems can analyze student data and adjust learning paths based on individual needs and preferences, enabling educators to deliver more targeted and effective teaching. This capability is a significant factor in the growing demand for machine learning solutions in education.

Application Insights

The learning platform & virtual facilitators segment led the market with a share of 45.9% in 2024. The demand for digital learning environments and personalized education has surged, particularly in the context of the remote learning trend. AI-powered learning platforms enable the creation of adaptive educational experiences that cater to diverse learning styles and paces. Virtual facilitators, such as AI-driven tutors and teaching assistants, provide personalized support, further driving the adoption of these applications.

End-use Insights

The higher education segment held the largest revenue share of 44.3% in 2024, primarily due to the increasing demand for innovative teaching methods and advanced learning technologies in colleges and universities. Higher education institutions are leveraging AI to enhance curriculum delivery, improve student engagement, and streamline administrative processes. AI-powered solutions such as automated grading, personalized learning paths, and learning analytics are becoming integral to the modern higher education landscape.

Regional Insights

North America dominated the AI in education market with a 38.0% revenue share in 2024. This dominance is driven by the region's advanced technological infrastructure and high investment in education technology. The U.S. and Canada are at the forefront of adopting AI-driven solutions in education, with institutions increasingly integrating AI-powered LMS, ITS, and learning analytics. The region's robust support for EdTech startups and innovation further accelerates the growth of AI in education.

Curious about the AI In Education Market? Get a FREE sample copy of the full report and gain valuable insights.

Key AI In Education Company Insights

Some key players in the AI in education industry, such as Pearson, Anthology Inc.,IBM Corporation, Microsoft, are actively working to expand their customer base and gain a competitive advantage. To achieve this, they are pursuing various strategic initiatives, including partnerships, mergers and acquisitions, collaborations, and the development of new products and technologies. This proactive approach allows them to enhance their market presence and innovate in response to evolving security needs.

• Pearson is a global education company known for its innovative use of technology in the learning space, particularly through its AI-driven solutions. The company has evolved from traditional publishing to becoming a pioneer in digital learning platforms, offering a wide range of educational resources, assessments, and services for K-12 and higher education. Pearson's AI initiatives focus on personalized learning experiences, utilizing data analytics to tailor content and improve student outcomes.
• Anthology Inc. is a prominent provider of education technology solutions specializing in enhancing the student experience through innovative AI-driven platforms. The company's products encompass a range of functionalities, such as learning management systems (LMS), data analytics, and student information systems, all designed to empower institutions to leverage data for improved decision-making.

Key AI In Education Companies:

The following are the leading companies in the AI in education market. These companies collectively hold the largest market share and dictate industry trends.

• Amazon Web Services, Inc.
• IBM Corporation
• Microsoft
• Google LLC
• Pearson
• BridgeU
• DreamBox Learning, Inc.
• Carnegie Learning, Inc.
• Fishtree Inc.
• Anthology Inc.

Recent Developments

• In September 2024, PowerSchool, a provider of cloud-based software for K-12 education, announced the launch of its new PowerBuddy AI products: PowerBuddy for College and Career and PowerBuddy for Custom AI. These tools are designed to enhance connectivity among school staff, teachers, counselors, students, families, and the community while also assisting students in exploring and taking steps toward achieving success in college, careers, and life.
• In July 2024, Pearson announced the launch of new generative AI-powered tools to enhance teaching and learning across various age levels through Pearson+ Channels. These tools include the ability for students to upload their syllabus, to create personalized learning experiences and an AI tutor embedded in videos to answer concept-related questions. 

 Order a free sample PDF of the Market Intelligence Study, published by Grand View Research.