AI in Education Market

AI in Education Market by Technology (Deep Learning and ML, NLP), Application (Virtual Facilitators and Learning Environments, ITS, CDS, Fraud and Risk Management), Component (Solutions, Services), Deployment, End-User, and Region - Global Forecast to 2023

Report Code: TC 6243 May, 2018, by marketsandmarkets.com

[151 Pages Report] The growing adoption of Artificial Intelligence (AI) for various applications in the education sector to enhance teachers’ and students’ experience and improve their knowledge and growing need for multilingual translators integrated with the AI technology are expected to drive the growth of the AI in education market. MarketsandMarkets forecasts the global market to grow from USD 373.1 Million in 2017 to USD 3,683.5 Million by 2023, at a Compound Annual Growth Rate (CAGR) of 47.0% during the forecast period. The base year considered for the study is 2017 and the forecast period is 2018–2023.

The objective of the report is to define, describe, and forecast the size of the AI in education market on the basis of technologies, applications, components (solutions and services), deployment modes, end users, and regions. The report also aims at providing detailed information about the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges).

The research methodology used to estimate and forecast the global AI in education market size began with capturing data from the key vendors’ revenues through secondary research, annual reports, government publishing sources, Institute of Electrical and Electronic Engineers (IEEE), Factiva, Bloomberg, and press releases. Vendor offerings were also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall global market size from the revenues of the key market players. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key individuals, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments. The breakdown of the profiles of the primary participants is depicted in the figure below:

AI in Education Market

To know about the assumptions considered for the study, download the pdf brochure

The AI in education market includes various AI in education vendors, such as IBM (US), Microsoft (US), Bridge-U (UK), DreamBox Learning (US), Fishtree (US), Jellynote (France), Jenzabar (US), Knewton (US), Metacog (US), Querium Corporation (US), Google (US), AWS (US), Cognizant (US), Carnegie Learning (US), Century-Tech (UK), Cognii (US), Elemental Path (US), Liulishuo (China), Nuance Communications (US), Osmo (US), Pearson (UK), Third Space Learning (UK), Quantum Adaptive Learning (US), ALEKS (US), and Blackboard (US)

The target audience of the AI in education market report is mentioned below:

  • eLearning software, platform, and service providers
  • Device manufacturers
  • Small and Medium-sized Enterprises (SMEs)
  • Higher education and K-12 schools and universities
  • Educational publishers
  • eLearning course providers

“The study answers several questions for stakeholders, primarily, which market segments to focus on in the next 2 to 5 years for prioritizing efforts and investments.”

Scope of the Report

The AI in education market is segmented on the basis of technologies, applications, components (solutions and services), deployment modes, end users, and regions:

By Technology

  • Deep Learning and Machine Learning
  • Natural Language Processing (NLP)

By Application

  • Virtual Facilitators and Learning Environments
  • Intelligent Tutoring Systems (ITS)
  • Content Delivery Systems
  • Fraud and Risk Management
  • Student-initiated learning
  • Others (education data management, job recommendation, and training and development)

By Component

  • Solutions
    • Software tools
    • Platforms
  • Services
    • Professional services
    • Managed services

By Deployment Mode

  • Cloud
  • On-premises

By End-User

  • Educational Institutes
  • Educational Publishers
  • Others (Massive Open Online Courses (MOOCs), Virtual Learning Environments (VLEs), computer-based tests, adaptive learning, and immersive learning)

By Region

  • North America
  • Europe
  • Asia Pacific (APAC)
  • Middle East and Africa (MEA)
  • Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Geographic Analysis

  • Further breakdown of the North American AI in education market
  • Further breakdown of the European market
  • Further breakdown of the APAC market
  • Further breakdown of the MEA market
  • Further breakdown of the Latin American market

Company Information

  • Detailed analysis and profiling of additional market players

MarketsandMarkets forecasts the global Artificial Intelligence (AI) in education market to grow from USD 537.3 Million in 2018 to USD 3,683.5 Million by 2023, at a Compound Annual Growth Rate (CAGR) of 47.0% during the forecast period. The increasing adoption of the AI technology for various applications in the education sector and growing need for multilingual translators integrated with the AI technology are expected to drive the growth of the AI in education market.

Among technologies, the Natural Language Processing (NLP) technology segment is expected to grow at a higher CAGR during the forecast period. In the education sector, the use of the NLP technology is growing as this technology synthesizes students’ data for finding the final output.

The component segment is further segmented into solutions and services. The services segment is expected to grow at a higher CAGR during the forecast period. The growing awareness among education solution providers regarding the use of the AI technology into their operations to enhance customers’ overall experience is expected to contribute to the adoption of AI-powered solutions. Moreover, to enable the efficient and effective functioning of the education sector, professional and training services are expected to gain traction with significant growth in the deployment of AI-powered solutions.

Among services, the professional services segment is expected to have the larger market size during the forecast period, as these services play a crucial role in providing the detailed analysis of clients’ requirements.

The AI in education market is also segmented on the basis of applications. The virtual facilitators and learning environments application segment is expected to have the largest market size and grow at the highest CACR during the forecast period. As virtual facilitators and learning environments use simulations, games, and the AI technology to encourage students to enhance their learning experience as well as gain and improve knowledge.

Based on end-users, the AI in education market is segmented into educational institutes, educational publishers, and others (Massive Open Online Courses (MOOCs), Virtual Learning Environments (VLEs), computer-based tests, adaptive learning, and immersive learning). The educational institutes segment is expected to have the largest market size and grow at a higher CAGR during the forecast period. AI- enabled solutions can help universities with research and learning processes.

Among deployment modes, the cloud deployment mode is expected to grow at a higher CAGR during the forecast period. The cloud deployment mode offers cost-effectiveness for various education applications, such as virtual assistance and Learning Management Systems (LMS).

AI in Education Market

North America is expected to have the largest market size in the AI in education market, while Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period. The North American region is witnessing investments in the market and various vendors in this region are focusing on providing innovative solutions. Moreover, the AI technology in the education is effectively used to create personalized course contents, enhance teaching performance, and reduce manual work.

The slow digitization rate is affecting the adoption of the AI technology in the emerging economies, as the deployment of AI-enabled solutions require IT infrastructures to generate accurate results. This factor may restrain the growth of the AI in education market.

Major vendors who offer AI in education solutions across the globe include IBM (US), Microsoft (US), Bridge-U (UK), DreamBox Learning (US), Fishtree (US), Jellynote (France), Jenzabar (US), Knewton (US), Metacog (US), Querium Corporation (US), Google (US), AWS (US), Cognizant (US), Carnegie Learning (US), Century-Tech (UK), Cognii (US), Elemental Path (US), Liulishuo (China), Nuance Communications (US), Osmo (US), Pearson (UK), Third Space Learning (UK), Quantum Adaptive Learning (US), ALEKS (US), and Blackboard (US). These vendors have adopted different types of organic and inorganic growth strategies, such as new product launches, partnerships and collaborations, and mergers and acquisitions, to expand their presence in the AI in education market.

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

Table of Contents

1 Introduction (Page No. - 17)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
    1.4 Years Considered for the Study
    1.5 Currency
    1.6 Stakeholders

2 Research Methodology (Page No. - 20)
    2.1 Research Data
           2.1.1 Secondary Data
           2.1.2 Primary Data
                    2.1.2.1 Breakdown of Primaries
                    2.1.2.2 Key Industry Insights
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Research Assumptions
    2.4 Limitations

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 31)
    4.1 Attractive Opportunities in the AI in Education Market
    4.2 Market Top 3 Applications
    4.3 Market Top 3 Applications and Regions
    4.4 Market Potential, By Region
    4.5 Market By Deployment
    4.6 Market By Region

5 Market Overview and Industry Trends (Page No. - 35)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 AI Technology Enhancing and Improving Teachers’ and Students’ Experience and Knowledge Level
                    5.2.1.2 Increasing Adoption of the AI Technology for Various Applications in the Education Sector
                    5.2.1.3 Growing Need for Multilingual Translators Integrated With the AI Technology
           5.2.2 Restraints
                    5.2.2.1 Slow Digitalization Rate Affecting the Adoption of the AI Technology in Emerging Economies
           5.2.3 Opportunities
                    5.2.3.1 Increasing Investments in the Education Sector
                    5.2.3.2 Growing Demand of the AI Technology for Enhancing Education Systems
           5.2.4 Challenges
                    5.2.4.1 Lack of Appropriateness of Ai-Enabled Assessment Processes
                    5.2.4.2 Insufficient Skills of Students and Teachers
    5.3 Use Cases and Regulatory Implications
           5.3.1 Introduction
           5.3.2 AI in Education Market: Use Cases
                    5.3.2.1 Use Case: Scenario 1
                    5.3.2.2 Use Case: Scenario 2
                    5.3.2.3 Use Case: Scenario 3
                    5.3.2.4 Use Case: Scenario 4
    5.4 Regulatory Implications
           5.4.1 Introduction
           5.4.2 Right to Education
           5.4.3 National Science Education Standards
           5.4.4 International Standard Classification of Education
           5.4.5 European Network for Quality Assurance in Higher Education
           5.4.6 Australian Education Act
           5.4.7 Education Services for Overseas Students Act (ESOS)
           5.4.8 Fundamental Law of Education
           5.4.9 Compulsory Education Law of the People's Republic of China
           5.4.10 South African Schools Act, No. 84 of 1996
           5.4.11 The Education Act 2011
           5.4.12 Every Student Succeeds Act

6 Educational Models (Page No. - 41)
    6.1 Introduction
    6.2 Learner Model
    6.3 Pedagogical Model
    6.4 Domain Model

7 AI in Education Market, By Technology (Page No. - 42)
    7.1 Introduction
    7.2 Machine Learning and Deep Learning
    7.3 Natural Language Processing

8 AI in Education Market, By Application (Page No. - 46)
    8.1 Introduction
    8.2 Virtual Facilitators and Learning Environments
    8.3 Intelligent Tutoring Systems
    8.4 Content Delivery Systems
    8.5 Fraud and Risk Management
    8.6 Others

9 AI in Education Market, By Component (Page No. - 52)
    9.1 Introduction
    9.2 Solutions
           9.2.1 Software Tools
           9.2.2 Platforms
    9.3 Services
           9.3.1 Professional Services
           9.3.2 Managed Services

10 AI in Education Market, By Deployment Mode (Page No. - 59)
     10.1 Introduction
     10.2 Cloud
     10.3 On-Premises

11 AI in Education Market, By End-User (Page No. - 63)
     11.1 Introduction
     11.2 Educational Institutes
     11.3 Educational Publishers
     11.4 Others

12 Geographic Analysis (Page No. - 68)
     12.1 Introduction
     12.2 North America
             12.2.1 United States
             12.2.2 Canada
     12.3 Europe
             12.3.1 United Kingdom
             12.3.2 Germany
             12.3.3 Switzerland
             12.3.4 Rest of Europe
     12.4 Asia Pacific
             12.4.1 China
             12.4.2 Japan
             12.4.3 Singapore
             12.4.4 Rest of APAC
     12.5 Latin America
             12.5.1 Brazil
             12.5.2 Mexico
             12.5.3 Rest of Latin America
     12.6 Middle East and Africa
             12.6.1 United Arab Emirates
             12.6.2 South Africa
             12.6.3 Qatar
             12.6.4 Rest of Mea

13 Competitive Landscape (Page No. - 97)
     13.1 Overview
     13.2 Top Players Operating in the AI in Education Market
     13.3 Competitive Scenario
             13.3.1 New Product/Service Launches and Product/Service Enhancements
             13.3.2 Agreements and Partnerships
             13.3.3 Acquisitions

14 Company Profiles (Page No. - 102)
     14.1 Introduction
(Business Overview, Solutions Offered, Recent Developments, SWOT Analysis, and MnM View)*
     14.2 Google
     14.3 IBM
     14.4 Pearson
     14.5 Microsoft
     14.6 AWS
     14.7 Nuance Communications
     14.8 Cognizant
     14.9 OSMO
     14.10 Quantum Adaptive Learning
     14.11 Querium Corporation
     14.12 Third Space Learning
     14.13 Aleks
     14.14 Blackboard
     14.15 Bridgeu
     14.16 Carnegie Learning
     14.17 Century
     14.18 Cognii
     14.19 Dreambox Learning
     14.20 Elemental Path
     14.21 Fishtree
     14.22 Jellynote
     14.23 Jenzabar
     14.24 Knewton
     14.25 Luilishuo
     14.26 Metacog

*Details on Business Overview, Solutions Offered, Recent Developments, SWOT Analysis, and MnM View Might Not Be Captured in Case of Unlisted Companies.

15 Appendix (Page No. - 142)
     15.1 Industry Excerpts
     15.2 Discussion Guide
     15.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     15.4 Available Customizations
     15.5 Related Reports
     15.6 Author Details


List of Tables (84 Tables)

Table 1 United States Dollar Exchange Rate, 2015–2017
Table 2 Global Market Size and Growth Rate, 2016–2023
Table 3 AI in Education Market Size, By Technology, 2016–2023 (USD Million)
Table 4 Machine Learning and Deep Learning: Market Size By Region, 2016–2023 (USD Million)
Table 5 Natural Language Processing: Market Size By Region, 2016–2023 (USD Million)
Table 6 AI in Education Market Size, By Application, 2016–2023 (USD Million)
Table 7 Virtual Facilitators and Learning Environments: Market Size By Region, 2016–2023 (USD Million)
Table 8 Intelligent Tutoring Systems: Market Size By Region, 2016–2023 (USD Million)
Table 9 Content Delivery Systems: Market Size By Region, 2016–2023 (USD Million)
Table 10 Fraud and Risk Management: Market Size By Region, 2016–2023 (USD Million)
Table 11 Others: Market Size By Region, 2016–2023 (USD Million)
Table 12 AI in Education Market Size, By Component, 2016–2023 (USD Million)
Table 13 Solutions: Market Size By Type, 2016–2023 (USD Million)
Table 14 Software Tools Market Size, By Region, 2016–2023 (USD Million)
Table 15 Platforms Market Size, By Region, 2016–2023 (USD Million)
Table 16 Services: Market Size By Type, 2016–2023 (USD Million)
Table 17 Professional Services Market Size, By Region, 2016–2023 (USD Million)
Table 18 Managed Services Market Size, By Region, 2016–2023 (USD Million)
Table 19 AI in Education Market Size, By Deployment Mode, 2016–2023 (USD Million)
Table 20 Cloud: Market Size By Region, 2016–2023 (USD Million)
Table 21 On-Premises: Market Size By Region, 2016–2023 (USD Million)
Table 22 AI in Education Market Size, By End-User, 2016–2023 (USD Million)
Table 23 Educational Institutes: Market Size By Region, 2016–2023 (USD Million)
Table 24 Educational Publishers: Market Size By Region, 2016–2023 (USD Million)
Table 25 Others: Market Size By Region, 2016–2023 (USD Million)
Table 26 AI in Education Market Size, By Region, 2016–2023 (USD Million)
Table 27 Internet Users in North America, 2017–2023 (Million)
Table 28 Mobile Connections in North America, 2017–2023 (Million)
Table 29 Smartphone Users in North America, 2017–2023 (Million)
Table 30 North America: AI in Education Market Size, By Country, 2016–2023 (USD Million)
Table 31 North America: Market Size By Technology, 2016–2023 (USD Million)
Table 32 North America: Market Size By Application, 2016–2023 (USD Million)
Table 33 North America: Market Size By Component, 2016–2023 (USD Million)
Table 34 North America: Market Size By Solution, 2016–2023 (USD Million)
Table 35 North America: Market Size By Service, 2016–2023 (USD Million)
Table 36 North America: Market Size By Deployment Mode, 2016–2023 (USD Million)
Table 37 North America: Market Size By End-User, 2016–2023 (USD Million)
Table 38 Internet Users in Europe Region, 2017-2022 (Million)
Table 39 Mobile Connections in Europe Region, 2017-2022 (Million)
Table 40 Smarthphone Users in Europe Region, 2017-2022 (Million)
Table 41 Europe: AI in Education Market Size, By Country, 2016–2023 (USD Million)
Table 42 Europe: Market Size By Technology, 2016–2023 (USD Million)
Table 43 Europe: Market Size By Application, 2016–2023 (USD Million)
Table 44 Europe: Market Size By Component, 2016–2023 (USD Million)
Table 45 Europe: Market Size By Solution, 2016–2023 (USD Million)
Table 46 Europe: Market Size By Service, 2016–2023 (USD Million)
Table 47 Europe: Market Size By Deployment Mode, 2016–2023 (USD Million)
Table 48 Europe: Market Size By End-User, 2016–2023 (USD Million)
Table 49 Internet Users in Asia Pacific, 2017–2023 (Million)
Table 50 Mobile Connections in Asia Pacific, 2017–2023 (Million)
Table 51 Smartphone Users in Asia Pacific, 2017–2023 (Million)
Table 52 Asia Pacific: AI in Education Market Size, By Country, 2016–2023 (USD Million)
Table 53 Asia Pacific: Market Size By Technology, 2016–2023 (USD Million)
Table 54 Asia Pacific: Market Size By Application, 2016–2023 (USD Million)
Table 55 Asia Pacific: Market Size By Component, 2016–2023 (USD Million)
Table 56 Asia Pacific: Market Size By Solution, 2016–2023 (USD Million)
Table 57 Asia Pacific: Market Size By Service, 2016–2023 (USD Million)
Table 58 Asia Pacific: Market Size By Deployment Mode, 2016–2023 (USD Million)
Table 59 Asia Pacific: Market Size By End-User, 2016–2023 (USD Million)
Table 60 Internet Users in Latin America, 2017–2023 (Million)
Table 61 Mobile Connections in Latin America, 2017–2023 (Million)
Table 62 Smartphone Users in Latin America, 2017–2023 (Million)
Table 63 Latin America: AI in Education Market Size, By Country, 2016–2023 (USD Million)
Table 64 Latin America: Market Size By Technology, 2016–2023 (USD Million)
Table 65 Latin America: Market Size By Application, 2016–2023 (USD Million)
Table 66 Latin America: Market Size By Component, 2016–2023 (USD Million)
Table 67 Latin America: Market Size By Solution, 2016–2023 (USD Million)
Table 68 Latin America: Market Size By Service, 2016–2023 (USD Million)
Table 69 Latin America: Market Size By Deployment Mode, 2016–2023 (USD Million)
Table 70 Latin America: Market Size By End-User, 2016–2023 (USD Million)
Table 71 Internet Users in Middle East and Africa, 2017–2023 (Million)
Table 72 Smartphone Users in Middle East and Africa, 2017–2023 (Million)
Table 73 Middle East and Africa: AI in Education Market Size, By Country, 2016–2023 (USD Million)
Table 74 Middle East and Africa: Market Size By Technology, 2016–2023 (USD Million)
Table 75 Middle East and Africa: Market Size By Application, 2016–2023 (USD Million)
Table 76 Middle East and Africa: Market Size By Component, 2016–2023 (USD Million)
Table 77 Middle East and Africa: Market Size By Solution, 2016–2023 (USD Million)
Table 78 Middle East and Africa: Market Size By Service, 2016–2023 (USD Million)
Table 79 Middle East and Africa: Market Size By Deployment Mode, 2016–2023 (USD Million)
Table 80 Middle East and Africa: Market Size By End-User, 2016–2023 (USD Million)
Table 81 Market Ranking for AI in Education Market, 2018
Table 82 New Product/Service Launches and Product/Service Enhancements, 2016–2018
Table 83 Agreements and Partnerships, 2016–2018
Table 84 Acquisitions, 2016–2018


List of Figures (55 Figures)

Figure 1 Global AI in Education Market Segmentation
Figure 2 Global AI in Education Market: Research Design
Figure 3 Breakdown of Primary Interviews: By Company, Designation, and Region
Figure 4 Data Triangulation
Figure 5 Market Size Estimation Methodology: Bottom-Up Approach
Figure 6 Market Size Estimation Methodology: Top-Down Approach
Figure 7 North America is Estimated to Have the Largest Market Share in 2018
Figure 8 AI in Education Market Snapshot, By Technology, 2017
Figure 9 Market Snapshot By Application, 2017
Figure 10 Market Snapshot By Component, 2017
Figure 11 Market Snapshot By Solution, 2017
Figure 12 Market Snapshot By Service, 2017
Figure 13 Market Snapshot By Deployment Mode, 2017
Figure 14 Market Snapshot By End-User, 2017
Figure 15 The Global AI in Education Market is Expected to Witness Significant Growth During the Forecast Period
Figure 16 Virtual Facilitators and Learning Environments Application is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 17 Virtual Facilitators and Learning Environments Application and North America Region are Estimated to Have the Largest Market Shares in the AI in Education Market in 2018
Figure 18 Asia Pacific is Expected to Register the Highest CAGR During the Forecast Period
Figure 19 Services Segment is Expected to Have the Larger Market Size During the Forecast Period
Figure 20 North America Region is Estimated to Have the Largest Market Share in 2018
Figure 21 Market Investment Scenario: Asia Pacific is Expected to Be the Best Region for Investment During the Forecast Period
Figure 22 AI in Education Market: Drivers, Restraints, Opportunities, and Challenges
Figure 23 Natural Language Processing Technology is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 24 Virtual Facilitators and Learning Environments Application is Expected to Witness the Highest CAGR During the Forecast Period
Figure 25 Services Component is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 26 Platforms Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 27 Managed Services Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 28 Cloud Deployment Mode is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 29 Educational Institutes End-User is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 30 North America is Estimated to Account for the Largest Market Size in 2018
Figure 31 Asia Pacific is Expected to Register the Highest CAGR During the Forecast Period
Figure 32 North America: Market Snapshot
Figure 33 North America: AI in Education Market, By Application
Figure 34 Europe: Market By Application
Figure 35 Asia Pacific: Market Snapshot
Figure 36 Asia Pacific: Market By Application
Figure 37 Latin America: Market By Application
Figure 38 Middle East and Africa: Market By Application
Figure 39 Key Developments By Leading Players in the AI in Education Market During 2016–2018
Figure 40 Market Evaluation Framework: Significant Business Strategies Have Fueled the Growth of the AI in Education Market
Figure 41 Geographic Revenue Mix of the Top 3 Market Players
Figure 42 Google: Company Snapshot
Figure 43 Google: SWOT Analysis
Figure 44 IBM: Company Snapshot
Figure 45 IBM: SWOT Analysis
Figure 46 Pearson: Company Snapshot
Figure 47 Pearson: SWOT Analysis
Figure 48 Microsoft: Company Snapshot
Figure 49 Microsoft: SWOT Analysis
Figure 50 AWS: Company Snapshot
Figure 51 AWS: SWOT Analysis
Figure 52 Nuance Communications: Company Snapshot
Figure 53 Nuance Communications: SWOT Analysis
Figure 54 Cognizant: Company Snapshot
Figure 55 Cognizant: SWOT Analysis


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