Artificial Intelligence in Education Market to reach $88.2 billion, Globally, by 2032 at 43.3% CAGR: Allied Market Research


Allied Market Research published a report, titled, “Artificial Intelligence in Education Market by Component (Solution and Services), Deployment Mode (On-Premise and Cloud), Technology (Machine Learning and Deep Learning and Natural Language Processing (NLP)), Application (Learning Platform and Virtual Facilitators, Smart Content Delivery, Fraud and Risk Management, Intelligent Tutoring System (ITS), and Others), and End User (Corporate Learning, K-12 Education, Higher Education, and Others): Global Opportunity Analysis and Industry Forecast, 2023-2032″ According to the report, the global generated $2.5 billion in 2022 and is estimated to reach $88.2 billion by 2032, exhibiting a CAGR of 43.3% from 2023 to 2032. The report offers a detailed analysis of changing market trends, top segments, key investment pockets, value chains, regional landscapes, and competitive scenarios.

In the AI education market, AI-driven products and services undertake a range of functions, encompassing the distribution of educational materials, assessment of skills, integration of students, and the provision of adaptive instructional platforms, all aimed at enhancing the learning process for both students and educators. Software designed for training and education is integrating artificial intelligence (AI) technologies such as deep learning, machine learning, and natural language processing (NLP) to elevate performance and the overall learning journey.

Prime Determinants of Growth

Surge in demand for personalized education and adaptive learning, virtual assistants and smart tutoring and improvements in administrative efficiency are primarily driving the growth of the artificial intelligence in education market. However, privacy and ethical issues and access issues and equity concerns hamper the market growth to some extent. Moreover, enhanced motivation and engagement of students and data-driven decision making are expected to provide lucrative opportunities for the market growth during the forecast period.

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Report coverage & details:

Report Coverage


Forecast Period


Base Year


Market Size in 2022

$2.5 Billion

Market Size in 2032

$88.2 Billion


43.3 %

No. of Pages in Report


Segments covered

Component, Deployment Mode, Technology, Application, End User and Region.


Personalized Education and Adaptive Learning.

Virtual assistants and smart tutoring.


Enhanced motivation and engagement of students 


Privacy and Ethical Issues.

Access Issues and Equity Concerns.

Covid-19 scenario-

  • The COVID-19 pandemic had compelled education institutions to switch to online instruction, which increased the reliance on AI-driven learning resource. These resources includes computerized grading system, intelligent teaching programs and virtual classrooms.
  • Online learning platform are in high demand as school and collage shutdown due to pandemic. By offering intelligent virtual coaching, individualized learning opportunities, and automated grading system, AI has significantly aided this shift.
  • Due to the restrictions on in-person exams, the use of AI for distant assessments has become more popular. Academic integrity is ensured by using AI-powered proctoring systems to monitor and authenticate students throughout online exams.
  • The integrity of the evaluation process is maintained by these systems using facial recognition, eye tracking and behavior analysis algorithms to identify any suspect activity.

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The solution segment to rule the roost

By component, the solution segment held the major share in 2022, garnering more than two-thirds of global artificial intelligence in education market revenue, owing to rising usage and development of artificial intelligence technologies in the educational sector propels the market growth significantly. The services segment would also showcase the fastest CAGR of 45.6% during the forecast period, owing to gain knowledge about learning patterns, instructional efficacy, and student outcomes, these platforms gather and analyze enormous volumes of educational data, including student performance, engagement, and behavior.

The machine learning and deep learning segment to retain its dominance by 2032

By technology, the machine learning and deep learning segment accounted formore than two-thirds of the global artificial intelligence in education market share in 2022, and is expected to rule the boost by 2032, owing to create personalized learning pathways and adaptive training, where the content, pacing, and mode of delivery of instruction can all be adjusted to fit the needs of particular learners. The natural language processing (NLP) segment would also display the fastest CAGR of 46.6% throughout the forecast period, owing to improve communication and interaction between people and machines, NLP focuses on teaching computers how to comprehend, interpret, and produce human language.

The learning platform and virtual facilitators segment to dominate by 2032

By application, learning platform and virtual facilitators segment accounted for nearly two-fifths of the global artificial intelligence in education market share in 2022, and is expected to rule the boost by 2032, owing to offer individualized recommendations, adaptable learning routes, and insightful feedback, AI can be incorporated into learning systems to improve the learning experience.. The fraud and risk management segment would also display the fastest CAGR of 47.2% throughout the forecast period, owing to offer enormous prospects and continual growth that are essential in preserving the reliability and security of educational institutions.

The higher education segment to retain its dominance by 2032

By end user, the higher education segment accounted for moe than two-fifths of the global artificial intelligence in education market share in 2022, and is expected to rule the boost by 2032, owing to improve teaching, learning, and administrative procedures in colleges and universities.. The K-12 education segment would also display the fastest CAGR of 46.5% throughout the forecast period, the need to give students more individualized and effective learning experiences are driving the development and expansion of AI in education.

North America garnered the major share in 2022

By region, North America garnered the highest share in 2022, holding nearly two-fifths of the global artificial intelligence in education market revenue in 2022, and is projected to retain its dominance by 2032, owing to the increasing technical developments that are entirely revolutionizing the landscape of the IT industry and, in turn, encouraging the drive for the implementation of efficient servers and networking solutions. The Asia-Pacific region would also portray the fastest CAGR of 48.0% during the forecast period, owing to increase the efficacy and quality of education has increased due to the sizeable population and growing emphasis on education in Asia-Pacific.

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Leading Market Players-

  • Microsoft Corporation
  • International Business Machines Corporation
  • Amazon Web Services, Inc.
  • Google Llc
  • Cognizant
  • Dreambox Learning, Inc.
  • Bridgeu
  • Carnegie Learning, Inc.
  • Pearson Plc
  • Nuance Communications, Inc.

The report analyzes these key players in the global artificial intelligence in education market. These players have adopted various strategies such as expansion, new product launches, partnerships, and others to increase their market penetration and strengthen their position in the industry. The report is helpful in determining the business performance, operating segments, developments, and product portfolios of every market player.

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