Global AI in Education Market Soars with Massive Growth Ahead

NEW YORK - April 11, 2025 - PRLog -- According to the latest market research study published by P&S Intelligence, the global AI in education market is experiencing remarkable growth, with its size estimated at USD 5,440.5 million in 2024 and projected to reach USD 55,444.6 million by 2030, advancing at a robust CAGR of 47.2% during the forecast period. This surge is primarily driven by increasing investments in AI technologies, the rising demand for personalized learning experiences, and the growing need to automate administrative tasks within educational institutions.​

Post-pandemic, educational institutions worldwide have accelerated the adoption of technologies such as chatbots, virtual reality (VR), and learning management systems (LMS) to enhance educational processes. These technologies facilitate improved engagement and efficiency in learning environments. Additionally, AI-powered platforms like ALEKS by McGraw-Hill Education Inc. are simplifying grading processes by generating customized progress reports, thereby enabling educators to provide tailored feedback to students.

Key Insights

Component Analysis

In 2024, solutions accounted for a larger market share of 70%, driven by the increasing demand for AI academic solutions that automate administrative tasks and enhance classroom teaching effectiveness. Services, however, are projected to grow at a faster pace due to the rising need for maintenance, training, and support services in deploying AI solutions.

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Application Segmentation

Learning platforms emerged as the largest application segment, accounting for 45% of the market in 2024. This is due to the increasing preference for online and distance learning courses, the trend of self-learning, and the integration of next-generation technologies in education. Intelligent tutoring systems are expected to witness the fastest growth, propelled by the need for personalized and adaptive learning experiences.

Regional Outlook

North America led the market with the highest revenue of USD 1.6 billion in 2024, supported by advanced educational infrastructure and significant investments in EdTech. Asia-Pacific is expected to be the fastest-growing region, with a CAGR of 47.6%, driven by the increasing need for process automation in education, the rise of online education, and government initiatives to digitize the education system.

Competitive Landscape

The market is fragmented, with key players including IBM Corporation, Microsoft Corporation, Google LLC, Amazon Web Services Inc., Pearson plc, and Carnegie Learning Inc. These companies are focusing on developing innovative AI solutions to cater to the evolving needs of the education sector.

Future Prospects

The AI in education market is poised for substantial growth, driven by technological advancements, increasing investments, and the continuous evolution of educational needs. The integration of AI technologies is expected to transform the education sector, offering personalized and efficient learning experiences.