AI in Education Market Revenue to Cross $20B by 2027; Global Market Insights, Inc.

Global Market Insights Inc. has recently added a new report on the AI in education market which estimates the market valuation for AI in education will cross US $20 billion by 2027. The market is gaining traction due to the proliferation of smart devices and rapid digitalization across the globe.
The growing demand for AI in education is primarily driven by the advanced features and benefits offered by AI technology, attracting investments and fueling its adoption among organizations. The growing integration of Intelligent Tutoring Systems (ITS) into the learning process has assisted in improving students’ learning styles, offering personalized tutoring & high-quality education to the students.
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The service segment is expected to grow at a 40% CAGR through 2027. The increase in the adoption of cloud computing services is expected to support the demand for managed services. In addition, the emergence of Software-as-a-Service and Platform-as-a-Service is also contributing to managed service growth. This is anticipated to support market growth over the forecast period.
The machine learning technology segment is predicted to observe significant growth over 2021-2027. Machine learning is significant for understanding educational patterns and suggesting variations for teaching methods. It also enables an unbiased grading system and feedback mechanism for both students and teachers. In addition, it captures and maintains the rich content of information, identifying meaningful patterns within them and converting it into a structured database for future usage, thus, providing lucrative opportunities for market growth.
The K-12 education accounted for over 30% of the AI in education market revenue share in 2020. This growth is attributed to transitions in academic standards and shifting their focus toward measuring students’ problem-solving and critical thinking capabilities, preparing them for higher education and career success. AI software tools understand the requirements of students at every stage of learning and prepare the learning course according to the students’ strengths and weaknesses, boosting the market demand.
The smart content segment is projected to witness exponential growth over the forecast period. The growth is attributed to beneficial offerings such as online-offline delivery of content such as audio, video & text and filtered content for technology students, resulting in a personalized reading experience. In addition, the reduced cost and resource requirements, flexibility, ease-of-use, and improved consistency in learning will drive the market.
The cloud segment is estimated to expand exponentially in the AI in education market with a 50% CAGR till 2027. The growth is driven due to the increased usage of cloud services, reducing the cost of ownership for educational institutes and enabling them to invest in maintaining and supporting infrastructural developments required to provide a high quality of education. In addition, it allows schools and universities to upgrade their prevailing infrastructure with the advanced technologies without any substantial increase in their capital costs.
Europe held the market share of more than 15% in 2020 on account of the increasing digitalization and growing investments in AI. The internet penetration in the European region is estimated to be approximately 91% in the year 2020. As the internet penetration increases, the population having access to AI-enabled educational services will also rise, fostering the market growth.
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The companies operating in the market are focusing on partnering with governments for an advanced learning platform. For instance, in March 2021, Central Board of Secondary Education (CBSE) signed a partnership agreement with Intel to launch the AI learning platform called AI Students Community (AISC). This platform is aimed to bring together students across both CBSE and non-CBSE schools and learn from Intel AI-certified experts.
Some major findings of the AI in education market report include:
Partial chapters of report table of contents (ToC):
Chapter 3   AI in Education Industry Insights
3.1    Introduction
3.2    Industry segmentation
3.3    Impact of COVID-19 outbreak
3.3.1    Global outlook
3.3.2    Regional outlook    North America    Europe    Asia Pacific    Latin America    Middle East & Africa
3.3.3    Industry value chain    AI in education providers    Marketing & distribution channel
3.3.4    Competitive landscape    Strategy    Distribution network    Business growth
3.4    AI in education industry ecosystem analysis
3.4.1    Hardware provider
3.4.2    AI in education software providers
3.4.3    Cloud service providers
3.4.4    End users
3.4.5    Vendor matrix
3.5    Industry evolution
3.6    Features & benefits of AI in education sector
3.7    Technology & innovation landscape
3.7.1    Chatbot
3.7.2    Video analytics
3.7.3    Augmented reality and virtual reality
3.7.4    Education neuroscience
3.8    Use cases
3.9    Investment portfolio
3.10    Patent analysis
3.11    Regulatory landscape
3.11.1    Health Insurance Portability and Accountability Act (HIPAA)
3.11.2    Payment Card Industry Data Security Standard (PCI DSS)
3.11.3    North American Electric Reliability Corp. (NERC) Standards
3.11.4    Federal Information Security Management Act (FISMA)
3.11.5    The Gramma-Leach-Bliley Act (GLB) Act of 1999
3.11.6    Sarbanes-Oxley Act of 2002
3.11.7    The Education Act 2011
3.11.8    Right to Education
3.11.9    Individuals with Disabilities Education Act
3.11.10    No Child Left Behind Act
3.11.11    Children’s Internet Protection Act (CIPA)
3.11.12    United Nations Education, Scientific, and Cultural Organization (UNESCO)
3.12    Industry impact forces
3.12.1    Growth drivers    Increasing venture capital investment in AI and EdTech    Exponentially growing digital data    Growing integration of ITS in learning process    Increasing partnership with education content providers    Rising adoption of cloud-based services
3.12.2    Industry pitfalls & challenges    Data safety & security issues    Limitation of ITS    Lack of skilled professionals
3.13    Growth potential analysis
3.14    Porter’s analysis
3.15    PESTEL analysis
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Source: Global Market Insights Inc.