How Has the Artificial Intelligence AI In Higher Education Market Size Evolved in Recent Years?
The artificial intelligence ai in higher education market has seen considerable growth due to a variety of factors.
• The market size of artificial intelligence (AI) in higher education has witnessed a substantial increase in recent times. It is projected to expand from $2.24 billion in 2024 to an impressive $3.03 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 35.1%.
This growth during the historic period can be credited to the escalating demand for individualized learning, swelling enrolment rates requiring scalable solutions, the evolution of online education triggering AI amalgamation, a stronger focus on personalized learning trajectories via AI, and an intensifying demand for AI within the realm of higher education.
What Are The Predictions for The Artificial Intelligence AI In Higher Education Market?
The artificial intelligence ai in higher education market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for artificial intelligence (AI) in higher education is set for significant expansion in the coming years, with predictions suggesting it will reach $10 billion in 2029, growing at a compound annual growth rate (CAGR) of 34.8%.
This growth throughout the forecast period is linked to the rising demand for blended learning models, the urgency for integrating AI, the pursuit of AI solutions by institutions for improving student engagement, the surge for online learning, and an emphasis on lifelong learning are all driving forces behind AI's adoption. Throughout the forecast period, key trends include the progression in technology, advancements in AI technology, increased funding in EdTech, the development of AI-driven research tools, and the evolution of smart content.
Which Drivers Are Accelerating Growth In The Artificial Intelligence AI In Higher Education Market?
The surge in online education is predicted to fuel the expansion of AI in the higher education market. Online education, which involves delivering instructional content and learning experiences via digital platforms, allows students to access education from a distance, over the internet. The rise in online education is linked to its flexible, convenient, and accessible nature, permitting students to study from any location and at any time, accommodating varied needs and schedules. AI advances online education by customizing learning experiences, automating clerical tasks, and establishing smart support systems, enhancing the engagement and efficiency of both students and educators. Notably, in January 2022, Coursera reported a three-fold rise in new registrations for online courses, tallying 71 million in 2020 and 92 million in 2021 as per a report by the Switzerland-based non-governmental organization, the World Economic Forum. This boom is attributed to the shift towards remote working during the pandemic. Hence, the booming online education is catalyzing the expansion of AI in the higher education market.
What Are The Core Segments Of The Global Artificial Intelligence AI In Higher Education Market?
The artificial intelligence (AI) in higher education market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment Mode: Cloud-Based, On-Premise
3) By Technology: Machine Learning (ML), Natural Language Processing (NLP), Computer Vision, Other Technologies
4) By Application: Learning Platforms And Virtual Facilitators, Intelligent Tutoring System, Smart Content, Fraud And Risk Management, Other Applications
Subsegments:
1) By Solution: AI-Powered Learning Management Systems (LMS), Personalized Learning Platforms, Predictive Analytics Tools, Intelligent Tutoring Systems, AI-Driven Assessment Tools, Chatbots for Student Support, Curriculum Development Tools
2) By Services: Consulting Services, Implementation Services, Training and Support Services, Maintenance and Upgradation Services, Data Analytics and Reporting Services
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Which Emerging Trends Are Reshaping The Artificial Intelligence AI In Higher Education Market Size?
Mainstream businesses in the AI in higher education market are crafting ground-breaking AI technology-driven instruments specifically for the educational system. These tools are aimed at providing customized learning experiences, increasing engagement, automating administrative work, delivering timely aid, and intensifying the comprehensive effectiveness and competence of the teaching process. AI implements used in education are targeted at providing smart learning experiences, tailor teaching, automate administrative work, and present students and educators with tech-guided support systems. For example, in July 2024, Pearson Plc, a UK-based educational enterprise, initiated an AI-based tool powered by generative technology for course instructors. Pearson's AI tool will aid teachers in efficiently generating custom assignments for students. The AI tool incorporates Pearson's MyLab and Mastering, which are teaching and learning platforms. It is bent on augmenting the way faculty members teach. The standout feature of Pearson's AI tool lies in its proficiency to expedite the assignment creation process.
Who Are the Key Players In The Artificial Intelligence AI In Higher Education Market?
Major companies operating in the artificial intelligence (AI) in higher education market are:
• Amazon.com Inc.
• Google LLC
• Microsoft Corporation
• Intel Corporation
• International Business Machines Corporation
• Oracle Corporation
• Cognizant Technology Solutions India Private Limited
• Adobe Inc.
• Pearson Plc
• Century Communities Tech Limited
• John Wiley and Sons Inc.
• 2U Inc.
• Coursera Inc.
• Instructure Holdings Inc.
• D2L Inc.
• Kaltura Inc.
• Jenzabar Inc.
• Carnegie Learning Inc.
• Brainly Inc.
• Quantum Adaptive Learning LLC
• Knewton Inc.
• BridgeU Ltd.
• Fishtree Inc.
• Querium Corporation
• Cognii Inc
What Are The Regional Insights Into The Artificial Intelligence AI In Higher Education Market?
North America was the largest region in the AI in higher education market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in higher education market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
