AI in Education Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

AI in Education Market is Segmented by Component (Solutions, Services), Deployment Mode (Cloud, On-Premises, Hybrid), End-User (K-12 Schools, Higher Education Institutions, Corporate Training and Skill Development, and More), Application (Intelligent Tutoring Systems, Virtual Facilitators and Learning Environments, and More), Technology (Machine Learning, Natural Language Processing, Computer Vision, and More) and Geography.

AI In Education Market Size and Share

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AI In Education Market Analysis by Mordor Intelligence

The AI in education market is valued at USD 6.90 billion in 2025 and is forecast to reach USD 41.01 billion by 2030, advancing at a 42.83% CAGR. Demand is propelled by mandatory digital-literacy policies, rapid cloud adoption, and measurable gains in student success that move artificial intelligence from pilot projects to core infrastructure. Institutions now view AI as the fastest route to personalized learning, reduced administrative overhead, and wider access for underserved learners. Vendors that combine content, data, and analytics inside unified platforms are outpacing point-solution rivals because buyers prefer single-stack ecosystems. Sustainability and data-privacy requirements are emerging as design constraints, steering investment toward privacy-preserving architectures and energy-efficient models.

Key Report Takeaways

  • By component, Solutions held 69.60% of the AI in education market share in 2024, while Services is projected to grow at a 38.20% CAGR through 2030. 
  • By deployment mode, Cloud accounted for 59.30% of revenue in 2024; Hybrid/Cloud is expanding at a 41.30% CAGR to 2030. 
  • By end-user, Higher Education captured 45.00% of demand in 2024, whereas Corporate Training and Skill Development posts the fastest growth at 44.80% CAGR. 
  • By application, Virtual Facilitators and Learning Environments led with 35.40% share in 2024; Adaptive Assessment and Grading is advancing at a 46.70% CAGR. 
  • By technology, Machine Learning dominated at 62.90% market share in 2024; Deep Learning and Generative AI is projected to rise at a 48.30% CAGR. 
  • By geography, North America represented 38.80% of 2024 revenue, while Asia-Pacific registers the quickest pace at 44.20% CAGR.

Segment Analysis

By Component: Integrated Platforms Dominate Adoption

Solutions captured 69.60% of 2024 revenue, underscoring buyers’ preference for single-vendor stacks that blend tutoring, grading, and analytics into one interface. The AI in education market size for Solutions stood at USD 4.79 billion in 2024, while Services covered the remaining demand through integration, training, and support engagements. Microsoft 365 Copilot is in use at 70% of Fortune 500 organizations for learning applications, illustrating how platform breadth sways procurement decisions.

Services expand at a 38.20% CAGR to 2030 as schools seek migration road-maps, data-lake architecture, and change-management services that internal departments cannot deliver. Consulting firms translate pedagogical needs into AI feature sets and orchestrate pilot-to-scale rollouts. This advisory premium reinforces that professional expertise remains essential even where out-of-the-box platforms lead the AI in education market.

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By Deployment Mode: Cloud Infrastructure Underpins Scale

Cloud deployments account for 59.30% revenue today and are rising at 41.30% CAGR. This dominance anchors elastic compute for NLP graders and computer-vision invigilators without on-premise hardware lock-in. Institutions prefer operational expense models after pandemic budgets tightened, and cloud vendors respond with education-specific AI bundles. Alphabet notes that one-third of its latest USD 11.4 billion cloud sales involve learning workloads.

On-premise still serves districts with strict data-sovereignty rules, while hybrid architectures balance latency and security. Flexible models advance resilience, reassuring boards that sensitive student data can remain local even as AI scale explodes. Cloud momentum, therefore, cements vendor ecosystems and accelerates the AI in education market’s mainstream status.

By End-User: Corporate Training Surges

Higher Education maintained 45.00% revenue share in 2024 as universities automate advising, research support, and grading. Yet Corporate Training registers a blistering 44.80% CAGR through 2030, the fastest inside the AI in education industry. Employers confront talent shortages in data science and prompt engineering, so they finance micro-learning suites that issue stackable certificates within weeks. Accenture’s LearnVantage strategy exemplifies the pivot, marrying content and assessment into continuous learning flows that both hires and incumbent employees complete on demand.

K-12 Schools adopt AI chiefly for administrative workflows and differentiated learning. Government agencies and professional bodies round out other end-users, validating that applications now extend beyond classroom walls. This broadening base underpins resilience against cyclical education budgets and widens the addressable AI in education market.

By Application: Assessment Innovation Gains Speed

Virtual Facilitators and Learning Environments held the largest 2024 slice at 35.40%, reflecting early interest in AI tutors and immersive simulations. The AI in education market share for Adaptive Assessment and Grading, however, is accelerating, with a 46.70% CAGR forecast. AI graders cut essay review from 10 minutes to 30 seconds while offering rubric-aligned feedback, freeing instructors to focus on mentoring.

Continuous assessment now eclipses periodic testing. More than 67% of universities rely on automated systems, enabling real-time performance dashboards that surface misconceptions before they calcify. This shift positions assessment engines as both learning companions and accountability frameworks, solidifying their pivotal role in the AI in education market.

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Note: Segment shares of all individual segments available upon report purchase

By Technology: Generative AI Opens New Frontiers

Machine Learning underpins 62.90% of current solutions, but Deep Learning and Generative AI are expanding at 48.30% CAGR, the highest by technology segment. Large-language-model tutors such as ChatGPT’s Advanced Voice Mode offer emotionally aware, multilingual dialogue that adapts on the fly. Educators deploy generative tools to draft lesson plans, quizzes, and differentiated content in seconds, reclaiming prep time.

Edge AI rises in tandem, processing data locally to satisfy privacy rules while maintaining low latency. Speech recognition, computer vision, and NLP converge into multimodal experiences, merging spoken, visual, and written cues across devices. These innovations advance inclusivity and reinforce AI’s ubiquity within every learning touchpoint.

Geography Analysis

North America holds 38.80% of 2024 revenue, boosted by deep venture-capital pools, dense cloud datacenters, and a culture of early technology adoption. Microsoft and Khan Academy now provide free AI tutoring for US educators, supporting rapid penetration despite uneven state guidance. Canada’s federal grants for AI research fuel a pipeline of spin-out EdTech ventures, and both nations benefit from mature broadband infrastructure that supports high-bandwidth AI applications.

Asia-Pacific leads growth at 44.20% CAGR as governments embed AI into compulsory curricula. China’s eight-hour requirement for first-graders anchors durable demand, while Japan integrates AI across core subjects under its new teaching guidelines. India leverages Microsoft’s global skilling program, having trained 14 million residents, to bridge capability gaps. A composite of public-private projects propels the AI in education market size in Asia-Pacific toward leadership by 2030.

Europe advances along a privacy-first trajectory. The EU AI Act designates education as high-risk, so vendors must build auditable systems that align with GDPR. Germany’s USD 6 billion DigitalPakt Schule and Estonia’s AI Leap initiative illustrate targeted investment. Erasmus+ projects such as Generation AI nurture teacher readiness. This managed approach delivers steady but policy-guarded expansion that differentiates the region in the global AI in education market.

AI in Education Market
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Competitive Landscape

Competition is moderate and tilts toward vendors with ecosystem depth. No single firm holds overriding power, but Microsoft’s 2025 Pearson partnership and USD 13 billion AI run rate underline the clout of hyperscalers that control compute, models, and distribution simultaneously. Google and Amazon play similar roles, pairing infrastructure with developer kits that accelerate third-party courseware.

EdTech specialists such as DreamBox Learning and Carnegie Learning defend their share by embedding domain-specific pedagogy. AI-native disruptors like MagicSchool report 28% outcome improvement and 88% satisfaction, proving that nimble innovation can outshine sheer scale. Consolidation looms as smaller firms seek capital to match GPU costs and regulatory compliance overhead. Vendors that offer tight integration, privacy safeguards, and measurable impact will shape future share moves in the AI in education market.

AI In Education Industry Leaders

  1. Amazon Web Services, Inc.

  2. IBM Corporation

  3. Microsoft Corporation

  4. Google LLC

  5. Pearson plc

  6. *Disclaimer: Major Players sorted in no particular order
AI In Education Market Concentration
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Recent Industry Developments

  • May 2025: UAE Ministry of Education made AI a mandatory subject for all public-school students beginning the 2025–2026 year.
  • April 2025: European Commission released the AI Continent Action Plan, including an AI Skills Academy and data-access reforms.
  • January 2025: Microsoft and Pearson agreed on a multiyear pact to co-develop AI-powered learning platforms and assessments.
  • January 2025: Estonia launched the AI Leap Initiative, giving 20,000 students and 3,000 teachers access to AI tools starting September 2025.

Table of Contents for AI In Education Industry Report

1. INTRODUCTION

  • 1.1 Market Definition and Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Surge in demand for personalized learning ecosystems
    • 4.2.2 Rapid adoption of cloud-native AI EdTech platforms
    • 4.2.3 Government funding and policy mandates for EdTech
    • 4.2.4 Multilingual AI voice assistants expanding cross-border enrolments
    • 4.2.5 Synthetic data accelerating AI model training and localization
    • 4.2.6 AI-driven micro-credentialing for workforce up-skilling
  • 4.3 Market Restraints
    • 4.3.1 Data-privacy and compliance complexities
    • 4.3.2 Digital and pedagogical skill-gaps among educators
    • 4.3.3 Algorithmic bias triggering regulatory push-back
    • 4.3.4 Sustainability concerns over AI compute energy use
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Evaluation of Critical Regulatory Framework
  • 4.6 Impact Assessment of Key Stakeholders
  • 4.7 Technological Outlook
  • 4.8 Porter's Five Forces Analysis
    • 4.8.1 Bargaining Power of Suppliers
    • 4.8.2 Bargaining Power of Consumers
    • 4.8.3 Threat of New Entrants
    • 4.8.4 Threat of Substitutes
    • 4.8.5 Intensity of Competitive Rivalry
  • 4.9 Impact of Macro-economic Factors

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Component
    • 5.1.1 Solutions
    • 5.1.2 Services
  • 5.2 By Deployment Mode
    • 5.2.1 Cloud
    • 5.2.2 On-Premises
    • 5.2.3 Hybrid
  • 5.3 By End-User
    • 5.3.1 K-12 Schools
    • 5.3.2 Higher Education Institutions
    • 5.3.3 Corporate Training and Skill Development
    • 5.3.4 Educational Publishers
    • 5.3.5 Other End-Users
  • 5.4 By Application
    • 5.4.1 Intelligent Tutoring Systems
    • 5.4.2 Virtual Facilitators and Learning Environments
    • 5.4.3 Learning Analytics and Recommendation Engines
    • 5.4.4 Automated Administration and Proctoring
    • 5.4.5 Content Delivery Systems
    • 5.4.6 Adaptive Assessment and Grading
  • 5.5 By Technology
    • 5.5.1 Machine Learning
    • 5.5.2 Natural Language Processing
    • 5.5.3 Computer Vision
    • 5.5.4 Speech Recognition
    • 5.5.5 Deep Learning and Generative AI
    • 5.5.6 Edge AI and On-device Inference
  • 5.6 By Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
    • 5.6.2 South America
    • 5.6.2.1 Brazil
    • 5.6.2.2 Argentina
    • 5.6.2.3 Rest of South America
    • 5.6.3 Europe
    • 5.6.3.1 Germany
    • 5.6.3.2 United Kingdom
    • 5.6.3.3 France
    • 5.6.3.4 Italy
    • 5.6.3.5 Spain
    • 5.6.3.6 Russia
    • 5.6.3.7 Rest of Europe
    • 5.6.4 Asia-Pacific
    • 5.6.4.1 China
    • 5.6.4.2 Japan
    • 5.6.4.3 India
    • 5.6.4.4 South Korea
    • 5.6.4.5 Australia and New Zealand
    • 5.6.4.6 Rest of Asia-Pacific
    • 5.6.5 Middle East and Africa
    • 5.6.5.1 Middle East
    • 5.6.5.1.1 Saudi Arabia
    • 5.6.5.1.2 UAE
    • 5.6.5.1.3 Turkey
    • 5.6.5.1.4 Rest of Middle East
    • 5.6.5.2 Africa
    • 5.6.5.2.1 South Africa
    • 5.6.5.2.2 Nigeria
    • 5.6.5.2.3 Egypt
    • 5.6.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Amazon Web Services, Inc.
    • 6.4.2 IBM Corporation
    • 6.4.3 Microsoft Corporation
    • 6.4.4 Google LLC
    • 6.4.5 Pearson plc
    • 6.4.6 BridgeU Ltd.
    • 6.4.7 DreamBox Learning, Inc.
    • 6.4.8 Carnegie Learning, Inc.
    • 6.4.9 Duolingo, Inc.
    • 6.4.10 Riiid, Inc.
    • 6.4.11 Squirrel AI Learning, Inc.
    • 6.4.12 Knewton, Inc.
    • 6.4.13 Quizlet, Inc.
    • 6.4.14 Coursera Inc.
    • 6.4.15 Udacity, Inc.
    • 6.4.16 BYJU'S (Think and Learn Pvt Ltd)
    • 6.4.17 New Oriental Education and Technology Group Inc.
    • 6.4.18 Yuanfudao (Beijing Fenbi Yuedao Educational Technology Co., Ltd.)
    • 6.4.19 2U, Inc.
    • 6.4.20 Chegg, Inc.
    • 6.4.21 Instructure Holdings, Inc.
    • 6.4.22 Century-Tech Ltd.
    • 6.4.23 Querium Corporation
    • 6.4.24 Cognii, Inc.
    • 6.4.25 Kahoot! ASA
    • 6.4.26 ALEKS Corporation

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  • 7.1 White-space and Unmet-need Assessment
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Global AI In Education Market Report Scope

AI-powered educational technology encompasses tools for teachers, students and administrators. Educational games, adaptive learning platforms, chatbots and intelligent tutoring systems provide individualized support for learners.

The AI in education market is segmented by type (solution, services), by deployment (cloud, on-premises), by end-user (educational institutes, educational publishers, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component Solutions
Services
By Deployment Mode Cloud
On-Premises
Hybrid
By End-User K-12 Schools
Higher Education Institutions
Corporate Training and Skill Development
Educational Publishers
Other End-Users
By Application Intelligent Tutoring Systems
Virtual Facilitators and Learning Environments
Learning Analytics and Recommendation Engines
Automated Administration and Proctoring
Content Delivery Systems
Adaptive Assessment and Grading
By Technology Machine Learning
Natural Language Processing
Computer Vision
Speech Recognition
Deep Learning and Generative AI
Edge AI and On-device Inference
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia and New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
UAE
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Egypt
Rest of Africa
By Component
Solutions
Services
By Deployment Mode
Cloud
On-Premises
Hybrid
By End-User
K-12 Schools
Higher Education Institutions
Corporate Training and Skill Development
Educational Publishers
Other End-Users
By Application
Intelligent Tutoring Systems
Virtual Facilitators and Learning Environments
Learning Analytics and Recommendation Engines
Automated Administration and Proctoring
Content Delivery Systems
Adaptive Assessment and Grading
By Technology
Machine Learning
Natural Language Processing
Computer Vision
Speech Recognition
Deep Learning and Generative AI
Edge AI and On-device Inference
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia and New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
UAE
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Egypt
Rest of Africa
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Key Questions Answered in the Report

What is the size of the AI in education market in 2025 and how fast is it expanding?

The market is valued at USD 6.90 billion in 2025 and is forecast to grow to USD 41.01 billion by 2030, reflecting a 42.83% CAGR.

Which region is expected to be the fastest-growing for AI in education?

Asia-Pacific shows the highest momentum with a projected 44.20% CAGR, lifted by government mandates that make AI literacy compulsory in several countries.

Which application category currently leads and which is growing the quickest?

Virtual Facilitators and Learning Environments hold the largest share at 35.40% in 2024, while Adaptive Assessment and Grading solutions are expanding the fastest at a 46.70% CAGR.

What are the primary factors driving market adoption?

Compulsory AI curricula, the shift to cloud-native learning platforms, and measurable gains in personalized learning and administrative efficiency form the core growth drivers.

What key challenges may restrain near-term growth?

Data-privacy compliance under rules such as the EU AI Act and a global educator skills gap are the most immediate barriers, each lowering projected CAGR by over 3%.

Page last updated on: June 17, 2025