The global artificial intelligence (AI) in education market is poised for unprecedented growth, with its value estimated at $5.88 billion in 2024 and projected to expand at a staggering CAGR of 31.2% from 2025 to 2030, according to Grand View Research. This surge is driven by the increasing demand for personalized learning experiences, as institutions worldwide adopt AI-driven tools to revolutionize education.

Key Drivers of Market Growth

1. Personalized Learning and Intelligent Tools
2. AI-powered tools such as Intelligent Tutoring Systems (ITS), chatbots, and learning analytics are enhancing student engagement and teaching methods. These tools enable tailored learning experiences, allowing educators to cater to diverse learning styles.
3. Shift to E-Learning
4. The pandemic accelerated the shift towards e-learning platforms, making AI a cornerstone of modern education. Investments in EdTech startups and advancements in technologies like Natural Language Processing (NLP) and computer vision have further amplified AI’s role in automated assessments and adaptive learning.
5. Data-Driven Decision Making
6. Educational institutions increasingly rely on AI analytics to monitor student performance, predict dropout risks, and design interventions. This trend underscores the growing need for data-informed strategies in education.
7. Hybrid Learning Models
8. The global shift towards hybrid learning environments blends traditional and online education, creating long-term opportunities for AI-powered solutions.

Technological Highlights

• Machine Learning: With a 64.7% market share in 2024, machine learning algorithms power personalized education, adaptive platforms, and predictive analytics.
• Natural Language Processing (NLP): Expected to grow significantly, NLP enables seamless interaction, automated grading, and inclusive learning through translation tools.

Applications and Regional Insights

• Learning Platforms: AI-driven platforms led the market with a 45.9% share in 2024, driven by rising demand for virtual facilitators and flexible digital education models.
• North America: Dominated the market with a 38% share, fueled by advanced tech infrastructure and high EdTech investments.
• Asia Pacific: Poised for the fastest growth, with countries like China and India embracing AI to enhance education accessibility and quality.

Top players, including Microsoft, IBM Corporation, Google LLC, and Pearson, are leveraging AI to redefine learning. Recent developments include:

• PowerSchool’s AI-Powered Tools: Launched in 2024 to support college readiness and community engagement.
• Pearson’s Generative AI Tools: Enabling syllabus customization and embedding AI tutors in educational videos.

The global AI in education market is on track to transform traditional and online learning environments, offering scalable, inclusive, and innovative solutions. As institutions embrace AI-driven tools, the future of education looks brighter, with a strong focus on personalization, efficiency, and accessibility.