2025 Analysis: Opportunities and Risks in the Evolving Artificial Intelligence (AI) In Teaching Market
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What Is the Outlook for the Artificial Intelligence (AI) In Teaching Market Heading Into 2029?
The market size of artificial intelligence (AI) in teaching has witnessed a substantial expansion in recent times. An escalation from $1.35 billion in 2024 to $1.71 billion in 2025 is projected, equating to a compound annual growth rate (CAGR) of 26.6%. Factors contributing to the growth during the previous period include the demand for customized learning, the digital transformation of education, initiatives by the government, the implementation of electronic-learning catalyzed by the pandemic, and investments in educational technology.
Expectations are high for the artificial intelligence (AI) in teaching market as it’s predicted to experience remarkable growth in the coming years. The market is projected to surge to $4.39 billion in 2029, with a compound annual growth rate (CAGR) of 26.7%. Factors contributing to this anticipated growth during the forecast period include expansion in cloud-based AI, edtech investment growth, increased application of learning analytics, the proliferation of online and remote learning, along with enhanced access to quality education. Key trends for the forecasted period encompass adaptive learning platforms, integration of virtual and augmented reality, advanced intelligent tutoring systems, progress in natural language processing, and predictive analytics.
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Which Factors Are Pushing The Artificial Intelligence (AI) In Teaching Market Forward?
The surge in uptake of personalized learning is anticipated to accelerate the expansion of the artificial intelligence (AI) in education market in the coming years. Personalized learning is an educational strategy that modifies instruction, content, speed, and learning environment to suit each student’s specific needs, preferences, and capabilities, often utilizing technology and data analysis for bespoke learning experiences. This approach is growing in popularity due to its ability to cater to students’ unique needs, strengths, and learning styles. Personalized learning offers custom-made educational experiences that address individual student’s particular strengths and shortcomings, enhancing involvement and enhancing learning outcomes. AI enhances personalized learning by examining student data to modify lessons immediately, ensuring tailored content and feedback for ideal learning progress. For example, in January 2024, the Department of Education reported that about 42% of primary and secondary school teachers used generative artificial intelligence in November 2023, a significant jump from 17% in April. As such, the surging uptake of personalized learning is fueling the expansion of the artificial intelligence (AI) in teaching sector.
Which Segment Held The Largest Share In The Artificial Intelligence (AI) In Teaching Market In 2025?
The artificial intelligence (ai) in teachingmarket covered in this report is segmented –
1) By Component: Services, Hardware, Software
2) By Deployment: On-Premises, Cloud-Based
3) By Technology: Computer Vision, Machine Learning, Natural Language Processing (NLP), Other Technologies
4) By End-User: Corporate Training, Kindergarten-12 Education, Higher Education
Subsegments:
1) By Services: Professional Services, Managed Services, Consulting, Support And Maintenance, Training And Education
2) By Hardware: Processors, Memory Devices, Networking Devices, Storage Devices, Edge Devices
3) By Software: Learning Management Systems (LMS), Intelligent Tutoring Systems, Natural Language Processing (NLP) Tools, Predictive Analytics Tools, Computer Vision Applications, Speech Recognition Software, Artificial Intelligence-Based Content Delivery Platforms
Which Trends Are Redefining The Future Landscape Of The Artificial Intelligence (AI) In Teaching Industry?
Leading businesses in the field of artificial intelligence (AI) use in education are concentrating on developing cutting-edge products like generative AI tools. These instruments are designed to provide customized learning experiences, real-time feedback, and adapt educational content based on the learner’s requirements. Generative AI tools represent AI systems capable of generating learner-focused educational materials such as quizzes, explainer pieces, and lessons. For example, in December 2023, Carnegie Learning, an American company specializing in K-12 educational technology, launched LiveHint AI. This AI-based tool, the first of its kind, emulates a student’s thought process in learning math. Unlike conventional tools that merely provide answers, LiveHint AI preemptively identifies common errors and gives personalized, step-by-step guidance to promote a deeper understanding of the subject. It has been trained on a vast language model which draws on 25 years of proprietary data and is in sync with ACT-R cognitive architecture to optimally reflect the learning process for mathematics.
Which Organizations Are Driving Progress In The Artificial Intelligence (AI) In Teaching Industry?
Major companies operating in the artificial intelligence (AI) in teaching market are Google LLC, Microsoft Corporation, IBM Corporation, Alibaba Cloud Pvt Ltd, OpenAI Inc, Coursera Inc., Discovery Education Inc., Udacity Inc., Jenzabar Inc., Carnegie Learning Inc., DreamBox Learning Inc., Fishtree Inc., Anthology Inc., Riiid Inc., Third Space Learning, Blackboard Inc., Knewton Academy, Squirrel AI Learning, Cerego LLC, Querium Corporation, Cognii Inc., Fishtree Inc
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Which Region Is Expected To Experience The Highest Growth In The Artificial Intelligence (AI) In Teaching Industry?
North America was the largest region in the artificial intelligence (AI) in teaching market in 2024. The regions covered in the artificial intelligence (AI) in teaching market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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