Generative AI in Education Market Projected to Grow at 39.5% CAGR, Crossing USD 5,523 Million by 2032 | Business Upturn

Generative AI in Education Market Projected to Grow at 39.5% CAGR, Crossing USD 5,523 Million by 2032

New York, June 05, 2023 (GLOBE NEWSWIRE) — According to MarketResearch.Biz, the Generative AI in Education Market size is projected to surpass around USD 5,523 Million by 2032, and it is poised to reach a CAGR of 39.5% from 2023 to 2032.

Generative AI is a broad term that encompasses many applications and techniques aimed at enhancing the learning process of students and providing educators with innovative tools. By analyzing large amounts of data, generative AI can understand students’ needs, preferences, and learning patterns. This allows for personalized learning paths. It can adapt the content in real-time to suit individual learning styles, promoting engagement and mastery.

Generative AI in Education Market

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Key Takeaway:

  • By Type, the student segment generated the largest revenue share of 48% in 2022.
  • By Application, the adaptive Learning segment has dominated the market in 2022.
  • By technology, the natural learning processing segment was dominant in the market, with the largest market revenue share of
    40% in 2022.
  • By Deployment, the on-premises segment dominates the generative AI in Education Market.
  • In 2022, North America dominated the market with the highest revenue share of 38%.
  • The Asia Pacific region is expected to grow at a significant CAGR from 2023 to 2032.

Factors affecting the growth of Generative AI in Education Market

There are several factors that can affect the growth of Generative AI in Education market. Some of these factors include:

  • Technological Advancements: Artificial intelligence, machine learning, and natural-language processing techniques are all playing a key role in the growth in the market for generative AI. Breakthroughs in algorithmic power, data availability, and computational capability enable the development more sophisticated generative model, which can improve personalized learning, intelligent tutoring, and content creation.
  • Investment and Funding: A significant factor is the availability of funding and investment for the research, development, and implementation of generative AI in education. Investments from educational institutions and venture capitalists can help drive market growth, as they enable the development of new products.
  • Data Availability and Quality: It is crucial to have access to high-quality data when training AI models. Access to representative and diverse datasets in education can be critical for developing accurate and reliable solutions based on generative AI. The market’s growth can be attributed to institutions and organizations that can collect, curate and share relevant data.
  • Ethical and Privacy Considerations: In order to implement generative AI in education, it is necessary to handle sensitive student data, make ethical decisions about data privacy and bias, and ensure algorithmic transparency. It is crucial to be able to handle these issues responsibly in order for adoption and trust to grow. The growth and adoption of generative AI in education can be influenced by regulatory frameworks and ethics guidelines that promote responsible usage.

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Top Trends in Global Generative AI in Education Market

  • Explainable AI and Transparency: Explainable AI and transparency are becoming more important as the adoption of generative AI grows in education. Researchers and developers work to improve the interpretability and transparency of AI models.
  • Content Generation and Customization: The use of Generative AI to automate and customize educational content. AI algorithms are able to generate interactive exercises and quizzes that can be tailored for specific topics, grades, or student needs. This trend allows content to be created more efficiently and makes it easier for learners to find personalized resources.

Market Growth

edtech firms and educational institutions have increased their investment in the market for generative AI. The growth of the edtech market, which is a part of education technology, has also contributed to generative AI’s expansion in education. The AI market in education is still developing, and factors like technological advancements and regulatory considerations can influence its growth trajectory.

Regional Analysis

North America Dominate the generative AI in education market in 2022. North America and the United States have been leading the way in AI research, development, and application, especially for education. In this region, generative AI has been used in several areas, including personalized learning, intelligent tutoring, and automated essay scoring. Education institutions and edtech firms are exploring the potential for generative AI to improve teaching and learning.

Competitive Landscape

Google, Microsoft, and Adobe are among the established technology companies that have actively participated in the market for generative AI. As the market increase and innovations are introduced, it is expected that the competitive landscape for generative AI will continue to evolve. Landscapes are shaped by new entrants and partnerships. The competitive dynamics vary depending on the region.

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Scope of the Report

Report Attribute Details
Market Value (2022) US$ 214.9 Mn
Market Size (2032) US$ 5,523.074 Mn
CAGR (from 2023 to 2032) 39.50%
North America Revenue Share 38.00%
Historic Period 2016 to 2022
Base Year 2022
Forecast Year 2023 to 2032

Market Drivers

Intelligent Tutoring Systems: Generative AI can power intelligent tutoring systems, offering real-time feedback, adaptive learning paths, and personalized recommendations. These systems mimic human-like interactions, providing students with individualized guidance and support throughout their learning journey.

Content Creation and Curriculum Development: Generative AI automates curriculum and content creation, making it easier for students and educators to create engaging learning materials. It can create interactive activities, lesson plans, assessments, and educational resources that are tailored for specific topics or grades.

Market Restraints

Lack of Proper Training and Expertise: You will need to have specialized knowledge and expertise in order to successfully integrate generative AI technology into education. Teachers and educators may need professional development and training to effectively use AI technology and tools in the classroom. Lack of support and training may prevent the adoption of generative AI.

Cost and Resource Constraints: Implementing generative AI systems can be costly, particularly in smaller educational institutions. The infrastructure, computing resources, and technical assistance required to run AI systems are expensive. Costs to integrate AI into educational frameworks, and to maintain them, can be high.

Market Opportunities

Data Analysis and Insights: The AI-generated by the generative AI system can analyze large amounts of data in education, such as student performance, engagement metrics, and behavior. This allows educators to gain insight into learning patterns, identify improvement areas, and make data-informed instructional decisions. It allows for evidence-based teaching and learning.

Continuous Improvement and Adaptation: The use of generative AI in education allows for continual improvement and adaptation. By analyzing student performance, feedback, and learning outcomes, generative AI can improve their recommendations, personalized learning paths, and content generation.

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Report Segmentation

Type Insight

For customized training, Generative AI can analyze individual student data, including patterns of learning and preferences strengths, and weaknesses. Special needs students could benefit from the benefits of generative AI like students with cognitive impairments sensory disorders, and learning difficulties. In the realm of education, the use of generative AI can provide personalized learning experiences and specific support and intervention. Generative AI can enhance the performance of students’ learning and their involvement with the educational system by knowing the distinct features and needs of every student.

Application Insight

An adaptive AI system allows for the adjustment of the contents of an instructional program in response to student performance and progress. AI algorithms analyze the data of students’ learning and pinpoint the areas that are difficult. They create specific interventions to solve these issues. This program permits adaptive learning paths and ensures that students receive individual instruction and guidance based on the individual requirement of each student.

Technology Insight

NLP is the technology that allows computers to process and understand human language. NLP is a key component of generative AI. It helps analyze and generate text that looks like it was written by a human. NLP algorithms can be used to interpret and process natural language inputs provided by students, and then generate responses that are coherent and context-relevant. This technology is vital for applications such as automated essay grading exercises, language practice, and interactive storytelling.

Deployment Mode Insight

The institution that is used by the educational institution installs and manages a generative AI system and infrastructure. The institution’s educational institutions are completely in charge of the hardware and software data used to build the generative AI applications. On-premises deployment offers more safety, protection, and custom options, in addition to regular maintenance and system updates. It is essential that the institution is equipped with the infrastructure and skills to manage an AI system that is generative. Cloud-based deployment refers to the hosting of generative AI programs and applications using a cloud-based computing platform. Cloud service providers provide Infrastructure as a Service, Platform as a Service, and Software as a Service models for educational institutions.

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Market Segmentation

Based on Type

  • Students
  • Teachers
  • Administrators
  • Educational Institutions
  • Other Types

Based on Application

  • Adaptive Learning
  • Content Generation
  • Automated Grading
  • Personalized Tutoring
  • Virtual Simulations
  • Intelligent Learning System
  • Other Applications

Based on Technology

  • Natural Language Processing
  • Machine Learning
  • Computer Vision
  • Other Technologies

Based on Deployment Mode

  • On-Premise
  • Cloud-Based

Key Regions

  • North America
    • The US
    • Canada
    • Mexico
  • Western Europe
    • Germany
    • France
    • The UK
    • Spain
    • Italy
    • Portugal
    • Ireland
    • Austria
    • Switzerland
    • Benelux
    • Nordic
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Poland
    • The Czech Republic
    • Greece
    • Rest of Eastern Europe
  • APAC
    • China
    • Japan
    • South Korea
    • India
    • Australia & New Zealand
    • Indonesia
    • Malaysia
    • Philippines
    • Singapore
    • Thailand
    • Vietnam
    • Rest of APAC
  • Latin America
    • Brazil
    • Colombia
    • Chile
    • Argentina
    • Costa Rica
    • Rest of Latin America
  • Middle East & Africa
    • Algeria
    • Egypt
    • Israel
    • Kuwait
    • Nigeria
    • Saudi Arabia
    • South Africa
    • Turkey
    • United Arab Emirates
    • Rest of MEA

Key Players

  • IBM Corporation
  • Microsoft Corporation
  • Google LLC
  • Cognii Inc.
  • Knewton
  • Blackboard
  • Metacog Inc.
  • Duolingo
  • Other Market Players

Recent Development

  • In 2021, OpenAI has long been at the forefront of generative AI development, pioneering ChatGPT as an example. They released GPT-3 an advanced language model used for education purposes; OpenAI continues to refine and expand upon its models’ capabilities.
  • In 2022, Coursera is a premier online learning platform that has integrated generative AI into their platform to enhance student experiences and support more targeted guidance and assistance for programming assignments. In 2022 alone, Coursera implemented AI-generated personalized feedback which provided them with greater guidance and assistance during programming assignments.
  • In 2022, Duolingo is an increasingly popular language learning platform that has recently integrated generative AI into their system. They introduced chatbots that engage learners directly for interactive language practice and feedback.
  • In 2022, IBM’s cognitive computing system, Watson, has made strides forward with regards to generative AI for education. They released Watson Tutor in 2022 – an AI-powered virtual tutor which offers tailored lessons based on individual student needs for personalized learning experiences and assistance.

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  • Generative AI in Sports Market size is expected to be worth around USD 2,311.0 Mn by 2032 from USD 170.5 Mn in 2022, growing at a CAGR of 30.6%
  • Generative AI in Higher Education Market size is expected to be worth around USD 313.4 Mn by 2032 from USD 137.7 Mn in 2022, growing at a CAGR of 8.8% during the forecast period from 2023 to 2032.
  • Generative AI in Pharma market size is expected to be worth around USD 2258.1 Mn by 2032 from USD 159.9 Mn in 2022, growing at a CAGR of 31.2% during the forecast period from 2023 to 2032.

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