AI in Education Market Size to Surpass USD 136.79 Billion by 2035 Amid Rapid EdTech Expansion and AI Adoption

The global AI in education market size was calculated at USD 7.05 billion in 2025 and is predicted to surpass around USD 136.79 billion by 2035, expanding at a strong CAGR of 34.52% from 2026 to 2035. The growing investments in EdTech and the increased demand for personalised learning drive the AI in education market growth.

Ottawa, Feb. 25, 2026 (GLOBE NEWSWIRE) -- According to Precedence Research, the global AI in education market size will grow from USD 9.58 billion in 2026 to nearly USD 136.79 billion by 2035, growing at a CAGR of 34.52% from 2026 to 2035

The global AI in education market growth is largely driven by the rising demand for more personalized learning experiences, increased investments in EdTech, and the need for smarter tools that help educators improve student performance while simplifying administrative tasks.

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AI in Education Market Key Highlights

North America led the AI in education market, accounting for the largest share of 38% in 2025.
Asia Pacific is projected to be the fastest-growing region over the forecast period.
By component, the solutions segment dominated the market with over 72% share in 2025.
Meanwhile, the services segment is expected to grow rapidly, registering a strong CAGR of 37.15%.
By deployment, cloud-based solutions held the largest share at 57% in 2025.
The on-premise segment, however, is anticipated to grow at the fastest pace during the forecast period.
By technology, machine learning led the market with a 64% share in 2025.
The natural language processing (NLP) segment is set to witness significant growth, with a CAGR of 36.64%.
By application, learning platforms and virtual facilitators accounted for more than 47% of the market share in 2025.
The smart content segment is expected to expand steadily, with a CAGR of 37.84%.
By end use, the higher education segment held the largest market share in 2025.

What is AI in Education?

AI in education is the process of using Artificial Intelligence (AI) technologies to enhance the learning and teaching experience. The applications of AI in education include intelligent tutoring systems, content creation, personalised learning, automated administrative tasks, predictive analytics, and customization. It offers benefits like automated assessment, administrative efficiency, immersive learning experiences, boosts engagement, 24/7 support, enhanced accessibility, improves educational material, and 24/7 tutoring. It supports smart content creation and offers data-driven insights.

Education is the never-ending process of learning ethical values, intellectual capabilities, habits, and technical skills. The various types of education are informal education, formal education, and non-formal education. It is essential for character development, personal growth, and lowering poverty. It offers benefits like critical thinking, social equality, societal growth, career advancement, personal development, cognitive development, financial stability, confidence, and decision-making. Education helps in the development of responsible citizens and creates empathy.

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Major Government Initiatives for AI in Education:

National Education Policy (NEP) 2020 (India): This policy mandates the integration of AI-related subjects like digital literacy and coding across all school levels to prepare students for a tech-driven economy.
Advancing AI Education for American Youth (USA): An Executive Order issued in April 2025 that established a national task force to integrate AI literacy into K-12 and postsecondary curricula through public-private partnerships.
YUVAi: Youth for Unnati and Vikas with AI (India): A national programme by MeitY that empowers students in grades 8 to 12 to develop AI-driven solutions for real-world social challenges.
FutureProof Education (European Union & UNESCO): Launched in late 2025, this joint initiative provides ethical AI implementation toolkits and professional development for schools across multiple European member states.
AI Leap Initiative (Estonia): A nationwide rollout starting in 2025 that provides students and teachers with free access to advanced AI learning applications to reduce administrative burdens and enhance digital competencies.
Presidential AI Challenge (USA): A nationwide competition launched as part of a 2025 federal mandate to inspire students and educators to solve real-world problems using AI technologies.

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Key Components of Global AI Education

Initiative	Target Group	Primary Goal
IndiaAI FutureSkills	Higher Ed/PhD	Building an elite talent pool through research fellowships
EU AI Literacy Act	Workforce/Staff	Mandates that AI providers and deployers ensure staff possess adequate AI literacy
Centre of Excellence in AI	Higher Ed	A national hub for AI research and curriculum development

What are the Key Trends for the AI in Education Market?

Hyper-Personalized and Predictive Learning: Platforms are moving beyond basic adaptation to analyze real-time behavior patterns, such as response times and error sequences, to anticipate learning gaps before they occur.
Shift to Education-Specific AI Infrastructure: The market is transitioning away from generic AI tools toward "pedagogy-aware" platforms that have built-in understanding of specific grade-level expectations, curricula, and safety standards.

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AI in Education Market Opportunity

Growing EdTech Unlocks Market Opportunity

The growing penetration of high-speed internet and the strong development of customized learning paths increases adoption of EdTech. The strong focus on identifying difficulties and the automation of regular tasks requires AI. The higher need for language translation and the focus on improving student outcomes increases adoption of AI in education.

The increased utilization of voice assistance in EdTech and the automatic creation of study notes require AI. The need for on-demand assistance and the focus on analyzing struggle of students requires AI. The creation of an immersive learning path and push for online learning requires AI. The growing EdTech creates an opportunity for the growth of AI in education market.

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AI in Education Market Scope

Report Parameters	Details
Market Size by 2035	USD 136.79 Billion
Market Size in 2025	USD 7.05 Billion
Market Size in 2026	USD 9.58 Billion
Market Growth (2026 - 2035)	34.52% CAGR
Largest Market	North America
Base Year	2025
Forecast Period	2026 to 2035
Segments Covered	Component, Deployment, Technology, Application, End-use, and Regions
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa

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AI in Education Market Regional Insights

What made North America Dominate the AI in Education Market?

North America dominated the market in 2025. The growing demand for personalised learning experiences and the high penetration of the internet increase demand for AI in education. The high rate of digital literacy and the strong focus on automating administrative tasks increases adoption of AI in education.

The focus on enhancing student engagement and smart content management requires AI in education. The presence of key players like IBM, Google, and Microsoft drives market growth.

How Big is the U.S. AI in Education Market Size in 2026?

According to Precedence Research, the U.S. AI in education market size is projected to reach around USD 39.83 billion by 2035, increasing from USD 2.73 billion in 2026, poised to grow at a CAGR of 34.80% between 2026 and 2035.

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U.S. AI in Education Market Trends

The U.S. market is growing rapidly, with strong demand for personalized learning and adaptive platforms that tailor content to individual student needs, driving investments and adoption in K-12 and higher education institutions. Market forecasts show significant expansion in market value over the coming decade, supported by robust growth rates as schools and EdTech companies integrate AI-driven tools for analytics, tutoring, and automated assessments.

Why is Asia Pacific experiencing the Fastest Growth in the AI in Education Industry?

Asia Pacific is experiencing the fastest growth in the market during the forecast period. The strong government backing for digital education and the increasing use of LMS increase demand for AI in education. The popularity of adaptive learning systems and the strong presence of educational culture increases adoption of AI in education. The transition to e-learning solutions and the rise in automated grading require AI in education, supporting the overall market growth.

China AI in Education Market Trends

China’s market has expanded rapidly, driven by strong government support, such as the Ministry of Education of the People's Republic of China promoting smart campuses and digital learning reforms. Major technology companies, including Tencent, Alibaba Group, and Baidu, are investing heavily in AI-powered tutoring platforms, adaptive learning systems, and intelligent assessment tools.

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AI in Education Market Segmental Insights

Component Insights

Why the Solutions Segment Dominates the AI in Education Market?

The solutions segment dominated the AI in education industry in 2025. The strong focus on lowering the workload on teachers and the need to identify learning gaps increase demand for solutions. The transition to personalised learning and the focus on tracking student performance increases adoption of solutions. The transition towards hybrid learning and the rise in objective grading drive the overall market growth.

The services segment is the fastest-growing in the market during the forecast period. The expansion of customized learning and the focus on automating attendance tracking increases adoption of services. The need to predict dropout rates and the growing virtual learning require services. The increased utilization of integration services and the growth in curriculum redesign support the overall market growth.

Deployment Insights

How did the Cloud Segment hold the Largest Share in the AI in Education Market?

The cloud segment held the largest revenue share in the AI in education industry in 2025. The growing remote learning and the focus on managing student data increase demand for cloud deployment. The surge in virtual classrooms and the growing adaptive learning paths require cloud deployment. The flexibility, easy accessibility, data-driven personalization, and cost optimization in the cloud drive the market growth.

The on-premise segment is experiencing the fastest growth in the market during the forecast period. The need for faster data processing and the focus on consistent learning experiences increase demand for on-premise deployment. The stricter data security regulations and the lower latency requires on-premise deployment. The privacy, reliability, customization, and enhanced performance of on-premise deployment support the overall market growth.

Technology Insights

Why is Machine Learning Segment Dominating the AI in Education Market?

The machine learning (ML) segment dominated the AI in education industry in 2025. The increased customization of educational content and the need to automate routine tasks increase demand for machine learning. The identification of student failing rates and the presence of intelligent tutoring systems increase the adoption of ML. The focus on enhancing teacher productivity and the growing use of automated grading requires ML, driving the overall market growth.

The natural language processing (NLP) segment is the fastest-growing in the market during the forecast period. The focus on analyzing learning patterns and lowering manual workloads increases demand for NLP. The growing demand for conversational tutoring and the increased educational content creation require NLP. The robust growth in smart digital education supports the overall market growth.

Application Insights

Which Application held the Largest Share in the AI in Education Market?

The learning platform and virtual facilitators segment held the largest revenue share in the market in 2025. The strong focus on monitoring student progress and the increasing use of hybrid learning models increase the adoption of AI in education. The need to lower training costs and the higher demand for real-time assistance require AI in education. The increased AI integration in corporate training drives the overall market growth.

The smart content segment is experiencing the fastest growth in the market during the forecast period. The development of customized study plans and the popularity of voice-based learning increases adoption of AI in education. The enhanced efficiency, improved accessibility, 24/7 support, increased engagement, inclusivity, and immediate feedback in smart content support the overall market growth.

End-Use Insights

Why is the Higher Education Segment Dominating the AI in Education Market?

The higher education segment dominated the market in 2025. The increased creation of tailored learning programs and the growing number of virtual degrees increase demand for AI in education. The expansion of modern learning and the focus on automating literature review require AI in education. The strong focus on enhancing the efficiency of administrative tasks drives the overall market growth.

✚ Related Topics You May Find Useful:

➡️ Educational Technology Market: Explore how digital innovation is transforming modern learning environments and reshaping global education systems

➡️ Higher Education Market: Understand evolving academic models, international student mobility, and institutional growth strategies

➡️ Hyper-Personalized Learning Market: Discover how AI-driven customization is revolutionizing student engagement and learning outcomes

➡️ B2B Continuing Education Market: Analyze the rising demand for workforce upskilling and corporate training solutions across industries

➡️ Digital Classroom Market: See how virtual tools and smart technologies are enhancing interactive and remote learning experiences

➡️ Learning Management Systems Market: Track the growing adoption of centralized platforms for streamlined education delivery and performance tracking

➡️ Adaptive Learning Software Market: Gain insight into intelligent systems that adjust content based on individual learner performance

➡️ Corporate E-Learning Market: Explore how businesses are leveraging digital learning solutions to enhance workforce productivity

➡️ Learning Content Management Systems Market: Understand how content creation, management, and delivery tools are streamlining digital education ecosystems

Investments and Initiatives

U.S. NSF SBE and CAMEL collaborated to invest $9M in an AI-focused math education program. The initiative focuses on transforming the mathematical learning of K-12 and supports evidence-based approaches. (Source:- https://www.nsf.gov)
Google to invest $1billion in AI education across the United States. The investments focus on providing premium AI tools & training services to higher educational institutions. (Source:-https://economymiddleeast.com)
Jio launched Ai-driven education initiative in Tamil Nadu. The initiative focuses on advanced learning and enhancing methods of teaching by using Jio AI. (Source:-https://www.dtnext.in)

Top Companies in the AI in Education Market & Their Offerings:

ALEKS (McGraw Hill): Uses Knowledge Space Theory to assess precisely what a student knows and provides a personalized path for math and chemistry mastery.
Riiid: Operates deep-learning tutoring solutions that predict test scores and recommend real-time study plans for standardized exams.
DreamBox Learning: Features an intelligent adaptive engine that adjusts K-8 math and reading lessons instantly based on a student's unique problem-solving strategies.
Kidaptive (McGraw Hill): Provides an Adaptive Learning Platform (ALP) that analyzes diverse data points to create comprehensive psychometric profiles and personalized experiences.
Osmo (BYJU'S): Integrates physical play with computer vision to give children real-time feedback and customized challenges through interactive games.
Memrise: Employs AI-powered "MemBots" and spaced repetition to offer personalized, conversational language practice and vocabulary reinforcement.
Amazon Web Services (AWS): Offers cloud-based AI tools like Alexa and Lex for EdTech developers to build scalable, voice-enabled, and personalized learning applications.
IBM Corporation: Utilizes Watson Education to provide AI tools that help instructors personalize learning, analyze performance data, and automate administrative tasks.
Microsoft Corporation: Integrates AI into its ecosystem through "Learning Accelerators" and progress tracking tools to offer personalized coaching and feedback.
Cognizant: Provides consulting to help educational institutions implement AI for advanced student analytics and operational efficiency.
Google LLC: Features AI in Google Classroom for automated grading, personalized recommendations, and accessibility tools like live captions.
Pearson Plc: Incorporates AI into digital platforms like MyLab to provide adaptive assessments and data-driven tutoring for higher education.
BridgeU: Uses AI-driven matching algorithms to guide secondary school students toward personalized university and career pathways based on their academic profiles.

Recent Developments

In February 2026, the Government of Maharashtra launched the Shiksha Saathi AI tool for Anganwadi educators with the help of Rocket Learning and OpenAI. The AI tool provides personalised responses and is available for parents & educators. The tool offers educational guidance and strengthens education systems.
(Source:-https://educationworld.in)

In February 2026, Bharti Airtel Foundation and CK-12 Foundation launched AI-integration in TheTeacherApp for teacher empowerment. The AI addresses the requirement of teaching, saves time, and enriches instruction. The AI integration addresses the real-time needs of classrooms and is safe to use.
(Source:-https://indiaeducationdiary.in)

In February 2026, OpenAI launched AI education across higher education campuses. The initiative integrates AI into administration, teaching, and research.
(Source:- https://t2online.in)

Segments Covered in the Report

By Component

Solutions
Services

By Deployment

Cloud
On-premise

By Technology

Natural Language Processing (NLP)
Machine Learning

By Application

Learning Platform & Virtual Facilitators
Intelligent Tutoring System (ITS)
Smart Content
Fraud And Risk Management
Others

By End-use

K-12 Education
Higher Education
Corporate Training & Learning

By Region

North America
- U.S.
- Canada
- Mexico
- Rest of North America
South America
- Brazil
- Argentina
- Rest of South America
Europe
- Western Europe
  - Germany
  - Italy
  - France
  - Netherlands
  - Spain
  - Portugal
  - Belgium
  - Ireland
  - UK
  - Iceland
  - Switzerland
  - Poland
  - Rest of Western Europe
- Eastern Europe
  - Austria
  - Russia & Belarus
  - Türkiye
  - Albania
  - Rest of Eastern Europe
Asia Pacific
- China
- Taiwan
- India
- Japan
- Australia and New Zealand,
- ASEAN Countries (Singapore, Malaysia)
- South Korea
- Rest of APAC
MEA
- GCC Countries
  - Saudi Arabia
  - United Arab Emirates (UAE)
  - Qatar
  - Kuwait
  - Oman
  - Bahrain
- South Africa
- Egypt
- Rest of MEA

Thank you for reading. You can also get individual chapter-wise sections or region-wise report versions, such as North America, Europe, or Asia Pacific.

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