Artificial Intelligence (AI) in Higher Education Market Report 2026

The artificial intelligence (AI) in higher education market size has grown exponentially in recent years. It will grow from $3.03 billion in 2025 to $4.09 billion in 2026 at a compound annual growth rate (CAGR) of 35%. The growth in the historic period can be attributed to expansion of online higher education programs, growing availability of cloud computing infrastructure, rising demand for scalable learning solutions, increased digital literacy among educators, early adoption of learning analytics.

The artificial intelligence (AI) in higher education market size is expected to see exponential growth in the next few years. It will grow to $13.46 billion in 2030 at a compound annual growth rate (CAGR) of 34.7%. The growth in the forecast period can be attributed to increasing investment in ai-driven education platforms, rising demand for personalized learning experiences, expansion of smart campus initiatives, growing focus on student retention analytics, increasing integration of ai with learning management systems. Major trends in the forecast period include increasing adoption of ai-powered learning platforms, rising use of intelligent tutoring systems, growing deployment of predictive analytics in student performance, expansion of virtual teaching assistants, enhanced focus on personalized learning pathways.

The growth in online education is expected to propel the growth of the AI in higher education market going forward. Online education refers to the delivery of instructional content and learning experiences through digital platforms, allowing students to access education remotely via the internet. Its popularity is rising due to flexibility, convenience, and accessibility, enabling learners to study from anywhere at any time and accommodating diverse needs and schedules. AI enhances online education by personalizing learning experiences, automating administrative tasks, and providing intelligent support systems, thereby improving engagement and effectiveness for both students and educators. For instance, in June 2025, according to Coursera Inc., a US-based online learning platform, Coursera’s 700 GenAI courses averaged 12 enrollments per minute in 2025 - a significant increase from 1 per minute in 2023 and 8 per minute in 2024. Therefore, the growth of online education is driving the expansion of the AI in higher education market.

Leading companies in the AI in higher education market are focusing on developing innovative AI-enabled tools to provide personalized learning experiences, improve engagement, automate administrative tasks, offer timely support, and enhance overall educational effectiveness. AI tools for education deliver intelligent learning experiences, personalize instruction, automate administrative workflows, and provide technology-guided support systems for students and educators. For instance, in July 2024, Pearson Plc, a UK-based learning company, launched a generative AI-powered tool for instructors. This tool helps educators efficiently create personalized student assignments and integrates with Pearson’s MyLab and Mastering teaching and learning platforms. Its key feature is streamlining assignment creation to enhance instructional delivery.

In November 2023, Research Solutions, Inc., a US-based cloud technology company, acquired Scite.ai for an undisclosed amount. This acquisition strengthens Research Solutions, Inc.’s offerings by integrating Scite’s AI-powered search platform, designed to accelerate research for R&D-focused organizations. Scite.ai, a US-based company, specializes in developing AI-driven research tools that help researchers analyze scientific papers efficiently.

Major companies operating in the artificial intelligence (AI) in higher education market are Amazon.com Inc., Google LLC, Microsoft Corporation, Intel Corporation, International Business Machines Corporation, Oracle Corporation, Cognizant Technology Solutions India Private Limited, Adobe Inc., Pearson Plc, Century Communities Tech Limited, John Wiley and Sons Inc., 2U Inc., Coursera Inc., Instructure Holdings Inc., D2L Inc., Kaltura Inc., Jenzabar Inc., Carnegie Learning Inc., Brainly Inc., Quantum Adaptive Learning LLC, Knewton Inc., BridgeU Ltd., Fishtree Inc., Querium Corporation, Cognii Inc

North America was the largest region in the AI in higher education market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in higher education market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI) in higher education market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The AI in higher education market consists of revenues earned by entities by providing services such as automated grading and assessment, predictive analytics, content creation and curation and language translation. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in higher education market also includes sales of adaptive learning systems, virtual assistants, learning management systems and virtual reality (VR) and augmented reality (AR) educational tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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