In-depth Market Analysis of the Development Prospects of AI in Education Industry
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Eighteen departments, including the Ministry of Education, jointly issued the 'Opinions on Strengthening Science Education in Primary and Secondary Schools in the New Era' (hereinafter referred to as the 'Opinions'), proposing to implement standards for the allocation of science and related subject teaching equipment and strengthen laboratory construction. It explores the use of artificial intelligence, virtual reality, and other technological means to improve and enhance experimental teaching, while emphasizing the use of advanced educational technologies to address the shortage of high-quality educational resources in underdeveloped regions, schools, and for special needs children.
This new regulation is seen as a positive signal from the national level to promote the application of artificial intelligence in the field of education. In fact, in the 'Notice on Supporting the Construction of Demonstration Application Scenarios for the New Generation of Artificial Intelligence' issued by the Ministry of Science and Technology in August last year, smart education was included as one of the first batch of demonstration application scenarios.
In-depth Analysis of the AI + Education Market
Currently, artificial intelligence is entering a period of rapid application and development globally, and its penetration into various fields is an inevitable trend, with education being no exception. The institutional recognition of the 'AI + Education' development direction is a response to the evolving needs of education and technological progress.
At a deeper level, the arrival of the AI era means more than just adding a new tool to education. Its reshaping of all aspects of society also requires the public to consider the relationship between humans and AI, how to scientifically view the development of AI, and what kind of talents need to be cultivated in the AI era, among other practical questions. These are precisely the issues that education must help address. Therefore, the integration of AI and education should not only focus on its instrumental value but also involve changes in educational concepts and methods.
In recent years, the national level has continued to emphasize the need to strengthen the construction of educational informatization and smart education scenarios within schools. AI technology is expected to bring new development opportunities to the education industry. AI can help reduce costs and improve efficiency in teaching content production, enable personalized and adaptive teaching, enhance student learning efficiency, and foster high-quality learning habits.
As an important area of 5G integration, AI + education has accelerated its development in recent years, positively impacting educational innovation and teaching model reforms. The booming AI education industry in China has attracted a large number of enterprises and investors.
AI education refers to the multi-level AI education system implemented under national policies such as the 'New Generation Artificial Intelligence Development Plan,' 'China's Education Modernization 2035,' and the 'Higher Education Artificial Intelligence Innovation Action Plan.'
AI can be applied in various areas of education, including student learning, examinations, teaching, and educational management. From the perspective of terminals and application scenarios, education is one of the high-quality landing scenarios for AI. In August 2022, the Ministry of Science and Technology issued the 'Notice on Supporting the Construction of Demonstration Application Scenarios for the New Generation of Artificial Intelligence,' which included smart education as one of the first batch of demonstration scenarios. In 2023, China's educational informatization market reached 577.6 billion yuan, with a CAGR of 9.2% over six years. Whether from a policy or government budget perspective, the application of AI in the education industry has favorable conditions.
From large classes to small classes, traditional education struggles to meet the needs of personalized education. AIGC technology empowers education to deliver personalized teaching at the lowest marginal cost, achieving optimal educational outcomes. AI + education has already been practically applied by companies such as New Oriental, TAL Education, Four Seasons Education, and Squirrel AI.
Analysis of the Development Prospects of AI + Education
With policy support and the disruptive changes brought by technology, the market potential is enormous. The pandemic has also accelerated changes in learning habits, bringing the industry's development forward. From 2015 to 2019, the compound annual growth rate of China's AI + education market reached 69.8%, with the market size reaching approximately 172 billion yuan in 2019. It is estimated that by 2023, the market size of AI + education in China will exceed 600 billion yuan, indicating broad development prospects.
Future directions for AI + education include: 1) AI training: Comprehensive training from perception to use, application, and innovation of AI, with the demand and motivation for learning AI significantly increasing in the AI era. 2) Educational informatization: Collecting student learning and examination data to develop personalized learning solutions.
Education is one of the most direct and logically coherent application scenarios under the AI wave. AI + education is an important direction for the implementation of AIGC.
Institutions point out that education is one of the most direct and logically coherent application scenarios under the AI wave. AI+Education is a crucial implementation direction for AIGC. The education industry has a mature foundation of industrial informatization, a broad user base, and underlying data resources. The AIGC industry chain is beginning to take shape, with its application direction focusing on scenarios characterized by 'high-frequency iteration' and 'personalized demand.' The education sector aligns highly with the application direction of AI.
As competition in the AI+Education industry intensifies, mergers, acquisitions, and capital operations among large enterprises are becoming increasingly frequent. Leading AI+Education companies, both domestically and internationally, are placing greater emphasis on analyzing and researching the industry market, particularly in-depth studies of current market conditions and trends in customer demand. This is to preemptively capture the market and gain a first-mover advantage. As a result, a large number of outstanding brands have rapidly emerged, gradually becoming leaders in the industry. Zhongyan Puhua utilizes a variety of proprietary information processing technologies to collect, organize, process, analyze, and transmit vast amounts of data in the AI+Education industry market. It provides clients with comprehensive information solutions and consulting services, minimizing investment risks and operational costs while seizing investment opportunities and enhancing corporate competitiveness.