Connected Toy Market Overview
Connected Toy Market Size was estimated at 5.53 (USD Billion) in 2022.The Connected Toy Market Industry is expected to grow from 6.45(USD Billion) in 2023 to 25.5 (USD Billion) by 2032. The Connected Toy Market CAGR (growth rate) is expected to be around 16.5% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Connected Toy Market Trends Highlighted
demand for connected toys is rising as technology advancements pave the way for innovative experiences. The integration of AI, IoT, and AR/VR technologies is transforming connected toys into interactive companions that foster children's creativity, cognitive development, and social interaction. Parents are increasingly seeking toys that provide educational value and enhance their children's playtime experiences. Moreover, advancements in connectivity and wireless charging capabilities are simplifying the user experience and enhancing the appeal of connected toys.
Key market drivers include growing parental awareness of the educational benefits of connected toys, increasing disposable income, and technological advancements. Opportunities exist in the integration of AI and machine learning to create personalized toy experiences, the development of toys that promote social and emotional development, and the expansion into emerging markets. Recent trends include the proliferation of connected toys with subscription-based models, the rise of STEM-focused toys, and the growing demand for toys that promote inclusivity and diversity.
Connected Toy Market Drivers
Increased Adoption of Smart Devices and Internet of Things (IoT)
The growing adoption of smart devices, such as smartphones, tablets, and smart speakers, has fueled the demand for connected toys that can interact with these devices. IoT technology enables toys to connect to the internet and exchange data, allowing them to offer interactive and personalized experiences. This integration of smart devices and IoT into connected toys enhances their functionality, making them more engaging and appealing to children.
Rising Popularity of Educational Toys
The demand for educational toys has been rising steadily as parents and educators recognize the importance of play-based learning. Connected toys offer a unique blend of entertainment and education, allowing children to learn while they play. These toys often incorporate educational content and games that stimulate cognitive development, problem-solving skills, and creativity. The growing popularity of educational toys is a key driver for the growth of the Connected Toy Market Industry.
Advancements in Technology and Innovation
Technological advancements have played a significant role in the evolution of connected toys. The integration of artificial intelligence (AI), augmented reality (AR), and virtual reality (VR) technologies has enhanced the user experience and made connected toys more immersive and interactive. These technologies allow toys to respond to voice commands, recognize facial expressions, and create virtual environments that offer imaginative and engaging play experiences.
Connected Toy Market Segment Insights
Connected Toy Market Age Group Insights
The Connected Toy Market is segmented based on Age Group into Pre-School, Elementary School, Middle School and High School. Among these segments, the Pre-School segment is expected to hold the largest market share in 2023, owing to the increasing popularity of educational toys and games among young children. The Pre-School segment is also expected to witness the highest growth rate during the forecast period. The Elementary School segment is expected to hold the second-largest market share in 2023.
This segment is expected to grow steadily over the forecast period, driven by the increasing demand for interactive and engaging toys that can help children learn and develop their cognitive skills.The Middle School segment is expected to hold a significant market share in 2023. This segment is expected to grow at a moderate pace over the forecast period, driven by the increasing popularity of gaming and entertainment-based toys among children in this age group.
The High School segment is expected to hold the smallest market share in 2023. This segment is expected to grow at a slow pace over the forecast period, driven by the increasing preference for electronic devices and gadgets among teenagers. Overall, the Connected Toy Market is expected to witness significant growth over the forecast period, driven by the increasing popularity of connected toys and games, the growing adoption of smart devices, and the rising demand for educational and interactive toys.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Connected Toy Market Toy Category Insights
Toy Category Segment Overview and Insights The Connected Toy Market segmentation by toy category offers valuable insights into the diverse product offerings within the industry. Interactive Dolls and Action Figures accounted for a significant revenue share in 2023, driven by their ability to engage children through immersive experiences. Remote Control Vehicles continue to captivate enthusiasts, with advancements in technology enabling extended range and maneuverability.
Wearable Toys, offering fitness tracking and interactive gameplay, are gaining traction as healthy and engaging options.Smart Plush Toys combine the emotional appeal of traditional toys with the functionality of smart devices, fostering companionship and educational opportunities. Robotic Toys, showcasing advanced AI capabilities, provide unique play experiences and foster STEM skills. The Connected Toy Market is expected to witness robust growth across these toy categories, driven by innovation and evolving consumer preferences
Connected Toy Market Connectivity Features Insights
The Connectivity Features segment is a crucial aspect of the Connected Toy Market segmentation. Bluetooth Connectivity holds a significant market share due to its wide compatibility and low power consumption. Wi-Fi Connectivity is gaining traction as it offers a more stable and faster connection for interactive toys. Voice Control is projected to witness substantial growth due to the increasing popularity of voice assistants and smart home devices.
Gesture Control, leveraging advancements in computer vision, allows for intuitive interaction, making it appealing for educational and entertainment purposes.In 2023, the Connected Toy Market revenue from Connectivity Features is estimated to be around USD 2.5 billion, and it is projected to reach USD 6.8 billion by 2030, exhibiting a CAGR of 12.5%. This growth is attributed to the rising demand for interactive, educational, and entertaining toys that enhance the play experience for children.
Connected Toy Market Regional Insights
The Connected Toy Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest regional market, accounting for more than 40% of the revenue in 2023. The region is home to a large number of toy manufacturers and retailers and has a high adoption rate of connected devices. Europe is the second largest market, with a significant share of the revenue.
The region has a well-established toy industry and a growing demand for connected toys. APAC is the fastest growing regional market, with a CAGR of over 18%.The region is home to a large and growing population of children, and a rising middle class with increasing disposable income. South America and MEA are relatively smaller markets but are expected to grow at a healthy rate in the coming years.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Connected Toy Market Key Players And Competitive Insights
Major players in Connected Toy Market are investing heavily in research and development to create innovative products that meet the evolving demands of consumers. Leading Connected Toy Market players are focusing on developing toys that are interactive, educational, and immersive, leveraging advanced technologies such as artificial intelligence (AI), augmented reality (AR), and virtual reality (VR). The Connected Toy Market industry is characterized by intense competition, with companies vying to gain market share through strategic partnerships, acquisitions, and product differentiation.
Partnerships with content providers and technology companies are becoming increasingly common, allowing Connected Toy Market players to offer a wider range of offerings and enhance the user experience.Among the leading Connected Toy Market players, Lego has established a strong presence in the market through its iconic building blocks and innovative digital experiences. The company has invested heavily in developing its Connected Toys portfolio, including the Lego Boost and Lego Mindstorms lines, which combine physical play with digital interaction. Lego's focus on educational value and creative play has resonated well with consumers, contributing to its ongoing success.
Mattel, another major player in the Connected Toy Market, has also made significant strides in the digital realm. The company's Barbie line, for instance, has been expanded to include connected dolls that can interact with users through voice commands and mobile apps. Mattel has also partnered with technology companies such as Google to enhance its offerings, providing users with more immersive and interactive experiences. The company's focus on innovation and brand recognition has enabled it to maintain a strong position in the market.
Key Companies in the Connected Toy Market Include
- Mattel
- VTech
- Sphero
- DJI
- Ubtech
- CloudPets
- Kano
- Hasbro
- Spin Master
- LeapFrog
- Anki
- Amazon
- Wowwee
- Xiaomi
- Wonder Workshop
Connected Toy Market Industry Developments
The connected toy market is projected to reach USD 25.5 billion by 2032, exhibiting a CAGR of 16.5% during the forecast period 2024-2032. The rising popularity of smart devices, coupled with advancements in wireless technologies, is driving the growth of the connected toy market. Moreover, the increasing adoption of augmented reality (AR) and virtual reality (VR) in toys is further fueling market expansion.
In recent years, several key developments have shaped the market landscape. In 2023, Mattel launched its first-ever connected doll, Barbie Dreamhouse Adventures, which allows children to interact with the doll through a mobile app. Additionally, Hasbro introduced its NERF Laser Ops Pro line of connected toys, enabling multiplayer laser tag experiences. These innovations are expected to continue driving market growth in the coming years.
Connected Toy Market Segmentation Insights
Connected Toy Market Age Group Outlook
- Pre-School
- Elementary School
- Middle School
- High School
Connected Toy Market Toy Category Outlook
- Interactive Dolls and Action Figures
- Remote Control Vehicles
- Wearable Toys
- Smart Plush Toys
- Robotic Toys
Connected Toy Market Connectivity Features Outlook
- Bluetooth Connectivity
- Wi-Fi Connectivity
- Voice Control
- Gesture Control
Connected Toy Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
5.53(USD Billion) |
| Market Size 2023 |
6.45(USD Billion) |
| Market Size 2032 |
25.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
16.5% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Mattel, VTech, Sphero, DJI, Ubtech, CloudPets, Kano, Hasbro, Spin Master, LeapFrog, Anki, Amazon, Wowwee, Xiaomi, Wonder Workshop |
| Segments Covered |
Age Group, Toy Category, Connectivity Features, Regional |
| Key Market Opportunities |
Growth in AR VR and Mixed Reality Expansion in Emerging Markets Rising Disposable Income Growing Adoption of STEM Science Technology Engineering and Mathematics Toys Increasing Consumer Demand for Interactive and Engaging Toys |
| Key Market Dynamics |
Rising demand for interactive play experiences Advances in technology Growing adoption of smart devices Increased focus on child development and Expansion of ecommerce channels |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Connected Toy Market is expected to reach a valuation of USD 25.5 billion by 2032, expanding at a 16.5% CAGR from 2024 to 2032.
Educational toys and smart dolls are anticipated to be the fastest-growing segments, primarily driven by the increasing demand for interactive and educational toys that support children's development.
Leading players in the Connected Toy Market include Mattel, Hasbro, VTech, LeapFrog, and Sphero, among others.
The increasing popularity of Internet of Things (IoT) devices, advancements in artificial intelligence (AI), and growing demand for personalized toys are shaping the market landscape.
North America is expected to witness a significant growth rate of approximately 15.5% during the forecast period, owing to the high adoption of advanced technologies and the presence of major toy manufacturers.
Asia-Pacific is projected to account for a substantial share of the market, expanding at a CAGR of around 17% from 2023 to 2032, driven by the increasing disposable income and rising demand for educational toys.
IoT and AI are revolutionizing the Connected Toy Market by enabling toys to connect to the internet, gather data, and interact with users in a more personalized and engaging manner.
The growing desire for toys that are tailored to individual children's needs and interests is driving the development of personalized toys, which are expected to gain significant traction in the market.
Concerns over data privacy, cybersecurity risks, and the potential for addiction to connected toys pose challenges to the market's growth.
