Connected Toys

Global Connected Toys Market to Reach US$52.2 Billion by 2030

The global market for Connected Toys estimated at US$18.1 Billion in the year 2024, is expected to reach US$52.2 Billion by 2030, growing at a CAGR of 19.3% over the analysis period 2024-2030. Console-Connected Toys, one of the segments analyzed in the report, is expected to record a 18.4% CAGR and reach US$20.5 Billion by the end of the analysis period. Growth in the Smartphone-Connected Devices segment is estimated at 19.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$5.1 Billion While China is Forecast to Grow at 18.2% CAGR

The Connected Toys market in the U.S. is estimated at US$5.1 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$7.8 Billion by the year 2030 trailing a CAGR of 18.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 16.9% and 16.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.1% CAGR.

Global Connected Toys Market - Key Trends & Drivers Summarized

What Are Connected Toys, and Why Are They Transforming Play Experiences?

Connected toys are internet-enabled toys that offer interactive, digital experiences through connectivity to mobile apps, cloud platforms, and smart devices. These toys, including smart dolls, educational robots, and app-integrated games, use sensors, microphones, and cameras to interact with children, respond to their actions, and provide immersive play experiences. Connected toys enhance learning by introducing children to STEM (science, technology, engineering, and mathematics) concepts through interactive activities, voice recognition, and personalized content. For parents, these toys provide a new dimension of educational entertainment, allowing children to engage with technology in a controlled and monitored environment.

The importance of connected toys lies in their ability to combine play with learning, offering educational value that adapts to each child’s preferences and abilities. By utilizing AI and interactive features, connected toys help develop problem-solving skills, creativity, and critical thinking. The data collected from these toys also allows parents to monitor their child’s learning progress and set restrictions on content. As demand for educational and tech-enabled toys grows, connected toys are becoming increasingly popular, offering new and engaging ways for children to learn, explore, and play.

How Are Technological Advancements Enhancing the Capabilities of Connected Toys?

Technological advancements are rapidly expanding the capabilities of connected toys, making them more interactive, adaptive, and safe. The integration of AI enables connected toys to understand voice commands, recognize faces, and adapt responses based on a child’s learning progress, creating a personalized experience. Voice recognition and natural language processing (NLP) allow children to interact with toys through conversational commands, fostering language skills and making playtime more engaging. Augmented reality (AR) and virtual reality (VR) are also being incorporated into connected toys, providing immersive environments that allow children to experience stories, games, and learning activities in 3D.

In terms of safety, improvements in data encryption and privacy protection help ensure that children’s data remains secure, addressing concerns about data sharing and online safety. Parental control features in mobile apps connected to these toys allow parents to monitor usage, set screen time limits, and control access to specific features. Connectivity via Bluetooth and Wi-Fi makes these toys easier to set up and integrate with smartphones or home assistants, enhancing the play experience. These technological advancements make connected toys smarter, more interactive, and safer, meeting the needs of both children and parents in the digital age.

What Are the Key Applications of Connected Toys Across Different Age Groups?

Connected toys offer applications across various age groups, supporting development, education, and play. For younger children, smart toys such as interactive storybooks and plush animals introduce language development and sensory learning through sounds, lights, and interactive elements. For children aged 5 to 12, STEM-based toys like programmable robots and building kits provide hands-on learning experiences, teaching basic coding and engineering concepts in an engaging format. These toys often include challenges, games, and progress tracking that encourage children to explore problem-solving and critical thinking.

For preteens and teenagers, connected toys include AR/VR experiences, drones, and smart gaming platforms that combine entertainment with interactive learning, catering to tech-savvy users. Many connected toys for this age group emphasize creativity, allowing users to design games, build virtual worlds, and learn about technology through play. Additionally, educational apps linked to connected toys support school curriculum and offer resources for subjects like math and science. The adaptability of connected toys to different developmental stages highlights their versatility and appeal, offering age-appropriate engagement that promotes learning through play.

What Factors Are Driving Growth in the Connected Toys Market?

The growth in the connected toys market is driven by several factors, including increasing demand for educational entertainment, advancements in smart technology, and rising digital literacy among children. Parents are seeking toys that offer educational value, combining entertainment with skill-building activities that support early development. Connected toys, equipped with AI and interactive features, meet these demands by providing personalized and immersive learning experiences that go beyond traditional toys. Technological advancements, such as AR, VR, and voice recognition, have expanded the capabilities of connected toys, making them more engaging and adaptable to different learning levels.

The rising comfort of parents with digital devices for their children has also fueled demand for connected toys, as they provide controlled digital experiences with educational benefits. Additionally, the global expansion of the Internet of Things (IoT) has made it easier to develop and distribute connected toys that can be managed remotely through mobile apps, adding convenience for parents. Increasing focus on STEM education has further driven adoption, as connected toys support foundational skills in coding, engineering, and science. Together, these factors contribute to the growth of the connected toys market, positioning it as a transformative force in the toy industry by merging technology with play and education.

SCOPE OF STUDY:

The report analyzes the Connected Toys market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Interacting Device (Console-Connected Toys, Smartphone-Connected Devices, App-Connected Drones, Tablet-Connected Toys); Age Group (2-5 Years, 6-8 Years, 9-12 Years, Teenagers)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 36 Featured) -

• Anki
• Bandai Namco
• DXTR Labs
• Hasbro
• K’NEX
• Konami
• LEGO Group
• Leka
• Mattel
• PlayFusion

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs CBob geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

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APRIL 2025: NEGOTIATION PHASE

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