Smart Toys Market Analysis and Forecast to 2032: By Product (Interactive Games, Robots, Educational Robots), Distribution Channel (Online, Offline), and Region

Smart Toys Market Analysis and Forecast to 2032: By Product (Interactive Games, Robots, Educational Robots), Distribution Channel (Online, Offline), and Region

The global Smart Toys market was valued at USD 11.7 Billion in 2022 and it is anticipated to grow up to USD 69.6 Billion by 2032, at a CAGR of 19.5% during the forecast period.

Smart toys are interactive toys that can respond to a child’s actions and provide educational content. They often use technology such as sensors, software, and artificial intelligence to create an immersive and engaging experience for children. Some popular smart toys include robotic pets, digital dolls, and educational gaming consoles.
Global Smart Toys Market Scope and Report Structure
[table id=697 /]
Market Trends and Drivers
Various factors such as direct and two-way communication, real-time tracking of children's activities, and the capability to store personal data, such as child's name, photos, and voice recordings, which help in the personalization of toys, are some of the factors majorly driving the growth of smart toys. Companies such as Fisher-Price offers Smart Toy Bear that can be controlled by the smart toy app on a smartphone. Such innovations are expected to drive the market over the forecast period.​ The advent of 5G technology is expected to boost the adoption of smart devices and toys over the forecast period. According to the Ericsson Mobility.

Adopting STEM (Science, Technology, Engineering, and Math) toys for children's skills enhancement is one of the key factors driving the demand for the smart toys market. Smart toys enhance professional skills such as coding and engineering through smart interaction and behavioral learning. As parents always embrace products that can assist in their children's intellectual development, this will further boost the adoption of smart toys. Companies such as SmartGurlz toy teach girls how to code.​
Market Restraints and Challenges
The key restraints and challenges in smart toys market are as follows:

1. Lack of standardization: There is no standardization in terms of technology, design, and functionality in the smart toys market, which makes it difficult for consumers to compare and choose the right product.

2. High cost: Smart toys are generally more expensive than traditional toys, which may limit their appeal to price-conscious consumers.

3. Privacy and security concerns: Some smart toys collect data from users, which raises concerns about privacy and security. There have been reports of hacked smart toys that have leaked personal information of users.

4. Limited functionality: Some smart toys only offer basic features and are not as interactive or engaging as promised.
Global Smart Toys Market Segmental Overview
The report analyses the global Smart Toys market based on product, distribution channel, and region

Global Smart Toys Market by Product

Based on product, the market is segmented as Interactive Games, Robots, and Educational Robots. The interactive games segment held the largest revenue share of over xx% in 2022 owing to the growth of edutainment services, coupled with high smartphone penetration. Interactive games are a fun way to learn and explore creative knowledge in a new way. Interactive games challenge players to solve puzzles in a virtual setting. These games can also be used in preschool learning for understanding letters and alphabets. Additionally, The Lego Group offers LEGO dimensions, which use NFC technology to interact with players. The educational robots segment is anticipated to expand at the fastest CAGR over the forecast period. Smart robot toys are useful for boosting creativity, problem-solving ability, communication, and teamwork. These robots are usually operated through remote control or can be operated through a smartphone or a tablet. Key players in the market are introducing robots that are compatible either through Android or iOS devices.

Global Smart Toys Market by Distribution channel

Based on distribution channel, the market is segmented as online and offline. The offline channel segment accounted for the largest revenue share of over xx% in 2022. The changing landscape for distribution channels has increased the competition among both online and offline retailers. Consumers opting for smart toys are demanding immersive experiences from brands. One of the key players in the smart toy industry, Hasbro is partnering with retailers such as Target and Walmart to expand its business. The company is also utilizing its warehouse in the Midwest U.S. to reduce delivery and trucking mileage.

The online segment is expected to register the fastest CAGR of xx% over the forecast period. E-commerce channel provides consumers with several options. During the pandemic, the sales of educational toys were affected and several toymakers had to shift their operations virtually. The availability of toys online allows key players to diversify by adopting social advertising of their products and utilizing TV media to cater to a larger consumer base. Parents now have the option of comparing prices and the online channel gives the ability to choose between different retailers.
Geographical Analysis of Global Smart Toys Market
Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. In 2022, North America held the largest revenue share of over 40.0%. The rising adoption of smart home devices is driving the demand for smart toys in the region. As per Acquity Groups study, the consumption of in-home smart products is on the rise in the U.S. 30% of the consumers own smart IoT devices in the country. The market in the Asia Pacific is expected to witness the fastest growth in the forecast period.

A rise in the middle-class population, coupled with the growing preference for educational learning toys, is driving the demand for smart toys in the APAC region. Lego Group has been witnessing a steady demand in the region owing to its wide distribution network and engagement rate with customers. For instance, The LEGO Group is expanding its presence in Singapore by investing in the development of the digital industry in the country. The key player has partnered with Singapores Economic Development Board to increase the companys reach in East Asia.
Major Players in the Global Smart Toys Market
The key players in the market are Playmobil, Pillar Learning, Sega Toys Co. Ltd., LeapFrog Enterprises Inc., Mattel Inc., Hasbro Inc., Lego System A/S, Robofi LLC, Tomy Co. Ltd., and Doctor’s Associates Inc.
COVID-19 Impact:
The Covid-19 pandemic has resulted in severe lockdowns in various parts of the world. The imposed lockdown has augmented work-from-home practices and shut down schools and other educational institutions as a safety measure.​ According to UNESCO's latest figures, some 1.3 billion learners worldwide could not attend school as of March 23, 2020. Many schools, colleges, and universities are closed across the globe.​Such trends have increased the opportunities for the adoption of smart toys globally, as it promotes remote learning practices and provides enriching and immersive experiences to children..
Recent Developments:

In April 2022, LeapFrog® Enterprises, Inc., the leading innovative educational toys for Children Company, launched its iconic Scout and Violet plush pals and new creative touch-sensitive technology toys perfect for pretend play that builds young imaginations, and makes learning fun and exciting.
May 2021- The Kinder brand partnered with Gameloft and Oxford University to launch Applaydu. This new app brings Kinder Joy toys to life through augmented reality in a world of discovery and imagination. The application also offers games, stories, and opportunities for creativity and exploration.
April 2021 - Play Shifu announced they had raised USD 17 million from Inventus Capital India. The company plans to invest in launching eight new products by the end of 2021 and 12 to 30 products to cover over 20 early-learning skills by 2022.
In 2020, Mattel Inc. partnered with Universal Brand Development to launch Netflix TV series based on Spirit Riding Free. The partnership is expected to aid Mattel to extend their range of toys in the Spirit Riding Free category.
In December 2020, Lego Group announced to open its first Lego retail store in Salt Lake City in Utah, the U.S. The store provides immersive experiences for the customers with the inclusion of a wide range of toys.
In February 2018, Hasbro entered into an agreement with Netflix to create play experiences for kids based on the Netflix show super monster. The agreement will help the company to produce a wide range of toys under the Playskool brand.

Frequently Asked Questions
Q1. How big is the Smart Toys Market?

Ans. The global Smart Toys market was valued at USD 11.7 Billion in 2022 and it is anticipated to grow up to USD 69.6 Billion by 2032, at a CAGR of 19.5% during the forecast period.

Q2. What is the Smart Toys Market growth rate?

Ans. The growth rate of the Smart Toys Market is 19.5%

Q3. Which region holds a major market share for the market?

Ans. North America holds a major market share of the Smart Toys Market in 2022.

Q4. Which segment accounted for the largest Smart Toys Market share?

Ans. By distribution channel, the offline segment accounted for the largest Smart Toys Market share.

Q5. Who are the key players in the Smart Toys Market?

Ans. The global Smart Toys Market report includes players such as   Playmobil, Pillar Learning, Sega Toys Co. Ltd., LeapFrog Enterprises Inc., Mattel Inc., Hasbro Inc., Lego System A/S, Robofi LLC, Tomy Co. Ltd., and Doctor’s Associates Inc.. among others.

Q6. What are the factors driving the Smart Toys Market growth?

Ans. The major factors driving the growth of the market are apid adoption of the Internet of Things.

Q7. What are the key growth strategies of Smart Toys Market players?

Ans. The key growth strategies of Smart Toys Market players are product launch and product approval.

Q8. Which region will provide more business opportunities for the Smart Toys Market during the forecast period?

Ans. The Asia-Pacific region will provide more business opportunities for the Smart Toys Market during the forecast period.

Please Note: This report will be delivered by publisher within 3-4 business days of order confirmation.