Connected Toys Market Size (2024 - 2029)

The connected toys market is experiencing significant growth, driven by the increasing demand for interactive and multifunctional toys that aid in children's learning and development. The market's expansion is further supported by the rising popularity of STEM toys, which are essential for enhancing children's skills in science, technology, engineering, and mathematics. Despite challenges such as privacy concerns and the impact of pandemic-related store closures, the market is poised for growth as parents increasingly seek toys that contribute to their children's intellectual development.

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Market Size of Connected Toys Industry

Connected Toys Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 13.25 Billion
Market Size (2029) USD 35.27 Billion
CAGR (2024 - 2029) 21.63 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Connected Toys Market Major Players

*Disclaimer: Major Players sorted in no particular order

Connected Toys Market Analysis

The Connected Toys Market size is estimated at USD 13.25 billion in 2024, and is expected to reach USD 35.27 billion by 2029, growing at a CAGR of 21.63% during the forecast period (2024-2029).

The growing preference among children for more interactive and self-aligning toys has propelled the market for connected toys. Connected toys are versatile devices that serve multiple purposes. Parents often program these toys to facilitate learning exercises and use them as event trackers to ensure the safety and security of their children. The adoption of connected toys is expected to witness increased demand over the forecast period as parents increasingly prefer connected toys that can assist their children with developing their intellectual level.

  • Furthermore, the adoption of STEM (Science, Technology, Engineering, and Math) toys for children's skills enhancement is one of the key factors driving the demand for the connected toys market. These connected toys are being used to enhance professional skills, such as coding and engineering.
  • Developing STEM skills among the youngest learners is an economic imperative in the United States. Thus, students starting early in STEM subjects can build strong foundations and begin to enhance the nation's low scores in these areas. According to the National Center for Education Statistics, 64% of fourth graders are below proficiency level in mathematics in most states of the United States. In response, toy companies are increasingly focusing on investing in making their products a suitable means of interactive learning.
  • The growing digital trend of connecting common devices to the internet is posing new issues for consumer protection and online security. 'Connected toys' often include a microphone and speaker, as well as an app to process data. While it is undeniable that these high-tech gadgets can bring new life to leisure, they can also present significant problems in terms of privacy protection. Such factors related to privacy are hampering the growth of the market.
  • However, the closure of toy shops and departmental stores due to pandemic lockdown restrictions in many countries lowered the connected toy products sale from the stores and hampered market growth.

Connected Toys Industry Segmentation

Connected toys primarily consist of a microphone and speaker and an app to process the data. These toys offer a more personalized experience for children through embedded software that includes speech recognition software. Also, these toys can help parents keep track of the whereabouts of their children.

The connected toys market is segmented by type (smartphonec onnected toys, console connected toys, and tablet connected toys) and geography (North America, Europe, Asia Pacific, and the Rest of the World).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Type
Smartphone Connected Toys
Console Connected Toys
Tablet Connected Toys
By Geography***
North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Connected Toys Market Size Summary

The connected toys market is experiencing significant growth, driven by the increasing demand for interactive and educational toys that integrate technology. These toys, often referred to as smart toys, offer versatile functionalities, including learning exercises and safety features, making them appealing to both children and parents. The rise in popularity of STEM-focused toys is a key factor propelling the market, as these toys help children develop essential skills in coding, engineering, and other areas. The widespread adoption of smartphones and other handheld devices further supports the market's expansion, as these devices enable seamless connectivity and interaction with toys. However, concerns regarding privacy and online security pose challenges to market growth, particularly given the data processing capabilities of connected toys.

North America is poised to dominate the global connected toys market, supported by the region's rapid technological advancements and high penetration of connectivity services. The presence of major players like Mattel Inc., Hasbro, and Sphero, along with their continuous product innovations, contributes to the region's market leadership. The market is characterized by fragmentation, with both established toy manufacturers and emerging tech companies competing vigorously. Strategic initiatives such as mergers, acquisitions, and product innovations are prevalent as companies strive to enhance their offerings and maintain competitiveness. Despite challenges like pandemic-related store closures, the market is expected to continue its upward trajectory, driven by the growing integration of technology in children's toys and the increasing availability of connected products.

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Connected Toys Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Buyers/Consumers

      2. 1.2.2 Bargaining Power of Suppliers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Assessment of the Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Smartphone Connected Toys

      2. 2.1.2 Console Connected Toys

      3. 2.1.3 Tablet Connected Toys

    2. 2.2 By Geography***

      1. 2.2.1 North America

      2. 2.2.2 Europe

      3. 2.2.3 Asia

      4. 2.2.4 Australia and New Zealand

      5. 2.2.5 Latin America

      6. 2.2.6 Middle East and Africa

Connected Toys Market Size FAQs

The Connected Toys Market size is expected to reach USD 13.25 billion in 2024 and grow at a CAGR of 21.63% to reach USD 35.27 billion by 2029.

In 2024, the Connected Toys Market size is expected to reach USD 13.25 billion.

Connected Toys Market Report Snapshots

Connected Toys Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)