Market Trends of Connected Toys Industry
Smartphone Connected Toys are Expected to Witness Significant Growth
- Smartphones have become increasingly prevalent worldwide, with a significant portion of the population owning or having access to one. This widespread adoption of smartphones created a large user base that can interact with smartphone-connected toys.
- Connected toys, also considered smart toys, are available in various shapes and designs with a common connectivity element, allowing the children to interact with the toy through a smart device or smartphone. Many manufacturers have been producing toy units that can fly using only an app and a Wi-Fi or bluetooth connection.
- With the rapid technological advancements, children's toys are already computerized and connected to the Internet and will continue to witness many more upgrades in the near future. Moreover, an increase in Internet users, coupled with the increased adoption of hand-held devices like smartphones and tablets, is driving the global market.
- Various factors such as direct communication, real-time tracking of children's activities, and personal data storage that includes a child's name, photos, and voice recordings, which helps personalize the toys, are some of the reasons driving the app-based connected toys. For instance, in September 2022, the world of Shell Motorsport came with seven bluetooth-controlled models. Each model can be remote-controlled via a smartphone, with gamification and engagement through the global Shell racing app.
- As artificial intelligence (AI) and robotics have become more affordable than in the past years, the technology has been incorporated into a wide range of children's toys. This not only offers a new interactive experience to the children but also extends the life of toys with multiple features. Such innovations are expected to drive the market over the forecast period.
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North America is Expected to Hold the Largest Market Share
- The demand for connected toys in the region is expected to grow in the coming years. This growth will be driven by the continued popularity of technology among children, the growing focus on educational toys and the increasing availability of connected toys in the market.
- North America is expected to dominate the global connected toys market with a significant market share. The rapid adoption of technological advancements in the region, the integration of technology in various learning and leisure gadgets, and the high penetration of connectivity services stand to be key factors driving the market's growth.
- Furthermore, increasing adoption of these toys among toddlers and pre-schoolers in the United States and Canada on account of strong product awareness through e-commerce portals and print and digital media is expected to remain a favorable factor over the coming years.
- The presence of key players, including Mattel Inc., Hasbro, Inc., Sphero, and others in connected toys, is expected to be a major factor driving the market growth in North America. Also, these vendors are making significant developments and innovations in their products and offerings, which will further contribute to the region's growth.
- In February 2022, Hasbro, Inc., a global play and entertainment leader, announced the activation of its purpose-driven brand blueprint strategy with an extensive lineup of new content and products across its iconic portfolio. The company unveiled all-new entertainment and product innovations across key franchise categories, including action, arts & crafts, and gaming brands.
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