Global Connected Toys Market

Global Connected Toys Market Size, Share, Growth Analysis, By Interface(App-based connected drones, Console connected toys), By Distribution Channel(Retailers, Online) - Industry Forecast 2023-2030


Report ID: SQMIG45I2110 | Region: Global | Published Date: February, 2024 | Pages: 157 | Tables: 64 | Figures: 76

Global Connected Toys Market Insights

Connected Toys Market size was valued at USD 7.60 billion in 2021 and is poised to grow from USD 9.45 billion in 2022 to USD 53.83 billion by 2030, growing at a CAGR of 24.3% in the forecast period (2023-2030).

The global connected toys market has experienced significant growth in recent years due to advancements in technology, increasing consumer demand for interactive and educational play experiences, and the proliferation of Internet of Things (IoT) devices. Connected toys are physical toys that are integrated with digital components, such as sensors, cameras, and wireless connectivity, enabling them to interact with apps, devices, and the internet. Factors driving the market's expansion include the rising trend of blended play, where physical and digital play are combined to offer enriched experiences, as well as the potential for enhanced learning and engagement for children. The ability of connected toys to provide personalized and interactive content, as well as real-time feedback and data collection, has garnered interest among parents and educators. The market encompasses a wide range of products, from interactive dolls and action figures to educational tablets and augmented reality-based playsets. Key players in the industry are continuously innovating to create compelling and safe connected toys while addressing concerns related to data privacy and security.

US Connected Toys Market is poised to grow at a sustainable CAGR for the next forecast year.

Market snapshot - 2023-2030

Global Market Size

USD 7.60 billion

Largest Segment

Online

Fastest Growth

Online

Growth Rate

24.3% CAGR

Global Connected Toys Market ($ Bn)
Country Share for North America Region (%)
Global Connected Toys Market By distribution channel ($ Bn)
Global Connected Toys Market By distribution channel (%)

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Global Connected Toys Market Segmental Analysis

The global connected toys market is segmented on the basis of Interface, Age, Distribution channel and region. By Interface, the market is segmented into App-based connected drones, Console connected toys, Smartphone connected toys, Tablet connected toys. By Age, the market is segmented into 2-5 years, 6-8 years, 8-12 years, Teenagers, Adults. By Distribution channel, the market is segmented into Retailers, Online, Specialty stores. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Connected Toys Market Analysis By Interface

In the global connected toys market, the dominant segment is likely to be App-based connected drones. Drones have gained significant popularity due to their interactive and engaging nature, attracting both children and hobbyists. The ability to control drones through dedicated applications provides a seamless user experience, driving the dominance of this segment.

On the other hand, the fastest-growing segment could be Smartphone connected toys. Smartphones have become an integral part of modern life, and their compatibility with various connected toys enhances their appeal. These toys often leverage smartphone apps for control, communication, and additional features, contributing to their rapid growth in the market.

Connected Toys Market Analysis By Distribution channel

The online distribution channel has emerged as the dominant segment in the global connected toys market. The convenience of shopping from home, a wide range of product options, and the ability to compare prices easily have contributed to the strong growth of online sales. Major e-commerce platforms and online marketplaces have facilitated the accessibility and availability of connected toys to a global consumer base.

On the other hand, Specialty stores catering specifically to connected toys and tech-driven play experiences have been one of the fastest-growing distribution segments. These stores offer a unique and curated selection of connected toys, providing consumers with expert advice and immersive in-store experiences. As the demand for specialized and innovative toys increases, specialty stores are well-positioned to cater to niche markets and offer a hands-on shopping experience that complements the interactive nature of connected toys.

Global Connected Toys Market By distribution channel, 2021 (%)

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Global Connected Toys Market Regional Insights

The global connected toys market is analyzed based on its regional presence, which includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The global connected toys market has experienced significant growth with North America emerging as the dominant region. North America's advanced technological infrastructure, high consumer disposable income, and strong presence of key market players have contributed to its dominance. The region's early adoption of IoT-based technologies and a tech-savvy population have driven the demand for connected toys.

Meanwhile, Asia-Pacific is the fastest-growing region in the connected toys market. Rapid urbanization, expanding middle-class population, and increasing smartphone penetration in countries like China, India, and Japan have fueled the growth of connected toys. Rising consumer awareness, changing lifestyles, and a growing emphasis on children's education and entertainment have created a burgeoning market for these interactive and digitally connected playthings. As a result, the Asia-Pacific region is witnessing substantial adoption and innovation in the connected toys sector, making it the fastest-growing market regionally.

Global Connected Toys Market By Geography, 2023-2030
  • Largest
  • Fastest

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Global Connected Toys Market Dynamics

Connected Toys Market Drivers

Technological Advancements and Innovation:

  • The global connected toys market is driven by rapid advancements in technology, including IoT (Internet of Things), AI (Artificial Intelligence), and augmented reality (AR). These technologies enable toys to offer interactive and immersive experiences, enhancing engagement and learning for children. The integration of sensors, connectivity, and smart features into toys has led to a surge in demand from tech-savvy consumers seeking novel and educational play options.

Growing Emphasis on Edutainment:

  • The increasing focus on blending education and entertainment, known as "edutainment," is fueling the demand for connected toys. Parents and educators recognize the potential of these toys to provide engaging learning experiences that promote cognitive development, problem-solving skills, and creativity. Connected toys can offer personalized learning pathways, real-time feedback, and adaptive content, aligning with modern educational trends and driving their adoption.

Connected Toys Market Restraints

Privacy and Data Security Concerns:

  • Connected toys often collect and transmit personal data, raising concerns about privacy and data security. Vulnerabilities in toy connectivity can expose sensitive information and potentially compromise children's safety. As regulatory scrutiny over data protection intensifies, manufacturers face challenges in ensuring robust security measures, leading to hesitation among parents and guardians to adopt connected toys.

High Costs and Accessibility Issues:

  • The integration of advanced technologies into connected toys can result in higher manufacturing costs, which are then passed on to consumers. This price point may limit accessibility for some families, potentially creating a digital divide in access to educational and interactive play experiences. Additionally, disparities in internet infrastructure and digital literacy across regions can hinder the widespread adoption of connected toys, particularly in underserved areas.

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Global Connected Toys Market Competitive Landscape

The global connected toys market is characterized by intense competition and rapid technological advancements. Leading players such as Mattel, Hasbro, LEGO Group, and VTech dominate the market with their innovative offerings. These companies emphasize integrating smart technologies, IoT connectivity, and interactive features into traditional toy concepts. Collaborations with tech firms and software developers are common strategies to enhance product capabilities. Emerging players are also gaining prominence with their unique robotic and AI-powered toys. Start-ups focused on educational and STEAM-based connected toys contribute to market diversity. E-commerce giants like Amazon and Alibaba have entered the space, leveraging their platforms to promote and distribute connected toys. Regulatory concerns related to data privacy and child safety influence market dynamics. The competitive landscape is further intensified by ongoing patent filings and intellectual property battles. As consumer demand for interactive, educational, and immersive experiences grows, companies strive to differentiate through innovation, quality, safety, and seamless digital integration.

Connected Toys Market Top Player’s Company Profile

  • Lego Group - Denmark
  • Nintendo Co., Ltd. - Japan
  • Fisher-Price, Inc. - United States
  • Hasbro, Inc. - United States
  • Mattel Inc. - United States
  • Tomy Company, Ltd. - Japan
  • VTech Electronics North America, LLC. - Hong Kong 
  • Jabil Inc. - United States
  • Melissa & Doug - United States
  • Little Tikes - United States
  • Tru Kids, Inc. - United States
  • Spin Master Ltd. - Canada
  • Sphero Inc. - USA
  • WowWee Group Limited - Hong Kong
  • Anki - USA
  • LeapFrog Enterprises, Inc. - USA
  • MGA Entertainment Inc. - USA
  • Playmobil - Germany
  • Osmo (Tangible Play Inc.) - USA
  • Wonder Workshop - USA
  • CloudPets - USA

Connected Toys Market Recent Developments

  • In January 2023, Mattel, Inc. launched its new line of connected toys, called "Barbie Dreamhouse Adventures." These toys allow children to interact with Barbie and her friends through a mobile app.
  • In February 2023, Hasbro, Inc. launched its new line of connected toys, called "Furby Connect." These toys are interactive plushies that can connect to a mobile app and learn new phrases and behaviors.
  • In March 2023, Spin Master Ltd. launched its new line of connected toys, called "Toca Life World." These toys are open-ended, digital toys that allow children to create their own stories.

Global Connected Toys Key Market Trends

  • IoT Integration and Interactivity: Connected toys are increasingly leveraging Internet of Things (IoT) technology to enhance interactivity and engagement. These toys are designed to connect to the internet, enabling features such as remote control, data collection, and real-time updates. They often use sensors, cameras, and voice recognition technology to create immersive and personalized experiences for children. IoT integration also allows for seamless connectivity between toys and other devices, such as smartphones and tablets, enabling parents and guardians to monitor and interact with their children's playtime.
  • Educational and Skill Development Focus: Many connected toys are being designed with a strong emphasis on educational value and skill development. These toys go beyond entertainment and aim to foster learning in areas such as STEM (Science, Technology, Engineering, and Mathematics), language acquisition, problem-solving, and creativity. They often incorporate gamified elements, interactive challenges, and adaptive learning features that tailor the experience to the child's individual needs and progress. This trend reflects a growing demand from parents and educators for toys that offer more than just entertainment, aligning with the broader shift toward educational technology and edutainment.

Global Connected Toys Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

According to our global connected toys market analysis, the market has experienced remarkable growth due to the convergence of technology and play, offering interactive and educational experiences for children. Driven by advancements in IoT, AI, and mobile connectivity, connected toys have gained popularity as they provide interactive and immersive learning opportunities. These toys enable personalized experiences, real-time feedback, and remote connectivity, fostering engagement and skill development. The market is propelled by the increasing demand for innovative and tech-driven play experiences, with companies focusing on safety, data privacy, and content quality. However, concerns about data security, privacy, and screen time management have prompted regulatory scrutiny. The COVID-19 pandemic further accelerated the adoption of connected toys, as remote learning and entertainment gained significance. As the market evolves, collaboration between toy manufacturers, tech developers, and child development experts will be crucial to ensure both entertainment value and educational benefits, shaping the future of play.

Report Metric Details
Market size value in 2021 USD 7.60 billion
Market size value in 2030 USD 53.83 billion
Growth Rate 24.3%
Base year 2021
Forecast period 2023-2030
Forecast Unit (Value) USD Billion
Segments covered
  • Interface
    • App-based connected drones, Console connected toys, Smartphone connected toys, and Tablet connected toys
  • Distribution Channel
    • Retailers, Online, and Specialty stores
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Lego Group - Denmark
  • Nintendo Co., Ltd. - Japan
  • Fisher-Price, Inc. - United States
  • Hasbro, Inc. - United States
  • Mattel Inc. - United States
  • Tomy Company, Ltd. - Japan
  • VTech Electronics North America, LLC. - Hong Kong 
  • Jabil Inc. - United States
  • Melissa & Doug - United States
  • Little Tikes - United States
  • Tru Kids, Inc. - United States
  • Spin Master Ltd. - Canada
  • Sphero Inc. - USA
  • WowWee Group Limited - Hong Kong
  • Anki - USA
  • LeapFrog Enterprises, Inc. - USA
  • MGA Entertainment Inc. - USA
  • Playmobil - Germany
  • Osmo (Tangible Play Inc.) - USA
  • Wonder Workshop - USA
  • CloudPets - USA
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Global Connected Toys Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Global Connected Toys Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Global Connected Toys Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Connected Toys Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Connected Toys Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Global Connected Toys Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

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FAQ's

Connected Toys Market size was valued at USD 7.60 billion in 2021 and is poised to grow from USD 9.45 billion in 2022 to USD 53.83 billion by 2030, growing at a CAGR of 24.3% in the forecast period (2023-2030).

The global connected toys market is characterized by intense competition and rapid technological advancements. Leading players such as Mattel, Hasbro, LEGO Group, and VTech dominate the market with their innovative offerings. These companies emphasize integrating smart technologies, IoT connectivity, and interactive features into traditional toy concepts. Collaborations with tech firms and software developers are common strategies to enhance product capabilities. Emerging players are also gaining prominence with their unique robotic and AI-powered toys. Start-ups focused on educational and STEAM-based connected toys contribute to market diversity. E-commerce giants like Amazon and Alibaba have entered the space, leveraging their platforms to promote and distribute connected toys. Regulatory concerns related to data privacy and child safety influence market dynamics. The competitive landscape is further intensified by ongoing patent filings and intellectual property battles. As consumer demand for interactive, educational, and immersive experiences grows, companies strive to differentiate through innovation, quality, safety, and seamless digital integration. 'Lego Group - Denmark', 'Nintendo Co., Ltd. - Japan', 'Fisher-Price, Inc. - United States', 'Hasbro, Inc. - United States', 'Mattel Inc. - United States', 'Tomy Company, Ltd. - Japan', 'VTech Electronics North America, LLC. - Hong Kong ', 'Jabil Inc. - United States', 'Melissa & Doug - United States', 'Little Tikes - United States', 'Tru Kids, Inc. - United States', 'Spin Master Ltd. - Canada', 'Sphero Inc. - USA', 'WowWee Group Limited - Hong Kong', 'Anki - USA', 'LeapFrog Enterprises, Inc. - USA', 'MGA Entertainment Inc. - USA', 'Playmobil - Germany', 'Osmo (Tangible Play Inc.) - USA', 'Wonder Workshop - USA', 'CloudPets - USA'

The global connected toys market is driven by rapid advancements in technology, including IoT (Internet of Things), AI (Artificial Intelligence), and augmented reality (AR). These technologies enable toys to offer interactive and immersive experiences, enhancing engagement and learning for children. The integration of sensors, connectivity, and smart features into toys has led to a surge in demand from tech-savvy consumers seeking novel and educational play options.

IoT Integration and Interactivity: Connected toys are increasingly leveraging Internet of Things (IoT) technology to enhance interactivity and engagement. These toys are designed to connect to the internet, enabling features such as remote control, data collection, and real-time updates. They often use sensors, cameras, and voice recognition technology to create immersive and personalized experiences for children. IoT integration also allows for seamless connectivity between toys and other devices, such as smartphones and tablets, enabling parents and guardians to monitor and interact with their children's playtime.

The global connected toys market is analyzed based on its regional presence, which includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The global connected toys market has experienced significant growth with North America emerging as the dominant region. North America's advanced technological infrastructure, high consumer disposable income, and strong presence of key market players have contributed to its dominance. The region's early adoption of IoT-based technologies and a tech-savvy population have driven the demand for connected toys.

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