Smart Toys Market Size, Share, and Growth Analysis

Smart Toys Market By Distribution Channel (Offline, Online), By Product (Smart Interactive Games, Smart Educational Robots), By Region -Industry Forecast 2025-2032


Report ID: SQMIG45I2240 | Region: Global | Published Date: January, 2025
Pages: 193 |Tables: 60 |Figures: 67

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Smart Toys Market Insights

Global Smart Toys Market size was valued at USD 12.37 billion in 2023 and is poised to grow from USD 13.79 billion in 2024 to USD 32.95 billion by 2032, growing at a CAGR of 11.5% in the forecast period (2025-2032).

The demand for smart toys is on the rise due to the increasing adoption of artificial intelligence (AI) and the Internet of Things (IoT). Parents are increasingly drawn to toys that not only entertain but also educate, contributing to the growing popularity of education-based toys. In addition, the rising trend of gamification in smart toys enhances the overall play experience, making learning interactive and enjoyable for children. These interconnected factors drive the demand for smart toys as they offer technologically advanced and educational playtime for children, aligning with contemporary parenting preferences. The rising global smart toys industry is witnessing significant growth driven by a convergence of factors and evolving trends.

Parents, recognizing the paramount importance of early childhood development, are increasingly drawn to toys that seamlessly blend entertainment with education. Smart toys, integrating cutting-edge technology, provide interactive and educational experiences that align with modern parents' aspirations for their children. As the educational landscape transforms, the demand for toys that cultivate skills like problem-solving and critical thinking is on the rise. The immersive features of smart toys, including augmented reality (AR) and interactive storytelling, contribute to a captivating play experience, making learning enjoyable for children. Smart toys cater to a range of age groups, from toddlers to pre-teens, each with distinct developmental needs and preferences. Understanding the age demographics helps manufacturers design age-appropriate content, interactive features, and educational elements to ensure that smart toys align with the intended users' cognitive and emotional development stages.

Market snapshot - (2025-2032)

Global Market Size

USD 12.37 billion

Largest Segment

Offline

Fastest Growth

Online

Growth Rate

11.5% CAGR

Global Smart Toys Market ($ Bn)
Country Share for North America Region (%)

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Smart Toys Market Segments Analysis

The global smart toys market is segmented into product, distribution channel and region. Based on product, the market is segmented into smart interactive games and smart educational robots. Based on distribution channel, the market is segmented into offline and online. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.

Analysis by Product

As per global smart toys market outlook, the smart interactive games segment accounted for a share of 77.9% in 2024. The continuous evolution and accessibility of technology, including smartphones, tablets, and gaming consoles, have significantly contributed to the rising popularity of interactive games among kids. The immersive experiences and engaging features offered by these platforms make interactive games appealing and easily accessible for children. The increasing demand for personalized and adaptive learning experiences significantly contributes to the popularity of interactive toys in the market. These toys use AI algorithms to tailor content and challenges based on a child's individual preferences, learning pace, and abilities.

As per global smart toys market forecast, the smart educational robots segment is anticipated to grow at a CAGR of 14.5% from 2025 to 2032. The rising trend of homeschooling and alternative education methods influences the demand for educational robots. With an increasing number of parents choosing to educate their children outside of traditional school systems, there is a growing need for effective and engaging educational tools that complement home-based learning. Educational robots, with their ability to combine entertainment with educational content, align with the preferences of homeschooling families, driving their adoption as valuable learning aids.

Analysis by Distribution Channel

The offline segment dominated the market and accounted for a share of 78.8% of the global revenue in 2024. Offline stores, such as toy stores and department stores, allow consumers to physically interact with smart toys before purchasing. This hands-on experience provides a tangible understanding of the product's features and functionalities, catering to those who prefer a sensory connection with the toys before deciding to buy. The offline segment drives on the immersive and interactive nature of in-store shopping experiences. Brick-and-mortar retailers foster brand visibility and trust. The offline segment allows manufacturers to showcase their products prominently, build brand awareness through in-store displays, and leverage the expertise of trained sales staff who can guide customers through the features of smart toys.

Online segment is the fastest growing in the market which offering consumers a seamless shopping experience and contributing to the overall expansion of the market. Around 30.6% of U.S. parents opt to buy toys for their children through online channels, as per information from the U.S. National Library of Medicine. Moreover, the growing global connectivity and cross-border trade facilitated by e-commerce platforms drive the online segment's growth. Consumers access a wide array of smart toys from different regions, providing them with exposure to diverse cultural and educational experiences. This globalization of product availability drives the growth of the online segment.

Global Smart Toys Market By Distribution Channel (%)

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Smart Toys Market Regional Insights

As per smart toys market analysis, the North America region dominated the market and accounted for a share of 39.3% in 2024. North America boasts a well-established network of toy stores, department stores, and electronic retail outlets that provide a diverse range of smart toys. This widespread availability, coupled with the region's strong consumer purchasing power, ensures that a broad demographic can easily access and purchase smart toys. In addition, the integration of voice-activated technology is driving the regional market growth. Voice-activated smart toys, equipped with virtual assistants or interactive features, offer children a hands-free and intuitive user experience. Voice technology trends create engaging and interactive products that cater to North American consumers' preferences for convenient and innovative play experiences.

The Asia Pacific region is expected to grow at a CAGR of 12.9% from 2025 to 2032. Many countries in Asia Pacific, such as China, Japan, and South Korea, are major manufacturing hubs with well-established supply chains and production capabilities. Parents in Asia Pacific place a strong emphasis on educational products for their children. Cross-industry collaborations and partnerships also contribute to the dynamism of the smart toys market in Asia Pacific. Collaborations between technology companies, toy manufacturers, and entertainment franchises often result in the creation of innovative and licensed smart toys. These products, featuring characters from popular media, gain a competitive edge and attract a large consumer base, particularly among families and children.

Global Smart Toys Market By Geography
  • Largest
  • Fastest

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Smart Toys Market Dynamics

Drivers

Increasing Working Population

  • The working women population has substantially increased over the past few years and this trend is expected to prominently drive the smart toys market potential over the forecast period. This working-class population will further bolster the demand for smart toys as parents seek advanced toys that they can administer to their kids in their absence. The rising popularity of smart technology is also expected to boost the smart toys market growth during the forecast period.

Increasing Demand for Remote Learning

  • Smart toys are used for educational purposes and are also being recommended by teaching professionals, especially for the kids that are in their developmental years. Increasing adoption of smart toys in the education sector with the rising popularity of remote learning is expected to be a major trend that will favor global smart toys market growth. Smart toys companies are expected to focus on this trend to boost their sale generation potential.

Restraints

Lack of Awareness among Consumers

  • Lack of awareness among consumers is anticipated to represent significant market barriers during the forecast period. Many people still do not understand the benefits of smart toys, and some are even skeptical about their safety and security. This skepticism is largely due to the fear of data breaches and privacy violations, which have been reported in the media.

High Cost of Production

  • The high cost of production is expected to hinder market growth in the coming years. The development and manufacturing of smart toys requires a significant investment in technology and expertise, which can be costly. This cost is often passed on to consumers, making smart toys more expensive than traditional toys.

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Smart Toys Market Competitive Landscape

The competitive landscape of the global smart toys industry is highly dynamic, with established players and emerging startups competing to capture the attention of tech-savvy parents and children. Major companies such as Lego Group, Hasbro, Mattel, and VTech dominate the market with extensive product portfolios that integrate advanced technologies like artificial intelligence (AI), machine learning, and augmented reality (AR) to deliver interactive and educational experiences. These players leverage strong brand recognition, global distribution networks, and consistent innovation to maintain their competitive edge.

Top Players in Smart Toys Market

  • Pillar Learning
  • Sega Toys Co. Ltd.
  • LeapFrog Enterprises Inc.
  • Mattel Inc. 5. Hasbro Inc.
  • Lego System A/S
  • Robofi LLC
  • Tomy Co. Ltd.
  • Doctor's Associates Inc.
  • Digital Dream Labs
  • Sphero
  • Wonder Workshop
  • TOSY Robotics

Recent Developments

  • In February 2024, Sega Toys launched KIMIT Ragdoll, a cat-like robot pet that uses AI technology to act like a real cat. It was developed in collaboration with Elephant Robotics, an industrial robot manufacturer. The robot cat has cat-like movements, such as wagging its tail and looking up in response to sound
  • In September 2023, Mattel, Inc. launched an innovative edition of Pictionary, the classic quickdraw game, called Pictionary Vs. AI. It marks the first instance of a board game seamlessly incorporating AI technology into its traditional gameplay. In this new version, the players draw while the AI guesses
  • In June 2023, Hasbro launched the Furby interactive toy, a highly engaging companion with five voice-activated modes and over 600 responses, including lights, sounds, and ten distinct songs.

Smart Toys Key Market Trends

Smart Toys Market SkyQuest Analysis

SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to SkyQuest analysis, smart toys increase professional talents such as computers and engineering through smart engagement and behavioral learning. As parents continue to embrace goods that can aid in their children's intellectual development, the use of smart toys will increase. Various factors driving the growth of smart toys include direct and two-way communication, real-time tracking of children's activities, and the ability to store personal data such as a child's name, photos, and voice recordings, which aid in the personalization of toys. Fisher-Price, for example, sells a Smart Toy Bear that may be operated via a smartphone app. Over the projected period, such advancements are likely to boost the market. However, rising worries about data and privacy issues as smart toys become more prevalent are projected to stymie industry development. As a result, various regulatory agencies are taking major measures and actions to limit the hazards associated with the use of these smart toys.

Report Metric Details
Market size value in 2023 USD 12.37 billion
Market size value in 2032 USD 32.95 billion
Growth Rate 11.5%
Base year 2024
Forecast period (2025-2032)
Forecast Unit (Value) USD Billion
Segments covered
  • Distribution Channel
    • Offline and Online
  • Product
    • Smart Interactive Games, Smart Educational Robots
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
  • Pillar Learning
  • Sega Toys Co. Ltd.
  • LeapFrog Enterprises Inc.
  • Mattel Inc. 5. Hasbro Inc.
  • Lego System A/S
  • Robofi LLC
  • Tomy Co. Ltd.
  • Doctor's Associates Inc.
  • Digital Dream Labs
  • Sphero
  • Wonder Workshop
  • TOSY Robotics
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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 Smart 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 Smart 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 Smart 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 Smart 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 Smart Toys Market:

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

Regional Analysis: Further analysis of the Smart 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.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Smart Toys Market size was valued at USD 12.37 billion in 2023 and is poised to grow from USD 13.79 billion in 2024 to USD 32.95 billion by 2032, growing at a CAGR of 11.5% in the forecast period (2025-2032).

The competitive landscape of the global smart toys industry is highly dynamic, with established players and emerging startups competing to capture the attention of tech-savvy parents and children. Major companies such as Lego Group, Hasbro, Mattel, and VTech dominate the market with extensive product portfolios that integrate advanced technologies like artificial intelligence (AI), machine learning, and augmented reality (AR) to deliver interactive and educational experiences. These players leverage strong brand recognition, global distribution networks, and consistent innovation to maintain their competitive edge. 'Pillar Learning', 'Sega Toys Co. Ltd.', 'LeapFrog Enterprises Inc. ', 'Mattel Inc. 5. Hasbro Inc. ', 'Lego System A/S ', 'Robofi LLC ', 'Tomy Co. Ltd. ', 'Doctor's Associates Inc. ', 'Digital Dream Labs ', 'Sphero ', 'Wonder Workshop ', 'TOSY Robotics'

The working women population has substantially increased over the past few years and this trend is expected to prominently drive the smart toys market potential over the forecast period. This working-class population will further bolster the demand for smart toys as parents seek advanced toys that they can administer to their kids in their absence. The rising popularity of smart technology is also expected to boost the smart toys market growth during the forecast period.

Increasing Awareness of Technology-Led Education to Witness the Growth: Along with the growth in the middle-class family population, the penetration of smartphones and the development of social media platforms have opened opportunities and encouraged individuals to participate and select technology-led toys, hence expanding the size of the smart toys industry. Enhanced Learning: Interactive instructional information from smart toys can boost cognitive, social, and emotional skill sets.

As per smart toys market analysis, the North America region dominated the market and accounted for a share of 39.3% in 2024. North America boasts a well-established network of toy stores, department stores, and electronic retail outlets that provide a diverse range of smart toys. This widespread availability, coupled with the region's strong consumer purchasing power, ensures that a broad demographic can easily access and purchase smart toys. In addition, the integration of voice-activated technology is driving the regional market growth. Voice-activated smart toys, equipped with virtual assistants or interactive features, offer children a hands-free and intuitive user experience. Voice technology trends create engaging and interactive products that cater to North American consumers’ preferences for convenient and innovative play experiences.

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Smart Toys Market

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