Global Connected Toys Market

Global Connected Toys Market Size (2024 to 2029)

The global connected toys market is predicted to reach USD 8.11 billion in 2024 and USD 19.60 billion by 2029, growing at a CAGR of 19.3% during the forecast period.

Connected toys are Internet-enabled devices that function with Wi-Fi, Bluetooth, or other built-in features. These toys offer a personalized experience for children with the aid of integrated software, along with voice recognition and web search. Connected toys mainly consist of a microphone, a speaker, and an application to process data. The surging adoption of educational toys among children is likely to fuel the growth of the global connected toy market. Parents are looking for products that can help their children's intellectual development, which in turn increases the need for such toys. For example, CogniToys' Dino uses Wi-Fi to stay connected and IBM Watson's natural language processing technology to tailor responses to the age and ability of a child, which further teaches children to spell words.

Global Connected Toys Market Drivers:

The main drivers of global connected toys market growth include the surge in the adoption of science, technology, engineering, and maths (STEM) toys and the widespread and easy availability of connected platforms. The connected toys market has seen a rising call for smartphone-compatible toys. Children spend more time on smartphones and other devices compared to the time they spend with their parents. This has led manufacturers to invest in smartphone toys, which take advantage of the capabilities of connected devices. These innovations are expected to stimulate the market during the forecast period.

Connected toys are available in different shapes and designs. Still, they all have one common element: connectivity that permits children to interact with the toy through a smart device or smartphone. Due to rapid technological advancements, children's toys are now computerized and connected to the Internet and will continue to benefit from many other advances shortly. Also, an increase in Internet users and the increased adoption of various portable devices such as smartphones and tablets are driving the market worldwide.

As artificial intelligence and robotics have become more affordable compared to the past few years, technology has been incorporated into many children's toys. This provides a new interactive experience for children and extends the lifespan of multi-functional toys. Furthermore, the future concept of the Internet of toys should also stimulate the market. A surge in the disposable income of middle-income groups and changes in people's lifestyles also propels the market.

Global Connected Toys Market Restraints:

children are vulnerable customers because they don't understand how these toys work and the risks they pose. To overcome these security problems, regulations play an essential role in producing safe products. For example, the general data protection regulation (Europe) extends to connected toys to increase citizens' control over personal data, thereby positively impacting the confidentiality of data on these toys.

Impact of COVID-19 on the global connected toys market:

The Covid-19 pandemic has brought an adverse effect on almost all sectors across the globe. Connected toys are among those sectors that witnessed a massive decline in sales in the second quarter of 2020. The growing concern among consumers to stay safe has made them stick to homes and avoid places like physical retail stores. However, sales through online channels are supposed to record an increment in the coming years.

REPORT COVERAGE:

This research report on the global connected toys market has been segmented and sub-segmented based on the interacting device, age group, and region.

Global Connected Toys Market - By interacting Device:

• Devices connected to a smartphone

• Drones connected to the application.

• Toys connected to the console.

• Toys connected to a tablet

Global Connected Toys Market - By Age Group:

• 2 to 5 years

• 6-8 years

• 9 to 12 years old

• Teenagers

Global Connected Toys Market - By Region:

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus

North America is expected to have the largest market size during the calculated period, owing to the early adoption and innovative initiatives for connected toys, such as Artificial Intelligence (AI), machine learning (ML), and speech recognition. Factors driving growth in connected toys in the North American region are high funding possibilities, large clientele, an environment conducive to innovation, and the availability of a highly skilled workforce.

KEY MARKET PARTICIPANTS:

The major companies operating in the global connected toys market include Mattel, Hasbro, LEGO Group (Denmark), Sphero (United States), Sony (Japan), PLAYMOBIL (Germany), BANDAI NAMCO (Japan), K'NEX (United States), Konami (Japan), Wonder Workshop (United States), PlayFusion (United Kingdom), Anki (United States), WowWee (Hong Kong), DXTR Labs (Denmark), and Leka (France).

RECENT HAPPENINGS IN THE MARKET:

• In May 2019, the LEGO group implemented the latest addition to its existing Star Wars range. The new LEGO Star Wars encompasses all the creativity and coding fun of LEGO BOOST, along with the ability to build three of the most iconic droids in the movie franchise: R2-D2, the droid Gonk, and the mouse droid.

• Facebook has shaken hands with Sphero to use the game to develop education and make it more accessible. With increased visibility in the classroom and a favorable opinion created both in the minds of parents and teachers, this decision could create more receptiveness in the connected toy market.

• Mattel has recently extended its license agreement with Pixar Animation Studios to embed new versions and successes at the vintage box office. For example, he took advantage of the opportunity by capitalizing on the Toy Story 4 case by gaining 1% of second-quarter sales. You are looking to get the most out of the interactive gaming experiences in the market in the coming period.

• Hasbro and Sony aim to launch connected toys called Ghostbusters before the release of Ghostbusters 2020. This is similar to Mattel's decision to partner with film producers to increase their market share. The discerned pattern also shows that strategic partnerships and product developments remain crucial.

• In July 2019, Bandai Namco introduced a new platform, Tori, that is determined to comprehend physical toys with iOS and Android mobile applications. Tori results from a strategic collaboration between Bandai Namco and the French technology firm ISKN.

• In May 2018, The Lego group released Powered Up, a connected toy and its first in the app-controlled Batmobile series. This Powered Up line will help build and program the Batmobile.